Business plan tree
Business plan tree. Image by Gerd Altmann from Pixabay

A business concept is a concise description of an opportunity that contains fo0ur critical elements: the customer definition; the value proposition (or benefit to the customer) and the compelling story, the product /service; and the distribution channel or means of delivering the benefits to the customer.

The business concept can be thought of as a type of elevator pitch. Elevator pitch is a term that has been applied  to the idea that one has only a few seconds – the time it takes to ride an elevator up to the twelfth floor – to get an investor  ( or other interested parties) to “buy into” a business concept.`

A few seconds is not a lot of money, so having a clear, concise, and compelling statement of the business concept is important. In reality, most people, whether they are potential customers or potential investors, don’t have enough time in their busy schedules to give a proposed idea more than a few moments of thought before they decide whether to dismiss it or investigate it further.

Quick -testing the Concept

With a preliminary business concept in hand, it is helpful to do a quick test to determine whether a full-blown feasibility study is warranted, Many weak business concepts can be eliminated from further consideration by asking a few questions, such as those that follow. Answering these questions does not require any research. The entrepreneur can simply rely on his or her own knowledge and on the advice of people who can provide objective opinions.

  1. 1. Am I really interested in this business opportunity?

If the concept is developed, time and energy will be invested, so it is important that the entrepreneur be passionate about the idea. Many potential entrepreneurs have gone forward with concepts that others suggested, only to discover after they have spent considerable time, effort, and money, that their hearts weren’t in the business.

  1. Is anyone else interested?

A business cannot exist without customers or, in many cases, without investors, so it is important for an entrepreneur to determine whether anyone else is interested in the business concept.

  1. Will people actually pay for what is being offered?

 Often, when people hear about a new product or service, they express interest – an even excitement. But what are they willing to pay for it? And how much? If they are not willing to pay what it’s worth, the idea may need to be revised.

  1. Why me?

The entrepreneur must be convinced that he or she is the right person to execute this concept. What unique capabilities and contacts does the entrepreneur bring to the venture?

  1. Why now?

Why is this a good time to launch this business? Why has no one else done this before? Or, if they have, why did they fail (or succeed)?

Once these questions have been satisfactorily answered, it’s time to progress  to the next level: The Business Model

Bernard Taiwo

I am Management strategist, Editor and Publisher.

Next Post


Fri Sep 13 , 2019
<div class="at-above-post addthis_tool" data-url=""></div>International Higher Education has reached unprecedented levels of popularity, with students from all parts of the world moving out of their country to pursue educational opportunities. Most of the migration is towards the more developed countries such as the United States and the United Kingdom, which have historically been the […]<!-- AddThis Advanced Settings above via filter on get_the_excerpt --><!-- AddThis Advanced Settings below via filter on get_the_excerpt --><!-- AddThis Advanced Settings generic via filter on get_the_excerpt --><!-- AddThis Share Buttons above via filter on get_the_excerpt --><!-- AddThis Share Buttons below via filter on get_the_excerpt --><div class="at-below-post addthis_tool" data-url=""></div><!-- AddThis Share Buttons generic via filter on get_the_excerpt --><!-- AddThis Related Posts below via filter on get_the_excerpt --><div class="at-below-post-recommended addthis_tool" ></div><!-- AddThis Related Posts generic via filter on get_the_excerpt -->
Graduation Cap

You May Like

Chief Editor

Johny Watshon

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur

Quick Links

%d bloggers like this: