Business plans are extensive and require a longer time to read. Considering that the expected readers of these documents are busy people or entrepreneurs to be specific, it would be extremely impractical to read the whole business plan and only to discover its poor content at its 50th page. Thus, it would be very significant to provide a document that is as brief as a note but also as informative as the whole business plan itself. In other words, you might need to include a compelling concept statement with your proposal. Read through to learn more.
Since any business plan cannot be easily comprehended by the potential investors, it would be a very bright idea to include a concept statement which exactly provides a concrete solution to this problem. Just like a cash flow statement, you also need to be as clear and as precise as possible. Let us then discuss what a concept statement is and how essential it is in business, but before that, why not take a peek on these numerous samples that we have gathered for you to rely on.
A concept statement is a brief description of a proposed idea that addresses a certain problem. However, in the entrepreneurial sense, a concept statement is a component of a business plan that asserts and condenses the plan, design or idea of a particular undertaking.
Consequently, it is a short narrative of the whole business plan that is presented either graphically or textually and is presented to a client or business partner for investment or agreement. It provides prospective investors with adequate details to agree on whether they should or should not proceed with the proposed plan. Thus, a business concept statement is indeed critical since it catches the interest of your audience as well as giving the basis for your investor’s verdict.
Though a concept statement needs to be as short as possible which can range from a single sentence to a page, it should include all of the key elements of the business. These key elements include:
In this element, you need to state what your business is all about as well as your company’s plan in entering the said endeavor. You might also include the unique features or characteristics of your company that make you different and outstanding in comparison to your competitors. Also, prove to your audience that your business makes sense and is not just a need but also a loss.
In this section, you need to discuss the product or service that your company is offering as well as those that your company is still planning to offer. Just like your business description, you also need to show why and how it varies from your existing competitors’ products or service.
In addition, remember to include your intended market or the target consumers of your mentioned product. It should be very specific and carefully considered. You can also present data from extensive market researches and findings of the target market selection.
This serves as the conclusion of your concept statement. At the end of your concept statement, you must mention the goals and the objectives of your company within a specific time frame. This could be classified as short-term or long-term.
Writing a concept statement is the same way as writing a mission statement. You need to create a layout on how to present your ideas. Here are the steps on how to write a design concept statement.
Write at least two to three sentences explaining the objective of your design. Make it brief and use simple language. You may also see the statement of purpose examples.
Lay down the specific problems you need to address and how your company can help in achieving that goal.
Once the problem is identified, state the unique ideas of your design and how it can create a big impact.
When you are starting a business and you are looking to attract more clients to fund you or make an investment, you need to present your business plan in a way they can understand it. That is the main point of why statements are needed in every business.
A business concept statement allows you to verbally express and lay out your ideas and plans in the most elementary way. It provides a concrete and firm grasp of what you want to accomplish and how investors can benefit from it. You may also like statement analysis examples.
Investors often look at how they could trust a business statement and how they could gain from it. Your concept statement should provide firm statements on how you are planning your business to become.
Providing general solutions to problems do not sell to investors. You need to be specific with your resolutions.
Investors are always after what they can get out of their money. Make sure to offer concrete benefits investors are expecting from your business. You may also check out bank statement examples.
Taking it into its most comprehensible sense, a product concept statement shows how the business owners and the design team perceive a new product or service. This briefly provides the product or service description, its purpose, and considers the demographic information of the target market. Product concept statements also distinguish the problems or issues that product can fix or address.
Furthermore, product concept statements are an essential component of a business plan and products and services development plan in established companies. It is important since it gives the whole design team with a comprehensible guideline of their objective in their production. Moreover, it also leads other departments such as the sales and marketing with a plan of what measurements should they do after the product has already been crafted and devised and is now to be released to the market.
These documents are usually used as an internal document such as in a business plan; however, it is not always the case. In fact, these are also utilized by some companies to attract the interest of investors and other potential manufacturing partners. Product concept statements are not needed to be long, as much as it functions effectively, any length that is appropriate can do.
To give you a more comprehensible overview of what a product concept statement is, you may refer to these samples: