This section asks you to define your Business Idea as a refined Business Definition. There are four sub-sections covering Products, Markets, Manufacturing, and Marketing & Distribution. If you can clearly outline each of these sub-sections, you will have formed a Business Concept into a Business Definition. If you can not clearly outline some or all of the sub-sections, you have an Undefined Business Idea. You either need additional information or another idea. Well-outlined and reasoned Business Concepts translate into useful Business Definitions.
What products and services do you intend to sell?This description can be as specific or as general as the present stage of development will permit. Try to be as specific as possible. The product definition limits the range of the business that will be considered. The more specific the product is, the easier it is to define the means of production. At a minimum, specify the use of the product and service to the customer and user. |
To whom will you sell the products and services and who will use them?The identity of buyers, specifiers, and users of the products and services are critical for defining the business. It should be noted that the buyers, specifiers, and users may be different individuals with widely different needs; however, all are considered to be customers. If the product will be purchased more than once, either through a distributor or through subsequent processing where the identity of the product is maintained, all customers should be identified. If the product loses its identity (i.e. sulfuric acid in a metal pickling process), subsequent elements of the use channel need not be identified. If feasible, key customer benefits should be identified along with the customers. |
How will you make the products and services that you intend to sell?The means of producing the products and services should be described in as much detail as possible. At least the general process of manufacture should be described. If new facilities are needed, a general description should be included. If toll production or a manufacturing partnership is contemplated, the arrangement should be described. |
How will you deliver the products and services to your customers?The means of distribution and marketing must be described. Identify the proposed distribution channel, including possible distributors or marketing partners. The way by which the product will be marketed to the customer needs to be described. For example, if the product is to be sold to an automotive company, direct selling is usually the method of choice. |