Business Model vs Business Plan vs Business Case

Business leaders often mix up “business model,” “business plan,” and “business case.” When that happens, teams start executing before they are clear on how the business will create value, or they ask for funding without a strong justification. Using the terms correctly leads to better alignment, stronger governance, and smarter decisions.
 

Clear definitions (in plain English)

Business model (the “how we create and capture value” logic).
A business model explains how the enterprise creates and delivers value to customers and how it converts that value into revenue and profit. It sits at the intersection of strategy and execution, and is often expressed as a coherent system (e.g., customers, value proposition, channels, revenue model, cost structure, partners).

Business plan (the “how we will execute over time” blueprint).
A business plan translates the business model into an integrated, time-bound plan: strategic priorities, milestones, resourcing, go-to-market, operating approach, and financial expectations. Strong plans don’t just forecast—they make explicit the assumptions about the people, opportunity, context, and risks that will shape outcomes.

Business case (the “why approve this investment now” decision document).
A business case is a structured recommendation to justify a specific investment decision (a project, initiative, program, or change). It examines options, benefits, costs, risks, and implementation feasibility to support approval.

Why the distinctions matter for leaders

1. Strategy discipline (business model): Your business model is the clear explanation of how your organisation creates value and makes money. If that logic is weak, unclear, or only implied, your plans and investment decisions will drift in different directions and won’t add up to a coherent strategy. Define the business model explicitly—beyond slogans—so everyone is working from the same value-creation logic.

2. Execution clarity (business plan): A business plan turns strategic priorities into a practical, time-bound roadmap. Boards, investors, and executive teams look for evidence of focus and feasibility: the right team and capabilities, a realistic path to market, clear milestones, resourcing, key risks, and credible financial assumptions—not just optimistic spreadsheets.

3. ​​​​​​​Governance and capital allocation (business case): A business case is a decision tool for approving (or declining) specific investments. It compares alternatives (including doing nothing), quantifies benefits and costs, surfaces key risks and dependencies, and demonstrates delivery confidence—so leaders can allocate scarce capital and capacity to the initiatives most likely to deliver value.

How and when to apply each framework

Use a business model when you are deciding “what game we are playing.”
Use it to define how you will create value and make money (or deliver outcomes), and to make the key assumptions visible. Apply it when launching a new venture, entering a new market, introducing a new offer, changing pricing, shifting channels, or responding to disruption—especially early, when you need to test and refine your approach.

Use a business plan when you are deciding “how we will win over the next 12–36 months.”
Use it once the business model is clear enough to execute. The business plan aligns stakeholders around goals, priorities, initiatives, capability gaps, budgets, KPIs, and accountability. Its purpose is to turn intent into an actionable roadmap with realistic milestones, resources, and financial assumptions.

Use a business case when you are deciding “should we fund and prioritise this specific initiative?”
​​​​​​​Use it whenever you need approval for a material investment (capex, opex, technology, restructuring, a new program, expansion, etc.). A strong business case compares options (including doing nothing), quantifies benefits and costs, assesses risks and dependencies, and demonstrates delivery confidence—so decision-makers can allocate capital and capacity wisely.

A practical workflow: from value logic to execution and investment approval

1) Define or refresh the business model (the value logic).
Start by making the “how we win” logic explicit: who you serve, the problem you solve, why you are differentiated, and how you capture value. Confirm the core mechanics—pricing and revenue streams, the cost drivers, and the capabilities, assets, and partners required to deliver consistently. The output is a shared, plain-English view of how the organisation creates value and makes money (or achieves its mission).

2) Build the business plan (the execution roadmap).
Translate the business model into a time-bound plan—typically 12–36 months—that aligns leaders and teams on what will be delivered and when. Define the strategic priorities, the initiatives that will drive them, and the resources needed (people, budget, technology, suppliers). Set measurable targets and KPIs, establish milestones and governance, and make the key assumptions and risks visible so performance can be managed proactively. The output is an actionable roadmap that guides budgeting, resourcing, and accountability.

3) Use business cases to prioritise and approve investments (the decision discipline).
For each major initiative within the plan, require a fit-for-purpose business case to justify funding and capacity. Compare options (including doing nothing), quantify benefits and costs, assess risks and dependencies, and confirm delivery confidence. This ensures initiatives compete fairly for scarce capital and leadership attention—and that only projects with a clear rationale, credible economics, and manageable risk are approved. The output is a ranked, defensible portfolio of initiatives with clear ownership and expected outcomes.

In short: business model sets the logic, business plan sets the roadmap, and business cases earn the right to invest.
​​​​​​​

​​​​​​Business case references

• Why business cases are important
  “5 Reasons Why Every Project Should Have a Business Case” — Explains why business cases matter for strategy alignment, decision-making, benefits realisation, and stakeholder buy-in. (Chase Consulting)

• How to develop a business case
  “5 Steps to Develop a Solid Business Case” — Sets out Chase Consulting’s structured 5-step framework (from confirming the opportunity through to securing approval), including what to do in each step. (Chase Consulting)

• What to include in the business case
  “How to Write a Business Case: A Modern Approach with AI Tools” — Describes the elements of a robust business case (including integrating financial assessment and risk analysis) and reinforces what details need to be included to make the case persuasive. (Chase Consulting)

• AI tools for developing business cases
  “How AI Tools Revolutionise Business Case Writing” — Outlines how AI can speed and improve the business case writing process and describes the My Business Case Hub® toolset (e.g., rapid business case creation, project planning). (Chase Consulting)

• How to learn more about business cases
  “The Business Case Writing Course” — A structured learning pathway (modules/lessons) focused on building capability to write and strengthen business cases, including analysis and pitching to stakeholders. (Chase Consulting)