The business model is the mechanism through which the company generates its profit while the business plan is a document presenting the company's strategy and expected financial performance for the years to come.

The business model is at the center of the business plan. 

 

The business model describes how the company is positioned within its industry's value chain, and how it organised its relations with its suppliers, clients, and partners in order to generate profits. The business plan translates this positioning in a series of strategic actions and quantifies their financial impact.