Recently I finalized my 2013 business plan, with 3-5 year strategic projections included; however, I felt like something was missing. Today when I read the Wall Street Journal’s article, “Start with a Business Model – Not a Business Plan” it all started to become clearer to me what was missing.
I have been doing a great job of planning my future, but what I wasn’t clearly defining was the business model. Investopedia defined and helped solidify what is meant by a business model versus a business plan:
“The plan implemented by a company to generate revenue and make a profit from operations. The model includes the components and functions of the business, as well as the revenues it generates and the expenses it incurs.”
Investopedia continued “…The business model dates back to the earliest days of business; it merely describes the way in which a company makes money. A business model can be simple or very complex.”
Even though I’ve done a comprehensive strategic plan, I believe it’s time for me to go back to the drawing board and make sure I’ve focused on the business model to understand fully how my company makes money – and to determine the best ways to continue growing.
Ah, the joys of running a small business just keep coming! 🙂