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The Difference Between the Business Plan and the Business Model

Business model

In this video of LUZ.vc, Daniel Pereira explains the difference between a Business plan and a Business model.

Video Transcript:

business plan is an extremely popular tool, it has been on the market for a long time, and is widely used in academic courses. Colleges love using it as a final course design so that you have an overview of all the elements needed to compose a business. It is also a widely used by incubators that use it as a tool to evaluate candidates for incubation.

Business Plan Sheet

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It turns out that recently, the business plan received a blow from a replacement called the Business Model. Although they have very similar names, they are completely different. While a business plan is a long textual document (with 30 to 40 pages), the Business Model is a single sheet. It is actually a visual diagram in which you can evaluate an entire business on a single sheet.

O Business model was created by Alexander Osterwalder, a Swiss consultant who wrote a very cool book called Business Model Generation, in which he presents with you can use this tool. This tool is very important for those who are creating a new business, but also for those who already own a business. Due to the complete visualization you have, you can view other versions of your business and find opportunities for innovation.

Business Plan: Step by Step to Create Your Own

The Business Model is then a much more versatile and easier tool to be used collaboratively among your team. It allows you to perform prototyping, that is, in creating multiple versions of your business on a single sheet, a single slide. Unlike the Business Plan in which every time you create a new version you have to write other 30 pages.

So we can say that the Business Model is the tool of the moment. Widely used by those who are creating a new business and already asked by many investors to analyze investment opportunities.

Be sure to check Daniel's new blog specializing in Business model.

Business Plan Sheet

Meet our "How to Make a Business Plan" Handout Package: https://luz.vc/pacotes-de-planilhas/faca-seu-plano-de-negocios/


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  1. Business model is a widely used tool including by the entrepreneurs who are setting up online businesses, the startups. A very interesting tool besides here was exposed on the site is the SHOCK made by a Brazilian. http://choqueonline.com.br/

    Congratulations on the post, very interesting.


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