Business plan vs Business model canvas; Do I need them ?

Starting a business is a huge task. It seems like there are a million things you have to take care of before you can make your first guilder.
In order to know what your business is and how to manage it properly so you can reach your business goals, you need to create a business plan and your business model. So yes you will need to make both if you want a quick view on the concept,the cost and revenues related.

You might have heard of a business plan. It’s your written document describing the nature of the business, the sales and marketing strategy, and the financial background, and containing a projected profit and loss statement. It is also a road map that provides directions so a business can plan its future and helps it avoid bumps in the road. This might be a bit time consuming but not unnecessary.

What you might not fully understand is the difference between a business plan and a business model. A business model is simply a design for the successful operation of a business. It’s how an entrepreneur plans to make a profit. It identifies the products or services the business will sell, the target market it has identified, and the expenses and income streams it anticipates.

For this most people use the business model canvas that was developed by Alex Osterwalder. It’s a great tool to use to improve the focus and clarity of what your business is trying to achieve. It has less details compared to the traditional business plan and lets you focus on only some details of your idea to figure out your business concept, what it will cost and what revenues it will bring in.

Whether you’re an established business or just getting started, a business model canvas is an amazing tool to help you reach your goals and try out several business concepts when launching new products or services. It provides you with a one page document that cuts out the fluff lays everything out right in front of you. It’s easily editable so you can create several versions of your business concept and choose the best one to work out further as a business plan.