SCORE Small Business Blog

Start: From Idea to Biz Reality
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Do you have an idea and want to know if it is worth pursuing?

Consider writing a concept statement. A concept statement is a short document that explains your business idea to partners or investors. It can be used in the start up or expansion phase of any business.  The concept statement helps determine if the idea is worth pursuing.

A concept statement outline includes:

  • A description of the product or service.
  • The target market: those that are expected to buy the product or service.
  • The benefits of the product or service which includes how it would add value and/or solve a problem.
  • Competition and how the product compares to what already exists.
  • A description of how the product will be sold and distributed.

For new products, a prototype is made and usability testing is followed. This is a way to test the market and determine if the product is worth making in larger quantities. The Thomas register is a directory of all the manufacturers in the United States www.thomasnet.com and there is a list of designers and prototype engineers www.aiga.org.

Concept testing would help validate the design of the product or service idea. The results of the concept test will help in making minor changes if needed. It is then essential to try to estimate the sales which would be buying intention questions like: How likely would you be to buy a product like this, if we make it?  Answers would include: definitely would buy, probably would buy, might buy, probably would not buy and definitely would not buy.

A concept statement allows you to present an idea in writing in hopes that a market exists to support your new product or idea with the ultimate goal of raising capital and providing a direction for the business.

Julie BranderBusiness Mentor, SCORE New Haven
Julie has been a SCORE volunteer since 1997. She has 20 years of experience in business, starting a manufacturing, wholesale and retail jewelry company. After selling her business, she dedicated herself to helping other entrepreneurs start and expand their business.
www.scorenewhaven.com | @juliebrander | More from Julie

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