Creating a clear, strong business concept statement – including a customer definition, value proposition and compelling story, product or service definition, and distribution channel – is the first activity in the development of a formal business model. In an earlier blog post, we shared the service definition for Maria’s Mobile Bike Doctors. Now let’s take a look at her completed business concept statement:
Imagine being able to call for help when your bike breaks down, without having to drag it to the nearest bike shop. Maria’s Mobile Bike Doctors speeds to the aid of stranded cyclists who want fast service, a solid repair and a friendly face. Maria’s Mobile Bike Doctors are well-trained bike experts, so cyclists can be sure their repair is safe and lasting. And they’re fast – we can get anywhere in the city in 35 minutes or less. Maria’s Mobile Bike Doctors takes the stress and hassle out of those pesky bike breakdowns – wherever you are.
Why does Maria’s business concept statement work? It works because it 1) Defines her customers (cyclists); 2) shares a value proposition and compelling story (more convenience, speed of service, reasonable prices); 3) describes the service (qualified bike repair people will fix bikes anywhere); and, 4) implies the distribution of the service is direct to the customer.