This presentation is meant to provide an insight on the importance of a business concept exercise before writing a business plan. It enables the promoter of the business , structure the business idea in such a way he or she can define the business model an

1. Concept
Development
BY
Angela Itambo Ihunweze
080 33 28 04 53
angelaitambo74@yahoo.com

2. Table of contents
 What is a business concept?
 Framework for composing what
a business concept
 Things to take note
 Assignment

3. What is a business concept?
Business concept is an exercise
that answers what the idea or
business concept is all about,
who the potential customers
should be, what value is been
added to this concept that will
differentiate it from the rest?
How it will be delivered, and
most especially how will this
business concept make money.

4. Why is it necessary?
 A business concept is very integral to the success
of any venture irrespective the business
opportunity. It is meant to prove if your business
opportunity can be profitable;
 It enables you the entrepreneur thoroughly
research to know extensively whether it is worth it
to go ahead with the business opportunity and if
already started to analyze new ideas which can
take your business to the next level of growth and
productivity
 The exercise is meant to show if you have done
your homework thoroughly to ascertain the
following:-

5. Framework for composing a
business concepts;.
The business offering either a product or
service
 Is the industry where this product or
service ready for such a concept. Is there a
regulation from government and industry
regulators designed to make the business
favorable
 What is required to make this business
concept extraordinary?
 Is it possible to acquire what is needed to
accomplish these feats, these includes raw
materials as well as the necessary
manpower and financial resources.

6. Framework for composing a
business concept Part 2
The customers
 Is the customer aware that or he
or she is in need of the
business concept?
 Is the market ready for such a
business concept (including the
structure on ground)?
 Can it be cultivated and is there
possibility for growth?

7. Framework for composing a
business concept Part 3
The distribution channel
 What is the culture for delivering
such a business concept as yours?
( How will customers have access
to what you are offering)
 Are there alternatives to delivery?
( this can lead to a new business
opportunity)
 Is there any creative and cost
effective way of delivering your
concept?

8. Framework for composing a business
concept Part 4
 How will this factors culminate
to sales and in turn to profit?
 What is required to bring this
concept to the market; this will
involve identifying all the items
and their cost structure.

9. Things to take note
 Mission: is a brief statement of the
purpose of a company, organization.
It tells you and those that come across it
the fundamental purpose of the
organization. It concentrates on the
present. It defines the customer and the
critical processes. It informs you of the
desired level of performance.

10. Things to take note Part 2
 Vision Statement; Defines the
desired or intended future state
of a specific organization or
enterprise in terms of its
fundamental objective and/or
strategic direction .It outlines
what the organization wants to
be. It concentrates on the future.
It is a source of inspiration. It
provides clear decision-making

11. Things to take note Part 3
 To convince others to buy your product or service
you will have to first of all understand clearly what
your offering is all about. This invariably will give
you the opportunity to describe it to the minute
detail to a layman and he or she will clearly
understand it.
 To believe you are the only business offering of your
kind in the market place may be an illusion. Even if
your business is novel, before you came into the
scene, customers you are targeting, how were they
addressing that need in a particular? Therefore as
an entrepreneur you must act professionally and
ask yourself some questions. What makes my
product or service unique from others? Think
through the eyes of the customer.

12. Things to take note Part 4
 Apart from description of your
business offering , you must
understand that to be said to be
successful in business, simply
entails how profitable your business
is. A business that doesn’t make
profit is said to be a hobby. Therefore
as aspiring entrepreneurs whatever
stage you are in; you simply must
create a business model peculiar to
your business.
 How will your business make money( in

13. Things to take note Part 5
 Every business has its mode of payment. There
is a culture already practiced it is your duty to
find out. It is however necessary to do a
thorough background check from those in
similar businesses on how customers pay. It will
help you in your cash flow projections. This will
save you from brandishing yourself and
business a failure during the dull seasons of
your industry. To every business especially if you
inquire you will be advised on the expected rate
of return per unit sold, the breakeven point (The
breakeven point is the point at which a
business breaks even (incurs neither a profit nor
a loss) The breakeven point is the minimum
amount of sales required to make a profit.) you
should expect .
 Finally to achieve the entire feat, you must be
willing to invest your time, energy, and most

14. Things to take note Part 6
 You must from the on set take time
to identify all the financial costs that
will enable you start the business, or
expand your business . Don’t
assume. It is better you know so as
not be taken unawares
 When researching, find out what is
the expected standard of manpower
required. The qualifications that they
must possess. This will enable you to
see how you cope with what you
have.

15. Business concept Structure
Business overview
 Decide a business name
 Define vision statement
 Define mission statement
 Highlight the current status of the business
Business Concept
 The need
 Product and/or Service
 Target Market/Customer
 Value Proposition
 Distribution Channel
 Management
 Financial Requirement

16. Introducing Angela Ihunweze
 Mrs. Angela Ihunweze, an author, a business plan
tutor and writer/Business development consultant,
speaker on entrepreneurial/marketing related
issues. A resource person on some related radio
and television programs. Her firm assists
entrepreneurs in identifying and accessing business
opportunities peculiar to their personality.
 She is also speaker and trainer on
entrepreneurial/marketing related issues. She can
be invited to your organization or business to train
 A recipient of the outstanding volunteer award of
the fate foundation of which she received an award
as one of the outstanding volunteers for 2008.
Book an appointment by calling 08033280453.
Thank you