How does a business model differ from a business plan?

A business model and a business plan are two distinct tools used in the process of establishing and running a business. While a business plan is a comprehensive document that outlines the company's goals, strategies, market analysis, financial projections, and operational details, a business model focuses on the fundamental structure of how the business will generate revenue and create value for its customers. It describes the core aspects of how the business operates, such as its target market, value proposition, revenue streams, key activities, resources, and partnerships. In essence, a business plan is a detailed roadmap that incorporates the business model as one of its components.

This mind map was published on 7 November 2023 and has been viewed 48 times.