{"id":17805,"date":"2021-10-20T16:32:43","date_gmt":"2021-10-20T16:32:43","guid":{"rendered":"https:\/\/www.growthink.com\/?page_id=17805"},"modified":"2025-12-15T19:42:11","modified_gmt":"2025-12-15T19:42:11","slug":"business-model-vs-business-plan","status":"publish","type":"page","link":"https:\/\/www.growthink.com\/businessplan\/help-center\/business-model-vs-business-plan","title":{"rendered":"Business Model vs. Business Plan"},"content":{"rendered":"<style>\nul>li {\n        padding-bottom: 20px;\n    }\nol>li {\n        padding-bottom: 20px;\n    }\n<\/style>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter size-full wp-image-17818\" src=\"https:\/\/www.growthink.com\/wp-content\/uploads\/Business-Plan-vs.-Business-Model.png\" alt=\"model vs business plan\" width=\"1200\" height=\"530\" srcset=\"https:\/\/www.growthink.com\/wp-content\/uploads\/Business-Plan-vs.-Business-Model.png 1200w, https:\/\/www.growthink.com\/wp-content\/uploads\/Business-Plan-vs.-Business-Model-300x133.png 300w, https:\/\/www.growthink.com\/wp-content\/uploads\/Business-Plan-vs.-Business-Model-1024x452.png 1024w, https:\/\/www.growthink.com\/wp-content\/uploads\/Business-Plan-vs.-Business-Model-768x339.png 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p>You might be wondering what the difference is between a business plan and a business model. The truth is, they are different things with different purposes.\u00a0<\/p>\n<p>The main difference between a business plan and business model is that a <b>business plan<\/b> outlines your goals and strategy to grow your company, while a <b>business model<\/b> shows you how to generate revenues. Read on to learn more about this subject, including what types of business models there are and how to figure out which type best suits your situation.<br \/>\n&nbsp;<\/p>\n<h2><b>What is a Business Model?<\/b><\/h2>\n<p><img decoding=\"async\" class=\"alignright size-thumbnail wp-image-17819\" src=\"https:\/\/www.growthink.com\/wp-content\/uploads\/Business-Model-150x150.png\" alt=\"business model explains how you generate profits\" width=\"150\" height=\"150\" srcset=\"https:\/\/www.growthink.com\/wp-content\/uploads\/Business-Model-150x150.png 150w, https:\/\/www.growthink.com\/wp-content\/uploads\/Business-Model-300x300.png 300w, https:\/\/www.growthink.com\/wp-content\/uploads\/Business-Model.png 500w\" sizes=\"(max-width: 150px) 100vw, 150px\" \/>A business model describes how a company makes money. Money can be made by selling products or services, renting out real estate, asking for donations, and much more. Business models are often highly customized to fit the individual needs of the company.<br \/>\n&nbsp;<\/p>\n<h2><b>What is a Business Plan?<\/b><\/h2>\n<p><img decoding=\"async\" class=\"alignright size-thumbnail wp-image-17820\" src=\"https:\/\/www.growthink.com\/wp-content\/uploads\/Business-Plan-150x150.png\" alt=\"business plan explains company\u2019s goals and road map\" width=\"150\" height=\"150\" srcset=\"https:\/\/www.growthink.com\/wp-content\/uploads\/Business-Plan-150x150.png 150w, https:\/\/www.growthink.com\/wp-content\/uploads\/Business-Plan-300x300.png 300w, https:\/\/www.growthink.com\/wp-content\/uploads\/Business-Plan.png 500w\" sizes=\"(max-width: 150px) 100vw, 150px\" \/>In contrast, business plans outline the business idea, goals, and strategies of a company for achieving those goals. While your business plan discusses how you will make money, it also details where you want your business to be in the future, why that would benefit your target consumers, and what steps need to take place in order to get there. A business plan is also vital for potential investors if you are seeking funding.<br \/>\n&nbsp;<\/p>\n<h2><b>What Should Be Included in a Business Plan?<\/b><\/h2>\n<p>During the business planning process, especially if you are trying to attract investors, there are 10 essential elements of a business plan which you must include as follows:<\/p>\n<ol>\n<li aria-level=\"1\">Executive Summary<\/li>\n<li aria-level=\"1\">Company Description<\/li>\n<li aria-level=\"1\">Customer Analysis<\/li>\n<li aria-level=\"1\">Market Analysis<\/li>\n<li aria-level=\"1\">Competitive Analysis<\/li>\n<li aria-level=\"1\">Marketing Strategy &amp; Plan<\/li>\n<li aria-level=\"1\">Operations Plan<\/li>\n<li aria-level=\"1\">Management Team<\/li>\n<li aria-level=\"1\">Financial Plan (Performance &amp; Forecasting)<\/li>\n<li aria-level=\"1\">Appendix<\/li>\n<\/ol>\n<p>For each of these sections, you should provide an in-depth description of your research, analysis, and expected financial performance. You can learn more about the <a href=\"https:\/\/www.growthink.com\/businessplan\/help-center\/key-components-business-plan-part-ii\">components of a business plan<\/a> and review our repository of <a href=\"https:\/\/www.growthink.com\/businessplan\/help-center\/business-plan-examples\">100+ business plan examples<\/a> to help you get started on writing your own business plan.<br \/>\n&nbsp;<\/p>\n<div class=\"relatedpost\" style=\"margin: 0 auto; width:fit-content; margin-bottom: 15px;\"><b>RELATED ARTICLE: <\/b> <a href=\"https:\/\/www.growthink.com\/products\/business-plan-template\">Simple Business Plan Template<\/a><\/div>\n<p>&nbsp;<\/p>\n<h2><b>What Should Be Included in a Business Model?<\/b><\/h2>\n<p>A business model should include the details of every way in which your business makes money. It&#8217;s important not to leave anything out, even if it seems insignificant. Every dollar counts!\u00a0<br \/>\n&nbsp;<\/p>\n<div class=\"relatedpost\" style=\"margin: 0 auto; width:fit-content; margin-bottom: 15px;\"><b>RELATED ARTICLE: <\/b> <a href=\"https:\/\/www.growthink.com\/businessplan\/help-center\/business-model-canvas-template\">Business Model Canvas Template<\/a><\/div>\n<p>&nbsp;<\/p>\n<h2><b>How Does a Business Model Differ from a Business Plan?<\/b><\/h2>\n<p>Business models outline how your company generates revenues. On the other hand, business plans focus on the specifics of how the business will achieve sales and growth over a given period of time, typically five years. Business plans discuss your business model among other things and are critical if you want to gain investments to grow your business.<br \/>\n&nbsp;<\/p>\n<h2><b>Conclusion<\/b><\/h2>\n<p>The business model strategy is very different from a business plan. While they overlap a bit, the critical difference is that a business plan outlines the goals and business strategy while the basic business model shows you how to make money.\u00a0<\/p>\n<p>Your needs will change over time so it&#8217;s important to be able to switch between these two documents when needed. For example, if your goal is long-term growth then you may want more information about what type of strategy would work best for this situation or which resources might help get there faster. On the other hand, if you&#8217;re looking for some immediate income then paying attention to the various types of models available could give you an idea of where to start with generating enough sales quickly without too much cost upfront.<br \/>\n&nbsp;<\/p>\n<div class=\"bluepost\" style=\"margin: 0 auto; width:fit-content;\">\n<h2>How to Finish Your Business Plan in 1 Day!<\/h2>\n<p>Don&#8217;t you wish there was a faster, easier way to finish your business plan?<\/p>\n<p>With <a href=\"https:\/\/businessplantemplate.growthink.com\/?utm_source=business-model-vs-business-plan&#038;utm_medium=bluebox&#038;utm_campaign=seo\" target=\"_blank\" rel=\"noopener noreferrer\">Growthink&#8217;s Ultimate Business Plan Template<\/a> you can finish your plan in just 8 hours or less!<\/p>\n<p><a href=\"https:\/\/businessplantemplate.growthink.com\/?utm_source=business-model-vs-business-plan&#038;utm_medium=bluebox&#038;utm_campaign=seo\" target=\"_new\" rel=\"noopener noreferrer\">Click here to finish your business plan today.<\/a>\n<\/div>\n<p>&nbsp;<\/p>\n<h2>OR, Let Us Develop Your Plan For You<\/h2>\n<p>Since 1999, Growthink&#8217;s <a href=\"\/business-plan\">business plan consulting<\/a> team has developed business plans for thousands of companies who have gone on to achieve tremendous success.<\/p>\n<p><a href=\"\/business-plan\">Click here<\/a> to see how our <a href=\"\/business-plan\">professional business plan consultants<\/a> can create your business plan for you.<br \/>\n&nbsp;<\/p>\n<h2><b>Other Helpful Business Plan Articles &amp; Templates<\/b><\/h2>\n<div class=\"free-business-plan-articles-flex\">\n<div class=\"column\"><a href=\"\/how-to-write-a-business-plan\" title=\"How to Create a Great Business Plan\"><img decoding=\"async\" class=\"aligncenter\" src=\"\/wp-content\/uploads\/how-to-write-a-business-plan-to-secure-funding-thumb.png\" target=\"_blank\" alt=\"How to Write a Great Business Plan\" width=\"300\"\/>How to Write a Great Business Plan<\/a><\/div>\n<div class=\"column\"><a href=\"\/businessplan\/help-center\/business-plan-examples\" title=\"Use This Business Plan Example To Write Your Own Plan\"><img decoding=\"async\" class=\"aligncenter\" src=\"\/wp-content\/uploads\/75-Business-Plan-Examples-Thumbnail.png\" target=\"_blank\" alt=\"100 Business Plan Examples to Use to Create Your Plan\" width=\"300\"\/>100 Business Plan Examples to Use to Create Your Plan<\/a><\/div>\n<div class=\"column\"><a href=\"\/businessplan\/help-center\/business-plan-layout-how-design-your-plan\" title=\"The Perfect Business Plan Outline for a Great Plan\"><img decoding=\"async\" class=\"aligncenter\" src=\"\/wp-content\/uploads\/Business-Plan-Layout-How-to-Design-Your-Plan-Thumbnail.jpg\" target=\"_blank\" alt=\"The Perfect Business Plan Layout for a Great Plan\" width=\"300\"\/>The Perfect Business Plan Layout for a Great Plan<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>You might be wondering what the difference is between a business plan and a business model. The truth is, they are different things with different purposes.\u00a0 The main difference between a business plan and business model is that a business plan outlines your goals and strategy to grow your company, while a business model shows [&hellip;]<\/p>\n","protected":false},"author":29265,"featured_media":17818,"parent":8361,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"class_list":["post-17805","page","type-page","status-publish","has-post-thumbnail","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.7 (Yoast SEO v26.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Business Model vs. Business Plan [Updated 2026]<\/title>\n<meta name=\"description\" content=\"Learn more about the difference between a business model and business plan and how they are related to each 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