How to Make Your Business Concept Work?
A business concept is basically a bridge between an idea for a business venture and the business plan. The purpose of a business concept to focus an entrepreneur’s thinking on the particulars of the proposed entrepreneurial venture. This blog post discusses how to make a business concept work for you, and how you can get the most from a business concept statement. Read on to know more.
KISS = Keep It Simple, Stupid
Almost every start-up today focuses on having elaborate business plans. Indeed, a lot of entrepreneurs spend several months perfecting the business strategies to be used rather than actually beginning work with the business itself. Some of the business concepts that are written would dwarf even those written for many Fortune 500 companies!
Does it really make sense to have such an elaborate business concept? We don’t think so. We believe a business concept statement should be used as something to guide you, and not an end in itself. Your business concept should include the simplest way to start and business and something to prove that it is financially viable in the long run. It should keep the current market reality in mind and have a detailed cash flow estimate.
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It’s Okay To Have Several Business Concepts
You don’t have to write just a single business concept or have just one business idea. The most dynamic entrepreneurs have several business ideas in mind, and develop a business concept for each business idea. However, you should only work on one new business at a time. Writing business concepts is one thing, but running a business is a 24/7 job and you can only run one business at a time. Stick to one at a time, a business idea with the greatest potential for success.
Commit yourself, see that you do your best with the business at hand and work as hard as you can on it till you reach the conclusion that achieving a reasonable amount of success with it would be impossible. But there is nothing wrong whatsoever with having multiple business concepts worked out. Just select the one business concept that excites you the most.
Get the Business Strategy Right
There are so many things you need to work out with the business concept you have in mind. You will need to have a detailed financial strategy in place, such as a revenue model, a cash flow estimate, a sales, profit and expenses estimate.
Then you’ll have to get a marketing strategy in place, to answer questions such as how do you intend to market your products or services, do you intend to hire an SEO firm for your search engine optimization, would you be going for paid advertising on search engines and on Facebook, and so on.
An operational strategy should also be in place. Have you thought of the pricing for your products and services, and are they viable in the current market scenario? How do they compare with those set by the competition?
And how do you intend to source your products or raw materials? Have you considered outsourcing the manufacturing and getting into a partnership business with a business partner in Asia? There are so many issues that need to be looked at in the business concept statement, without going into exacting detail – that can be done in the business plan, which will be written later.
Is Your Business Concept Viable?
How do you know that your business concept actually works? Well, set milestones. Set goals. What’s the revenue you’re looking at? How many customers are you looking to target in your first six months? How much internet traffic do you expect your business website to have to justify the money spent on SEO, for both organic and paid search? What would success represent to you in categorical terms? What’s the timeline you’re looking for your business goals? These are the questions that need to be answered to help you understand if the business concept is viable or not.
Writing a viable business concept is not the end of the story. You will have to follow through on your business plans, constantly reevaluate your strategies, make changes when required, keeping in mind the current market realities. Well, we hope this blog post has been interesting and informative for you. Do you have any questions or suggestions for us? Do keep the comments coming so that we may share them with our other readers.