The mission statement should be a clear and succinct representation of the enterprise’s purpose for existence. It should incorporate socially meaningful and measurable criteria addressing concepts such as the moral/ethical position of the enterprise, public image, the target market, products / services, the geographic domain and expectations of growth and profitability.

The intent of the Mission Statement should be the first consideration for any employee who is evaluating a strategic decision. The statement can range from a very simple to a very complex set of ideas.

Mission Statements of Well Known Enterprises

The following are some examples of mission statements from real enterprises.

3M
“To solve unsolved problems innovatively”

Wal-Mart
“To give ordinary folk the chance to buy the same thing as rich people.”

Google: “Google’s mission is to organize the world’s information and make it universally accessible and useful.”

Walt Disney
“To make people happy.”
These are the ‘one-liners’, but each is supported by a set of values that set the performance standards and direct the implementation of the mission.
And Walt Disney, an entertainment business states their values as follows.

• No cynicism
• Nurturing and promulgation of “wholesome American values”
• Creativity, dreams and imagination
• Fanatical attention to consistency and detail
• Preservation and control of the Disney “magic”

Many believe that the Mission Statement should have a grand scale, be socially meaningful and be measurable. The following are some examples of historical Mission Statements that were truly grand in scale.

Conclusion

So, when you are preparing your Mission Statement remember to make it clear and succinct, incorporating socially meaningful and measurable criteria and consider approaching it from a grand scale. As you create your Mission Statement consider including some or all of the following concepts.

• The moral/ethical position of the enterprise
• The desired public image
• The key strategic influence for the business
• A description of the target market
• A description of the products/services
• The geographic domain
• Expectations of growth and profitability

Answering the following questions will help you to create a verbal picture of your business’s mission:

• Why are you in business? What do you want for yourself, your family and your customers? Think about the spark that ignited your decision to start a business. What will keep it burning?
• Who are your customers? What can you do for them that will enrich their lives and contribute to their success–now and in the future?
• What image of your business do you want to convey? Customers, suppliers, employees and the public will all have perceptions of your company. How will you create the desired picture?
• What is the nature of your products and services? What factors determine pricing and quality? Consider how these relate to the reasons for your business’s existence. How will all this change over time?
• What level of service do you provide? Most companies believe they offer “the best service available,” but do your customers agree? Don’t be vague; define what makes your service so extraordinary.
• What roles do you and your employees play? Wise captains develop a leadership style that organizes, challenges and recognizes employees.
• What kind of relationships will you maintain with suppliers? Every business is in partnership with its suppliers. When you succeed, so do they.
• How do you differ from your competitors? Many entrepreneurs forget they are pursuing the same dollars as their competitors. What do you do better, cheaper or faster than other competitors? How can you use competitors’ weaknesses to your advantage?
• How will you use technology, capital, processes, products and services to reach your goals? A description of your strategy will keep your energies focused on your goals.
• What underlying philosophies or values guided your responses to the previous questions? Some businesses choose to list these separately. Writing them down clarifies the “why” behind your mission.

Dennis Ng, http://www.HousingLoanSG.com

BNI Renaissance Chapter Education Coordinator

I hope all of you can benefit from using these 5 questions in your future dance card sessions!

Note: Dance Card sessions are informal sessions whereby BNI members meet up with one another to get to know more about each other and each other’s business, with a view to better refer business to each other.

5 Questions To Ask to Do a Good Dance Card

1. How would you describe your products and services to a layman?

Bearing in mind your unique selling points?
We help people to compare and analyse ALL Housing Loans packages from ALL banks to help consumers to make an informed decision to choose the best loan for them. Our unique Selling point is that this service is provided FREE to consumers (we are paid by banks separately).

We are the ONLY Mortgage Consulting Firm that is founded by experienced ex-bankers. You can be assured of our service because our 2 directors have combined total of 30 years of Bank lending experience and we are often quoted by newspapers, radio and TV on comments on Housing Loans.

2. Who are the people you’d like to be referred to? (Target Market)

My preferred target market are people who buy properties of over S$1 million and loan amount of above S$500,000 and above, whether for purchase, or for refinancing.

3. How would you products and services be able to benefit them?

As mentioned, we will help them to compare and analyse all Housing Loan packages available in Singapore so that they are assured of getting the best deal. Becos Housing Loans typically involve big sum of a few hundred thousand dollars, even a difference in interest rate of 0.5% can mean more than S$10,000 interest savings to our clients.

4. What would be a good one-liner or ice-breaker to introduce your services?

What interest rate are you paying on your Housing Loan? If you’re paying more than 3.5%, you’re paying too high interest. I know a friend Dennis Ng who is often quoted in newspapers as the Housing Loan expert, he can help you save easily S$5,000 to over S$10,000 in interest by refinancing.

5. What are your marketing strategies to reach your clients, do you think we can work together in any areas?

Yes, I’m looking for Strategic Referral Partners. Eg. Financial Planners, Land Banking Consultants, Wine Investing Consultants and other people who might have a client base of 200 or more. They can refer their clients to me and I can pay them an attractive referral fee for doing nothing else. All they have to do is provide name and contact of their client, and I will follow up with their client.

If you think you have a client/contact base of more than 200 people or more who take up Bank Housing Loans, I can also consider having a Strategic Referral Arrangement with you.

I’m also thinking of organizing Alternative Investment Seminars for my clients, perhaps I will arrange one for Shih Lien on Land Banking and one on Wine Investment for Claris.

I can also conduct a talk on “How to Avoid Pitfalls of choosing a Housing Loan” perhaps to arrange with KC to conduct one such talk for the parents of the students of MindChamp.

Regards.

Dennis Ng, http://www.HousingLoanSG.com
BNI Renaissance Chapter – Education Coordinator

Banks have started lowering interest rates offered on housing loans to as low as 2.08 per cent. Thus, if you’re paying an interest rate of 3.5 per cent or more, it might make sense for you to refinance your housing loan to enjoy interest savings.

For example, if your outstanding loan is $500,000 and you’re currently paying 3.5 per cent interest with a remaining loan period of 20 years, the total interest savings for the next three years from refinancing can work out to $13,831.38. After factoring in the cost of refinancing, the net interest saving still works out to $13,331.38. Thus, by refinancing, you can be ‘richer’ by over $10,000.

Your browser may not support display of this image.Floating rate vs Sibor/SOR pegged packages: Each bank will usually set its own board rate and after deducting a ‘discount factor’, arrive at the floating (adjustable) interest rate charged to clients. The problem is that each bank will set its own board rate arbitrarily and there might be occasions when Sibor rates fall, and banks don’t reduce the interest rates charged on floating (adjustable) rate packages. Thus, in a bid to increase the transparency, some banks have recently introduced housing loan packages with interest rates pegged to Sibor or Swap Offer Rates (SOR).

The advantage of such packages is that as and when inter-bank offer rates move up or down, your interest rate would be adjusted as well – it would not be at the bank’s discretion. Currently, Sibor/SOR have fallen below 1.4 per cent and interest rates charged on such loans can be as low as 2.08 per cent.

With the US expected to continue cutting interest rates in the next few months, Sibor is expected to remain low or even fall further in the next six to 12 months. Thus, if consumers hold the view that interest rates are likely to fall, choosing a housing loan package pegged to Sibor would enable them to automatically enjoy lower interest rates as Sibor moves lower.

Beware: Fixed rate packages typically come with lock-in periods. Some banks recently also adjusted interest rates charged on their fixed rate packages downwards to an average of 2.58 per cent for the first three years. However, such packages come with a penalty period of three years. Thus, such packages might not be suitable for consumers who intend to sell their property within the next three years, as they are liable to a penalty fee.

Should you apply for a housing loan now for properties purchased on a deferred payment scheme? You might have purchased a property on a deferred payment scheme and only need to take a loan when the project gets its Temporary Occupation Permit (TOP), which might be in 2009 or 2010. Should you apply for a housing loan now?

By applying for a loan now, you eliminate the risk of loan rejection should there be any adverse change in your financial situation in future, for instance, a pay cut or job loss when the property is ready. You also eliminate the risk of banks granting a lower loan quantum should the property market turn and prices fall. To safeguard your interests, you can choose a loan package that allows you a free loan conversion so that you can switch to a better package should one be available nearer TOP.

Cash in on your property without selling it: With property prices having gone up in the past three years, you might now own a property whose value has doubled. In that case, your current debt-to-asset ratio might have fallen considerably.

For instance, say you bought a $1 million property three years ago and took an 80 per cent loan, or $800,000. Currently, the loan outstanding is about $750,000, while the current value of this property might have gone up to $2 million. This means your current debt-to-asset ratio is only 37.5 per cent.

How can you benefit from the rise in the property price without selling your property? You can consider taking an equity loan on the property. For instance, in the above example, subject to your credit score, banks might grant you an additional equity loan of up to $850,000. To be conservative, you can consider taking up a lower equity loan of, say, $450,000, bringing your debt-to-asset ratio to a comfortable 60 per cent. You can use the $450,000 equity loan granted by the bank to start a business, or even to invest in another property. The interest rate on equity loans in Singapore is very low and can be as low as 2.2 per cent currently.

Should you pay off or reduce your housing loan?: The Singapore government has projected the inflation rate in 2008 to be about 5 per cent. On the other hand, the interest rate on housing loans is about 2.2 per cent. Thus, we have a rare scenario of negative interest rates, that is, a person who takes a housing loan is actually ahead of someone who saves money in bank deposits because of the shrinkage of money from inflation.

On the other hand, interest rates on bank deposits have fallen to about 1.5 per cent. With inflation at 5 per cent, it means that a consumer is losing 3.5 per cent a year by putting money in bank deposits.

Instead of paying down your housing loan which charges low interest rates of less than 3 per cent, you can consider investing your cash in a stable investment that is not subject to large price fluctuations and offers higher returns than fixed deposits. One example is UK-traded endowments, which have a guaranteed cash value and generate annual returns of 6-8 per cent.

How to choose a suitable housing loan?: There are over 113 different housing loan packages available in Singapore at any one time. Each package has its own unique features, with its own pros and cons and different terms and conditions. Consumers might be confused by the wide array of choices. In the last few years, with the emergence of independent mortgage brokers in Singapore, home loan shopping and comparison have been made easier.

Basically, an independent mortgage broker who knows your requirements can help you zoom in on the most attractive home loan packages suitable to your needs. You typically do not have to pay for the service of a mortgage broker as banks pay them a fee.

In more advanced countries such as the US and Australia, people usually apply for home loans through a mortgage broker rather than go to the bank directly. In Singapore, many people are still unaware of the services and benefits of engaging a mortgage broker, but things are likely to change with public education and increasing awareness.

Dennis Ng is a Certified Financial Planner with 15 years of experience in bank lending. He co-founded an independent mortgage consultancy portal www.HousingLoanSG.com in 2003.