Why a Business Model Is More useful To You Than a Business Plan

31 Jan

Business Plan vs. Business Model

The Difference

Why do I believe a business model will get you where you want to be, while a business plan simply supports it?

Think of it this way: the business model is the foundation of a house, and the business plan is the bricks. If you spend too much time choosing the bricks without focusing on the foundation, the house will fall. However, with deep, well-thought-out foundational work, your house is far more likely to remain standing—even if you need to tweak it along the way.

A business model is a description of how a business plans to deliver products and services to customers, while a business plan is a comprehensive explanation of every facet of a business.

A business model is the foundation of any business idea, outlining how the concept offers value and potential for growth, while a business plan is the business owner’s plan to put that model into action.
A business model describes how the company is positioned within its industry's value chain, and how it organises its relations with its suppliers, clients, and partners in order to generate profits, while a business plan translates this positioning in a series of strategic actions and quantifies their financial impact.
A business plan is a comprehensive road map that shows how a firm expects to accomplish its goals, whereas a business model is a conceptual framework that outlines how a company makes income.
A business model is a framework used to design and depicts how a business might create and capture value, while a business plan is a document explaining how a business might become profitable.
https://www.indeed.com/career-advice/career-development/business-model-vs-business-plan

Know What You Want

To develop a business model, you first need to know what you want. Having a clear long-term vision will guide your business model.

Do you want a business you can build up and sell? That’s a brand-focused business model.
Do you want a side business that complements your day job? That’s a side-hustle business model.
Do you want to share your creative projects or items as a maker, designer, or artist? There’s a business model for that too.

By defining what you want and what you do, you’ll stay on track—even during challenging times. It will also make decision-making much easier, because your goals will be clear and aligned with your model.

Focus

When you focus on your own business model, you don’t need to follow the crowd. While following trends may help socially, in business it’s often counterproductive. Staying true to your vision and your unique business needs is essential.

The moment you stray into someone else’s lane, you risk neglecting your original purpose, your passion, and perhaps even yourself.

Authenticity and Shine

For creatives, our businesses are reflections of ourselves. Creativity is at our core—it’s our life force, our essence. Only you can navigate the way forward for your business because it comes from within you.

When you follow someone else’s path, use their inspiration, or work in their lane, you risk losing your authenticity. But when you stay true to yourself, your vision, and your creative power, you’re being authentic—and that authenticity lets your true shine come through.

When you shine, your people (your customers) will notice. They’ll show up like fireflies, attracted to your uniqueness, and they’ll stay loyal.

Remaining authentic also helps solidify your business model. While you ride the waves of your creativity, your business model becomes a safe foundation. It acts as a pathway and guidance system that keeps you on track, allowing you the freedom to explore while maintaining focus on your ultimate goal: creating and earning sustainably.

Example

Let’s say you create and sell lino prints. Your business model could guide you to:

Explore multiple platforms for selling your work.
Pitch your work to Urban Outfitters or contact their buying department.
Hold a solo exhibition at a local gallery or appear on a Sky Arts program to boost awareness of your style.
Collaborate with a designer you admire—just by asking.

Your business model reminds you of the small but essential steps needed to reach your ultimate goal, such as securing high-profile creative collaborations or building a sustainable income.

Examples of different types of business models are:

Product
Service
Shared assets
Subscription

More can be discovered in the links below, these searches are the ones I looked at to define my business model in more depth. The idea I started with in 2012 did not have a business model name at the time-or one I could find, so this came later for me but once I found it it was game on!

Embracing Change

A business model is not only a roadmap but also a catalyst for self-development. Each stage of your model will challenge you to grow. By embracing these changes, you’ll become more capable, confident, and ultimately more successful.

Creativity and business are deeply psychological journeys—fascinating, ground-breaking, mind-blowing, and absolutely worth it.

Links

8 Types of Business Models & the Value They Deliver

50 Types of Business Models (2022) - The Best Examples of Companies Using It | Business Strategy Hub