Business model versus business plan

For large public-private or government projects revenue sources might also include: Bonds, usually for large capital expenditures Taxes, primarily income, property and sales taxes Use fees and tolls With small fast-growing companies such as e-Business startups, investors often track expected revenues and revenue growth and may make changes to increase revenue. However, after the Dot-Com boom ended, more traditional measures such as cash flow and earnings have came back into favor as means of evaluation.

Business model versus business plan

Did you enjoy the process? Most people hate writing business plans. They take too long to write. You end up making up most of the answers.

And worst of all, the people who make you write these plans i. It would be akin to building a house without a blueprint. While carrying your core business model assumptions in your head alone might seem like the fastest alternative, you need to beware of the reality distortion fields that plague entrepreneurs.

Reasonably smart people can rationalize anything, but entrepreneurs are especially gifted at this. Most entrepreneurs start with a strong initial vision and a Plan A for realizing that vision.

Instead of chasing a mythical perfect plan, what you need is a well documented starting point and a systematic process for going from your Plan A to a plan that works before running out of resources.

business model versus business plan

This is where the 1-page business model comes in. Facilitating conversations with people other than yourself. Additionally, since most Plan As are likely to be proven wrong anyway, you need something less static and rigid than a business plan.

Compared to business plans, creating a 1-page business model is: Fast Instead of taking weeks or months, you can outline multiple business models in an afternoon.

business model versus business plan

Concise Because your business model has to fit on a single page, you have to pick your words carefully and get to the point. This is great practice for distilling the essence of your business. Portable A single-page business model is much easier to share with others, which means it will be read by more people and be more frequently updated.

Lean Canvas Here is what a 1-page business model looks like: I liken these boxes to lego building blocks.

Create a 1-Page Business Plan using a Lean Canvas - LEANSTACK

You can use the same basic building blocks to build both simple and complex models. Like lego blocks, the canvas also invites an element of play and creativity which is healthy for achieving breakthrough innovation.

This requires a multi-faceted plan of attack to avoid ending up on a local maxima and an agile mindsight that can quickly adapt and evolve with on-the-ground learning.

How many people keep their business models updated? Doing so with a Lean Canvas is not only quick but an effective way for telling your business model progress story to a room full of external stakeholders aka advisors and investors.

Take the minute business model challenge at http: Cast your vote as a comment: Who will win - Business model or Business Plan?Feb 28,  · it is worth clarifying the difference between a business plan and a business model.

A business plan details the business opportunity you are seeking to exploit. A business model takes the form of either a simple verbal description or a one page visual representation/5(16). A business plan is built on a business model. Let’s look at this through an example: If you’re selling jewellery online, e-commerce is your business model and selling jewellery is your business plan.

If you own and operate your own auto detailing or mobile auto detailing business chances are you do not know what it costs to operate your business on a daily basis. As we prepared for the new Hacking for Defense class at Stanford, we had to stop and ask ourselves: How do we use the Business Model Canvas if the primary goal is not to earn money, but to fulfill a mission?

In other words, how can we adapt the Business Model Canvas when the metrics of success for an organization is not revenue? The foundation, or business model, is the original idea for your business and a general description of how it functions. The structure, or business plan, elaborates on the details of your business.

Table 1 lists the components of the business model (innovation, core competitive strengths, key external network sources of assistance for internationalization, transactional channels to foreign markets) and their indicates the relevant questions asked in the interviews and how replies were operationalized.

Some items are factual in nature and are recorded either directly (e.g. R.

Business Model Vs Business Plan - The Difference