Business plan vs business model

 

A business plan presents a business’ strategy and expected performance. E.g. predicting where the company will go.

A business model is a mechanism that the company can use to generate profit.

The business plan maps out the current situation of a business, the future goals and what they need to achieve the goals.

The business model is used to achieve and build their value. This includes describing the business, the type of customer, what benefits the business has and how the company can deliver these benefits to the customer.

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