While carrying your core business model assumptions in your head alone might seem like the fastest alternative, you need to beware of the reality distortion fields that plague entrepreneurs.
Most entrepreneurs start with a strong initial vision and a Plan A for realizing that vision. Instead of chasing a mythical perfect plan, what you need is a well documented starting point and a systematic process for going from your Plan A to a plan that works before running out of resources. While writing a business plan can be a good exercise for the entrepreneur, it takes too long and more importantly, falls short of its true purpose: Facilitating conversations with people other than yourself.
Compared to business plans, creating a 1-page business model is: Fast Instead of taking weeks or months, you can outline multiple business models in an afternoon.
Concise Because your business model has to fit on a single page, you have to pick your words carefully and get to the point.
Also, the business plan is a way to show where you see the business in the future.
Indeed, one key ingredient of a business plan is a set of projections for three-five years.
In short, for external subjects to know about your business and invest in it, the business plan is the best tool. Indeed, the business model is a framework (usually a one-page) that allows you to understand how your business works from several perspectives.
Depending on what kind of business you’re trying to build or where you want to steer your organization you might want to look at a few tools, such as: canvas.
The business model instead is a framework that helps you assess how your business works from several angles and the kind of actions you can take in the now.
When you’re getting ready to start your small business, you want to create as solid a foundation as you can – and that involves education and planning.