A business plan and a business strategy are both types of plans that help an organization achieve its goals, but they have different purposes and focuses. A business plan is mainly used by new businesses or organizations that want to get off the ground, secure funding, and enter a new market. A business plan explains the objectives, operational requirements, financial projections, and market analysis of the organization. A business plan is usually more detailed and shorter-term than a business strategy12
A business strategy is mainly used by existing businesses or organizations that want to improve their performance, gain a competitive advantage, and create value for their stakeholders. A business strategy outlines the long-term direction, vision, and values of the organization, as well as the strategic goals, actions, and resources needed to achieve them. A business strategy is usually more abstract and longer-term than a business plan12
To summarize, a business plan is focused on the “who” and “what” of the organization, while a business strategy is focused on the “how” and “why” of the organization. A business plan is more suitable for startups and new ventures, while a business strategy is more suitable for established and mature organizations34