CONCEPT DEVELOPMENTBY

Angela Ihunweze(Mrs.)

Business plan consultant in you

080 33 28 04 53

www.angelaitambo.com.ng

angelaitambo74@yahoo.com

TABLE OF CONTENTS

Why you need a business concept?

What is a business concept?

Framework of a business concept

What you need to undertake a business concept exercise

Assignment

WHY YOU NEED A BUSINESS CONCEPT?

It helps to validate your business idea The exercise is meant to show if you have done your homework

thoroughly to ascertain the following:-1. what is the exact need you are addressing?2. Who are you targeting? 3. How will your business make money( in terms of sales to

profit) from where will these profit be generated.4. What resources are needed to bring this concept into

reality?5. It enables you prepare your business

WHAT IS A BUSINESS CONCEPT?

Business concept is an exercise that vital answers about what the idea or business concept is all about, who the potential customers should be, what value is been added to this concept that will differentiate it from the rest? How it will be delivered, and most especially how will this business concept make money. In nutshell this exerise gets the entrepreneur to cover all bases to ensure nothing comes a surprise when the business is established

FRAMEWORK FOR COMPOSING A BUSINESS CONCEPTS;.

To do achieve the aforementioned certain questions must be answered.

1.Question about the business offering whether a product or service

Is the industry where this business belongs ready for your business. Is there a regulation from government and industry regulators designed to make the business favorable.Is there still room for a new business such as yours?

What is required to make this business concept extraordinary?

Is it possible to acquire what is needed to accomplish these feats, these includes raw materials as well as the necessary manpower and financial resources.

Framework for composing a business concept Part 2

2.Question:The customers

Is the customer aware that or he or she is in need of the business concept?

Is the market ready for such a business concept (including the structure on ground)?

Can it be cultivated and is there possibility for growth?

FRAMEWORK FOR COMPOSING A BUSINESS CONCEPT PART 3

3. Question The distribution channel What is the culture for delivering such a

business concept as yours?( How will customers have access to what you are offering)

Are there alternatives to delivery?( this can lead to a new business opportunity)

Is there any creative and cost effective way of delivering your concept?

Framework for composing a business concept Part 4

4. Question about sales

How will this factors culminate to sales and in turn to profit?

What is required to bring this concept to the market; this will involve identifying all the items and their cost structure.

Things to take note

Your business must have fundamental statements that govern how the business is run and viewed by your customers and the public

Mission: is a brief statement of the purpose of a company, organization.

It tells you and those that come across it the fundamental purpose of the organization. It concentrates on the present. It defines the customer and the critical processes. It informs you of the desired level of performance.

Things to take note Part 2

A man without a vision is lost. You need to think ahead about where you wish you business to be. This is why you need a vision statement

Vision Statement; Defines the desired or intended future state of a specific organization or enterprise in terms of its fundamental objective and/or strategic direction .It outlines what the organization wants to be. It concentrates on the future. It is a source of inspiration. It provides clear decision-making criteria

THINGS TO TAKE NOTE PART 3

To convince others to buy your product or service you will have to first of all understand clearly what your offering is all about. This invariably will give you the opportunity to describe it to the minute detail to a layman and he or she will clearly understand it.

To believe you are the only business offering of your kind in the market place may be an illusion. Even if your business is novel, before you came into the scene, customers you are targeting, how were they addressing that need in a particular? Therefore as an entrepreneur you must act professionally and ask yourself some questions. What makes my product or service unique from others? Think through the eyes of the customer.

Things to take note Part 4

Apart from description of your business offering , you must understand that to be said to be successful in business, simply entails how profitable your business is. A business that doesn’t

make profit is said to be a hobby. Therefore as aspiring entrepreneurs whatever stage you are in; you simply must create a business model peculiar to your business.

How will your business make money( in terms of sales to profit) from where will these profit be generated from

THINGS TO TAKE NOTE PART 5

Every business has its mode of payment. There is a culture already practiced it is your duty to find out. It is however necessary to do a thorough background check from those in similar businesses on how customers pay. It will help you in your cash flow projections. This will save you from brandishing yourself and business a failure during the dull seasons of your industry. To every business especially if you inquire you will be advised on the expected rate of return per unit sold, the breakeven point (The breakeven point is the point at which a business breaks even (incurs neither a profit nor a loss) The breakeven point is the minimum amount of sales required to make a profit.) you should expect .

Finally to achieve the entire feat, you must be willing to invest your time, energy, and most especially your financial resources. This will require you ascertain what initial startup/additional cost is associated in producing what you intend to sell.

THINGS TO TAKE NOTE PART 6

You must from the on set take time to identify all the financial costs that will enable you start the business, or expand your business . Don’t assume. It is better you know so as not be taken unawares

When researching, find out what is the expected standard of manpower(staff) required. The qualifications that they must possess. This will enable you to see how you cope with what you have.

Business concept Structure

Business overview

Decide a business name

Define vision statement

Define mission statement

Highlight the current status of the business

Business Concept

The need

Product and/or Service

Target Market/Customer

Value Proposition

Distribution Channel

Management

Financial Requirement

Introducing Angela

Ihunweze

Mrs. Angela Ihunweze, an author, a business plan tutor and writer/Business development consultant, speaker on entrepreneurial/marketing related issues.

ANGELA ITAMBO HAS BEEN ABLE TO CREATE E-BUSINESS GUIDES WHICH EMPOWERS START UP WITH ALL THE INFORMATION TO SET UP THEIR BUSINESS ESPECIALLY BUSINESS CONCEPT STAGE.