Business strategy, plan, and model

[markclub]

In business, these terms often get used somewhat interchangeably, but here is my understanding.
A business strategy is a high level plan. For example, if I wanted to start a chain of shoe stores,
my strategy might be "To open a series of shoe boutiques, offering hard to get upscale European
brands to the discriminating high net worth consumer".

The business model is then how you plan to achieve the strategy, such as,
"To open five upscale stores in next five years, each located in high end malls in wealthy communities
and averaging 1,500 square feet. The well trained sales staff, will cultivate relationships with our
customers, throwing private invite only events throughout the year."

The model should have more detail than the strategy. Finally, you get to the plan, which is the most
detailed. The plan is usually by month and by year and would include sales figures and estimated costs.
The plan usually shows how much profit the business will generate, and how those profits will increase
over time. If the business is borrowing start up costs, it will need to show the repayment of those funds.
All three are used to raise funds for starting a business. You basically want the lender or investor to
understand your goals, know how you plan to achieve them and what profit will be generated if you
are successful.





make extra cash | earn extra money online | internet marketing online