A business plan is a document that companies and prospective companies create to project how they will create and grow their business in the upcoming 3 to 5 years.
Business Models are now being used by many people instead of Business Plans. Instead of trying to project years down the road, Business Models emphasize Product-Market fit and adjusting to changing circumstances.
A popular tool for creating business models is the business model canvas:
Business Model Canvas - Explained and Suggested Databases
Your 'Creation Process'
The most important activities an organization needs to perform well.
The network of suppliers and partners that bring in external resources and activities.
The most important assets required to offer and deliver the previously described elements
Based upon a bundle of products and services that create value for a customer segment. (See Video Clip Below)
Your 'Distribution, Marketing & Sells'
Outline of what type of relationship is established and maintained with each customer segment, and explains how customers are acquired and retained.
Groups of people and/or organizations a company aims to reach and create value for with a dedicated value proposition.
Describes how a value proposition is communicated and delivered to a customer segment through communication, distribution, and sales channels.
Your 'Money Out & Money In'
Describes all costs incurred to operate a business model.
Result from a value proposition successfully offered to a customer.