Difference between business plan and canvas

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As a company that supports and assists entrepreneurs in all phases of business, Lowtax understands that one of the biggest doubts related to validating ideas, especially when opening a company , is understanding the differences between developing a business plan or the Business Model Canvas.

Both the business plan and the Canvas are tools that help you come up with new ideas, whether for an existing company or one that is yet to be opened. Therefore, we have prepared special content to clarify the differences between the business plan and the Canvas, as well as the advantages and disadvantages of each tool. Keep reading the article!

– Why develop a Business Plan?
The business plan is a great resource for those who already have a database with real results that can be consulted. It works well to provide direction to the company, pointing out the best path to follow. Among its main functions is the visualization of expenses and profits, in order to predict administrative errors or future losses. It allows for bahamas whatsapp lead financial projections, plans and goals, but this requires time and planning. To develop an effective business plan, it is ideal for qualified professionals who know the entrepreneur's segment to be involved in the project. The entire information base must be based on studies and real data, without interference from uncertain information. This way, it is possible to assertively predict the viability of new ideas. Business Plan Blocks

The business plan must be structured according to the needs of each entrepreneur. However, there are some factors that can be used by most companies, such as: business description, financial plan and projection, marketing plan, among others.

– Why develop Business Model Canvas?
In the mid-2000s, Alex Osterwalder brought up the idea in his doctoral thesis. After much study, Alex released the book “Business Model Generation: Innovation in Business Models” which popularized the Canvas worldwide. The concept was applied in large organizations around the world, such as Apple, IBM, Public Works, among others. Like the business plan, the Canvas is a document used to obtain information about a company. The Canvas can provide information in a simpler and more practical way. With the rapid and almost simultaneous transmission of data, it quickly conquered the business world, because in addition to presenting all the structures that make a given company run, it can also be used for prototyping ideas, projects and/or businesses.


Its main difference is its contrast with linear planning descriptions. Its goal is to be a dynamic, simple and visual framework that uses pre-determined blocks that help in understanding the complex relationships between the essential points for a new business model. It does not require as much time for research as a business plan, so it does not have the precision and amount of information of a business plan, but it is just as effective.

Furthermore, unlike the business plan, the Canvas can be developed together with company employees. Collaborating on the construction of a new idea, in addition to strengthening relationships, paves the way for innovation with the contribution of new ideas. Canvas Blocks As already mentioned here on the blog in the post “Canvas | How to build a business model” , the model has 9 ready-made blocks, which can be applied to any company, unlike the business plan. The blocks are: value proposition, customer segment, channels, customer relationships, key activity, main resources, main activities, revenue sources and cost structure.

– And now, which one to choose?
Because it is a tool that provides information more quickly, Canvas has been the most widely used tool among companies when it comes to validating new ideas and actions. However, it is necessary to evaluate the advantages and disadvantages of each tool in light of the objective of each project.

Business plan
. Advantages – Greater accuracy in results; – Provides more details through company information; – Realistic projections based on data; – Starting point for detailed and real operations and financial plans. . Disadvantages – Requires more research and dedication; – Requires more time to be carried out; – Needs to be accompanied by business experts; – The update is more difficult to be carried out.