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Difference between business idea, business model and business concept

For a budding or developing infopreneur, it is interesting to know what makes the difference between these three terms:

<>Business idea<>

The business idea is the starting point for developing new or different business solutions for important tasks, problems or wishes of customers. The essential points that should be included are the customer benefit as well as at least one essential USP (unique selling point), in order to give the customer a value proposition (which benefit a company promises its customers with a certain product or service) to be able to.

<>Business model<>

After the successful evaluation of this idea, a suitable business model is set up. It describes in concrete terms how this idea should be implemented and implemented and how sales can be generated with it. Basically, the model should help to understand, analyze and communicate the most important success points. Several models can be developed under one idea and then tested. In the end, the one with the highest economic benefit should be identified and combined with the business idea.

<>Business concept<>

The last and most concrete step now follows the creation of a business concept / business plan. This describes the entrepreneur’s project, strategy, goals and planned measures so precisely that investors can also be convinced of them.

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Aiden Van Otterloo

In addition, a business model outlines the basic capabilities of the business and how the company will generate earnings. It should also detail the different revenue streams and the costs associated with acquiring and retaining customers. A business model should also include information about the size of the potential customer base.