Company Description/Overview
Products/Services Offered
Market Analysis
Marketing and Sales Strategies
Operations and Management
Financial Plan
Appendices
A business plan is a detailed document laying out how the business will function and develop in its first few years. The key is the “plan” part of the name, as it will specify how you will launch, gain customers, operate, make money, and, with any luck, expand.
Yet what many first-time business owners seem to forget is that a business plan is not a static document. The initial version is based largely on assumptions, supported by research. But as you run your business you’ll learn what works and what does not and make endless tweaks to your plan.
Thus, creating a business plan is not a one-time action – it’s a dynamic and continuous process of crafting and adapting your vision and strategy.
A business plan is generally much more detailed and broader than a business proposal, and has several elements :
A business proposal is created in connection to a specific business deal being offered by one party to another. As mentioned, when you take a business plan to an investor, you’re proposing a business relationship, so in this case a business plan and a business proposal are much the same.
But a business proposal could also be for others purposes, including:
A business proposal may offer specific terms for the potential relationship, or it may be just about the benefits the relationship will bring, with terms to be negotiated later. Essentially, it’s a sales tool to get people or companies to do business with you in some way.
Business proposals can be structured in various ways, but usually, they’ll include a summary of what your company can offer, a scope of the work to be done together, and sometimes, a price quote or a proposed structure of the business relationship.
Clearly, a business plan and a business proposal are similar – and can even be one and the same. At the same time, they can also serve very different purposes. Unlike a business plan, a business proposal can have a variety of aims and thus does not have a “one size fits all” structure.
Whichever one you need, be sure to take your time with the research and writing so your business has the best chance for success.
Your email address will not be published. Required fields are marked *
Save my name, email, and website in this browser for the next time I comment.
Featured resources.
Carolyn Young
Published on October 13, 2023
In the first segment of our conversation with Vinay Kevadiya, the visionary behind Upmetrics, we explored the platform’s origins and itsunique ...
Published on September 15, 2023
When you’re starting a business, a business plan is essential whether you’re going to obtain financing or not. Creating a business plan helpsyou ...
Published on September 13, 2023
Launching a business involves countless tasks, and one of the crucial early hurdles is writing a business plan. Many entrepreneurs who aren’tlooki ...
No thanks, I don't want to stay up to date on industry trends and news.
Get started
Running a business requires both project management and business management skills, but they’re actually two different fields of management. The leadership roles within these fields come with different responsibilities.
In this article, you’ll learn about the significant differences between project management vs business management, and how they each contribute to achieving a business’s objectives and goals. We’ll also share how you can leverage many of monday.com’s project features to optimize your projects and manage your business better.
Ultimately, the key difference between project management and business management lies in the nature of the work.
Project management refers to the successful execution of one or several projects within limitations such as time, scope, cost, and quality. The project manager in question focuses on tasks such as coordinating resources, project planning, allocating the budget, acting as an intermediary between clients, and keeping the team motivated and on track to complete the project with optimal results.
Business management refers to the oversight of business operations in a specific area to ensure everything is running smoothly. This could include sales, marketing, manufacturing, and more.
Let’s take a closer look at what project management vs business management looks like side-by-side:
Primary focus on single projects | Primary focus on tasks involving daily operations |
Purpose is to create, manage, and achieve project goals | Purpose is to manage and organize operations to achieve business objectives |
Deals with the management of project budgets and resources | Deals with the management of daily workplace budgets and resources |
Management is based on each project’s timeline and has a start and end date | Management is permanent although operational goals may change |
Focuses on increasing efficiency and productivity within project teams | Focuses on increasing efficiency and productivity within the entire workplace |
Can be complex and has a single objective | Management is always related to products/services and processes |
The manager and team member roles are project-based (temporary) | The manager and team member roles are permanent, as is the process |
A project manager focuses on tasks such as coordinating resources, project planning, allocating a budget, acting as an intermediary between clients, and motivating the team to complete a project with optimal results.
A business manager, on the other hand, focuses on daily operational tasks such as sales, marketing, manufacturing, and so on.
Let’s take a look at what the roles of a project manager and business manager look like side-by-side:
The focus is on the and execution of a project or projects. | The focus is on managing various daily operational tasks with business objectives in mind. They’re usually associated with one department of a business. | |
Planning revolves around the coordination of a specific project and team roles within that project. | Planning is typically done once per year to review any changing business objectives and includes other department or general managers. | |
Must monitor the specific budget allocated for the project. | Helps to manage the overall business budget, which is usually consistent and predictable. | |
Projects have a start date and an end date. | This type of management does not have an end date, making it a constant position. | |
The goal is to achieve that objective within the scope, timeline, and budget of the project. | The goal is to maintain consistent operational or departmental functioning while managing working relationships. | |
A project manager must define key performance indicators (KPIs) to manage and measure progress within a project. | KPIs revolve around service continuity, outputs, product sales, and other operational functions. |
When you consider project management vs business management, you’re essentially comparing apples and oranges. While the necessary tasks in running a small business are to those of running a corporation, both will use some essential management skills to allocate resources, direct staff, and market their products.
For example, as a business grows, several operational aspects can lose efficacy. Signs of this can include:
A general business manager will often find themselves overwhelmed as operations grow and objectives change. Project management can help by implementing a structured framework by which a specific goal is achieved, which works by maximizing resources and productivity.
Generally speaking, project management gives businesses greater control over their operations by managing them on a smaller scale.
In other words, things like product or service quality, customer service, marketing, and more can be optimized by having a project manager prioritize specific tasks and assign teams to them. Not only does this free up time for business managers to focus on operational goals and productivity, it streamlines business growth by properly delegating tasks and resources — all within a specific timeframe.
If you want to successfully implement project management strategies to complement your business management and overall operational goals, you’ll need a platform that will allow you to prioritize and streamline all of your tasks, tools, documents, and more.
monday.com can help you drive growth by enabling you to create effective workflows that bring your teams together to reach project goals more efficiently.
monday.com Work OS allows you to manage multiple projects from one place. From strategic planning to project management, these features help you and your team drive your projects home:
monday.com is also made me to be used by project managers and business managers alike. For example, you can use the Portfolio Management Template to manage multiple project dashboards and workflows.
After gaining experience and becoming a senior project manager, you have several options: You can become a chief operating officer (COO) of a company, management consultant, program manager, or even a portfolio manager.
Yes, project management can be very stressful. PMOs are responsible for on-time delivery of projects that are also on budget, meeting client expectations, and handling hefty to-do lists.
After gaining experience in the field, a project manager will typically be on track to senior- or executive-level positions in project management. This includes project management office (PMO) and director or chief operating officer (COO) positions and more.
Strategic project management can complement your business management processes by zeroing in on priority tasks and ensuring they’re completed efficiently. This will give your business management team more time to focus on operational growth and other overall business objectives. It also ensures product and service objectives are delivered on time and surpass client expectations.
You can set up the solid processes and analysis you need for both project management and business management using monday.com.
Send this article to someone who’d like it.
What's the difference.
A business plan is a comprehensive document that outlines the goals, strategies, and financial projections of a business over a specific period of time. It serves as a roadmap for the business and is typically used internally to guide decision-making and operations. On the other hand, a business proposal is a document that is created to pitch a specific product or service to potential clients or investors. It outlines the benefits, costs, and potential outcomes of the proposed project in order to persuade the recipient to take action. While a business plan focuses on the overall strategy and operations of a business, a business proposal is more targeted and specific to a particular project or opportunity.
Attribute | Business Plan | Business Proposal |
---|---|---|
Purpose | Outlines the goals and strategies of a business | Proposes a specific project or service to a potential client or investor |
Audience | Internal stakeholders, investors, lenders | External clients, investors, partners |
Length | Can be comprehensive and detailed | Usually shorter and more focused |
Scope | Covers all aspects of the business | Focuses on a specific project or opportunity |
Implementation | Guides the execution of the business strategy | Outlines how the proposed project will be carried out |
Introduction.
When it comes to starting a new business or expanding an existing one, having a well-thought-out plan is essential. Two common documents used in the business world are the business plan and the business proposal. While they may sound similar, they serve different purposes and have distinct attributes that set them apart.
A business plan is a comprehensive document that outlines the goals, strategies, and financial projections of a business. It serves as a roadmap for the business and is typically used internally to guide decision-making and track progress. On the other hand, a business proposal is a document that is used to pitch a product or service to potential clients or investors. It outlines the benefits of the offering and explains why the recipient should choose to work with the business.
One of the key differences between a business plan and a business proposal is their scope. A business plan is typically a long-term document that covers all aspects of the business, including marketing, operations, and financials. It is meant to provide a comprehensive overview of the business and its goals. On the other hand, a business proposal is more focused and specific. It is tailored to a particular project or opportunity and is designed to persuade the recipient to take a specific action, such as investing in the business or purchasing a product.
Another difference between a business plan and a business proposal is their content. A business plan typically includes sections such as an executive summary, company description, market analysis, marketing strategy, operational plan, and financial projections. It is a detailed document that provides a thorough overview of the business and its operations. In contrast, a business proposal is more concise and focused. It usually includes sections such as an introduction, problem statement, proposed solution, benefits, and pricing. The goal of a business proposal is to persuade the recipient to take a specific action, such as signing a contract or making a purchase.
Business plans are typically used internally by business owners, managers, and stakeholders to guide decision-making and track progress. They are also used to secure funding from investors or lenders. A well-written business plan can help attract investors and convince them of the viability of the business. On the other hand, business proposals are used externally to pitch products or services to potential clients or investors. They are often used in sales and marketing efforts to generate new business opportunities. A well-crafted business proposal can help win new clients and grow the business.
In conclusion, while business plans and business proposals may sound similar, they serve different purposes and have distinct attributes that set them apart. A business plan is a comprehensive document that outlines the goals, strategies, and financial projections of a business, while a business proposal is a focused document that is used to pitch a product or service to potential clients or investors. Understanding the differences between the two documents is essential for any business owner looking to start or grow their business.
Comparisons may contain inaccurate information about people, places, or facts. Please report any issues.
April 13, 2023
Can't find what you're looking for?
One of the most searched queries on Google is "business proposal vs business plan", and we are here to break the confusion.
What's Inside?
You are starting a new business, and you aren't sure what you need to do. You heard that you needed a business proposal and a business plan, but you weren't sure what's the difference between them.
You did some research and couldn't find what you are looking for... You decided to create both of them, but you need weeks to write and refine them.
Don't worry, we are here to remove this confusing process. Let's see what's the difference between them. You may, and probably do need both of them. But which one should be your priority?
When you're starting a business, one of the most important things you'll need to do is create a business plan . This document will outline your company's goals and strategies for achieving them over the next five years.
A business proposal , on the other hand, is a sales document that you put together to pitch potential projects to clients. It's not the same as a business plan, and it usually includes cost quotes for potential projects.
The main difference between a business proposal and a business plan is that, while a business plan is informative, a business proposal is intended to showcase operations, goals, and potential.
The executive summary of a business plan will include information about the company leadership structure or the introduction of management. Generally, business plans include an executive summary part while business plans don't.
We have seen some samples that use executive summaries but since the main goal is to close a deal. We suggest keeping them short and clean.
The business proposal format depends on whether the business is solicited or unsolicited . Details of products and services offered, the scope of work and responses to specific questions in an RFP are included in a business proposal.
A business plan documents the vision of a business and how it will be achieved. A business proposal offers comprehensive information for potential investors, suppliers, accountants, etc.
A proposal shows the external player what the company is all about and how it intends to carry out its project. Keep these differences in mind when you're putting together your next business presentation --you'll need to tailor your content accordingly!
A business plan is a document that outlines the business goals, strategies, and tactics a company will use to achieve those goals. The business plan also includes an overview of the company, its management team, the target market, and the products and services the company plans to offer.
It usually includes information about the company's products and services, target market, marketing plans , financial forecasts, and management team bios.
Here's a sample template to use while creating a detailed business plan.
A business plan is a key document for any business. It lays out the goals and strategy of the business and helps to ensure that everyone involved in the business is on the same page. It can also be used as a tool to help secure funding from investors or banks.
A business plan is a document that outlines the strategy and goals of a company. It can be used as a planning tool , to track progress, or as a basis for making decisions . A well-written business plan provides a roadmap for the business , and it can help attract investors or partners.
There are many reasons to create a business plan. Some of the most common reasons include:
A business proposal is a written document that offers a solution to a problem or a way to achieve a goal. It is often used to sell products or services to a potential customer. A business proposal must be well-written, clear, and concise in order to convince the reader to take the desired action.
A business proposal is a formal response sent to an RFP (request for proposals). It is a way for the seller to convince the buyer that their proposed solution is the right one in order to win business. Business proposals are meant to persuade a prospective client.
A business proposal typically consists of four main points: what are the challenges, how your solution solves the problems, why they should choose you over others, and the best pricing options available. The price is typically stated in the document. If a business is requesting proposals, they should be sent in their format. An RFP response should include specific details about the scope of work and the cost estimate.
Here's a sample template to use while creating a detailed business proposal.
A business proposal is a key part of the business development process . It is a document that outlines the business goals, strategies, and tactics that will be used to achieve those goals. A proposal is used to convince potential clients or partners that your business is the best option for them.
It's typically used to pitch an idea to a potential client or customer. A well-crafted proposal can help you win new business and close deals.
Your company might be expanding into a new market and need to propose a new product or service. Or, you might be approached by another company with an opportunity you'd like to explore. Maybe you've identified a gap in the market and want to propose a new product or service to fill it.
Well, we do have a comprehensive guide to business proposal creation with templates and examples, but if you need a more brief explanation, keep reading!
When preparing for a business proposal, it is important to do your research and understand the client's needs. You should also have a clear understanding of your own company's capabilities and what you can offer the client. Additionally, it is important to be well-organized and to have a strong pitch.
You should have a clear understanding of your target audience and what will appeal to them. You also need to have a good grasp of the competition and what they are offering. In addition, you should be familiar with the terms and conditions of any potential contracts that may be involved.
Your proposal should be neatly formatted and easy to read. It should also be free of grammatical errors and typos. Be sure to proofread your work carefully before submitting it.
Make sure you provide complete contact information, as well as an outline of your proposed solution or service. If possible, include testimonials from past clients who have been satisfied with your work.
Remember that you are offering a valuable service that can help the reader achieve their goals. Believe in yourself and your ability to succeed, and you will be able to deliver a winning proposal every time
When writing a business proposal, make sure to follow this brief outline:
- Introduce yourself and your company
- Outline the proposal's purpose
- Explain the problem that you're trying to solve
- Describe your solution
- Explain the benefits of your solution
- List your qualifications
- Request a meeting
It should include an overview of the product or service, information about the company proposing it, financial projections, and terms and conditions. A well-crafted proposal can help your company win new contracts and increase sales.
Here's another sample template you can use while creating a business proposal:
Here's a story of our customer John who joined the Decktopus community 2 years ago.
John had been working in sales for years, but he had never worked in a company that sold products. When he was hired by a new startup, he was excited about starting making sales and increasing profits. However, he soon realized that there was no one in the company who knew how to sell. The founder of the company told him that he would need to create a presentation template to share with the other reps.
John wasn't sure where to start. He read article after article, trying to gather information about what made a good business proposal. After weeks of research, he finally created a template that he felt confident in sharing with his fellow reps. He was excited to see how it would help them increase sales and profits.
This is the outline we gathered while our support team helped him along the way:
-Executive Summary
-Problem/Opportunity Statement
-Business Plan
- Marketing Plan
-Financial Plan
An unsolicited proposal is one in which the company offers a product or service to a potential customer who has not solicited it. Here's an unsolicited proposal template .
A solicited proposal is one in which the company responds to a request for proposal (RFP) from a potential customer. Here's a solicited proposal template .
A proposal to bid is a document that a company submits to a potential customer in response to an RFP.
The purpose of the proposal to bid is to persuade the potential customer that the bidder's product or service is the best option among those being considered.
Here's a proposal to bid template .
A business plan has three main sections: the executive summary, a description of the business model, and financial projections.
The first section is an introduction that should be no more than one or two pages long. It should include a brief overview of your company, its products and services, and how you plan to make money.
The second section, a description of the business model, provides details about your company's competitive landscape, industry trends, and how you plan to reach your target market.
The marketing model is an informative section that should include detailed information about the industry competition and build-out plan. This part of the document can be several pages long and will help investors understand your company's place in the market.
While all three sections are important, remember that potential investors will likely focus on the financial projections most closely when deciding whether to invest in your company. The financial projections section is important because it shows potential investors how you expect your business to grow over time.
A well-crafted business plan can help convince potential investors to put their money into your company.
<cta-section data-ctaTitle="Start Building Your Business Document Now!" data-ctaDescription="Build good looking and functional business proposals and business plans without touching the design, literally in minutes!" data-ctaButtonText="Start Now!" data-ctaButtonURL=" https://www.decktopus.com/ "></cta-section>
Starting and running a business can be difficult, but it doesn't have to be alone. In fact, you're not alone--over 100,000 companies use our design templates, documents, and tools to start, run, and grow their businesses.
From creating a logo and branding your company to writing a business plan and pitching your idea to investors, we have everything you need to get started. And if you need more help along the way, our team of experts is here to support you every step of the way.
Simply select the template or document that's right for you, fill in the blanks, and hit print. It's that easy!
We understand that starting a business can be difficult--but with our help, it doesn't have to be alone. Over 100000+ companies use our design templates & tools every day to start & grow their businesses successfully. You can too!
Business plan and proposal software solution, business proposal templates, business plan templates, basic business proposal writing guide.
Build good looking and functional business proposals and business plans without touching the design, literally in minutes!
Don't waste your time designing your presentations by yourself!
Type your content and let our platform design your presentations automatically. No more wasting time for your presentations. Use hundreds of presentation templates to impress your audience. This is the only tool you need to prepare presentations. Try our Presentation Builder today >>
Don’t waste your time by trying to make a website for all your content
Place your content links and let our platform design your bio link automatically. No more wasting time for your social content distribution. Use hundreds of presentation biolink to impress your audience. This is the only tool you need to prepare good-looking bio links. Try our Bio Link Builder today >>
Do You Want To Create a Presentation?
July 1, 2024
Discover the best AI pitch deck generators to streamline creating decks for investors. Ideal for entrepreneurs and startups, these AI tools help craft the perfect pitch deck effortlessly.
June 29, 2024
Explore Decktopus vs Slides AI dynamic AI presentation features battle Find out which slides upvotes the top spot!
Decktopus vs Gamma: Explore top intuitive features for seamless presentations Find your best fit in!
Sign up for our newsletter to stay up-to-date on the latest news and tips from Decktopus.
Let’s create a form here to get visitors’ email addresses.
A business plan and a business proposal are very different documents. If you do an Internet search for how to write a business proposal, the results are predominantly focused on writing a business plan. Nevertheless, the two documents have different purposes and goals. A business plan is a factual broad description of a company and its prospects. A business proposal is a focused sales document intended to describe how a company will approach a project, state the value of the project to the client, and solicit the client's business. A business plan is a written presentation of facts. A business proposal is a quote and call to action.
A business plan documents your vision for your business and how you intend to achieve that vision. It contains financial projections of what the business will cost to develop and operate plus an estimation of the revenues to be generated. Its purpose is to provide a reasonably detailed explanation of your business for use by potential investors, suppliers, prospective employees, accountants, attorneys, and other people who need a quick but comprehensive understanding of what your company does and its potential for success. The primary reason for a business plan is to record and convey information.
Proposals may be unsolicited business ideas presented to a potential customer or partner, or they may be answers to requests for proposals submitted to your company by a potential client. They are limited in scope to a particular project or need. A business proposal also generally has a specific audience. The primary reason for a business proposal is to solicit or develop a business opportunity.
A business plan has three elements: description of the business model , the marketing model, and financial projections. It consists of informative sections, including the executive summary, business description, marketing model, analysis of industry competition, build-out plan, operations plan, the introduction of management, and a discussion of financial issues and projection of results. It is introduced by an executive summary, which can be a dense abstract or a longer marketing tool to attract interest in the business plan. The business plan is an informational document designed to factually display your company's operations and potential.
A business proposal is written in response to an RFP--A request for proposal (RFP) is a document that solicits proposal, often made through a bidding process, by an agency or company interested in procurement of a commodity, service or valuable asset, to potential suppliers to submit business proposals --should follow the format requested in the RFP.
Generally, this involves a quick description of your company's services and products that are relevant to the goals of the RFP, a reiteration of the scope of work, answers to specific questions posed in the RFP and a quote detailing materials, tools, labor, delivery and other elements of the cost of the project. An unsolicited business proposal intended to create and develop a business opportunity follows essentially the same format but anticipates questions the potential client might have. A proposal is more of a marketing document, designed to convince the audience to do business by presenting a value proposition and a call to action.
MoneyThumb saves you time with financial file converters that automate your small business and personal finance file conversion tasks. Convert scanned and image-based .pdf bank statements straight into QuickBooks with pro products like 2qbo Convert Pro+ and pdf2qbo Convert+ , or choose among our wide range of other converters designed especially for the small business or personal accounting application that you use.
Denise grier.
Denise Grier is a freelance writer, pro blogger, SEO and WordPress expert.
26 comments on “ the difference between a business plan and a business proposal ”.
Great work! the topic is really an interesting one, well a business plan is something organizing your work like with QuickBooks tool hub, and the business proposal is the opposite of the latter one. For better account, management one should download the QuickBooks tool hub. keep it up the great work. looking towards your next blog.
This could be the best and most simplified article on this issue I’ve come across. Straight to the point and very informative.
I have really liked it and thus so much grateful of the author,,, High arcuity comrades
i have never found it broken down as easy as this before. Thank you. it’s very helpful
Amazing job! The best and most informative article explicitly calling out the purpose and goals of a Business Plan and a Business Proposal.
I really found it helpful. Thank you
Very helpful and informative ,bunch of thanks
Thank you very much for the help.
I’m glad I stumbled on your website today. This is indeed a comprehensive Break down.
glad it was helpful
Thank you. How do I contact you personally for further questions please?
for support, questions contact us at [email protected]
Thanks so much. I found it help.
I am glad this article was helpful to you.
I have thought so many times of entering the blogging world as I love reading them. I think I finally have the courage to give it a try. Thank you so much for all of the ideas!
I think you should!
Really helped much. Appreciate it.
Thanks for this amazing content on difference on the business plan and proposal.
One of the most typical errors seen by QuickBooks users is error 80070057, which specifies that the parameter is wrong, especially when the company file is accessed. This error code means you don’t have sufficient authorization to remove the files.
The information you provided is very helpful. You have written an excellent post. Thanks for sharing such a useful piece of information with us.
I find all of this information fascinating, and it is full of useful information, so I’ll be following your blog to learn new things.
The data you supplied is quite useful.
Hey, you are great doing, thanks for sharing with us. we loved your post. i will try. thank you so much
Awesome quite impressive article thanks for posting this.
I appreciate your thought there with that one, because of course I agree, but I’m confused with why you thought it should be added. Don’t you think plan vs. actual is included with point 3, “It’s specific. You can track results against plan,” and then point 8 “It has to bring the planning process with it, meaning regular review and course correction?”
QuickBooks Tool Hub is a game-changer! It simplifies troubleshooting and quickly resolves common QuickBooks issues. This comprehensive toolkit is essential for anyone seeking seamless and efficient QuickBooks performance. Highly recommend!
Your email address will not be published. Required fields are marked
Save my name, email, and website in this browser for the next time I comment.
Check Out Our Most Recent Products
Check Out Our Lender Products
Check Out Our Accounting Products
Privacy overview.
Cookie | Duration | Description |
---|---|---|
cookielawinfo-checkbox-analytics | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics". |
cookielawinfo-checkbox-functional | 11 months | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". |
cookielawinfo-checkbox-necessary | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary". |
cookielawinfo-checkbox-others | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other. |
cookielawinfo-checkbox-performance | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance". |
viewed_cookie_policy | 11 months | The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data. |
Do you have more than one person in your office who needs a license?
MoneyThumb converters are licensed to individual users. Multiple users will need a multi-user license.
Take advantage of our volume pricing for multiple users. Select your quantity and the discount will automatically be applied at checkout.
# of Licenses | Discount |
---|---|
2 | 20% (That’s 40% off the second seat!) |
5 | 25% |
10 | 30% |
50 | 35% |
100+ |
2qfx Convert Pro+ license options:
See Compare PDF Convert Editions for details
Do a business case and a business plan sound pretty similar to you? We think so, too! However, those two words don't mean the same thing at all. So it's vital to understand the difference between a business case and a business plan.
What kind of entrepreneur would you be if you didn't know how to differentiate the two? In this guide on business plan vs business case, The Business Plan Shop helps you get your facts right.
A business case is a document that provides the necessary justification to invest time or money in a new project, generally within a company.
Commonly used in bigger companies, the business case helps the decision-making process in the prioritisation of one project over another.
Big companies often have a vast variety of teams, and with all of them likely believing that their project is top priority, the company's money needs to be used carefully.
The difference between a business case and a business plan here is that the business case will be used for decision making inside the company.
The business case must answer 4 questions:
What is the project?
Why should this project get picked over another?
Who will be involved?
How much will it cost?
The business case presents the project in detail. Whether it's a product or a service, a business case demonstrates what the project will achieve for the company.
The business case highlights the project's benefits, and how valuable it is for the company.
It could be a business opportunity, such as adding a feature to an existing product to boost sales, or implementing an organisational improvement, such as changing the customer support software to gain in productivity and serve customers better.
The business case introduces the people involved in the project, whether they're in the company or not.
It also gives an approximative value of how much the project will cost from start to end, including which team will be in charge and if external support or a third party will be used.
The business case should also underline that the team has the required skills to complete the project.
The business case gives an accurate overall cost of the project, as well as how much profit or cost savings it will bring.
This section shows how long the project will last, and what equipment, financial, and human resources will be needed.
When deciphering the difference between a business plan and a business case, looking at a short sample version of what a business case should look like might help:
The management is looking at improving Coventry's factory production line. The project would involve replacing the equipment on production lines 3 and 4 which were installed in 2004 with more recent equipment.
The cost for this modernisation is estimated at £150k, and would reduce the production cost by 5%, along with reducing the yearly maintenance cost by £5k, which would result in a total gain of £175k, taking into account the expected production volume in the yearly budget.
The replacement should take 3 days and line 3 and 4 will have to cease production during this period. The rest of the lines should continue to run as normal.
Business plans and business cases are not too dissimilar, but it's important to discern why they're not the same.
They both highlight an opportunity. The business case, however, is a short-term gain, whereas the business plan takes on a global and long-term approach.
The difference between a business case and a business plan also derives from the fact that the business case usually refers to a project and one aspect of the business, whereas the business plan presents a detailed plan of action for the entire organisation over several years.
The business plan cannot be completely accurate, as it cannot predict the future and will evolve regularly based on market trends and inflation.
The business plan is based on a series of hypothesis, action plans, and a long-term calendar. Contrastingly, a business case is concrete - mainly because it's aimed at creating a short-term gain for the business with a well defined return on investment.
To sum-up: a business plan is a strategic document, whereas a business plan is a tactical one.
We hope this article helped you in understand the difference between the two. Please do not hesitate to get in touch if you have any questions.
Also on The Business Plan Shop
Founder & CEO at The Business Plan Shop Ltd
Guillaume Le Brouster is a seasoned entrepreneur and financier.
Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.
Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.
Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.
Create a convincing business plan
Assess the profitability of your business idea and create a persuasive business plan to pitch to investors
500,000+ entrepreneurs have already tried our solution - why not join them?
Not ready to try our on-line tool ? Learn more about our solution here
Need some inspiration for your business plan?
Subscribe to The Business Plan Shop and gain access to our business plan template library.
Need a professional business plan? Discover our solution
Write your business plan with ease!
It's easy to create a professional business plan with The Business Plan Shop
Want to find out more before you try? Learn more about our solution here
This collaboration with Wimbledon teams extends beyond the fan-facing digital platform, into enterprise-wide transformation.
4 min read - Learn about the first season of the Be Equal podcast series, where IBMers share their unique experiences and personal stories.
4 min read - Data lineage is the discipline of understanding how data flows through your organization, and what happens to it along the way.
6 min read - Authentication verifies a user’s identity, while authorization gives the user the right level of access to system resources.
5 min read - Learn the many potential applications that operators and suppliers are capitalizing on to enhance network operations for telco.
July 1, 2024
IBM acquires StreamSets, a leading real-time data integration company
June 27, 2024
IBM announces new AI assistant and feature innovations at Think 2024
June 26, 2024
A major upgrade to Db2® Warehouse on IBM Cloud®
June 25, 2024
Increase efficiency in asset lifecycle management with Maximo Application Suite’s new AI-power...
Achieving operational efficiency through Instana’s Intelligent Remediation
2 min read - Enabling participation in the AI-driven economy to be underpinned by fairness, transparency, explainability, robustness and privacy.
6 min read - Microcontroller units (MCUs) and microprocessor units (MPUs) are two kinds of integrated circuits that, while similar in certain ways, are very different in many others.
2 min read - As organizations harness the power of AI while controlling costs, leveraging anything as a service (XaaS) models emerges as strategic.
Use IBM Watsonx’s AI or build your own machine learning models
Automate IT infrastructure management
Cloud-native software to secure resources and simplify compliance
Run code on real quantum systems using a full-stack SDK
Aggregate and analyze large datasets
Store, query and analyze structured data
Manage infrastructure, environments and deployments
Run workloads on hybrid cloud infrastructure
Generative AI can revolutionize tax administration and drive toward a more personalized and ethical future.
4 min read - A good place to start is refreshing the way organizations govern data, particularly as it pertains to its usage in generative AI solutions.
5 min read - Identity misconfigurations and blind spots stand out as critical concerns that undermine an organization’s identity security posture.
6 min read - Explore how European bank Intesa Sanpaolo and IBM partnered to deliver secure digital transactions using fully homomorphic encryption.
8 min read - AI risk management is the process of identifying, mitigating and addressing the potential risks associated with AI technologies.
4 min read - This partnership between IBM and Amazon SageMaker is poised to play a pivotal role in shaping responsible AI practices across industries
4 min read - Machine Learning for IBM® z/OS® is an AI platform made for IBM z/OS environments, combining data and transaction gravity with AI infusion.
Explore the latest interviews, correspondent coverage, best-of moments and more from The Daily Show.
Attend a Live Taping
Find out how you can see The Daily Show live and in-person as a member of the studio audience.
New Episodes Thursdays
Jon Stewart and special guests tackle complex issues.
Great Things Are in Store
Become the proud owner of exclusive gear, including clothing, drinkware and must-have accessories.
Striving to be the first climate-neutral continent
Climate change and environmental degradation are an existential threat to Europe and the world. To overcome these challenges, the European Green Deal will transform the EU into a modern, resource-efficient and competitive economy, ensuring:
The European Green Deal is also our lifeline out of the COVID-19 pandemic. One third of the €1.8 trillion investments from the NextGenerationEU Recovery Plan, and the EU’s seven-year budget will finance the European Green Deal.
The European Commission has adopted a set of proposals to make the EU's climate, energy, transport and taxation policies fit for reducing net greenhouse gas emissions by at least 55% by 2030 , compared to 1990 levels. More information on Delivering the European Green Deal .
Discover the European Green Deal visual story
12 March 2024 - The Commission has published a Communication on managing climate risks in Europe that sets out how the EU and its countries can implement policies that save lives, cut costs, and protect prosperity. It comes as a direct response to the first-ever European Climate Risk Assessment by the European Environment Agency. It also addresses the concerns that many Europeans have following last’s year record temperatures and extreme weather events. The Commission is calling for action from all levels of government, the private sector and civil society to improve governance and tools for climate risk owners, manage risks across sectors and set the right preconditions to finance climate resilience.
Featured initiatives.
Share this page
IMAGES
VIDEO
COMMENTS
Most business plans also include financial forecasts for the future. These set sales goals, budget for expenses, and predict profits and cash flow. A good business plan is much more than just a document that you write once and forget about. It's also a guide that helps you outline and achieve your goals. After completing your plan, you can ...
2. Feasibility Business Plan. This type of business plan focuses on a single essential aspect of the business — the product or service. It may be part of a startup business plan or a standalone plan for an existing organization. This comprehensive plan may include: A detailed product description. Market analysis. Technology needs. Production ...
Business Plan: A business plan is a written document that describes in detail how a business, usually a new one, is going to achieve its goals. A business plan lays out a written plan from a ...
A simple project plan includes these elements: Project name, brief summary, and objective. Project players or team members who will drive the project, along with their roles and responsibilities. Key outcomes and due dates. Project elements, ideally divided into must-have, nice-to-have and not-in-scope categories.
The main difference between a business plan and a business proposal is that a business plan documents your growth strategy while a business proposal is a specific ask for someone to take an action you desire (e.g., buy your product/service, invest in your company, partner with you, etc.). In this article, we will define a business plan and a ...
A project plan houses all the necessary details of your project, such as goals, tasks, scope, deadlines, and deliverables. This shows stakeholders a clear roadmap of your project, ensures you have the resources for it, and holds everyone accountable from the start. In this article, we teach you the seven steps to create your own project plan.
A one-page business plan is a simplified version of the larger business plan, and it focuses on the problem your product or service is solving, the solution (your product), and your business model (how you'll make money). A one-page plan is hyper-direct and easy to read, making it an effective tool for businesses of all sizes, at any stage ...
Common items to include are credit histories, resumes, product pictures, letters of reference, licenses, permits, patents, legal documents, and other contracts. Example traditional business plans. Before you write your business plan, read the following example business plans written by fictional business owners.
A project plan is a series of formal documents that define the execution and control stages of a project. The plan includes considerations for risk management, resource management and communications, while also addressing scope, cost and schedule baselines. Project planning software is used by project managers to ensure that their plans are ...
While a business plan provides a thorough overview of the entire business and targets internal stakeholders, investors, and lenders, a business proposal focuses on specific projects or opportunities and targets external clients, partners, or funding agencies. When you understand these differences and employ the best practices in creating both ...
The business plan, a noun, is a tactical document. It's typically created for a specific purpose, such as securing a Small Business Administration (SBA) loan. Think of it as a road map - it outlines the route and the destination (in this case, the coveted bank loan). But once you've reached your tactical goal (in this case, getting the loan ...
A project management plan is a set of documents that outline the how, when and what-ifs of a project's execution. It overviews the project's value proposition, execution steps, resources ...
Business case vs. project charter. If you need to create an elevator pitch for your project but you don't quite need the full business case treatment, you might need a project charter. Much like a business case, a project charter outlines key details of an initiative. Specifically, a project charter will cover three main elements of your ...
A project plan is the tangible output of the second phase of project management, project planning. This phase involves identifying and arranging each task necessary to cover the project's scope, achieve deliverables, and meet the project's goals.
Business Plan vs. Business Proposal. A business plan and a business proposal are different from each other by content, goals, writing style, and structure. The major difference between both is that a business plan is a document that presents facts, while a business proposal is a request for a deal and a quotation of prices. A Business Plan
A business case is a justification for a proposed project or plan of action on the basis of its expected commercial benefit. It is a business argument. It is a business argument. It reveals a situation which is either a problem or an opportunity and details how the situation could be addressed in terms of benefits and risks.
Project Charter vs Project Plan. In project management, two key documents guide a project. They are the project charter and the project plan. Each plays a unique role throughout the project. Understanding their differences and how they work together is vital. The project charter starts the project off.
An organization uses a project charter to obtain the authorization of stakeholders to begin a project. The company's stakeholders may sign off on the project charter, signifying that the scope meets the needs and expectations of the group. A project plan, also known as a work plan, outlines the project scope and objectives based on the project ...
Whether elaborate or simple, a written business plan is an assembly of facts, ideas, assumptions and projections about the future. Here are three ways to use a written plan: 1. Document the due ...
Business Plan. Business Proposal. Purpose. Outlines a company's mission, vision, and means to achieve its goals. Proposes a specific project or solution to a client or potential partner. Audience. Investors, stakeholders, financial institutions, and internal team. Potential clients, partners, or businesses. Content.
Running a business requires both project management and business management skills, but they're actually two different fields of management. The leadership roles within these fields come with different responsibilities. In this article, you'll learn about the significant differences between project management vs business management, and how they each contribute to achieving a business's ...
A business plan is a comprehensive document that outlines the goals, strategies, and financial projections of a business, while a business proposal is a focused document that is used to pitch a product or service to potential clients or investors. Understanding the differences between the two documents is essential for any business owner ...
A business proposal, on the other hand, is a sales document that you put together to pitch potential projects to clients.It's not the same as a business plan, and it usually includes cost quotes for potential projects. The main difference between a business proposal and a business plan is that, while a business plan is informative, a business proposal is intended to showcase operations, goals ...
A business plan is a factual broad description of a company and its prospects. A business proposal is a focused sales document intended to describe how a company will approach a project, state the value of the project to the client, and solicit the client's business. A business plan is a written presentation of facts.
The difference between a business case and a business plan also derives from the fact that the business case usually refers to a project and one aspect of the business, whereas the business plan presents a detailed plan of action for the entire organisation over several years. Check out our outline for a business plan here.
News and thought leadership from IBM on business topics including AI, cloud, sustainability and digital transformation. Exclusive. Artificial intelligence June 17, 2024 How IBM helps Wimbledon use generative AI to drive personalised fan engagement. This collaboration with Wimbledon teams extends beyond the fan-facing digital platform, into ...
The source for The Daily Show fans, with episodes hosted by Jon Stewart, Ronny Chieng, Jordan Klepper, Dulcé Sloan and more, plus interviews, highlights and The Weekly Show podcast.
One third of the €1.8 trillion investments from the NextGenerationEU Recovery Plan, and the EU's seven-year budget will finance the European Green Deal. The European Commission has adopted a set of proposals to make the EU's climate, energy, transport and taxation policies fit for reducing net greenhouse gas emissions by at least 55% by ...