Know the Right Definition of Business Concepts and Examples

Know the Right Definition of Business Concepts and Examples

The business concept is one of the things that must be prepared before starting a business. That way, you have a foundation that can be used as a guide for the duration of the business. Of course, making a business concept must go through certain stages. What is the full explanation? Here’s a summary just for you!

Definition Business Concepts

In simple terms, the definition of a business concept is a concrete idea or idea about everything related to a business. This concept can also be interpreted as a summary of the important elements that describe a business that is being run.

Definition Business Concepts According to Experts

What is the point of view on this concept theoretically? Check out the definition of business concepts according to the following experts.

Hopper defines the concept of doing business as something related to the complexity of commercial, manufacturing, distribution, banking, transportation, and other forms of business that serve the needs of the business world as a whole.

Griffin and Ebert (2007) define this concept as an idea related to an organization that provides goods or services with the main goal of making a profit.

Merriam Webster formulated the concept as an idea in the activity of making, buying, or selling goods and services that are exchanged for money.

How to Create a Business Concept

A business concept is an idea formed through a series of processes. There are a number of steps that must be taken and implemented to create a good business concept. But keep in mind that the business concept is actually a variety of ideas.

In another sense, each company has its own characteristics, culture, and steps to create this concept. There is no definite formula for determining and compiling concepts in business. However, in general, the steps for creating a business concept consist of the following stages.

Market Analysis

The first step is to identify the market environment in which you will go down and open a business. This process includes knowing the needs of the community, consumer habits, seeing the weaknesses and strengths of competitors.

Composing a Business Background and Name

A company or organization must have a clear name and background. This is done as the first step so that potential customers can recognize the identity of the business itself. These two aspects can also be used as aspects that distinguish your business from other competitors.

Setting Company Goals

Every business must have its own vision and mission, whether it’s just selling products and looking for big profits or educating and increasing market awareness about an issue. All that must be determined in the initial process of forming a business through this concept. Having a clear goal will also help the company to continue to grow.

Product and Market Determination

The next step, after determining the name and purpose of the company, you can make a plan for making products and determining the target market. We recommend adding unique advantages or values ​​to your product (Unique Selling Point or USP) while still looking at market needs. This process helps the company to be different from competitors.

Business Concept Function

Is the concept of doing business really needed in the company? If you have the ambition to maintain the business in the long term in the future, then of course the existence of this idea is very important. This is also related to several functional concepts in business, which you can read about through the points below.

Determining the Direction of a Business

The main function of this idea is to determine and ensure a business is running on the right track. From some of the elements listed in the concept, you can see and reflect back on what the main pillars of the company are. That way, all decision making processes related to internal and external companies will not be separated from the company’s main goal.

Assist in the Preparation of Strategic Plans

Market competition is getting tougher day by day, and companies or organizations need special strategies in order to survive. Formulating a business concept is one solution. As we know, to determine this idea, you must first do a market analysis.

The results of the analysis will automatically help you know who you are competing with, what kind of products your competitors are developing, and what kind of market you will face. This information is very useful for determining the company’s strategic plan to achieve the target.

Determining the Size and Source of Capital

Furthermore, the concept of “doing business” also helps business actors determine the amount and source of capital. The components included in the idea can be the basis for the amount of funds needed to open a business. That way, you can also determine which sources to go to to meet these funds.

An Example of a Business Concept as a Property Agent

As the business world is getting tighter, more and more activities have emerged and become new professions. Real estate agents are one of the jobs that is still growing, considering how to become a property agent is quite easy to try.

Well, an example of a business concept is one aspect that a property agent also needs. That way, your goals as a business actor in this field will be clear. Then, what is the form of an example of a business concept as a property agent? Broadly speaking, you can design it like so:

– Agency name : Abadi Property

– Product : Home property

– USP (Unique Selling Point): fully furnished

– Market : Adult men and women, income >20 million/month

– Competitors: Agents and other property agencies

– Capital : IDR 2,000,000,000

– Source of Capital: Personal funds and bank loans

Now you know that the business concept is an important aspect, including for a real estate agent. The form of media used to sell your product as an agent is also an equally important part.

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