What is a conceptual company?

The conceptual company exists as an idea in the mind of an entrepreneur. The entrepreneur usually outlines his idea or concept in a business plan or conceptual document to explain this concept to partners and investors to increase the initial resources needed to start the company. Conceptual companies are often associated with projects that have significant intellectual prospects, such as waiting patents, and deal with risk capital companies.

Investors usually decide to invest in companies on the basis of quantitative measures such as a share profit, stock price, net profit or market potential. In the early stages of starting business or when the company is trying to bring an innovative product to the market, there will be no quantitative information for entrepreneurs that would show potential investors. This is especially true for unique products that no longer have comparable products on the market.

In these cases, Entrepreneur must be a concept. Represents a spoLunches on paper, which deals with all the questions that the operating company would have to deal with. The presentation of the concept may include product diagrams, management biography, production plans, budgets and financial projections. It may also include market studies and needs to convince investors of the probability of success.

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example of the use of conceptual companies is in the biotechnological industry, where a doctor or scientist may have a unique idea to improve the medical process or solve health. Its idea may be patentable, but the length of time it would need to launch the product may be difficult for the inventor without significant financial resources. The cost of testing the product to pass through the control process can be beyond the sources of any single inventor. The inventor would introduce his idea as a cocept Company. Based on the power of the invention and the prospect of exclusivity based on paTent would finance the company's risk capital and a large pharmaceutical company until the product can be launched.

Another example of the use of the conceptual society is in the educational environment. Some technical schools run programs that help bring student inventions to the market. A student of the engineering department can develop a conceptual company that will be considered support. The school can decide to finance this concept, provide external investors and help the student navigate in the patent process. Some schools have accepted this type of program in exchange for a small investment in capital in the resulting society expected