How much technical knowledge do founders need

Concretization of the business idea

Shed light on the business idea step by step

Before you, as a founder, actually dare to take the step into self-employment, you have to carry out an extensive examination and specification of your project. Ultimately, this also increases the chances of success for your business start-up. First of all, you do not need to get into the business plan. As a start for your concept of self-employment, you should make the following considerations, which you will of course carry out later in the business plan.

1. What exactly do you want to offer?

For many founders, it is difficult at the beginning to define exactly what their business idea is and what they actually want to offer. For your concept of self-employment, first describe your product or service:

  • Present your idea in 3-5 short, concise sentences.
  • The central question is what the customer pays for or what do you earn money with?
  • Create a concise description of your services and make sure to name the core competencies of your company.
  • Complete this with a description of your own skills and qualifications and explain why the project suits you.

Only with a clear description can you then determine who your target customers are and how big the market for your offer is.

2. What are the (additional) benefits for the customer?

It is particularly important to think about the actual (additional) benefits of your offer for the customer at an early stage of setting up a business. Because this ultimately decides the success of your self-employment. For your concept of self-employment, think about what distinguishes your product or service:

  • Innovation: is your product or service completely new?
  • Product modification: What makes your product, your service better than that of the competition?
  • Market penetration: Do you think you can assert yourself against the competition with better marketing?
  • Expansion: Are you opening up a new market (region or target group)?

In connection with the customer benefit, one often speaks of a unique selling point. The criteria quality, price and service are used as possible sources for customer benefit and thus a possible unique selling point.

3. What is the competition like in your market?

Establishing yourself in a highly competitive market can be very difficult. For your concept of self-employment, you should know your competition well in advance. Briefly outline how intense the competition for your product or service is.

  • How many major competitors are there?
  • Who are the main competitors? Are there clear market leaders?
  • State the main advantages of your product, your service over the competition.
  • If the competition is fierce, this is where you should first outline the advantages of your marketing strategy. The question here is how you want to influence existing purchase decisions in your favor.

Do you need industry and market information? We have put together various sources for you to do this.

4. Who are your target customers?

At the beginning of your business start-up it should also be clear to you that not all people or companies will be your customers. So that you can get an idea of ​​the size of the market that is relevant for you and the sales potential, define who your customers are in your self-employment concept.

  • Will you have primarily private or business customers?
  • Define your target group as precisely as possible based on various factors. In the case of private customers, this would be, for example, age, occupation, gender or place of residence.
  • Make initial estimates of the size of your target audience and how often they buy.

The information in the concept for self-employment makes it easier for you to describe the market and address target customers in a targeted manner when planning your business start-up.

Next step: check the feasibility of the business idea

Have you specified your business idea sufficiently? Now check the technical and legal feasibility as well as the economic potential of the project in the next step.

Afterwards, in the concept of self-employment, it is important to think about the possibilities of protecting the competitive advantage of your business idea through commercial property rights.

Author: Für-Grü editors

As editor-in-chief, René Klein has been responsible for the content of the portal and all publications by Für-Grü for over 10 years. He is a regular interlocutor in other media and writes numerous external specialist articles on start-up topics. Before his time as editor-in-chief and co-founder of Für-Grü, he advised listed companies in the field of financial market communication.