To understand the basic concept of business plan and business proposal is a art for every person, entrepreneur, employee, house wife, college pursuing student etc. to make business successful. There is some basic difference business plan and business proposal. Most people are used this two terms interchangeably.
A business plan is diverse from a business proposal in terms of content, structure, writing style, goals, strategies, target customer and purpose etc.
Following are the key differences between business plan and business proposal:-
S.N |
Business Plan |
Business Proposal |
1 |
It is planning of business which is not start yet | It propose something in a business which is ready |
2 |
It is written presentation of fact | It is quote and call to action |
3 |
It is an outline of detailed description of business | It is formulated document used to illustrate how business will carry out the values, action and project |
4 |
Business plan can be drawn both start-up as well as existing firm | Business proposal can be prepared for only existing firm |
5 |
It is used to record and covey information | It is used to develop business opportunity |
6 |
It documents vision for business and how you intend to achieve that defined vision | It develops business idea to potential customer / firm |
7 |
It has general audience | It has specific audience i.e potential customer |
8 |
It project five year financial projection | It has no limited bound |
9 |
It comprises three elements viz. description of the business model, the marketing strategy and financial projections | It comprises with solicited / requested (fixed / same format) or not requested / unsolicited (may or may not same) format in request by potential customer |
10 |
It is an informational document designed to factually display your firm operations | It is more of a marketing document, designed to convince the audience or potential customer to do business by presenting a value proposition and a call to action |
