BUSINESS CONCEPT DEVELOPMENT – ‘GETTING OFF THE GROUND’ CHAPTER 2 BUSINESS CONCEPT DEVELOPMENT – ‘GETTING OFF THE GROUND’

The importance of business concept development business concept an idea for a business including basic information such as the product, the target market, plus proposed competitive advantage. A business concept may involve a new product or simply a new approach to marketing or delivering an existing product.

The importance of business concept development Once a business idea is conceived, further development is still required.

The Business Concept Market Research market research a systematic approach which assists a business to make decisions about consumers and the marketplace

The Business Concept Market Research Market research provides an understanding of what customers want, and whether or not the product/service will meet those needs. It provides an overview of the market, including information on any competitors.

The Business Concept Market Research The initial market research undertaken when the business concept is being developed should look at obtaining answers to the following questions: Will the product or service being developed be attractive to customers or clients? Who will be the potential customers or clients? Will it be other businesses (B2B) or individual consumers (B2C)? Is the product or service going to provide value to the customer or client? Who will be the competition? In what potential areas or ways would the business be able to gain a competitive advantage?

The Business Concept Refine Business Concept After the initial Market Research undertaken, - It is important to use the information gathered to refine the business concept

The Business Concept Feasibility Study A feasibility study will provide information on whether or not the business idea is feasible. If it isn’t, the idea needs to be reassessed. The report from a feasibility study should contain: a description of the business idea, products to be sold, services to be offered, the key people involved, including background, skills, personal qualities and qualifications a description of the market – supply analysis looking at the life cycle of the industry whether there is a threat of substitute products coming onto the market in the future identification of the competition, assessment of financial feasibility location and site layout –personal circumstances business idea,

Intellectual Property (IP) Original ideas and designs also need to be protected as intellectual property (IP), and any designs should be checked to ensure they aren’t in breach of IP law. Intellectual property (IP) the property rights over the creations of mind or intellect; can be an invention, trademark or original design

Intellectual Property (IP) Types of intellectual property include: Patent: granted for exclusive exploitation of any device, substance, method or process that is new, inventive or useful Trademark: a right granted for exclusive exploitation of numbers, letters, words, phrases, sounds, smells, shape, logo, picture, an aspect of packaging or combination of these Design: features of shape, configuration, a pattern or ornamentation that make a product unique Copyright: original expression of ideas (not the ideas themselves); for example, in art, songs, literature, films, computer programs, articles and photos Trade secrets/confidentiality: intended to stop employees from releasing your ideas to others; for example, a secret recipe.

The importance of goal setting in business Business goals and objectives provide direction for a business. Business goals are statements that set out where a business wants to be in the future. Business objectives are the steps that need to be taken in order to reach the goals.

The importance of goal setting in business Business goals are generally broad, aspirational statements. representative of aspirations the owner may include emotive and general language allow for conceptual thought and not prescriptive steps. Aligned with the businesses Mission & Value Statements They do not specify a process for reaching them, and need to be in alignment with a business’s mission and values statements.

The importance of goal setting in business Goals should be both financial and non-financial. For example, a goal could be to expand the business, A target of improvement in manufacturing achieve growth in profitability or Market Share Customer satisfactory levels to meet certain environmental standards.

The importance of goal setting in business Business objectives are steps that will help achieve the goal. For example, GOAL = Achieve High Enviro Standards in Manufacturing, OBJECTIVE = Move to 100% recycled source materials within 2 years.

The importance of goal setting in business The Hierarchy of Objectives 1 Core values: priorities and principles important to the business as a whole. 2 Mission statement: central purpose or reason for the business. 3 Vision statement: long-term aspirations of the business. 4 Strategic goals: long-term whole goals for the entire business organisation. Set by executive management (two to five years). 5 Tactical/departmental objectives: medium-term goals set by middle management for one department/division (one to two years). 6 Operational objectives: short-term goals set by frontline management for one team/shift (daily, weekly, monthly). 7 Individual objectives: personal goals set by one employee.