The mission statement
The mission statement gives you focus on what you want to be as an entrepreneur, what you want your company to be, what your values are, who your target costumers are and what you want to stand for. Writing all this down should give you a global picture of where you’re going and a sense of direction that you should keep following even when you get lost through the process. At this stage, it is important to prepare everything to make sure that you’ll stay on track until the success of you business and despite the obstacles you’ll face. The mission statement will have to be communicated to the employees of the company so they can understand what they’re part of. One of the questions you must ask yourself are :
– Who is the group of customers willing to purchase the product at the price offered ?
– Is the market large enough to support the business and generate profit ?
– Are you able to differentiate your business from the competitors ?
– Are you able to finance your business (either personally or through funding sources)
Also, it is ok to redefine your business concept many times regarding your researches and the development of your business plan.
How to research a business concept ?
Before investing your money and your energy in a project, you must spend quite some time on defining a business concept. It is necessary to test your ideas against the economic realities. When an entrepreneur has an idea, he or she will think that it’s a great idea ! But before commiting yourself to your own company, you have to step back and look at your idea with an objective perspective first. At this point, the goal is to identify ways to do things better than the already existant competitors on the market you want to fit in. You want to be aware of all the trends, advances or shifts, to see where you could best position your company.
Writing the business concept statement
It is necessary to write a business concept even if it doesn’t appear in your business plan, because it is the document that presents the idea of your business. You must develop it as much as you can in a concise way (1 or 2 pages), to help you analyze the potential success of your idea, addressing the target market, the financial strategy and how you’ll reach the market. In this statement, don’t be too general like « the company will provide good service » and try to be as complete as you can, like « my business will be a fashion retail store featuring clothes designed for the physically challenged ». Once you’ve writen all this down very accurately, the best test is to make it read to another entrepreneur to see his or her reaction and if your concept is easily understood and clear enough. Your business concept will be the start point to then develop your business plan ! Next step.