A very interesting post from Steve Blank capturing the difference between business plans and business models. I think it should be prescribed reading for all entrepreneurs and certainly deserves recording for posterity on this blog.

In summary the business plan helps clarity of thought on market, strategy, sales approach, financial targets. Recording all these thoughts will help the entrepreneur with his/her approach. But keep it short....I think it comes into play more as the firm develops.

The business model, on the other hand, is more flexible. Who are the initial targets, what is the way to market, what is the sale price. It can be tweaked and restructured as the startup develops and gets more feedback from the market.

The article

http://steveblank.com/2010/04/08/no-plan-survives-first-contact-with-customers-–-business-plans-versus-business-models/