The difference between a business plan and a business model

The difference between a business plan and a business model

Let’s start with this important question; Should you write a business plan or a business model first?
To answer this question, it depends on the scale and business you are going to start. For new businesses like a startup, because it deals with more uncertainties and is unknown, before any initial action to write a business plan, a business model should be created and it should be the basis of the plan. He placed a business.
Let us tell a few differences between these two tools for a better understanding and to distinguish them from each other:

see; The business model is the mechanism that determines how to earn and profit from the business. But the business plan is a document that presents the strategy (I don’t mean the word strategy in the real sense, then planning it is more important) and the financial performance of the organization in a certain period of time.
The business plan is a document prepared by the owners, partners and main investors of a business, and it is a completely internal issue, while in the preparation of the business model, the opinions of customers are very important as an external factor.
The business model has a variable structure, but the business plan has a fixed structure. It remains like the constitution and you don’t keep messing with it ;))
The business plan is mostly prepared and presented to attract capital, but the business model aims to form an effective business model to attract customers and make the startup idea operational.
The business model is based on the hypotheses that you develop in 9 different parts, and these hypotheses must be tested in front of the real world (with tools and methods such as market research, lean start-up, customer interviews, etc.) and become principles. , while the business plan speaks with certainty about the proven principles in the business model.
The business plan talks about a specific product or service, while the business model tries to make a product acceptable to the customer from an idea.
Business model is a learning process. In such a way that the customers, product, resources, income and expenses of a business are determined during this process, but in the business plan, the mentioned items are presented as a principle.

Summary of the business model, the core of the business plan. It has been seen a lot that the business plan of startups without its model being designed and the startup hypotheses being tested and confirmed, in contrast to the reality, do not achieve success and fail to implement the idea and attract investors. So, first design the business model, test your hypothesis, create a specific and acceptable product for the customer, find your customer, and then write your business plan based on these principles. .
Don’t be too hard to design a business model. You don’t need new and complicated methods, and at the beginning of the work, it is better to be simple and completely understandable. There are different predefined models that you can use to write your business model.

Sincere
@startup_30T

This post is written by Rimaazz1