A business concept is the foundational idea behind a business. This is intended to provide meaningful direction for the process of developing a business plan and launching a firm. At this stage, things will change and there is no need for a business concept to fully describe the business. What business concepts do capture is the unique value proposition of your business in the context of a crowded market. The following are common types of business concept.
MissionA purpose or mission. For example, a plan to develop a business that produces far less pollution that competitors in the same industry.A model for capturing value. Defining an area where you will outcompete. For example, a restaurant has a standard business model but may aim for superior or unique food.
SocialA business concept may be defined in social terms such as a fashion brand that aims to lead a fashion subculture.An idea for customer experience. For example, software that is pleasing to use in a category filled with products that have poor user interfaces.Improving the value of products and services such as a hotel concept based on a compelling vision for the hotel's architecture and interior design.
Addressing customer needs that aren't well served by the market. For example, a boutique hotel with floors for people with disabilities.Next: Business Concept Examples
This is the complete list of articles we have written about business plans.
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