DEVELOPMENT OF THE

BUSINESS CONCEPT
AVINASH RAMSUBHAG
BUSINESS CONCEPT
• A business concept refers to the fundamental
idea or core proposition upon which a business
is built. It encompasses the key elements that
define the purpose, value, and operations of a
business. A well-defined business concept
serves as the foundation upon which the entire
business model is constructed.
• It examines the product or service, the target
market and the key competitors and their
unique selling point to gain a competitive
advantage.
 • Value Proposition: This outlines the unique value that the business offers to its
customers or clients. It explains what sets the business apart from competitors
and why customers should choose its products or services.
• Target Market: This identifies the specific group of customers or clients that the
business aims to serve. It involves understanding their demographics, behaviors,
preferences, and needs.
• Products or Services: This describes what the business sells or provides. It
outlines the features, benefits, and attributes of the offerings, as well as any
unique selling points.
• Revenue Model: This outlines how the business intends to generate income. It
may include pricing strategies, sales channels, and monetization methods.
• Market Strategy: This encompasses the plan for reaching and acquiring
customers. It includes marketing, advertising, promotion, and distribution
strategies tailored to the target market.
• Competitive Advantage: This explains how the business positions itself in the
market and what advantages it has over competitors. It may be related to factors
like innovation, cost-effectiveness, quality, or customer service.
• Operations Plan: This details how the business will function on a day-to-day
basis. It includes considerations like production processes, supply chain
management, staffing, and technology requirements.

COMPONENTS OF
• Financial Projections: This involves forecasting the financial performance of the
business, including revenue, expenses, profits, and cash flow. It provides a
snapshot of the business's expected financial health.

A BUSINESS • Long-Term Vision: This outlines the business's aspirations, goals, and long-term
objectives. It may include plans for expansion, diversification, or achieving a
certain market share.

CONCEPT • Risk Assessment and Mitigation: This involves identifying potential risks and
challenges that the business may face and developing strategies to mitigate
them. This is crucial for ensuring the business's sustainability and resilience.
SOURCES OF BUSINESS
CONCEPTS
• New Products: Innovations in product design, functionality, or features can lead to entirely new business concepts. This
could involve creating a product that addresses an unmet need or improves upon existing offerings.

• New Services: Identifying gaps in services or recognizing emerging service needs can spark the idea for a new business.
This might involve offering services that are more convenient, efficient, or specialized.

• New Processes: Innovations in operations, production, or service delivery methods can lead to improved efficiency and
effectiveness. These process improvements can form the basis of a new business concept.

• New Markets: Identifying untapped or underserved markets, whether locally or globally, can provide the impetus for
starting a business. This may involve catering to a specific demographic or geographic area.

• New Organisational Structures/Forms: New ways of organizing and structuring businesses, such as co-operatives,
franchises, or virtual teams, can lead to unique business concepts.

• New Sales or Distribution Channels: Innovations in how products or services are marketed and distributed can lead to
new business opportunities. This could involve e-commerce platforms, subscription models, or direct-to-consumer
approaches.

• New Development Paradigms: Keeping abreast of emerging technologies, such as blockchain, augmented reality, or
artificial intelligence, can inspire new business concepts. These technologies can open up novel avenues for products
and services.

• Mass Media: Observing trends and cultural shifts in mass media, including movies, TV shows, books, and social media,
can provide insights into emerging consumer preferences and needs.

• Customer Feedback: Listening to customer feedback and observing their behaviors can lead to innovative solutions.
Customer suggestions, complaints, or observed pain points can inspire business ideas.

• Hobbies/Interests: Personal interests and hobbies can be a rich source of business concepts. Entrepreneurs often draw
from their passions and expertise to create businesses that align with their interests.

• Trade Fairs/Exhibitions: Participating in or attending trade fairs, exhibitions, and industry conferences can expose
entrepreneurs to new technologies, trends, and emerging business models. This can spark innovative business concepts.
 Steps in Developing
the Business
• Concept:
Identify potential market: The potential market for eco-friendly, reusable household products includes
environmentally-conscious consumers, eco-friendly stores, sustainable living enthusiasts, and environmentally-
focused communities.
• Decide on target market: The target market for this business concept could be environmentally-conscious
individuals and families who are committed to reducing waste and adopting sustainable lifestyle practices.
• Identify customer segment within the market: Within this target market, specific segments might include
young professionals seeking to adopt a sustainable lifestyle, families with young children, and environmentally-
conscious seniors.
• Identify segment characteristics: Characteristics may include their level of environmental awareness, shopping
behaviors, disposable income, willingness to invest in sustainable products, and specific needs related to
household sustainability.
• Decide on target segments: For this business concept, the primary target segments will be young professionals
seeking sustainable options and families with young children aiming to teach eco-conscious values.
• Identify customer needs or preferences: Customer needs include access to high-quality, durable, and
aesthetically appealing eco-friendly household products. Preferences might include products that are easy to
clean, safe for families, and aesthetically pleasing.
• Decide on marketing mix factors such as pricing: Pricing should reflect the value proposition of eco-friendly,
reusable products. While they may be priced higher initially, they offer long-term savings and environmental
benefits. Offering different price points and bundling options could also be considered.
• Identify media, promotional and sales channels: Utilize eco-conscious media outlets, social media platforms,
sustainable living blogs, and eco-focused events to promote the products. Partnering with eco-friendly stores,
online marketplaces, and direct-to-consumer sales channels can also be effective.
• Develop a marketing plan: This includes a detailed strategy for product launches, promotions, advertising, and
content creation. It should also outline a budget allocation for marketing efforts and a timeline for
implementation.
 EXAMPLES
• Health and Wellness Subscription Box: Curate monthly subscription boxes filled with wellness
products, organic snacks, fitness gear, and self-care items to promote a healthy lifestyle.
• Online Language Learning Platform: Create an interactive platform offering courses in various
languages, including live sessions, AI-driven assessments, and personalized learning plans.
• Urban Farming and Fresh Produce Delivery: Establish a vertical farming operation in urban areas to
grow fresh, organic produce and offer convenient delivery services to local customers.
• Virtual Reality Fitness Studio: Develop a virtual reality fitness platform that immerses users in
dynamic workout experiences, combining virtual environments with real-time biometric feedback.
• Eco-Friendly Home Renovation Services: Offer sustainable home improvement solutions, specializing
in energy-efficient upgrades, eco-friendly materials, and renewable energy installations.
• Personalized Nutrition and Meal Planning App: Create an app that analyzes users' dietary
preferences, health goals, and restrictions to generate customized meal plans and provide grocery
shopping recommendations.
• AI-Powered Fashion Stylist: Develop an AI-driven fashion platform that recommends outfits based on
individual styles, body types, and current fashion trends, and allows for virtual try-ons.
• Green Cleaning Products and Services: Manufacture and distribute environmentally-friendly cleaning
products, and offer cleaning services using eco-conscious methods and supplies.
• Pet-Friendly Tech and Accessories: Design and sell tech gadgets and accessories tailored for pets,
such as smart pet trackers, automated feeders, and eco-friendly pet products.
• Personalized Beauty and Skincare Subscription Box: Curate monthly beauty boxes with customized
skincare and cosmetic products based on individual skin types, preferences, and beauty goals.
• Outdoor Adventure Experience Company: Offer guided outdoor adventures and experiences, such as
hiking, camping, kayaking, and wildlife tours, with an emphasis on sustainable practices.
• Artisanal Food Truck: Operate a mobile food truck that serves gourmet, handcrafted dishes using
locally-sourced and organic ingredients, with a focus on unique flavor combinations.
THE END