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.
How long should a concept statement be?
The ideal length for a concept statement can vary depending on the specific context, the complexity of the concept and the preferences of the audience or stakeholders. In general however a concept statement should be concise and to the point. Typically, it should be no more than 1 - 2 pages in length.
Here are some guidelines to consider when determining the length of a concept statement.
Clarity and brevity: The primary goal of a concept statement is to provide a clear and concise overview of the idea or concept. It should convey the essential information without unnecessary details or complexity.
Audience expectations: Consider the expectations of your audience. If the concept statement is meant for busy executives or investors, keeping it brief and focused is crucial. They may not have the time or inclination to read a lengthy document.
Succinct key components: A concept statement typically includes key components like the problem or opportunity, the proposed solution, the target audience, objectives, and benefits. The content should address these components succinctly.
Quick engagement: A well-written concept statement should engage the reader's interest quickly. It should spark curiosity and encourage further discussion or exploration.
Links to supplementary materials: If there are additional details or supporting documents, you can provide links or references to these materials rather than including everything in the concept statement.
Use of visual aids: Consider using visuals like charts, diagrams, or graphics to supplement and clarify the text. Visuals can convey information efficiently.
Editing: Be prepared to edit and revise the concept statement to ensure that it conveys the core message in the most straightforward manner. Eliminate any redundant or irrelevant information.
The length of a concept statement should strike a balance between providing enough information to convey the concept's essence and maintaining brevity and clarity. It should be concise, focused and easy to digest in order to do its job of gaining support for a proposal, plan or idea.
How to write a concept statement
Writing a concept statement is an essential step in outlining a business idea, project or proposal. A well-crafted concept statement should be clear and concise. With this in mind we've put together a step-by-step guide on how to write a concept statement.
01. Start with a clear title or heading
Begin your concept statement with a clear and attention-grabbing title or heading that summarizes the central idea or project.
For example: SmartCity: Enhancing Urban Living Through Sustainable Technology
02. Plan your introduction
Then think about a brief introductory paragraph that explains the purpose of your concept statement. State what the concept is and why it's important. This should provide context for the reader as well.
For example: Welcome to 'Project GreenTech,' a forward-thinking initiative designed to revolutionize the way we approach environmental sustainability in urban areas. In a world facing increasing environmental challenges, our concept seeks to harness innovative technology and community-driven solutions to create a cleaner, greener, and more livable future. With a focus on renewable energy, waste reduction, and community engagement, Project GreenTech aims to be a beacon of hope for our planet and a model for sustainable urban development.
03. Clearly define the issue your statement plans to solve
Describe the problem or opportunity that your concept addresses. Then provide a concise explanation of what challenges or needs it aims to resolve or leverage. This should be very specific and clear in order to convey the message most effectively.
04. Set out your proposed solution
Explain your proposed solution to the problem you've explained above. Describe the core idea, product, service or project that you intend to implement.
05. Identify your target audience
Identify and describe the target audience or stakeholders for your concept. Who will benefit from or be impacted by your idea? Be as specific as possible.
06. Outline the objectives and benefits
Outline the specific objectives or goals of your concept. What do you hope to achieve? Additionally, highlight the benefits or value that the concept offers to the target audience or stakeholders.
07. Explain your unique selling proposition
Lay out what sets your concept apart from others in the same space. What is the unique selling point (USP) or value proposition that makes your concept special or superior?
08. Include your implementation plan, where relevant
If applicable, briefly mention how you plan to implement the concept. This can include the timeline, key milestones or a general strategy.
09. Write your conclusion
Finish by concluding your concept statement by summarizing the key points and reiterating the importance of the concept.
10. Review and edit your statement
After writing the initial draft, review and edit your concept statement for clarity, conciseness and accuracy. Ensure that the language is straightforward and free from jargon. If appropriate or impactful, consider using visuals such as diagrams, charts, or images to support and clarify the written content.
11. Gather feedback
Share the concept statement with colleagues, advisors, or other relevant individuals to gather feedback and suggestions for improvement.
12. Finalize and format your statement
Once you've incorporated feedback and are satisfied with the content, finalize the concept statement. Make sure you're happy with the final format which should be clear but professional.