Your business concept describes how your company will engage in business in practice based on its business idea. A good business concept is original and easy to implement, and leads to profitable business activity. When you start developing your concept into a business, prepare written plans and test them in practice if necessary. Develop your business concept as needed.
A business idea precedes the actual business concept. The idea provides information on the purpose for which you intend to start a company. It immediately expresses the basic idea of your business. An example of business idea is the provision of a place of care for pets.
Your business idea can be based on a new product or service, for example. The idea can also emerge from your proficiency or special competence. In addition, you may come up with business ideas based on concepts already used abroad or elsewhere in Finland. The business idea may also be based on a problem that your idea will solve. If you are able to provide a solution to the problem, you can further develop it in your business operations.
This means that a business idea is just a rough draft of the actual business. You must evaluate it carefully and start developing it towards a more concrete business concept. You may ask the Finnish Enterprise Agency or business development company in your region for help.
Your business idea can be successful even if it does not bring anything new to the market. For instance, nearly every town has need for hair salons and clothing shops.
If your business idea is not unique, you can aim at clearly standing out from your competitors. For example, if you are running a hair salon, you can set yourself apart from others by only using hypoallergenic products.
A business concept emerges as you refine and specify your business idea to be as concrete as possible. The business concept describes how your company intends to implement its business idea in practice and turn it into profits.
The business concept is your way of doing business, your competitive edge in the market. It typically answers three primary questions: what does your company offer, for whom and how?
The business concept defines the product your company intends to offer its customers. It describes your company’s image, strengths, and advantages compared to competitive products.
You determine your company’s customers and their needs in your business concept. It indicates who your company’s most probable, and most desirable, customers are.
The business concept presents how your company creates its products and offers them to its customers. It describes the resources your company aims to use in implementing the concept and how duties are divided within your company.
Remember that even though your company’s operations are based on your business concept, the concept is not unchanging. You must keep updating the concept as necessary.
A good business concept is original and makes your company stand out from its competitors. It is often innovative and brand new.
A good business concept includes a feasible product that customers are prepared to pay for. It results in profitable business activity and enables growing it.
A good business concept is placed in a market that is set to grow in the future. It can withstand the test of time and is still useful after several years. You can develop the concept as necessary, which allows your company to keep up with development.
If a business concept is good, its implementation is effortless and does not cause major costs. It is easy to test its workability. The concept can be easily multiplied to other lines of business or localities.
A good business concept can be protected so that others will not be able to copy it. Your company’s core competence should be particularly hard to imitate.
A good business concept is one you have belief in and passion for. It is so clear and simple that everyone else will also be able to easily understand it.
Once you have established that your business concept is good, you should use it as basis for your business plan. This forces you to think about your business concept systematically and to ensure that there is enough demand for it.
Prepare profitability and financing calculations in connection with your business plan. These allow you to make sure that your company’s operations will be profitable and that you have enough money to launch your business activities.
Carry out a market survey and a competitor analysis on your own or with the help of an expert. These enable you company to find its place and competitive advantage on the market.
You can test your business concept in practice in advance. Ask potential customers about their opinions in places such as on social media. Get pre-orders to see how many people are genuinely willing to pay for your company’s products. However, take into account the fact that testing your business concept in advance may prevent you from getting a start-up grant.
You can ask the Finnish Enterprise Agency or business development company in your region for help in developing and testing your business concept.