Business Plan Vs Strategy

In the simplest terms.

Business plan vs strategy. A strategic plan generally covers a period of 3 to 5 years whereas a business plan is normally no more than one year. Most business plans look at a shorter period of time typically 2 3 years and drills down thoroughly how the work will get done and dollars will be earned. Small business management involves several types of activities for managing economic resources.

First lets look at the difference between a business and strategic plan. It also is a way to integrate and align your separate strategic plan marketing plan fundraising plan and however many other plans your organization has collected over the years. Your strategic plan is best used when its fresh and tweaked on a consistent basis.

A strategic plan is for established businesses organizations and business owners that are serious about growing their organization. Whereas a business plan could be for new businesses and entrepreneurs who are startups. A business plan is used to catch the interest of investors or other potential stakeholders but a strategic plan is used to prioritize available resources.

Including multiple aspects of your brand plan is essential as well. A strategy encourages openness and debate from every side of the equation. A business plan covers the who and what of the business.

To get the whole picture and have a framework on which to build your business you also need a strategic plan. What sets a business plan apart is its singular focus on market and operational feasibility. Business owners often spend copious amounts of time planning.

The strategic plan on the other hand looks beyond the one year horizon and extends your vision out three to five years some extend even further out but they have fairly robust strategic planning processes. However a strategic plan should also be reviewed every time there s a major event impacting the business such as a new competitor entering your market a new product launch a sudden cash flow challenge or an important currency fluctuation. Who is running the business.