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Business Strategy v Business Plan
What’s the difference?
To start things off we need to understand why such a question needs to be asked. Many don’t know what either of them are, and can not tell the difference between them. But that is about to change!
In this post you will learn what are the 3 main and most important differences between a business plan and a business strategy and some tips to help you develop long lasting business strategy. By learning this you should be able to effectively prioritize, plan and set your goals. Create a business plan and execute your business strategy with less effort.
Let’s hop in!
What is a Business plan?
It’s a document containing your goals, methods and tools. To be precise, how these goals are going to be reached and most importantly the time needed for those goals to be achieved. You can look at it as a road map for your business – containing all the information on essential expenses to reach your goals and execute the business plan properly.
When you have the plan in hand you usually ask yourself – “what’s next?” For most it’s a trip to a bank or meeting with an investor. For some this step in not neccessary as they already have all the finances needed
What is a business strategy?
It is a course of actions/reactions plus a set of decisions that are designed in such a way as to attract customers. A business objective without a business strategy is just a dream. Although the business strategy is part of a business plan they are two different things. There are many myths about business strategies, such as that you have to be better than your competition. Why do you want to be better? What is better…? Sparkling or still water? Well, this depends on who you ask this question. The question you should ask yourself is: “How can we be different?”.
The Differences
#1
The business plan serves as a blueprint for setting specific goals and objectives, but a comprehensive business strategy goes further by outlining the methods and approaches necessary to successfully reach and attain those goals. It provides a roadmap for executing and realizing the aspirations laid out in the business plan, ensuring that all necessary steps are taken and resources are deployed effectively. Without a well-defined strategy, the goals set in a business plan may remain merely aspirations, whereas, with a clear strategy, a business has the direction and focus to drive toward success.
#2
A business strategy provides long-term guidance to achieve business goals, while a business plan outlines a startup’s goals, strategies, market analysis, and financial projections to secure funding and attract investors. Both are crucial for success, with established companies periodically revisiting their business plan to ensure alignment with changes in the market.
#3
A business plan showcases a company’s goals and potential to attract investors, while a business strategy maximizes the use of available resources to achieve success and guide decision-making. Both are essential for a company’s growth and success.
*Also some research suggests that in some cases lack of a business plan actually helps you to avoid overthinking your challenges. In an article written by Forbes in 2013, they suggest that a business plan is a waste of time because most of the successful businesses that wrote a business plan for their startup changed the direction along the way and ended up doing something else. As an example, a company that was going to specialize in computer hardware ended up in software. Other business professionals claim the opposite – how important writing a solid business plan actually is as it can benefit in many ways later down the road.
- You have a clear statement of your business vision and mission.
- A blueprint you can keep the focus on and keep the company on track
- Handbook for new employees describing who you are and what your company is about.
Useful Tips
Tip #1
Prioritize your tasks and only do the work that matters. You can’t do everything at once. Doing so only leads to burnout. Julie Chen once said “You need to prioritize. If you can’t get to everything or do everything, that’s okay.”
Tip #2
Make your social media impact SEO (search engine optimization), It’s not just a quick way to reach out to thousands of potential clients. Try these steps to ensure stable following down the road:
Grow your online footprint. Use social media to improve your customer service. Giving quick and quality support. As all of these things generate good reviews, comments, shares, and likes that search engines, such as google, like, therefore promoting your business higher in search engine results.
Tip #3
Define the vision of your company. You should be able to define your vision of the company within 100 words, focusing on key questions that drive your business. Also, make it publically available to everyone – not only customers but also employees to see.
Conclusion
Now that you have a clear understanding of the key differences between a business plan and a business strategy, you can confidently take the first steps towards planning both of these crucial components for your business. Planning both of these elements effectively will help you chart a path towards success and help you achieve your goals and objectives.
We wish you all the best as you embark on this exciting journey, and we are here to support you every step of the way. Greetings from NovelBunny!
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Disclosure: Some of the links within this post are affiliate links of which I receive a small compensation from sales of certain items.