Concept Development

BY

Angela Itambo Ihunweze

080 33 28 04 53

angelaitambo74@yahoo.com

Table of contentsTable of contents

What is a business concept?What is a business concept? Framework for composing what Framework for composing what

a business concepta business concept Things to take noteThings to take note AssignmentAssignment

What is a business concept? What is a business concept?

Business concept is an exercise Business concept is an exercise that answers what the idea or that answers what the idea or business concept is all about, business concept is all about, who the potential customers who the potential customers should be, what value is been should be, what value is been added to this concept that will added to this concept that will differentiate it from the rest? differentiate it from the rest? How it will be delivered, and How it will be delivered, and most especially how will this most especially how will this business concept make money.business concept make money.

Why is it necessary?Why is it necessary?

A business concept is very integral to the success of any venture A business concept is very integral to the success of any venture irrespective the business opportunity. It is meant to prove if your irrespective the business opportunity. It is meant to prove if your business opportunity can be profitable;business opportunity can be profitable;

It enables you the entrepreneur thoroughly research to know It enables you the entrepreneur thoroughly research to know extensively whether it is worth it to go ahead with the business extensively whether it is worth it to go ahead with the business opportunity and if already started to analyze new ideas which can opportunity and if already started to analyze new ideas which can take your business to the next level of growth and productivitytake your business to the next level of growth and productivity

The exercise is meant to show if you have done your homework The exercise is meant to show if you have done your homework thoroughly to ascertain the following:-thoroughly to ascertain the following:-

1.1. what is the exact what is the exact needneed you are addressing? you are addressing?2.2. Who are you targeting? Who are you targeting? 3.3. How will your business make money( in terms of sales to profit) How will your business make money( in terms of sales to profit)

from where will these profit be generated.from where will these profit be generated.4.4. What resources are needed to bring this concept into realityWhat resources are needed to bring this concept into reality

Framework for composing a Framework for composing a business concepts;. business concepts;.

The business offering either a product or The business offering either a product or serviceservice

Is the industry where this product or Is the industry where this product or service ready for such a concept. Is there a service ready for such a concept. Is there a regulation from government and industry regulation from government and industry regulators designed to make the business regulators designed to make the business favorablefavorable

What is required to make this business What is required to make this business concept extraordinary?concept extraordinary?

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

Framework for composing a Framework for composing a business concept Part 2business concept Part 2

The customersThe customers Is the customer aware that or he Is the customer aware that or he

or she is in need of the or she is in need of the business concept?business concept?

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

Can it be cultivated and is there Can it be cultivated and is there possibility for growth? possibility for growth?

Framework for composing a Framework for composing a business concept Part 3business concept Part 3

The distribution channelThe distribution channel What is the culture for delivering What is the culture for delivering

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

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

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

Framework for composing a business Framework for composing a business concept Part 4concept Part 4

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

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

Things to take noteThings to take note

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

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

Things to take note Part 2Things to take note Part 2

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

Things to take note Part 3Things to take note Part 3

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

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

Things to take note Part 4Things to take note Part 4

Apart from description of your business Apart from description of your business offering , you must understand that to be offering , you must understand that to be said to be successful in business, simply said to be successful in business, simply entails how profitable your business is. A entails how profitable your business is. A business that doesn’t make profit is said to business that doesn’t make profit is said to be a hobby. Therefore as aspiring be a hobby. Therefore as aspiring entrepreneurs whatever stage you are in; entrepreneurs whatever stage you are in; you simply must create a business model you simply must create a business model peculiar to your business.peculiar to your business. How will your business make money( in terms How will your business make money( in terms

of sales to profit) from where will these profit of sales to profit) from where will these profit be generated frombe generated from

Things to take note Part 5Things to take note Part 5

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

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

Things to take note Part 6Things to take note Part 6

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

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

Business concept StructureBusiness concept Structure

Business overviewBusiness overview Decide a business nameDecide a business name Define vision statementDefine vision statement Define mission statementDefine mission statement Highlight the current status of the businessHighlight the current status of the businessBusiness ConceptBusiness Concept The needThe need Product and/or ServiceProduct and/or Service Target Market/CustomerTarget Market/Customer Value PropositionValue Proposition Distribution ChannelDistribution Channel ManagementManagement Financial RequirementFinancial Requirement

Introducing Angela IhunwezeIntroducing Angela Ihunweze Mrs. Angela Ihunweze, an author, a business plan Mrs. Angela Ihunweze, an author, a business plan

tutor and writer/Business development consultant, tutor and writer/Business development consultant, speaker on entrepreneurial/marketing  related speaker on entrepreneurial/marketing  related issues. A resource person on some related radio issues. A resource person on some related radio and television programs. Her firm assists and television programs. Her firm assists entrepreneurs in identifying and accessing business entrepreneurs in identifying and accessing business opportunities peculiar to their personality. opportunities peculiar to their personality.

She is also speaker and trainer on She is also speaker and trainer on entrepreneurial/marketing  related issues. She can entrepreneurial/marketing  related issues. She can be invited to your organization or business to trainbe invited to your organization or business to train

A recipient of the outstanding volunteer award of A recipient of the outstanding volunteer award of the fate foundation of which she received an award the fate foundation of which she received an award as one of the outstanding volunteers for 2008.as one of the outstanding volunteers for 2008.

Book an appointment by calling 08033280453. Book an appointment by calling 08033280453. Thank youThank you