Topic 21 · business
Business Model and Business Plan
A business model briefly answers: to whom, what value, and how we sell it at a profit; a business plan spells this out in detail.
Business model
A simple scheme (for example, the Osterwalder canvas): customer segments, the value proposition, channels, revenue and costs. It fits on a single sheet.
Value proposition
The core: what customer problem we solve and why we are better than the alternatives. Without a clear value the model does not work.
Business plan
A detailed document: the market, the product, marketing, the team, the financial calculation. It is needed to work out the venture and attract an investor.
🎯 Now possible
- explain what a business model is
- state a value proposition
- tell a model from a business plan
Cheat sheet
Model: to whom · what value · how · where profit comes from
The core is the value proposition
The canvas fits on a single sheet
A business plan — detailed, with financials