Can business concept survive without business model?

It is common knowledge that business concept defines how your business shaping up to deliver your value proposition. You start to fill in the blanks so that you can morph your brilliant concept into something workable. That needs something more in the form of business model.

Every business starts with a business concept that acts as an interface between a chosen market and the designed value proposition to cater to that market. Though business concept has potential to influence and perhaps over-awns every business activity undertaken by an enterprise in creating value for customers, suppliers and other stakeholders, it rests in the realm of conceptualization only.

Look at the details of business concept. Typically a business concept sketches about the value offering it proposes to the market specially a segment of such market. The product or service must be of unique nature and must satisfy existing demand or new demand firm intends to create. It also typifies the manner in which it competes against similar products. Moreover the cost of product, its revenue generation and finally how it adds to the bottom line are underpinned.

This theoretical proposal needs to be translated into concrete steps so that firm can get the desired result. To do so firm needs to assemble suitable business model that can roll-over the business concept into successful conclusion. This is done by fitting the business concept details into the building components of a business model. The components are classified under production, marketing, finance divisions with value proposition as the driving force.

In sum firm gets going with business concept only if it has a fitting business model to implement its concept, so that firm begins to realize its profit potential and to become a market leader in its chosen field.

 

Cheers!

 

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist