Umm....Business Model? or Business plan? Same or different?
DEBOPRIYA CHAKROBORTY
CEO, Antrapreneur The Business Incubator || Co- Founder, Health Code Protein Box Pvt. Ltd. Ahmedabad || Goa || Nagpur
Firstly, it has to be clear that business models and business plans are not poles apart, and are not even the same. They are complementary to each other. The business model is the center point of the business plan.
BUSINESS MODEL:
A business model is a blueprint of your business, outlining the execution and revenue generation strategies.
The business model trilogy:
1. What does the business have to offer?
2. How is the business going to sustain?
3. What are the revenue generating sources?
The basic structure of a business model includes:
- What problem are you solving with your idea?
- Who is your real customer (direct & indirect)
- What is the value that you are creating?
- How are you creating the value?
- How will you reach your audience?
- What are your competitive points to thrive in the market?
- What are your revenue drivers versus the expenses?
BUSINESS PLAN:
A business plan is a roadmap. A business plan is an elaborate document which includes details of the business you want to run, the goals of your business, and the plans behind achieving those goals.
A business plan contains sections such as: Marketing Plan, Startup Expenses and Capitalization, Management and Organization, Products and Services, and Operational Plan.
The business plan trilogy: WHAT, WHERE and HOW.
What is the current status?
Where do we envision going?
How do we plan to get there?
The agenda behind a business plan involves one or few of these reasons:
1.To prepare a clear roadmap of at least the first revenue generation cycle
2. To design a fine pitch deck for investor engagements
3. For external funding (including bank loans & Government funds)
4. To make the strategic layout of the business including finance, marketing, human resource, and its phase-wise roll out timetable. To avoid the drawback of pacing down when the business is at its operational peak.
5. And the most important one, to do the idea validation on paper with all the supporting analysis and then fix any loop holes before the launch
True, Very useful all your post are always
Manager- Business Development at Masstech Business Solutions
4 年Is Business plan similar to strategy?
General Manager Sales
4 年Let me be honest. I have ready nearly all your post. Some agreed? some disagreed, some I laughed alone as never along my way of thinking. But this one is a real mind. Blower.. this is a complete I wld say complete is not a right word .exhausted. Detail of Buss Plan and Buss Model.. so explicit , so clear..I knw it's So innovative and well written , so well written that people who don't knw would think. Google se copy kiya hoga. Hehe.? But this time u really made adrenaline flow through my viens.? Some might think..is me Kya hai itna ke tariff kar rahe ho .. but i knw the depth.. keep it up . U really the best
Directing a vibrant digital marketing and technology startup!
4 年The models would come under the plan. As the objective of models or modules are to communicate with each others, seamlessly in order to achieve the plan. Like we humans are a plan, whole body is divided in to multiple modules, which connects with each others in order to achieve the best experience out of plan. *But I believe (I don't know) That they both doesn't have any functional connection unless the objective is clear. Thus many times when some one asks about "how unique or innovative is your business model? Is because they know, that the most of profit is in the optimization of the business models to functional better for a plan Example: 1. What's your plan? To make rockets...(so simple) 2. What's the objective. To make rockets at lower cost so we could fly frequent and open millions of more opportunities 2. What's your business model, We'll produce the rockets that can come back. For which we would need, these departments, these resources, these areas, these partners, these markets, etc etc. But getting a rocket back on earth saves about 60million dollars. that's because the model is such innovative, that its fulfilling the plan, because the objective is so clean. #thankyoumusk for being the #elon you're ??
Biostatistician (oncology/hematology)
4 年Nicely explained. If model is the steel framework, plan is nut bolts of the body.