Business Model Plan

Business Model Plan

Making business models part of the business plan

Augmenting the business plan with business models from BMI

There is some confusion between business models and business plans. They are not one in the same. Your business model is the core concept upon which you build your business plan. However, many business plans gloss over the business model in favor of lengthy financial projections and operational details. Without a solid business model, these projections and details are premature.

Business plans don’t cover everything:

We recommend creating a business model plan which combines the components of a business plan with business model analysis. This document augments or substitutes for the traditional business plan and has the following basic layout:

Background:
Follow the traditional structure of thebusiness plan for this section.

Breakdown of the business model into the eight crucial areas:

Traditional business plans over-emphasize some areas and under-emphasize other areas. In a Business Model Plan, the business model garners much greater attention.

The advantage of a business model plan over a business plan alone is the increased focus on how the business will create profitable revenue streams and the decreased focus on how the business will operate when it’s generating revenue. If you focus on what matters — profitable revenue — the rest tends to take care of itself.


You can download a sample business model plan at

http://businessmodelinstitute.com/BusinessModelPlanSample.pdf

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