Being innovative involves thinking of creative ideas that solve a consumer’s issues or make some aspect of their lives more efficient. These ideas and solutions become business concepts, which give focus to a business idea and define its practical purpose. Learning about different types of business concepts can provide you with a greater understanding of how to create your own. In this article, we discuss what business concepts are and explore eight different types of them, with examples.
What is a business concept?
A business concept describes and clearly defines a new idea for a business initiative, whether that be creating a new company or producing a new product for the consumer market. A successful business concept lays out the groundwork for why you have created the idea, what it can solve, who the demographic is and whether it’s beneficial enough to invest in it.
An important component of a business concept is the business model, which details the finances of the concept and how to make it profitable. No matter the business concept, it’s essential to outline the framework for revenue growth, like how much the product or service might cost and the necessary resources to ensure that it’s financially successful.
8 business concepts example
Here are eight business concepts to consider:
An infrastructure concept is a business idea that involves the creation and development of a structure, facility or building. This type of business concept determines what the need for the new infrastructure is and how it can benefit people, such as building a new highway to help reduce traffic issues. It’s then necessary to determine the technical feasibility of the infrastructure. This identifies if the structure is practical to implement and whether the required resources, like materials and labor, are available to build it within a specific timeframe and budget.
A business-to-business concept involves creating an idea that provides services and products to other businesses, instead of consumers. Many of these types of ideas seek to resolve the business’s needs, whether that be selling them a particular product or offering them a service that can make their operational processes more efficient. For example, an automobile manufacturer may buy robotic machines from a robotics manufacturer because it can help to increase their productivity. This concept looks to identify an opportunity where a company can benefit from the idea.
A consumer goods concept is an idea of a new product to present to the consumer market. This concept identifies something that buyers may want and defines how that product differs from anything else on the market, or at least, why it’s a better option than the competitors. The brand of this type of business concept is really important because it helps consumers easily identify who is selling the product. A consumer good clearly defines the consumer’s need and explains why they should buy it. It also factors in the risks associated with the product.
Small business concept
A small business concept involves an idea for creating a small business, often to provide a central product or service to consumers. These business concepts have to determine who the product or service is for and whether it’s desirable enough that consumers would want to buy it. If it’s a concept that shows potential, then funding and financing are in order. The concept solves the needs of the consumer and identifies any issues with the business idea.
A consumer-to-consumer concept involves an idea for one consumer to sell a product or service to another consumer. In this concept, the consumer usually acts as the sole provider of the good and may correspond directly with the buying consumer. Online auction shops serve as an example of this concept. In this concept, one consumer identifies a product or service to provide and determines the needs of consumers who may want it, including how they may pay for it.
An e-commerce concept is an idea that involves selling a product or service electronically. Many e-commerce concepts develop into online stores that sell a specialized product, selection of products or offer a unique service. This concept has to identify the best way to increase traffic to the website and provide products that make consumers want to return to the store. Companies using this type of concept also have to determine where to have their products manufactured and what kind of transaction service to use for consumers.
A mobile concept is an idea revolving around services or products provided through mobile devices like phones and tablets. This idea usually comes as some kind of downloadable application, which may or may not have additional in-app purchases for consumers. This kind of concept identifies a type of application to create, the functionalities of the application and whether it’s something consumers would want to buy. It’s important for those using this concept to identify similar competitors, the platform it’s available on and how much it costs consumers to download it.
Consumer service concept
A consumer service is an idea that brings a new and innovative service to the consumer market. This service identifies issues and looks to solve them. The ride-share system is an example of an innovative consumer service concept because it helped to resolve the concern of high taxi costs. This type of concept determines who the primary demographic for the service is, how practical it is to implement, whether it’s a useful service and how much consumers have to pay to benefit from it. It also identifies any potential competitors who provide a similar service.
I hope you find this article helpful.