- What is a business concept?
- How to design a business concept?
- How can I make sure my concept sells?
These are common questions many business owners ask themselves, so let’s dive into them!
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What is a business concept?
A business concept is a holistic view of your idea, product/service, brand, business model, and messaging. It clearly defines what it is that your business does, for whom and why they should care. It also includes the products or services your business sells, as well the brand elements.
Your business concept should take into consideration the intentions you have and the growth plan that you design for your business. A well-developed business concept is clear, simple, and easy to communicate to your customers and other stakeholders.
How to design a business concept?
According to the Avenue Growth System™, the key components in designing your business concept are:
Your core: what exactly do you want?
What are your advantages?
What are your intentions?
Who are you talking to?
What is your unique promise?
What do you sell?
What is your brand?
Let’s start with YOUR CORE.
What is your CORE?
I define the CORE as this magical, profitable place where your passions meet your skills, and you can deliver real value to people who are willing to pay for it. I also add an additional layer to this: lifestyle design. Let’s start with lifestyle design. How do you want to live your life? I believe in building businesses that support the lifestyles we aspire.
In today’s business environment, with the technologies available even for small businesses, there’s no question whether we can build a business that’s supporting the lifestyle we want to have, but the real challenge for many entrepreneurial leaders is to identify what they really want, and what they definitely do not want.
- If everything was possible, what do I really want?
- What do I absolutely not want?
- Maybe you have small children and you want to be able to work from home? Then having a business with fixed opening hours and locales is probably not the right choice for you.
- Maybe you want to travel more? Then maybe a business that can be run from your laptop is the right choice for you.
- Maybe you prefer working in solitude? Then maybe a business with an office and colleagues is not your cup of tea.
Now let’s continue identifying the remaining core components:
I believe there are ways to make money for most interests and passions, so you first need to find your passions. You have to have passion for your business, otherwise, you will not want to continue through the ups and downs of growing a business and being a business leader. But passion only is by far not enough.
I believe that it’s better to approach this from the point of selecting an industry or niche where you want to be in. Let’s say you love interior design and you want to do something in that industry. That is a great place to start your journey of building a business that fuels your passions, but exactly what you’d do, and how you make a business out of your passion, deserves a bit more thinking.
- What do you love doing?
- What industry makes you tick?
The biggest drawback in my first business was that I actually didn’t have experience or connections in the industry I was entering. I came from the IT consulting world and entered the home decor and textiles industry. I didn’t have any idea about manufacturing, logistics, stock management, retail, and wholesale. Also, I had no real experience in sales and marketing, branding, working with media… so I was up against a challenge bigger than my passion-fueled determination ever could have imagined…
Becoming the leading brand and business requires excellence, so having the necessary skill set and experience is elementary. Even if you’re entering a new business, you still have experiences you can retrieve from your previous jobs, educations, and life. In order for you to stand out in your marketplace, you need to combine your passions together with your previous experiences because those together will create a very unique combination of a value proposition for the marketplace. Remove featured image
- What are your special skill set and expertise?
- What are you great at, or willing to become that?
Too many entrepreneurs look blindly at their own passions and interests and ignore the fact that maybe… there’s no actual need for that thing you’re creating. We must remain objective when building our businesses. Sometimes asking your loved ones for validation is not only insufficient but downright harmful. Lovingly they might cheer you to a direction because they want to support you, but they might not be the right ones to determine the real needs of your marketplace. Also, sometimes you might hear people around you downplaying your great visions, and that’s not helping you either.
Building a real, sustainable business requires you to let go of your ego, and focus on looking objectively at the market demands and your capabilities to create real value for the market. The evaluation starts at looking at the current market and determining whether that even exists.
If no one is offering the product/service you are looking to launch, why not? If there’s no competition, ask yourself: “is there really a need for my innovation?” Sometimes you must dig deeper to see if your market already solves the problem in some other ways and how would your innovation fit in. Or, is your product available in some other markets but not in your home markets? Would that specific offering work in your home markets? And are you looking to challenge the already existing brands?
- Does the world really need what you have to offer?
People might want to have what you have to offer but they are not willing to pay for it. If this is the case, you have a hobby, and while hobbies are great, the main goal with a company is to generate profit.
Is there someone who pays for the product/service you’re launching? Sometimes it’s the end-users, and sometimes other parties, for example; if you’re looking to start a pre-school, maybe it’s the Government that pays you, but you still need to know there are enough end users, ie families with children, in your geographic area of business.
Who are your biggest competitors, and how they make money?
I meet many innovators who want to create different services to help people having a variety of needs, but in many cases, these people are already served by governmental offices, and there’s simply no profitability. Then again, there might a really great spot for a business to become a selected vendor to help the governmental offices to better serve the end-users.
Just because something is working in one market, it doesn’t mean that it definitely works in your market. For example, services that are available in the US market might not work in the European culture, or at least the demand is not as big as in the US market. Do your due diligence and look at the market size, competitors, and determine whether your idea has some potential for a profitable business.
- Do people actually pay for your idea?
- Does some other party pay you to serve your audience?
- Are there some other clever ways to monetize your idea?
In the next article, we will continue by defining how you can create a concept that sells.
Ps. whenever you are ready, here are 5 ways we can help grow your business:
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Join the Avenue Accelerate and let us help you package your expertise, design a profitable product suite, and build your expert sales engine to get all the customers you want — click here
4. SCALE YOUR BUSINESS
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