The difference between a business plan and a business model

A business plan is a document setting out a business's future objectives and strategies for achieving them. It is written in immense detail and usually includes an executive summary, products and services, marketing strategy and analysis, financial planning, and a budget. They typically fall into two categories: traditional or learn startup. Traditional business plans are the most common with more detail. They tend to be longer and require more work to be put in. Learn startup plans use an abbreviated structure so the key elements are highlighted. 

A business model, on the other hand, is a plan for the successful operation of a business, identifying sources of revenue, the intended customer base, products, and details of financing. They are the foundation of a company, whilst the business plan is the structure.

Examples of business models:

• The business model of production: relates to company sales of the products/services produced
• Advertising: focuses on creating content that people want and displaying it to them
• Multilevel marketing: based on commission/distribution, as it involves businesses recommending others' products and taking a cut from every sale they generate
• Razor and blades: focuses on products that need to be replaced often
• Affiliate: relates to the advertising model but is mainly used online, using links that are embedded in content forms that act as advertising visuals
• Franchise: involves companies selling the rights to their business models in exchange for some percentage of the revenues