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Exactly what is a concept? Good question. I answer it this way: What you are attempting to do and how you are trying to get it done. People begin with a good idea and oftentimes begin the process of opening a business enterprise without properly developing the idea to the point where it is a good idea to begin. You require a business plan and the business plan is determined by the concept. Development of your concept is an exercise that you must go through. By doing so you are ensuring that your idea has 'legs'.
Close your eyes and explain what is happening in your business a 12 months from now. "What the?" you might ask; but hold on here. This is what I am asking you to do. Answer questions such as these ones. It is a Tuesday in February of next year:
What are you doing at 10 in the morning?
How about 5 in the evening?
What color is on the walls?
How many workers are on the floor?
What exactly are they wearing?
How many customers do you have?
What exactly are they buying?
How much are they paying?
By going through this exercise you will fully develop your concept so much that you will eventually be competent to discover how many people you have to hire, what size a location you should rent, what products you need to have and in what amount and whom you would like to attract as customers. Think for just a minute. You cannot write a business plan unless you have got all the answers before you start.
You will then take this valuable information and build your financial forecast from it. Once you've got your concept determined, go and try it on for size with some individuals who will provide you with objective feedback. Don't go to your neighbour or brother-in-law since they may say such things as: "I knew a guy who tried that and it failed." It could possibly be that they're jealous and are scared that you reach your goals in your venture and they are terrified. Instead go and search out individuals who are entrepreneurs with plenty of experience. Look for the white hair and wrinkles. They've made the mistakes you'll make if you don't pay attention to them. Got it?
Once you have solid feedback turn back and tweak your concept then try it again. By undergoing this process you'll have the ability to define your concept to get nearer to turning your idea into an actual business. People who have clearly defined concepts usually succeed a lot more than those who just "wing it". The big difference? The ones that succeed possess a business plan and the plan is based around a nicely thought-out concept.
And, please remember, if your idea is just not well received - lingerie and bait shop? - abandon it and look at a new challenge. Never and I mean never go ahead without having received positive feedback about your idea. Listen, please.
If you want to open a small business, develop your concept first before you decide to write a business plan. It doesn't need to be one of those 400 page long documents; it could be that all you need is a framework of a plan. Go here to plan2profit.ca to better understand what small business plan you'll need, and we will help you make this process easy.
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