Design a Winning Business Based on Your Idea
 Email from Susan
 About this assignment
 What's involved in refining a business concept?
 What does a good business concept look like?
 What do the experts have to say about refining business concept?

What does a good business concept look like?

A poorly expressed business concept might be something along the lines of, “I plan to open a high-end pizza restaurant in the Uptown neighborhood.”

Why is this business description lacking? It doesn’t even begin to identify the restaurant’s target market or define its competitive advantage. An investor considering funding such an endeavor would need more information to assess its likelihood of success, such as:

  • What kind of pizza will you serve?
  • Will it be dine-in? Delivery? Carryout?
  • Is the restaurant family-oriented or a date destination?
  • How many other pizza restaurants are in the neighborhood?
  • Will you sell pizza for less or more money than the other restaurants in the neighborhood?
  • If it’s more, what additional benefits will customers be getting if they eat at your restaurant?
  • Why will consumers in that neighborhood go to your restaurant?
  • Will you offer speedier service?

A better expression of a similar business concept might be,"I plan to open a family-friendly pizza restaurant in Uptown. This restaurant will target busy professionals ages 25-45 who have children ages 3-8. The restaurant will offer traditional, yet health-conscious, pizza and pastas at a reasonable cost. Unlike the two other neighborhood restaurants at this price point, my restaurant will offer several amenities and diversions for young children, who can be difficult to dine out with, including an extensive children’s menu, a chalkboard wall in the waiting area, and a movie/playroom adjacent to the dining area."

What Next: Click "What do the experts have to say about refining a business concept?"

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