1. Developing a Business Concept

2. Objectives Define and list the steps of writing a business concept. Develop a business concept.

3. Steps to Your New Business 1.Develop Business Concept 2.Test the Concept in the Market 3.Create a Business Plan

4. Step 1: Business Concept An idea for a new business that can be tested.

5. The Business Concept should answer 4 questions: What product/service is being offered? Who is the customer? What is the benefit you are providing? How will you get the product to the customer?

6. What is the product or service? Give a description or listing of goods and/or services that will be offered by your business. Be as specific as possible.

7. Who is the customer? The person who pays for your product. Who is the customer for children’s cereal? (Parent) The consumer is the person who uses the product.

8. What benefit are you providing? Benefit Something that promotes or enhances the value of the product to the customer. What does the customer get out of it??? Feature Distinctive quality or characteristic of the product. Usually includes the physical features of the product (color, size, model, etc.)

9. Feature/Benefit Chart for Refrigerators Features 21.5 cubic feet 300 KWh/year Brand name (GE) Variety of colors Auto ice maker Vegetable crisper Benefits Lots of storage space Low energy use/saves money Quality/dependability Match any décor Convenience Prolongs food life

10. Getting product to the customer Retail store Wholesaler Mail order Internet Door-to-door Telephone

11. Concept Statement Write a concept statement for The Balloon Closet by answering the 4 concept questions

12. The Business Concept should answer 4 questions: What product is being offered? Who is the customer? What is the benefit you are providing? How will you get the product to the customer?