7. Business plans vs models

A business model describes how the business will operate and describes how it will create and deliver value for its customers.
A business plan describes where the business is going.

A business doesn’t have to have a business plan to be successful but it does need to have an effective business model. Studies have shown that being innovative and an entrepreneur are more about focusing on improving the business model, rather than changing the business plan.

Click on the video below to hear more about the difference between business plans compared with business models and how you can create a successful business with the right business model.

Top tip

There are a number of tools available to help you design a business model for your business idea. The Osterwalder tool is a good example of one of these as it provides an overview on how the different parts of the business need to work together to succeed. It is also good for reviewing and improving the model of an existing business.

Collaborate

Think about a business, or an idea for a business and then fill in the different sections of the Osterwalder canvas.

An important point about innovation is the importance of sharing your ideas, as this helps you to learn and also refine your idea. Share your business canvas ideas and comments on the Weibo group and reflect on what you’ve learned by sharing your ideas.

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