June 24, 2012 Category: Business, Entrepreneurial Endeavors & Related Matters
As a general rule, when it comes to starting a business in Michigan, the idea of what you want to do is much easier to develop than the rest of the business, including implementation of that idea. Business plans are an integral piece to any business, but sometimes, it is better to take your idea and come up with a business concept statement than to go straight to forming the business plan.
According to Forbes, creating a business concept means that an entrepreneur will need to identify who will purchase the product or service, how it will be sold, its benefits, how it stands out from other similar products and how it will be delivered – all of which is important in business planning .
Once a business concept has been formed, it provides more detail into the business. This makes it much easier to form the actual business plan of the business. For entrepreneurs, they must sell their idea to investors and potential clients in order for their business to succeed. So, it is important to go into as much detail (without going overboard) as possible to get the point across.
When it comes to the product or service that will be offered, an entrepreneur should be able to clearly identify what their product is and what it does. They also need to be able to distinguish their product from other similar products with clear facts and express how and why it is better than those other products. It is also helpful to identify who will buy and why they will buy in addition to how it will be sold, promoted and delivered.
During the process of business planning, there are a lot of things that need to be identified and assessed including, but not limited to, the business concept and business plan. These are both necessary for one’s business to fully flourish in its industry. In addition, for any business to succeed, careful planning is required from the time one comes up with the business idea to the time that the business opens its door and throughout the rest of its operation. There are many legal formalities that should be considered during the planning and implementation of one’s business idea, and one would do well to be aware of each and every one of these as required by the state of Michigan.
Source: Forbes, ” How to Turn an Idea into a Startup: Begin with a Business Concept Statement ,” Dane Stangler, June 11, 2012