Both business and strategic plans begin with an environmental scan tailored to the organization. However, the business plan focuses solely on the organizations market and operations. The business plan seeks to take the reader on a tour of the operations of the organization. Beginning with the mission and objectives, it moves through the requirements necessary to achieve them. The table below examines some of the differences between the two types of plans (Olsen, n.d.). Strategic Plan Business Plan Used for implementing and managing strategic direction. Used to start up a new business or line of service, obtain funding, or direct operations.Three to five years in scope. One year or less in scope.Provides focus, direction, and action in order to move organization forward. Provides structure for ideas and resources.Critical to prioritizing resources. Critical to obtaining funding.Builds on competitive advantage. Assesses viability of a business opportunity.Futuristic in nature. Tactical in nature.Used to communicate the direction of the organization to staff and stakeholders. Used to communicate ideas to investors and lenders.Reference Olsen, N. (n.d.). Understanding the difference between strategic plan
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