A business concept includes a vision of future customer needs, how the company will serve them, what the industry will look like in a few years, the company's strategic decisions, and how to achieve its goals. Without a business concept, a company will have no purpose, no direction, and in such circumstances, it is impossible to serve customers well or become an organization that can attract and retain the best professionals.
What is the difference between a business plan and a business concept?
A company's business concept is a brief and concise justification of the basic principles on which a business is organized or developed. The structure of this document is similar to that of a business plan, including a presentation of the business idea, market research, calculation of the necessary investments, and preparation of a financial plan. However, unlike the latter, the calculations are carried out in a more expanded and generalized form, and the research is superficial.
If the main goal of preparing panama email list a business plan is to create a viable business model, then the main task of writing a concept is to generate interest and justify further costs for the implementation of the project, including the costs of preparing a business plan.
What is the difference between a business concept and a positioning?
Concept is basically the philosophy of the brand. Positioning is a set of principles and (unsurprisingly) the brand's position. Let's say, "The average bill for dinner at our sushi restaurant is XXXX… for two, so our restaurant is premium, for the upper class. Or not lower than average. We only accept customers with a deposit of X XXX₽."
When is it appropriate to create or change a business management concept?
Creating or modifying a strategy is desirable in the following situations:
opening a new business or acquiring an existing one;
rapid changes in the sales market;
decrease in competitiveness;
division of business between co-founders;
reduction in the level of enterprise income;
change of ownership;
exceeding the break-even point;
willingness to set new goals in the process of company development (taking into account that all previously set objectives have been achieved).
A good business concept development serves as a guide for making operational decisions that ensure the mission is consistent with the company's values. This increases its effectiveness.