A business concept includes data that lenders want to know about the company.
Companies define their business by concepts that they market to potential investors, customers and advertisers. In a business plan or proposal, the concept comes immediately after the executive summary, which is a paragraph that sums up the company. The business concepts expand upon what products and services offer to customers. The business concept also elaborates why your company has the qualifications to deliver the product or service.
Instructions
1. Write out a preliminary business model with products and services, your target market, your value proposition and advertising campaigns to promote your business. Provide all the basic details that define what your business does and what you want to achieve. Potential investors and lenders need to know this information.
2. Study and research any competition. Businesses compete with one another to provide the best products to customers, so understanding competition shows current trends. If you recognize any flaws or thin sales tactics, then note how your business is better and provides services not offered by the competition. Substantiate any claims with evidence of why your business offers more quality products.
3. Add value to business concepts by elaborating on how products and services work for the customer and why in particular your business is the better choice. Distinguish your business from competition, using the research from earlier. Note the differences that put your product ahead of others.
4. Highlight the important financial data of the business. Include start-up costs, running costs future sales, profits, cash flows and return on investment. Indicate clearly the start-up costs required for the business to take off and expand. Detail each expense. Specify if the loan for the initial capital is for security or equity and disclose the source of collateral.
5. Include the current business position in the business concept, providing relevant information on the company, its legal form of operation, formation date, the principal owner and any employees or personnel involved in the business. Indicate which companies you think of as competition.
6. Edit the final business concepts for spelling, grammar and concise wording. Use powerful language that sells your ideas. Show your business concepts to a trusted friend or business partner and make note of any comments and suggestions.
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