Business Plan vs. Strategic Plan: What's the Difference?

Apr 16, 2023

When starting a business, it is important to have a plan in place. This plan will help you to define your goals, identify your target market, and develop a strategy for achieving your goals. There are two main types of plans that businesses use: business plans and strategic plans.

A business plan is a document that outlines the overall goals and objectives of a business. It typically includes information about the business's products or services, target market, marketing strategy, financial projections, and management team. Business plans are typically used by businesses to obtain funding, attract investors, and guide their operations.

A strategic plan is a more detailed document that outlines how a business will achieve its goals. It typically includes information about the business's competitive landscape, SWOT analysis, key initiatives, and metrics for success. Strategic plans are typically used by businesses to guide their long-term decision-making.

The main difference between a business plan and a strategic plan is the time horizon. A business plan is typically used for a period of one to three years, while a strategic plan is typically used for a period of five to ten years.

Here are some of the benefits of having a business plan:

Provides a roadmap for your business. A business plan helps you to define your goals and identify the steps you need to take to achieve them.
Attracts funding and investors. A well-written business plan can help you to attract funding from investors or loans from banks.
Guides your operations. A business plan can help you to make better decisions about your business by providing you with a framework for evaluating different options.

Here are some of the benefits of having a strategic plan:

Provides a long-term vision for your business. A strategic plan helps you to think about the future of your business and how you can position it for success.
Identifies key initiatives. A strategic plan helps you to identify the key initiatives that you need to focus on in order to achieve your goals.
Provides a framework for decision-making. A strategic plan can help you to make better decisions about your business by providing you with a framework for evaluating different options.

It is important to review your strategic plan on a regular basis, such as once a year. This will help you to ensure that your plan is still relevant and that you are on track to achieve your goals.

Here are some of the things you should consider when reviewing your strategic plan:

Your business's current performance. How is your business performing against your goals?
The competitive landscape. How has the competitive landscape changed since you last reviewed your plan?
Your target market. Have your target market's needs changed?
Your business's goals. Are your goals still relevant?
Your business's strategy. Is your strategy still effective?

If you find that your strategic plan is no longer relevant, you may need to update it. This may involve changing your goals, your target market, your strategy, or all of the above.

By having a business plan and a strategic plan, you can increase your chances of success in business. These plans will help you to define your goals, identify your target market, develop a strategy for achieving your goals, and guide your long-term decision-making.

If you need help creating a business plan or strategic plan. Reach out to me. I have very simple templates that can make life a lot easier. Business does not have to be hard.