Do you have a business concept?The page was last modified:
A business concept starts with an idea. Business concepts are rarely brand new, but are often based on further development and improvement of an existing product or service.
A company’s business concept contains what you are intending to sell, how you sell it, and to whom. A well-thought-out business concept increases your chances of succeeding. The more simply and concisely you can explain your concept, the easier it is for customers and partners to understand what the business is about and how it will accomplish its goals. The business concept should highlight the strengths of the business and what makes it special. One benchmark is being able to convince someone about your idea in just a few minutes. This is what is known as an elevator pitch.
Use these points as a starter when writing down your business concept:
- What do you intend to sell?
- Is there a need for your services and/or products?
- To whom do you intend to sell?
- Why should they buy from you?
- How will you reach customers?
- How will you earn money?
Your business concept and operations need to be competitive in a sustainable future. Therefore, it is essential to formulate how your business concept is relevant and can create value from a sustainability perspective. You should also formulate how you intend to tackle any sustainability challenges that arise for your operations.
Sustainability guide on verksamt.se
Protect your idea
It is important to protecting your ideas at an early stage since they may become important to your business. Immaterial assets are about ownership as a result of intellectual accomplishment. They can be inventions (patents), designs, texts, copyrights or trademarks. Think about what values you want to build your business around, how other companies are structured, what kind of competition you are up against, and if you risk copying someone else. You can contact the Swedish Patent and Registration Office (Patent- och registreringsverket, PRV) for help in these matters.
The Swedish Patent and Registration Office
Want to start a business, but don’t have a business concept?
If you don’t have a business concept, but want to run your own business, the first step could be to consider what you are good at and what you like to do. Many people starting up their own business do so within the same field that they already work in, since they are aware of the opportunities that exist and the shortcomings that need to be addressed.
These questions may help you come up with a business concept:
- What resources (materials, time, money, expertise) can be found in our society that are going to waste – and what can you do about it?
- What sort of things do people and companies find troublesome in day-to-day life, and how could they be made simpler with the aid of products or services?
- What do people complain about today as being irritating or ineffective?
- What habits and behaviours are changing? What can you do to speed up or assist this change?
By talking to different people and keeping up to date through newspapers, TV, radio and the internet, you can pick up on trends, such as changed behaviour and new habits.
Questions that your business concept must be able to answer
- What is the purpose of your business on the market?
- Is there a need for your product or service?
- What market(s) is your business operating in?
- Who is your target group and how can you reach them?
- Is your business concept unique? If not, what distinguishes it from competitors?
- Why should customers choose your business rather than your competitors?
- What impact will your business have on the environment, the climate and society?
- What are the fundamental profitability factors for your business?
- How will your business concept be affected by cyclical fluctuations?
- How will your business concept be affected by social changes, e.g. demand for sustainable products/services and the transition to renewable raw materials and energy?
- How will the product or service be sold?
- How will marketing be funded and implemented?
Once you have written down your business concept and discussed it with family, friends or advisers, it’s time to make a business plan. A business plan is a description of the business and its activities – and your business concept, of course. A well-written business plan will help you to take a long-term view. It serves as an aid when selling your idea to investors, customers, suppliers, banks and authorities.
Moving forward with your idea
Is your business concept sustainable? A sustainable business concept creates value for the business, customers, society, the environment and the climate.
Sustainability guide on verksamt.se
Responsible: Swedish Agency for Economic and Regional Growth