Concept Statement

A concept statement is the summary of a business plan. If you are writing a business plan, know that this statement forms the basis of the plan when you present it. Never assume at one point that the plan can speak for itself, it can not. You should include a statement that will help the audience have a broad understanding of the business plan. So, to define the statement of concepts; These are short statements that explain a larger idea/concept. These statements are used to convey a business objective and focus the audience. These are brief descriptions of products, services or designs communicated to customers. Most importantly, they are descriptions used to explain how a new product or service will solve a specific problem in the market.

How Important Is This Statement In A Business Plan:

• It helps to add content to a business plan. It provides clients and investors with a better understanding of the plan through a concise and straightforward paragraph. Simply put, this statement is quite effective in providing the audience with a better visualization of a proposed business plan. Furthermore, a concept statement is often part of the presentation used to attract clients and investors when seeking approval of a proposed business plan.

The Core Elements of the Business Plan Concept Statement:

As seen above, these statements are useful for any business plan presentation. Not only do they help clarify the business goals and focus, but they also help provide a better understanding of what should be done and how it should be done. In this regard, an effective statement should highlight the following key components;

Description of the business

• This element explains what the business is all about. The description briefly highlights the role of the business in the market. It also explains the distinctive features of business and management principles.

Target Market: 

• What is your target market? How did you settle on that particular market group? While describing it, you need to mention exactly who your product or service is aimed at and how you want to reach this specific market.

The product or service you will offer:

• This should explain what product or service the business offers. Again, you need to explain what differentiates your product/service from what already exists in the market.

The product or service you offer:

• It should explain what products or services the business offers. Again, you need to explain what differentiates your product/service from what already exists in the market.

Your Aims and Objectives:

• This includes both long-term and short-term goals. Your audience needs to know what your immediate and future plans are as a business. You should also provide a time frame for when these goals will be achieved.

Tips on how to write a concept statement that will definitely impress

If you are not a creative person, you might think that writing a business plan concept statement is the hardest thing ever. Well, its not easy on its own, but with the right guidelines and ideas, you can come up with a pretty impressive statement.

Here Are Some Tips To Help You Out:

Provide a thorough description of the business

• Concept statements are meant to explain big things in simple terms, which the target audience can easily and quickly understand. For this reason, you need to ensure that your writing meets all of these requirements. In one sentence, describe the business, its purpose, focus and basic concept. Keep in mind that this statement is a nuance of the entire business plan, but it will ensure that visitors can use it as a reference point without having to go through the entire document. So keep it brief and clear.

Define the issue

• While starting a business, one needs to do a thorough research on the various opportunities that he can venture into. In this respect, they must have identified a gap in the market that their product/service can fill. This gap is the problem that customers are experiencing and needs to be addressed. Statements of ideas should be used to acknowledge and suggest solutions to these problems. So in your statement, briefly describe the problem and how the proposed product or service will solve the problem.

Make sure that this product/service will really solve this problem

• Consumers generally love guarantees, as this is what builds their trust and loyalty towards a product/service. In your statement, you will want to reassure them that the intended product/service will solve their problem. Every market has competition, which means that other competing businesses offer similar products and services to what you plan to do As a new entrant, you need to convince customers that your product is different from all the other products that exist. Consequently, you need to tell your audience what sets your product apart from all other existing products.

Support your claim above

• Its not good for investors to leave customers with promises that seem empty. If you want the approval of investors, you need to convince them enough that they want to invest in your business. One way to do this is to demonstrate that you are truly committed to ensuring that your product/service meets the needs and expectations of the market just as you mentioned above.

Additional Tips on Concept Statement Creation:

• Make sure your statement doesnt sound like a sales pitch. Investors dont want to feel rushed, they need to be convincing, and the best way to do this is to avoid tone, words and statements that make you seem like you are selling yourself. Just to be brief.
• Keep it short, simple, to the point. Avoid using excessively long sentences. A few descriptive statements may help drive the point home. Lengthy statements, on the other hand, can dilute the effectiveness of an idea statement so avoid them.
• Be specific. Remember that this is a summary of your business plan. You dont want your audience to get bored listening or reading paragraph upon paragraph without getting the point. Like I said, avoid making broad statements, be specific instead.
• For example, when defining a business, dont just say...a processing company Instead, say... a processing company that specializes in baking ingredients - thats more specific.
• Avoid using first person narrative when writing statements - this can be interpreted as egocentric. If you want to attract clients/investors, make more statements about them and less about you.

Thank You