Business plans and business models are two terms that are often used interchangeably, but they are actually quite different.
A business model is the broad conceptualization of how your company will create and deliver value to your customer. The business model provides an abstract framework for making decisions about what types of relationships and delivery channels are needed. Think of this as an architect’s picturesque rendering of a proposed new building.
A comprehensive business plan, on the other hand, is a document that outlines the detailed goals and objectives of a company, as well as the strategies and tactics that will be used to achieve them. The business plan draws together your purpose, your strategy and your financial projections. Think of the business plan as the construction blueprints of a building.
You and your team need to review both of these documents at least quarterly to make sure you are still staying on track or to make adjustments if conditions in the market have changed.