A business plan spells out your strategy and how to execute it. Your business plan should include an executive summary, market assessment, description of product/service details, sales and marketing details, competitive analysis, operations/manufacturing details, corporate organization and human resources, finances, capital and summary of risks, investments and relevant sources of information and research. Your business plan should be clear and complete. It does not necessarily have to be long, but it must be comprehensive and address all the important angles of your business.
What is a Business model Canvas?
A business model canvas is somewhat a pictorial diagram that helps you answer questions about your new business. It helps you to crystallize and clarify your idea or conceive one if you are thinking of lunching out.
Difference Between a business plan and a business model canvas
A business plan is more like a writing document that’s shown in detail the mission, vision, goals of a startup or company while a business canvas is a simple pictorial representation of questions that assist you in clarifying your idea. You create a business model, then a business plan.
What to know before creating a business model
Before creating a business model you should have the following questions already answered. I mean like done and dusted. But if you don’t then it’s time for you and your time to start brainstorming and putting the pieces together so as to have a great business.
• Who are my key partners, where’s my help coming from?
• What do you intend doing
• Who do you intend helping or selling to/customer segmentation
• what will your business cost
• what do you need to kick start your business
• how do you intend to reach your distribution channel
• how do you intend to interact with your customers?
What to know before writing a business plan
The fact that you know that a business plan is important means you are ready to ask and answer some soul-searching questions. As you go about writing your plan, do consider asking the following questions about your business/startup
• What problem am I solving and the opportunity therein
• What are my companies underlying magic and uniqueness
• The big question, “what is my business model”. This is where you will identify sources of revenue, intending customer base, products, and details of financing.
• What is my “Go To Market Plan”. Here you would ask yourself how you intend to reach your customers.
• Competitive analysis. Here you will review your competitor’s strategy and see how you measure up with them
• Who are your management team? Write about them and see if they fit your business plan
• You almost done but now without writing your financial projection and key matrices that you will measure your growth.
• Lastly, this is where you praise yourself. Write about your current status and accomplishment.
Note: Some of these questions might take a while to answer, take all the time you need to go over it again and again.
Should you choose a business canvas over a business plan, just make sure you have a roadmap that leads your business in the right direction.