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Monday, August 1, 2022

Business Concept Statement

A business concept sums up the most important points of a new idea for a business, brand, product, unique selling point, product line, project and so on. Technically therefore, it can be renamed accordingly like 'product concept', 'brand concept' and so on. It is usually communicated in an official concept statement, ie a concise statement of roughly 100 words or less that answers several key questions.


Uses & Benefits of a business concept statement

  • The concise statement helps to effectively pitch ideas for new business development or new product development to potential investors and other stakeholders. It can therefore be used as the concise way in which you introduce yourself and business plan.
  • Potential investors use the concept statement to determine the 'viability' of a proposal (ie the ability of the idea to become functional, has a reasonable chance of success)
  • Businesses provide a concept statement to provide institutional information in a concise way to the public. 
  • The concept statement helps everyone developing the new idea to remain on point. Business development consultants can steer small business owners to streamline the conceptualization of new business ideas. Consequently, it is often the starting point from which consultants offer their services.
  • The concept statement is the clear guidelines from which the worthiness of ideas that deviate can be assessed as potential pivot points. (Read about pivot points)


Contents of a business concept statement

A good business concept explains the following. 

  • market opportunities.
    • market pain point or problem you can solve
    • no one else is fulfilling a need better than currently
    • gaps in any of the 4Ps or 7Ps. This may be based on the weaknesses of your competition and or gaps on a plotted competitive brand positioning graph.
  • the target market profile
    • B2B vs B2C
    • segmenting variables
      • demographics, psychographics (B2C)
      • industry, employees, revenue, online or brick & mortar, serving local or international markets, seasonality, innovators or followers, affiliations / friends, core values (B2B)
    • a niche
  • benefits to prospective investors
  • reasons for creating the idea. Example(s)
    • gap in the market
    • no current businesses cater to a certain community. (This can be compelling, especially if it relates meaningfully to your personal story)
  • the differentiating factor or unique value proposition (UVP) as it relates to how it provides competitive advantage over your competition
  • the distribution method(s) that allows customers to access your offering.
  • the business model, ie details the 
    • financial side of the concept 
    • how to make it profitable
    • how to experience revenue growth, like how much the product or service might cost, along with the resources to ensure its financially successful.
  • mission regarding performance and key milestones along the way to achieving the mission.



Example(s) of a business concept statement

  • New business concept. A line of luxury restaurants that cater to a broad range of customer needs including veganism and keto.
  • New product concept. A line of luxury cosmetics that cater to  the natural and ethical skin care movements.



CONTENT RELATED TO THE BUSINESS CONCEPT STATEMENT

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