You will prepare a business concept plan for a product of your choosing.
Business Concept Components
The written business concept should address the following components:
Concept Statement
- Explain the concept statement for the business venture you are proposing (be clear, concise and compelling).
- Briefly address the value proposition including the target market, unique benefits, sustainable competitive analysis and how benefits will be delivered to the customer.
Product/Service
- Clearly explain the product or service. What are the features and benefits of the product or service?
- What product development tasks must be undertaken and what is the timeline for completion?
- Is there potential for intellectual property rights? Describe.
- How are these products or services differentiated from others in the market, i.e. what makes your product/service unique?
Opportunity/Need
- Describe the market opportunity. What trends are favorable for the business?
- Describe the compelling need for the product or service. What problem is it solving?
Industry
- What are the demographics, trends, life cycle stage and typical profit margins of the industry?
- Are there any barriers to entry? If so, what are they?
- What is the status of technology and R&D expenditures?
- What have you learned from talking to distributors, competitors, retailers, etc.?
Market/Customer
- What are the demographics of the target market?
- What is the customer profile? Do you plan to target different customer segments?
- What have you learned by talking to potential customers? What information did you obtain from customers?
- How will you attract your customers? What marketing mediums will you use?
- Who are your competitors and what are your key points of differentiation between your product and your competitor’s product/service?
- Which distribution channel alternatives are available and which customers will they serve?
Founding Team
- Who is your founding team? Including mentor(s), advisor(s), board members(s)? Who will be your management team? What role will each of you play? What experience does your team have? What are the gaps and what will you do to fill them in?
- What role will strategic partnerships play in the venture (accountant, bankers, board of directors, etc.)?
Financing/Profit Potential
- How do you plan to finance the venture?
- Discuss the scalability of the product/service. How will it spread rapidly to other customers?
This assignment should be 5-7 pages long. Since this is a concept, it should be a new product or service idea.
Evaluation Criteria
Concept Description – What does your venture do? What is your overall product or service and what stage of development is it in?
Problem Being Solved – What problem is your venture solving? Clearly explain the product/service attributes (performance, efficiency improvements, availability, social, service or convenience) for your customers? How much value does your product or service create for customers? How much money or time can it save them?
Market and Customers – Identify the market size and market segments. Who are your potential target customers? How will you attract them? What methods are currently in existence to reach them?
Uniqueness – How do your customers use this product today? Who else does the same thing you are doing today? Who else can be doing it tomorrow?
Barriers to Entry – How much money, effort and time will it take for you to enter the market? How will competitors affect your ability to get started? What patents, copyrights, trade secrets, etc. protect your product from duplication?
Competition – What is the competitive landscape? Discuss companies that can be viewed as competition in the market segment. Briefly explain the key points of differentiation between your product and competitor’s products.
Strategic Partners – Identify any strategic partnerships required for the company to be successful. Explain the value each partner adds.
Business Opportunity – How does your venture make money? How much will it cost to produce versus how much you think you can sell your product or service?
Profit Potential or Social Impact – Breakdown initial start-up costs. If a nonprofit venture, note the social impact (lives saved, youth educated, healthcare benefits, etc.).
Scalability – Once your customer adopts the product; will it spread rapidly to other customers (or other parts of the company, if your client is a corporation)?
Risk Assessment – Has the team identified the critical risks to address before launching the venture?
Overall Written Plan – Organization of concept plan including proper grammar, capitalization and sentence structure; research and data to support assumptions; and proper citation of sources.
