One response to “Business Plans vs. Strategic Plans”

  1. Thank you for the post. I like to look at the business plan as the framework and structure of a business. To me, the business plan identifies what the firm needs to look like in terms of people, organization, finances, etc to be successful.

    The strategic plan, in my opinion, is the roadmap that tells a firm what it needs to do in order to be successful – an action plan, as the graphic shows. To do so, the strategic plan must leverage the special skills and unique abilities of the business plan.

    In reality, a fantastic business plan with a poor strategy is unlikely to succeed. The same would be true if one has a great strategic plan with an improper business plan or structure behind it.

    Unfortunately, I think many businesses forget these two things need to be connected. These firms will often outline a strategy without creating a proper structure, or vice versa.