What is the difference between a business model and a business plan?

I am working on a project to start a new Business and Information Centre. I want to know what a business model is, and how it is different from a business plan.

Question posted by Bplans User (488 points) 1 year ago, edited 1 year ago by admin. Answers: 2

Share on facebookShare on linkedin

Add a Comment Add an Answer

0

votes

In the most basic sense, a business model is the method of doing business by which a company can sustain itself -- that is, generate revenue. The business model spells out how a company makes money by specifying where it is positioned in the value chain.

That's related to a business plan like an idea or plot summary is related to a novel. A business plan sets forth what a company intends to do in the future, usually in detailed steps summarizing objectives, market, products, strategy, management team, and financial projections. You can see hundreds of examples of business plans, and read more about them, on Bplans.

Tim Berry

Add a Comment

Answer posted by Tim Berry (1,405 points) 1 year ago

0

votes

Business models convert new technology to economic value.For some start-ups, familiar business models cannot be applied, so a new model must be devised. Not only is the business model important, in some cases the innovation rests not in the product or service but in the business model itself.
A business plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals.