Should one create the business model before the business plan?
SplitworkerICT
2 points. Voted up by Frederik Pétursson Madsen,
business model first. it is compareable to the WBS in project management, the "heart" of everything. this enables you to plan the number of people you need to employ, which parts of the business you do your won and which are better to buy or give to vendors, how marketing works and which are your key product lines. there are many examples for business models online, even for the top new business models in the web for the next years
Sep 15, 2011
 

Melanie MinnaarManaging director Halo
1 point. Voted up by Frederik Pétursson Madsen
Agree with business model first but then need to clearly understand the differences between 'model' and 'plan' to ensure either part is effective.
Sep 15, 2011
 

Ojvind KrabbeFounder AfricaPace
1 point. Voted up by Frederik Pétursson Madsen
Build the business model first; Describe how you can generate revenue from your product or service, calculate the revenue potential in both the short and long term. This will make the best base for continuing to build your business plan with all its elements including plan for implementation. Get inspiration at http://www.entrepreneur.com/businessplan/
Sep 11, 2011
 

Petronella du ToitFounder ZA Trade
Well a business model, or model plan or concept plan is all just business plan stages. What's with all this confusing terminology?
Sep 15, 2011
 
Well this is all captured in different sections of your business plan such as your marketing and implementation strategy. - Petronella du Toit 7 years
I think that there is a clear difference between a business model and a business plan. The business plan is simply a document you make to convince your self and thereafter others about the viability of the idea. The business model on the other hand is the essential of your new venture, describing the rationale of how your idea creates, delivers, and captures value. - Frederik Pétursson Madsen 7 years




I agree with everyone: Business Model first. It enables you to clarify how you conceive your business: how things will work out, who you will need (partners and others) in short it will enable you to see if your idea is well thought-out (designed). Besides it is a useful communication tool to present your idea in a clear, orderly and visual manner to stakehoders.
The business plan will complete it as it will show how you will "choreograph" and earn money out of it.
Sep 17, 2011
 

Melanie MinnaarManaging director Halo
I also think that a business model is different to a business plan - the model should include revenue and costing models and approaches, the plan should include your take to market strategies.
Sep 16, 2011
 

Petronella du ToitFounder ZA Trade
Costing and Pricing is also sections of a business plan. Pricing is vital to your marketing strategy. Cant see the difference, sorry.
Sep 16, 2011
 

AJAY BAKSHIDirector Customer Services, Zain, Nigeria LAGOS, Nigeria
Business model describes how the entire thing is going to work from input, processing and output in terms of costing, financing and strategy. Whereas plan is how you will execute these strategies and who all will be responsible for various activities of plan with deadlines.
Sep 17, 2011
 

Diane TchiengouaBusiness development executive
-1 point.
the business model first because it will be integrated and well explained in the business plan .
Sep 16, 2011
 
 
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