A good business idea is a mental construct of a business that is imagined or thought about by an entrepreneur or business person.
A business concept is the fine-tuning of the business idea into a business plan.
In this article, I will break down the difference between Business Idea and Concept so you know all there is to know about it!
Keep reading as we have gathered exactly the information that you need!
Let me explainto you what is a business idea and business concept!
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Business Idea vs Business Concept
Starting a business requires that you take a business idea and translate it into a clear and concise business concept.
In other words, having an idea for a business is great, but it’s not enough for you to succeed.
What’s important is that you take your business idea, refine it, fine-tune it, and express it in a clear and concise concept in a business plan.
Let’s look at what business ideas and concepts mean to better understand their differences.
A business idea refers to a mental plan or a mental idea of a potential business.
An entrepreneur or business person can imagine a product or a service that he or she believes to have the potential of generating profits.
The business idea is generally in a person’s mind or potentially a few scribbles on a piece of paper.
A business concept refers to a business idea that has been processed in more detail, researched, and evaluated.
A business concept has details about a potential company’s products and services, the nature of its business, its market, and its value proposition.
Typically, a business concept is expressed in a business plan or document where the idea has been analyzed and evaluated.
Turning Business Idea Into Business Concept
You have thought of a great business idea and now you wonder how you can turn it into a real business concept.
The first question that you should be able to answer when trying to take your idea to a concept is: what will my business offer?
The question is simple but can be difficult to answer.
You need to be able to specifically say what will you offer to the market in terms of product or service.
To answer this question, you can consider the following elements.
One aspect that you should consider is your target market.
Who are you trying to serve?
What is your addressable market?
Where is your market located?
You should analyze your potential customers, determine where they are, what are their needs, who are your competitors, and who are your competitors’ customers.
Then, you need to assess the viability of your business concept.
Now that you know who is your target market and your potential competitors, will your target audience be willing to buy your products and services?
Will your target audience be interested in your company offerings?
Once you have determined your addressable market and determined that there is a need in the market, you should now define your company’s value proposition (or unique selling proposition).
In clear and concise terms, what differentiates you from your competitors?
What are the benefits of doing business with your company?
How can you solve your customers’ problems?
Your company’s value proposition should be catered to the needs of your target audience and market.
So there you have it folks!
What is the difference between a business idea and a business concept?
In a nutshell, a business idea is a “mental construct” or “mental vision” of a potential business.
On the other hand, a business concept is the expression of a business idea in a business plan where the idea has been evaluated, tested, and researched for viability and potential.
Starting a new business is quite challenging.
A hallmark of successful entrepreneurs is that they have a vision and can turn their vision into a concrete business plan and strategy.
As the business model evolves, they make changes and pivot to take the business to a new level.
If you’re engaged in a startup or are looking to start a new business, it’s important to consider setting the right structure and putting the right team together.
Having the right startup and business lawyers on your side can make a significant difference, don’t forget to work with business-minded professionals to help you in your journey.
AK-Law is a boutique law firm having a core focus on all facets of the business. We support businesses of all sizes in their day-to-day as well as strategic legal needs. If you want to know more about our firm, better understand what we do, or get a quote, be sure to reach out!
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