Saturday, February 25, 2012

Business Model and Business Plan


Most people are confused between "Business plan" and "Business model".

A business plan is how you will implement your business model. A smart business man should concentrate on his business model, not on a business plan.

If you start your business with a well thought out business model it may bring great success even if you don't have detailed written business plan.

And if you start with a poor business model, even though you have paid lakhs of rupees to prepare your business plan, it is very rare that you bring good profit or success at the end of the day.

In other words don't waste your time "Doing things right". Concentrate on "Doing the right things".

Your business model should be very versatile and flexible.

The important areas for a smart business model are:
§  Brain support (An intelligent thought), Finance support (at start and while growing) and Apt Human Resource.
§  A good branding plan.
§  The business model must capitalize on the ongoing competitive advantage
§  Should be able to attract and maintain quality customers
§  Must be successful long term, not just immediate return
§  Investor should be able to withdraw his capital any time
§  The business model should consider major risks
§  Above average profits

Key words: Business plan, Business model, Doing things right, Doing the right things, brand, branding, capital, major risks, risk, risks, competitive advantage, profit.    

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