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What is a Business Concept?

What is a Business Concept?

The business concept of a company provides an insight into the ideas and concepts of the founders before the foundation and allows conclusions to be drawn about the possible success or failure.  This is sometimes referred to as a business plan, although the business concept is basically only a part of the company’s detailed information. The business concept includes key data on companies, marketing strategies, plan balances, liquidity forecasts, initial plan profit statements and information on planned financing.

Structure and information

The business concept is both investors and sponsors, as well as potential partners and with shareholders informed shortly how to be founded the company is positioned. But it can also be a good idea to revise the business concept and adapt it to new circumstances even during operation. The management is first responsible for creating a business plan. If employees are added to planning, the management has the last word in the details. 

            The business plan opens with the personal and business data of the management, the management board, and possibly higher employees. The main contractors are compulsorily mentioned in the case of companies which are established. The company’s key data, such as location, company name and number of employees, follow. An opening sum can be given.

Scope and details within the plan can vary greatly, depending on the industry and size of the company. Before the opening of the business or the application for subsidies or subsidies, sufficient time should be planned for the preparation as analyzes and concrete calculations are necessary to provide an overview.

Important information and optional

Entities which are absolutely essential in the business concept are those which provide a realistic insight into the market opportunities to the opposing party to whom the plan is submitted. Examples for this are:

Business concept Examples

  • What is important, of course, is the business idea: By what should sales be achieved? What are the unique features of the product or service? What specific services can the employees afford? Who is the target group? This part appears in the company concept.
  • The qualification of the entrepreneurs/founders (see also the lexicon entry to the entrepreneur) and the first employee is also essential. No sponsor or investor can trust an entrepreneur who has never been active in his field to lead a company in the foreign market.
  • The financial part of starting capital up to the expected turnover of the first years is also an important point. Site factors, market analysis and details of the planned acquisitions are always included in the plan.

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Optional are all those details that are not directly related to the expected success of the company. The marketing concept (see also the marketing mix) of the company is variable, which is why the marketing planning is not finished months before the foundation in final form. And the prospects for the future should also be severely limited in time. The first three years are usually approximate. However, the company does not have to become a fortune teller but can ignore all political and economic developments and calculate purely with the growth of the company. The business concept is complete if the company is attractive and realistic on a few pages.

About the author

Salman Qureshi

Salman Qureshi is an Accountant by profession & he loves to write on Commerce & Management Sciences Subject to assist Students. Hope you guys will like his effort.

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