Business plan can be very much out of the box, if the planner thinks in an innovative way. Planning would involve long-term as well as short-term goals (such as funding) in a very subjective manner. Business model can be standardized, and both the financiers and the academicians may look for at least some basically structured approach. A business model can be redeveloped and modified according to specific enterprise resource planning (ERP) and goals related thereto (such as crowdfunding), while it can be given the form of a framework. For more details, check the link: https://smallbusiness.chron.com/business-plan-vs-business-model-58223.html
Dear Hashim Fawzi
The business model is the mechanism through which the company generates its profit while the business plan is a document presenting the company's strategy and expected financial performance for the years to come.
The business model describes how the company is positioned within its industry's value chain, and how it organises its relations with its suppliers, clients, and partners in order to generate profits. The business plan translates this positioning in a series of strategic actions and quantifies their financial impact.
The business model is a blueprint for the business, outlining how you’re going to run your business, and how you’re going to make money. Where a business model is a blueprint, a business plan is a roadmap. A business plan is a formal written document that includes a description of the business you want to run, your business goals, and the plan for reaching those goals.
The business model demonstrates how to turn differential advantage into revenue. Lots of new ideas have advantages but customers may not be willing to pay for it. Or markets like textbooks have someone who specifies (professor) and someone else who pays (students).
Business plans are the soup to nuts descriptions of how to do it.
A business plan can be attributed as the realistic view of the company's vision while the business model can be related to the mission of the company in describing how the business is to be conducted to achieve the company's objectives.
A business model is the pictorial veiw of ones business idea while a business plan is the detail document that will guide the inplementation of the business model with timelines and financial implications associated with the model.
The Difference Between a Business Plan and a Business Model
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In the early phase of a startup a business plan is usually fiction, difficult to visualize, share and review. It distracts entrepreneurs from more important tasks such as customer development and consumes lots of effort from the entrepreneur. In later phases, a business plan is usually required by potential investors.
A business model is simply speaking the opposite: It is easy and fast to create, provides a common language, is easy to visualize and review. The format also allows to quickly generate several business models in a short amount of time (and thereby helps to avoid running towards a local maximum).
A business plan is a plan for the implementation of a specific business venture and / or investment project. The business model is the chosen formula for the current and strategic functioning of a specific enterprise or a specific part thereof, department, department, type of activity etc. The business model defined for a specific enterprise can be described in a business plan. In this situation, the description of the business model will be part of the business plan, usually one only a relatively small part of the overall business plan development.
Regards
Dariusz Prokopowicz