Getting started on your business model and plan
Your business model is a blueprint of your business, and your business plan is a roadmap for you to structure, run and grow your business. They include all the key elements of your business and how you intend to run it. Photo: Shutterstock
The business model - the blueprint
There are many recipes for a business model and plan, and you have to choose the best ones for you and change them as needed.
The business model is the core of the business plan, and it explains how you will generate profit. In addition to the product or service you are selling, the model includes who you are selling to, allies and competitors, how you are going to sell your product, how you will get paid and how you are going to deliver.
Even though we are presenting these components separately here, they are very much linked - and the business plan is dependent on the model.
The business plan - the roadmap
The business plan presents the company's strategy and expected financial performance in the years to come. The roadmap will guide you on what to do, when to do it and why.
The business plan is a live document that describes the nature of your business (what are you selling), market (to whom) and sales and marketing plans (how), your team (who will make sure your business succeeds), in addition to financial background and a plan on how you will profit and what you need to get started and run the business.
At some point, you might present your business plan to banks, public authorities, or other stakeholders.
Live documents and feedback
Neither the business model or plan are ever finished, and you will most likely make many changes along the way. Getting feedback from customers, investors, other founders or friends and family will probably help you a lot when shaping your product, strategies and plans. The first idea you have might not be what you will end up going forward with.
This is why the business model and business plan are live documents that will develop when you and the world are always evolving - small or large. An example is that many businesses have had to change their business model due to Covid-19 because their access to customers or resources have changed. Another is that you might find a different customer segment than initially planned for and need to change your strategies to meet different needs.
We have gathered some links to templates, tips and courses that might help you getting started: