Difference between business plan and model

But, in fact, they are similar only in name.

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Their functions and purposes are quite different and, actually, complementary. Difference between business plan and model the business model refers to a one-page representation of how a company creates, delivers, and captures value, the business plan is an in-depth description on a long textual document form about how your company is structured and plan to achieve strategic and financial objectives.

difference between business plan and model

This business plan is a document that contains every data of the business — usually including its model. For example, a restaurant franchise is a business model.

Examples of business models

A Software-as-a-Service is another one. A razor-and-bladea subscription companya Freemium internet tool, a e-commerce marketplace.

difference between business plan and model

Each of that is a business model, with its own peculiarities. And this tool provides a base to design a business model. Usually, this business model tool is a framework, made up of a single page, that allows you to recognize your own business under several perspectives.

difference between business plan and model

According to the type of business, you may write a professional reference letter a look at different modeling options, such as Business Model CanvasValue Propositions CanvasLean Canvasand others.

Each of them fits a different purpose. For example, if your difference between business plan and model is brand new, the Business Model Canvas is likely to be the better option. On the other hand, for early validation of your startup, the Lean Canvas must be the plah appropriate.

difference between business plan and model

In short, if you aim to understand your business better, from inside, or make predictions for growing your venture, then your need to work on your business model, not make a business plan.]