As you set the course for your business, you need to have a document that serves as your roadmap. That could be a business plan or a strategic plan.
Businesses that have a business plan in place are more likely to be successful than ones that don’t. You want to make sure that you put your business in the best position to be successful.
You might wonder if you should use a business plan vs strategic plan. They’re both useful documents, and they’re often used interchangeably. However, there are distinct differences between them.
What’s the difference between a business plan vs strategic plan?
Read on to find out.
What Is a Business Plan?
A business plan is usually used when you’re starting a business to make sure that you have a good idea and that your business will turn a profit.
Lenders and investors usually want to see a detailed business plan before they will fund you.
A business plan covers what the business is about. You outline the brand, the company, what the competitive landscape is and what the market potential is.
A good business plan also covers who is running the show. You outline what makes you qualified to run a business and then you list bios of other members of your executive team.
Your business plan also talks about your target market. You have to learn who they are, why they need your product and service, as well as how much they’re willing to pay for your product or service.
Business plans follow a very specific outline, which makes it easier to write. There are online business plans that provide and an outline of what to include in your plan.
Business plans require a lot of research because you have to prove that you have a viable idea before you start your business.
You’ll learn a lot about the marketplace ahead of time. It forces you to think about your business a little differently, and you may shift your focus according to what you discover in writing your business plan.
What Is a Strategic Plan?
Have you ever seen local governments write up a long-term plan for a city? That’s a strategic plan.
In business, a strategic plan is a broad overview of how you will achieve what you laid out in the business plan.
You formulate ideas as to how you will define success, what your objectives are, and the specific actions you take to get there.
A strategic plan is used by businesses that have been around for a while. It helps businesses prioritize staffing needs, budget allocation, and where time is best spent.
Business Plan vs Strategic Plan
When it comes to chart a course for your business, you have two options. You can write a business plan or a strategic plan.
When comparing a business plan vs strategic plan, you’ll find that they have two different objectives. A business plan is great for getting the business off the ground. A strategic plan will take the business to the next level.
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