2. 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
3. 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
5. It enables you prepare your business
4. 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
5. FRAMEWORK FOR COMPOSING A BUSINESS CONCEPTS;.
To do achieve the aforementioned certain questions must be
1.Question about the business offering whether a product
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
What is required to make this business concept
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.
6. Framework for composing a business concept Part 2
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
7. FRAMEWORK FOR COMPOSING A BUSINESS CONCEPT
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?
8. 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
9. 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.
10. 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
11. 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.
12. 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
13. 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.
14. 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.
15. Business concept Structure
Decide a business name
Define vision statement
Define mission statement
Highlight the current status of the
Product and/or Service
16. Introducing Angela
Mrs. Angela Ihunweze, an author, a business plan tutor and writer/Business
development consultant, speaker on entrepreneurial/marketing related
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