Having a new business concept requires creativity. However, new business concepts are usually conceived by brainstorming with partners or business colleagues. Get familiar with our business concept example as you read through it.
About Business Concept
We can define a business concept as the fundamental prerequisite for the existence of a company.
It does not have to be unique in order for the company to be successful. You can use an existing business concept and establish it in a new market.
A business concept can also outline how it plans to create a new market for a new product that did not exist before.
However, a complete business plan is voluminous and includes detailed information and a concept statement that summarizes the plan succinctly.
How to Develop a Business Concept
Developing unique business concepts involves lots of brain work, and the following are possible steps on how to develop them.
1. Do a Thorough investigation about the rivalry and choose where the business can thrive
2. Develop a scheme and create a unique business conception
3. Write a complete business map
4. Sketch the people and possessions the business may entail accomplishing its plan
5. Build up a sales and advertising Policy
Attributes of a Business Concept Statement
A business concept statement can be said to be paperwork that has all the necessary elements on how to develop a business concept, as listed below.
1. Pitch Statement
The terrain statement outlines the reason for the business, what needs the business is satisfying, and how it’s different from the opposition.
Interestingly, the pitch statement is frequently worn to get attention from latent and intending investors and business associates.
Undoubtedly, the pitch statement condenses the most imperative aspect of the future business into a single declaration.
2. Target Audience
This is where you talk about your target audience and how your business or products intend to meet the needs of the populace, who will need your kind of business, which will lead to patronage.
This part also explains how you plan to create new market demand for your business, products, and services.
3. Core Products and Services
In this section, you need to explain the business or services you plan to offer your target audience (market) and how they will satisfy your existing clients.
The product and service section also includes background checks on why your business is the best to offer the new products and services.
4. Business Model
A business model describes how an organization creates, delivers, and captures value in economic, social, cultural, and other contexts.
The purpose of the business model is to check how a business is managed, its core values, and its policies.
It also explains the company’s mission and how they intend to run with its vision.
However, the process of business model construction and modification is also known as business model innovation, which forms an integral part of a business strategy.
5. Competitive Analysis
A competitive analysis entails how the business relates to its rivals. Through competitive analysis, a business or company can determine how they plan to capture market profits and differentiate itself from other businesses.
The analysis also outlines how a business plans to rate its products and services within the existing market.
Business goals have to do with where you want to see your business in the next couple of years. This concludes your business concept statement. Your business goal can either be short or long-term goals.
7. Market Need
Types of Business Concept Example
The following are business concept examples you need to know before crafting your business concept:
A final good or consumer good is a finished product that is ready for sale and is used by the consumer to satisfy current wants or needs, unlike intermediate goods, which are used to produce other goods.
A microwave oven or a bicycle is a final good, but the parts purchased to manufacture it are intermediate goods.
Consumer goods also focus on the goods buyers want or need, how those goods differ from other offerings in the market, and why they want a company’s product instead of similar items made by a competitor.
Brand recognition is an essential tool used by this type of business because consumers prefer to buy what they’re familiar with.
Consumer goods, as stated above is one major business concept example you need to know.
E-commerce, also known as electronic commerce or internet commerce, refers to the buying and selling of goods or services over the internet and the transferring of money and data to execute these transactions.
Undoubtedly, e-commerce business concepts revolve around selling a product or service online.
It is no longer news that online stores sell specialized products or unique services that are delivered or offered without face-to-face interaction.
These types of businesses are based on driving traffic to their websites and converting consumers into customers.
And depending on what they’re selling, this concept requires a business to consider where the product is being manufactured, how it’s transported from the store or warehouse and delivered, and the mode of payment.
Another good business concept example is the e-commerce concept.
Offering a good or service to a clientele that is more regionally focused than the one that a consumer goods idea targets are the main focus of the small company concept.
This could be a local grocery store, a small manufacturing facility, a retail store, or a trade like an electrician or plumber.
Some tiny companies operate online and don’t have a physical site. These kinds of companies might offer graphic design services, drop-shipped goods, or internet consulting. Small enterprises often have a small staff and are privately held.
Instead of targeting regular consumers, the business-to-business (B2B) concept concentrates on the idea of providing a good or service to another firm.
These organizations aim to satisfy the demands of their customers by either resolving an issue, developing or upgrading a product that the customer uses to do business, or offering a service that helps the customer’s business function more effectively.
Examples can include a software company creating a customer tracking database system for another company or a technology company producing a processor chip for a company that manufactures computers.
The establishment of a structure, facility, or building is a physical endeavor that is central to infrastructure principles.
These goods frequently have significantly larger scales and an unclear target market. A construction company developing a new highway stretch can serve as an illustration of this.
In these situations, a concept can consider how a company collaborates with the local government to realize a project.
This type of design needs to be technically workable because it requires a lot of labor and materials. Such initiatives frequently have strict budgets and schedules.
We refer direct sales of commodities or products between customers to as “consumer-to-consumer” (C2C) transactions.
The consumer deals directly with the buyer and is the only source of the goods, which are frequently used, collectibles, or upcycled.
A garage sale or placing a sale ad in the local paper are two instances of a C2C business. Online auctions or resale sites are more advanced examples.
We know an online business model that focuses on selling goods and services through mobile devices like smartphones and tablets as a mobile business model.
This idea often entails downloading an app that has in-app purchase capabilities to a user’s smartphone.
Many companies combine their mobile strategy with their e-commerce strategy to give their customers more options to access their products.
Businesses that use mobile concepts think about what their rivals are doing, what platforms their app is available on, and whether it costs users money to download.
Consumer Service Concept
The sharing economy, which is defined as the sharing of commodities or assets through individuals, is the foundation of a consumer service paradigm.
This idea seeks to offer other customers help in filling a gap in the current market. Ride-sharing applications and websites for sharing accommodations are two examples of this.
This idea entails upsetting the status quo in order to provide an alternate, frequently less expensive option to an existing market.
This is one vital business concept example you can not do without.
Because it helps to focus on an idea and explain its practical purpose, a carefully defined business concept is an essential first step in starting a new company.
They provide a succinct, high-level overview of the company, its function, and its objectives. You can successfully create your own business concept by having a thorough understanding of the many varieties.