A concept statement is a small description of the entire business plan presented graphically or in words which is typically used to present to a client or a partner for approval or getting investment. This encompasses all the important points and the scope of the business which provides a comprehensive understanding of the plan to the audience.
A concept statement contains the following details (not exhaustive though)
a. Business description: A short description of what the business is about and how this company is planning to enter in this business. A differentiating point from the existing players in the market should ideally come in this section to create an interest for the clients and investors. For example if the business plan is to set up a restaurant then the ‘business description’ rather than stating “to set up a restaurant in Mumbai” will be “to set up a mid-size Italian restaurant in Andheri, Mumbai”
b. Core Product: This section talks about the product or service which the company is planning to offer and how it is different from the existing products or services currently available in the market. So for the restaurant example it will be include “providing authentic Italian food which is currently not offered in Andheri, employing genuine Italian cooks”
c. Market: This is the section in which the intended market for the product is mentioned. It is narrowed down after doing an extensive market research and based on the findings the target market is selected. This is usually a very specific segment of the market. For the restaurant it will be “targeting people with disposable income of more than 40000 and who work in MNCs, , use of social media to promote the restaurant, any specific campaigns required etc”
d. Goals: This is the closing part of the concept statement which states the goals and targets that the company is planning to achieve with a specific time frame. For the restaurant example this would be “to achieve break-even in 1 year”
Hence, this concludes the definition of Concept Statement along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.
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