Sometimes my clients ask for a business plan but aren’t yet seeking funding or aren’t beyond the ideation/conceptualization stage. This is where a business model is helpful.
“I have an idea for a product/service. How do I monetize?”
At this stage, you don’t need to exactly know the details of marketing strategy, distribution channels, location, etc. unless it is crucial to your business model.
At the ideation/conceptualization stage, you need to know who your market (i.e. customers) is, growth rate of the industry, who your competitors are, the major costs to bring your product/service to market, and any other major hurdles (e.g. regulatory) that might be a barrier to entry. Business models are 30,000 foot views for seeing how the business will run: who the customers are, selling price of the product/service, who the competitors are, etc.
Business plans go further into depth than business models by including details of the operation, marketing, product/service, financial projections, investment ask, and other pertinent information specific to the industry/sector that your company will occupy. A business plan can then be presented to investors and lenders to raise capital to launch the business.
Business model should not be confused with revenue model. Revenue model is a piece of the business model. In other words, how the company generates revenue: production, subscription, advertising, commission, etc.
No matter where you are at the business development process, contact us to help map out the strategy for your business launch.