First, write a business description. Provide information on what you do, what
differentiates your business from others, and what markets your business serves.
State why you believe your business will be successful.
Second, pick a business formation, such as a sole proprietorship, partnership,
corporation, and so on. Explain why you chose this type of ownership?
Third, describe the products or services you would offer, including the consumer
benefits. Are there potential international markets for your products or services? If so,
Fourth, identify direct competitors, those businesses selling similar products and
services (for example, Coke vs. Pepsi). Also, identify indirect competitors, those
businesses selling different products but satisfying similar needs (for example, going
to a concert vs. going to a movie).
Finally, draft an “elevator speech,” a quick summary of your business concept. Your
statement should identify what your product is, identify who your target market is, and
identify where your product will be sold. Here’s an example of an elevator speech for a
proposed low-tier luxury fashion brand:
“Our product is a bridge-point collection serving as a brand extension to our
established brand of Louis Vuitton fashion and leather goods. Called Tanger, the line
will include ready-to-wear, handbags, shoes, and other accessories. Tanger is aimed
at women aged 25 to 35 who are looking for affordable yet fashionable luxury goods.
Sales will be generated through Louis Vuitton flagship stores as well as through
upscale merchants like Saks Fifth Avenue, Bloomingdale’s, and Neiman Marcus.”