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Business Plan vs. Business Model vs. Strategy. Eliminate the Blah-Blah-Blah in Startups & Companies

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In the world of business today, there are 3 “Musketeer”-questions for which there seem to be a virtually infinite amount of answers or “Blah-Blah-Blah!” Entrepreneurs, strategists, investors, and academics alike are struggling to properly answer the 3 Musketeer-questions. The 3 Musketeer-questions are as follows:

What is a business plan?
What is a business model?
What is strategy?

Lack of consensus on the meaning of business plan, business plan, and strategy creates a lot of confusion regarding the conceptualization, planning, and management of business projects in startups as well as established organizations. in the absence of a shared understanding of what business plan, business model, and strategy means, lots of money, energy, and time are wasted on business projects. However, holistically examining and visually defining a business plan, business model, and strategy resolve nearly all of the conflicts between these terms.

The admittedly dense or multi-layered infographic above visually explores and synthesizes meanings of the terms of business plan, business model, and strategy. Also, similarities and differences between the terms can be visually observed. One advantage of the above 1-page infographic is that it could facilitate the creation of a shared visual language for exploring as well as discussing the terms of business plan, business model, and strategy. Visually and deeply understanding the diagram could eliminate the confusion between the terms.

As the saying goes, a picture is worth a thousand words. I’d say, a model is worth more than a thousand pictures. So, happy exploration.

Should you have further comments and questions, do let us know.

Published in: Business

Business Plan vs. Business Model vs. Strategy. Eliminate the Blah-Blah-Blah in Startups & Companies

  1. 1. World-­‐class  Coaching  on  Lean  Startup  &  Customer  Growth  Hacking  for  Less  Than  $10/Month:  h9p://businessmodels.ning.com       Business  Strategy  Coach.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hFp://businessmodels.ning.com  &  hFp://twiFer.com/RodKuhnKing   Business  Plan  vs.  Business  Model  vs.  Strategy   Business  Plan  Circle   PLAN  (VISION)   BUSINESS  MODEL   Value  ProposiSon   STRATEGY   HOW?   WHAT?   Exactly  How?   WHY?   ORGANIZATION   (Project:   Product/   Service)  
  2. 2. World-­‐class  Coaching  on  Lean  Startup  &  Customer  Growth  Hacking  for  Less  Than  $10/Month:  h9p://businessmodels.ning.com       Business  Strategy  Coach.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hFp://businessmodels.ning.com  &  hFp://twiFer.com/RodKuhnKing   Business  Plan  vs.  Business  Model  vs.  Strategy   Business  Plan  Circle   PLAN  (VISION)   BUSINESS  MODEL   Value  ProposiSon   STRATEGY   HOW?   WHAT?   Exactly  How?   WHY?   Bo=om   (OperaAonal;   Emergent)   Top   (Visionary;   Deliberate)   Management   ORGANIZATION   (Project:   Product/   Service)  
  3. 3. World-­‐class  Coaching  on  Lean  Startup  &  Customer  Growth  Hacking  for  Less  Than  $10/Month:  h9p://businessmodels.ning.com       Business  Strategy  Coach.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hFp://businessmodels.ning.com  &  hFp://twiFer.com/RodKuhnKing   Business  Plan  vs.  Business  Model  vs.  Strategy   Business  Plan  Circle   PLAN  (VISION)   BUSINESS  MODEL   Value  ProposiSon   STRATEGY   HOW?   WHAT?   Exactly  How?   WHY?   ENVIRONMENT   (MARKET/ INDUSTRY:   Un/Predictability)   Bo=om   (OperaAonal;   Emergent)   Top   (Visionary;   Deliberate)   Management   ORGANIZATION   (Project:   Product/   Service)  
  4. 4. World-­‐class  Coaching  on  Lean  Startup  &  Customer  Growth  Hacking  for  Less  Than  $10/Month:  h9p://businessmodels.ning.com       Business  Strategy  Coach.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hFp://businessmodels.ning.com  &  hFp://twiFer.com/RodKuhnKing   Business  Plan  vs.  Business  Model  vs.  Strategy   Business  Plan  Circle   PLAN  (VISION)   BUSINESS  MODEL   Value  ProposiSon   STRATEGY   HOW?   WHAT?   Exactly  How?   WHY?   ENVIRONMENT   (MARKET/ INDUSTRY:   Un/Predictability)   Bo=om   (OperaAonal;   Emergent)   Top   (Visionary;   Deliberate)   Management   ORGANIZATION   (Project:   Product/   Service)  Internal   (Inside   OrganizaAon)   External   (Outside   OrganizaAon)  
  5. 5. World-­‐class  Coaching  on  Lean  Startup  &  Customer  Growth  Hacking  for  Less  Than  $10/Month:  h9p://businessmodels.ning.com       Business  Strategy  Coach.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hFp://businessmodels.ning.com  &  hFp://twiFer.com/RodKuhnKing   Business  Plan  vs.  Business  Model  vs.  Strategy   Why  vs.  What  vs.  How  =  Storyboard  vs.  Panel  vs.  Method  =  Script  vs.  Plot  vs.  Process   Business  Model   “Business  Model”  maps  the  logic  of     how  a  business  sustainably  makes  profit   Business  Plan   “Business  Plan”  describes,  from  present  to  future,     how  a  business  sustainably  makes  profit  
  6. 6. World-­‐class  Coaching  on  Lean  Startup  &  Customer  Growth  Hacking  for  Less  Than  $10/Month:  h9p://businessmodels.ning.com       Business  Strategy  Coach.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hFp://businessmodels.ning.com  &  hFp://twiFer.com/RodKuhnKing   Business  Plan  vs.  Business  Model  vs.  Strategy   Why  vs.  What  vs.  How  =  Storyboard  vs.  Panel  vs.  Method  =  Script  vs.  Plot  vs.  Process   Business  Model   “Business  Model”  maps  the  logic  of     how  a  business  sustainably  makes  profit   Business  Plan   “Business  Plan”  describes,  from  present  to  future,     how  a  business  sustainably  makes  profit   Storyboard   Present   Business  Model   Future   Business  Model   “Red  Ocean”  Resources   (Facts)   “Blue  Ocean”  Resources   (Vision/Hypotheses)   BUSINESS  PLAN   (NormaAve)  
  7. 7. World-­‐class  Coaching  on  Lean  Startup  &  Customer  Growth  Hacking  for  Less  Than  $10/Month:  h9p://businessmodels.ning.com       Business  Strategy  Coach.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hFp://businessmodels.ning.com  &  hFp://twiFer.com/RodKuhnKing   Business  Plan  vs.  Business  Model  vs.  Strategy   Why  vs.  What  vs.  How  =  Storyboard  vs.  Panel  vs.  Method  =  Script  vs.  Plot  vs.  Process   Business  Model   “Business  Model”  maps  the  logic  of     how  a  business  sustainably  makes  profit   Business  Plan   “Business  Plan”  describes,  from  present  to  future,     how  a  business  sustainably  makes  profit   S:   Supplier   C:   Customer                 Product/ Service                                               Payment   Storyboard   Panel  (Unit)   Present   Business  Model   Future   Business  Model   “Red  Ocean”  Resources   (Facts)   “Blue  Ocean”  Resources   (Vision/Hypotheses)   BUSINESS  PLAN   (NormaAve)  
  8. 8. World-­‐class  Coaching  on  Lean  Startup  &  Customer  Growth  Hacking  for  Less  Than  $10/Month:  h9p://businessmodels.ning.com       Business  Strategy  Coach.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hFp://businessmodels.ning.com  &  hFp://twiFer.com/RodKuhnKing   Business  Plan  vs.  Business  Model  vs.  Strategy   Why  vs.  What  vs.  How  =  Storyboard  vs.  Panel  vs.  Method  =  Script  vs.  Plot  vs.  Process   Business  Model   “Business  Model”  maps  the  logic  of     how  a  business  sustainably  makes  profit   Business  Plan   “Business  Plan”  describes,  from  present  to  future,     how  a  business  sustainably  makes  profit   S:   Supplier   C:   Customer                 Product/ Service                                               Payment   Storyboard  PLANNING  IMPLEMENTATION   STATUS  of  BUSINESS  PROJECT      at  a  given  Ame  (Frame/“Xray”)   Panel  (Unit)   Present   Business  Model   Future   Business  Model   “Red  Ocean”  Resources   (Facts)   “Blue  Ocean”  Resources   (Vision/Hypotheses)   BUSINESS  PLAN   (NormaAve)   Where  must   organizaRon  go?   Where  currently   is  organizaRon?  
  9. 9. World-­‐class  Coaching  on  Lean  Startup  &  Customer  Growth  Hacking  for  Less  Than  $10/Month:  h9p://businessmodels.ning.com       Business  Strategy  Coach.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hFp://businessmodels.ning.com  &  hFp://twiFer.com/RodKuhnKing   Business  Plan  vs.  Business  Model  vs.  Strategy   Why  vs.  What  vs.  How  =  Storyboard  vs.  Panel  vs.  Method  =  Script  vs.  Plot  vs.  Process   Business  Model   “Business  Model”  maps  the  logic  of     how  a  business  sustainably  makes  profit   Business  Plan   “Business  Plan”  describes,  from  present  to  future,     how  a  business  sustainably  makes  profit   S:   Supplier   C:   Customer                 Product/ Service                                               Payment   Storyboard  PLANNING  IMPLEMENTATION   STATUS  of  BUSINESS  PROJECT      at  a  given  Ame  (Frame/“Xray”)   Panel  (Unit)   Present   Business  Model   Future   Business  Model   “Red  Ocean”  Resources   (Facts)   “Blue  Ocean”  Resources   (Vision/Hypotheses)   BUSINESS  PLAN   (NormaAve)   Where  must   organizaRon  go?   Where  currently   is  organizaRon?   Strategy     (OTHER  Loop)  
  10. 10. World-­‐class  Coaching  on  Lean  Startup  &  Customer  Growth  Hacking  for  Less  Than  $10/Month:  h9p://businessmodels.ning.com       Business  Strategy  Coach.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hFp://businessmodels.ning.com  &  hFp://twiFer.com/RodKuhnKing   Business  Plan  vs.  Business  Model  vs.  Strategy   Why  vs.  What  vs.  How  =  Storyboard  vs.  Panel  vs.  Method  =  Script  vs.  Plot  vs.  Process   Business  Model   “Business  Model”  maps  the  logic  of     how  a  business  sustainably  makes  profit   Business  Plan   “Business  Plan”  describes,  from  present  to  future,     how  a  business  sustainably  makes  profit   S:   Supplier   C:   Customer                 Product/ Service                                               Payment   Storyboard  PLANNING  IMPLEMENTATION   STATUS  of  BUSINESS  PROJECT      at  a  given  Ame  (Frame/“Xray”)   Panel  (Unit)   Present   Business  Model   Future   Business  Model   “Red  Ocean”  Resources   (Facts)   “Blue  Ocean”  Resources   (Vision/Hypotheses)   BUSINESS  PLAN   (NormaAve)   Where  must   organizaRon  go?   Where  currently   is  organizaRon?   Strategy     (OTHER  Loop)   How  to  get  there  (win)?     (What  benefit/cost?)  
  11. 11. World-­‐class  Coaching  on  Lean  Startup  &  Customer  Growth  Hacking  for  Less  Than  $10/Month:  h9p://businessmodels.ning.com       Business  Strategy  Coach.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hFp://businessmodels.ning.com  &  hFp://twiFer.com/RodKuhnKing   Business  Plan  vs.  Business  Model  vs.  Strategy   Why  vs.  What  vs.  How  =  Storyboard  vs.  Panel  vs.  Method  =  Script  vs.  Plot  vs.  Process   Business  Model   “Business  Model”  maps  the  logic  of     how  a  business  sustainably  makes  profit   Business  Plan   “Business  Plan”  describes,  from  present  to  future,     how  a  business  sustainably  makes  profit   S:   Supplier   C:   Customer                 Product/ Service                                               Payment   Storyboard  PLANNING  IMPLEMENTATION   STATUS  of  BUSINESS  PROJECT      at  a  given  Ame  (Frame/“Xray”)   Panel  (Unit)   Present   Business  Model   Future   Business  Model   “Red  Ocean”  Resources   (Facts)   “Blue  Ocean”  Resources   (Vision/Hypotheses)   BUSINESS  PLAN   (NormaAve)   Where  must   organizaRon  go?   Where  currently   is  organizaRon?   Strategy     (OTHER  Loop)   How  to  get  there  (win)?     (What  benefit/cost?)   ENVIRONMENT  
  12. 12. World-­‐class  Coaching  on  Lean  Startup  &  Customer  Growth  Hacking  for  Less  Than  $10/Month:  h9p://businessmodels.ning.com       Business  Strategy  Coach.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hFp://businessmodels.ning.com  &  hFp://twiFer.com/RodKuhnKing   S:   Supplier   C:   Customer   Business  Plan  vs.  Business  Model  vs.  Strategy   Why  vs.  What  vs.  How  =  Storyboard  vs.  Panel  vs.  Method  =  Script  vs.  Plot  vs.  Process                 Product/ Service                                               Payment   Business  Model   “Business  Model”  maps  the  logic  of     how  a  business  sustainably  makes  profit   Business  Plan   “Business  Plan”  describes,  from  present  to  future,     how  a  business  sustainably  makes  profit   Where  must   organizaRon  go?   Present   Business  Model   Future   Business  Model   Strategy     (OTHER  Loop)   Where  currently   is  organizaRon?   ExperimentaSon  Mindset:  Startup   (Project:  Milestones/TacScs/Product)   Storyboard  PLANNING  IMPLEMENTATION   STATUS  of  BUSINESS  PROJECT      at  a  given  Ame  (Frame/“Xray”)   Panel  (Unit)   ENVIRONMENT   ExecuSon  Mindset:  Company   BUSINESS  PLAN   (NormaAve)   How  to  get  there  (win)?     (What  benefit/cost?)   “Red  Ocean”  Resources   (Facts)   “Blue  Ocean”  Resources   (Vision/Hypotheses)  
  13. 13. Business  Plan  Metamorphosis   5  Stages/Forms  in  the  Lifecycle  of  a  Business  Plan     A  Business  Plan  is  a  “Living”  Document   World-­‐class  Coaching  on  Lean  Startup  &  Customer  Growth  Hacking  for  Less  Than  $10/Month:  h9p://businessmodels.ning.com       Business  Strategy  Coach.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hFp://businessmodels.ning.com  &  hFp://twiFer.com/RodKuhnKing   Unpredictable   Environment   Predictable   Environment   ORGANIZATION  
  14. 14. Business  Plan  Metamorphosis   5  Stages/Forms  in  the  Lifecycle  of  a  Business  Plan     A  Business  Plan  is  a  “Living”  Document   World-­‐class  Coaching  on  Lean  Startup  &  Customer  Growth  Hacking  for  Less  Than  $10/Month:  h9p://businessmodels.ning.com       Business  Strategy  Coach.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hFp://businessmodels.ning.com  &  hFp://twiFer.com/RodKuhnKing   Unpredictable   Environment   Predictable   Environment   ORGANIZATION   Low   Uncertainty/   Risk   Extreme   Uncertainty/   Risk  
  15. 15. Business  Plan  Metamorphosis   5  Stages/Forms  in  the  Lifecycle  of  a  Business  Plan     A  Business  Plan  is  a  “Living”  Document   World-­‐class  Coaching  on  Lean  Startup  &  Customer  Growth  Hacking  for  Less  Than  $10/Month:  h9p://businessmodels.ning.com       Business  Strategy  Coach.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hFp://businessmodels.ning.com  &  hFp://twiFer.com/RodKuhnKing   Unpredictable   Environment   Predictable   Environment   ORGANIZATION   Low   Uncertainty/   Risk   Extreme   Uncertainty/   Risk   Novel  Problems   ConAnuous   Innova3on   Culture/Habit   RouSne  Problems   ConAnuous   Improvement   Culture/Habit  
  16. 16. Business  Plan  Metamorphosis   5  Stages/Forms  in  the  Lifecycle  of  a  Business  Plan     A  Business  Plan  is  a  “Living”  Document   World-­‐class  Coaching  on  Lean  Startup  &  Customer  Growth  Hacking  for  Less  Than  $10/Month:  h9p://businessmodels.ning.com       Business  Strategy  Coach.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hFp://businessmodels.ning.com  &  hFp://twiFer.com/RodKuhnKing   Unpredictable   Environment   Predictable   Environment   ORGANIZATION   Low   Uncertainty/   Risk   Extreme   Uncertainty/   Risk   Problem-­‐ SoluAon   Fit   Business  Model   Fit/   Scaling   Product-­‐ Market   Fit   Shaping   Bus.  Plan   AdapRve   Bus.  Plan   Visionary   Bus.  Plan   Classic   Bus.  Plan   Renewal   Bus.  Plan   O.T.H.E.R.  Loop   Hypothesize  &  Experiment   (Lean  Startup/EffectuaAon  Project)   Plan  &  Execute   (Six  Sigma/Planning  Project)   Novel  Problems   ConAnuous   Innova3on   Culture/Habit   RouSne  Problems   ConAnuous   Improvement   Culture/Habit       STARTUP   (Minimum   Viable   Business  Model:   MVBM)       COMPANY   (Maximum   Awesome   Business  Model:   MABM)  
  17. 17. World-­‐class  Coaching  on  Lean  Startup  &  Customer  Growth  Hacking  for  Less  Than  $10/Month:  h9p://businessmodels.ning.com       Business  Strategy  Coach.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hFp://businessmodels.ning.com  &  hFp://twiFer.com/RodKuhnKing                       Business  Problem  Metamorphosis   Tools     A  Business  Plan  is  a  “Living”  Document   STARTUP   COMPANY   Transi3on  
  18. 18. World-­‐class  Coaching  on  Lean  Startup  &  Customer  Growth  Hacking  for  Less  Than  $10/Month:  h9p://businessmodels.ning.com       Business  Strategy  Coach.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hFp://businessmodels.ning.com  &  hFp://twiFer.com/RodKuhnKing                       Business  Problem  Metamorphosis   Tools     A  Business  Plan  is  a  “Living”  Document   STARTUP   COMPANY   Complex  Problem   q  Unknown  Market   q  Known  Product   Chao3c  (Wicked)  Problem   q  Unknown  Market   q  Unknown  Product   Stable  (Tame)  Problem   q  Known  Market   q  Known  Product   Simple  Problem   q  Known  Market   q  Unknown  Product   Disorder   Transi3on  
  19. 19. World-­‐class  Coaching  on  Lean  Startup  &  Customer  Growth  Hacking  for  Less  Than  $10/Month:  h9p://businessmodels.ning.com       Business  Strategy  Coach.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hFp://businessmodels.ning.com  &  hFp://twiFer.com/RodKuhnKing                       SHAPING  BUSINESS  PLAN   ADAPTIVE  BUSINESS  PLAN   CLASSIC  BUSINESS  PLAN   VISIONARY  BUSINESS  PLAN   Business  Problem  Metamorphosis   Tools     A  Business  Plan  is  a  “Living”  Document   RENEWAL   BUSINESS  PLAN   STARTUP   Complex  Problem   q  Unknown  Market   q  Known  Product   Chao3c  (Wicked)  Problem   q  Unknown  Market   q  Unknown  Product   Stable  (Tame)  Problem   q  Known  Market   q  Known  Product   Simple  Problem   q  Known  Market   q  Unknown  Product   Disorder   Transi3on   COMPANY  
  20. 20. World-­‐class  Coaching  on  Lean  Startup  &  Customer  Growth  Hacking  for  Less  Than  $10/Month:  h9p://businessmodels.ning.com       Business  Strategy  Coach.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hFp://businessmodels.ning.com  &  hFp://twiFer.com/RodKuhnKing                       CLASSIC  BUSINESS  PLAN   VISIONARY  BUSINESS  PLAN   Business  Problem  Metamorphosis   Tools     A  Business  Plan  is  a  “Living”  Document   Product-­‐Market  Fit   Problem-­‐SoluAon  Fit   (Business  Model  Discovery)   Business  Model  Fit/Scaling   (Business  Model  ExecuAon)   STARTUP   Complex  Problem   q  Unknown  Market   q  Known  Product   Chao3c  (Wicked)  Problem   q  Unknown  Market   q  Unknown  Product   Stable  (Tame)  Problem   q  Known  Market   q  Known  Product   Simple  Problem   q  Known  Market   q  Unknown  Product   SHAPING  BUSINESS  PLAN   ADAPTIVE  BUSINESS  PLAN   Disorder   Transi3on   RENEWAL   BUSINESS  PLAN   COMPANY  
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