There is a widely spread argument about how important it is for every start up entrepreneur to develop a business plan. Who would disagree that you need to delve into the data, projections, and planning of a full-blown business plan defining your strategy and the key deliverables for all stakeholders – including staff, investors, and strategic partners?
Developing a Business Concept Statement – Steps to Take
- A brief description of the Business Concept – do some brainstorming and spot the key words and phrases that if you put in a sentence or two that capture the essence of your product or service.
- The Market Need – What is the void in the marketplace that your business idea is going to fill? There is a gap or a need in a specific market that you believe your idea will fill in. This is your opportunity for success!
- The Solution – it is important for your clients to know what is the solution your business can provide to them – hence, how, do you believe, your business idea is going to solve a marketplace issue and why you are the right person to make it happen?
- The Business Model – it is important for you to identify the approach you are going to use in order to establish the profitability of your company. Hence, are you going to charge your customers a subscription or membership fee? Will you charge a set fee for a given service or charge by the hour? Will you sell a product outright? Will you sell ongoing and/or maintenance contracts? Or will your business bring in revenue using a combination of these approaches?
- Your Value Proposition – Why anyone should buy your product instead of buying something else? Explain what’s new about your idea. Which unique attributes will your business bring to your client’s bbenefit-: customer service, technology, a special process, lower price, faster delivery, or a combination of things?
- The Competition – Ask yourself who else is providing products or services that could meet your potential customers’ needs. Keep in mind how big your competitors are in terms of annual revenue; estimate, if you have to. This can give you an indication of both the market size and market potential.
- Marketing Strategy – Communicating your idea to your potential clients in an open market is a critical factor for success. How will you spread the word about your new business?
- A business plan – Often the BCS changes during feasibility testing and business planning. Once the BCS is clearly defined the business plan should be developed upon which implementation may begin. A business plan is a document designed to detail the major characteristics of a firm, its product or service, its industry, its market, its manner of operating (production, marketing, management), and its financial outcomes with an emphasis on the firm’s present and future.
These days, more start-up businesses are doing business plans than in the past, which increases the importance of your doing one to stay competitive and look as legitimate as the other competing start-ups.