What is a concept statement?
A concept statement is a brief summary of the contents of a company’s business plan. It lays the groundwork for the plan when it is being presented to an audience, whether a client, customer or an investor. As it includes all of the main points and scope of the business, the concept statement is intended to help give the audience a better understanding of what the overall business plan entails.
What is included in a concept statement?
A concept statement typically provides clients, customers or investors with a better understanding of the business plan they are about to hear or read. The key information is contained in a succinct and straightforward paragraph. It may include the following:
A short description of the business, including its products and/or services
The defined problem in the market that the business will attempt to address - and how
The target market
An outline of business goals and objectives
Why is a concept statement important?
A concept statement is a crucial part of starting a business. By providing an audience with a clearer visualization of a proposed plan, they may be more open to investing in, partnering with or doing business with the company. As the statements usually include brief descriptions of products, services or designs communicated to customers, they not only help explain the aim and focus of the business, but they also help provide a better understanding of what is intended to be done and how it is to be done.
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What should an effective concept statement highlight?
An effective concept statement should highlight the following main elements of your company’s overall business plan:
Business description: This element briefly describes what your company is all about, the features that differentiate it from its competitors, its operation policy, and its role in the market.
Core product or service: This part explains what product or service your company offers. It’s important to emphasize here what sets your product or service apart from others that currently exist in the market.
Target market: This element defines your company’s target market and how you decided on this particular market segment. It’s important to include the exact type of customer or client your product or service is aimed at and how you plan to reach this particular demographic.
Main goals & objectives: This is the conclusion of your concept statement. It should describe your company’s short-term and long-term goals and the timeline for when you aim to achieve these goals. It is important to inform your audience about your company’s current and future goals.