economy vs business plan

11.4 The Business Plan

Learning objectives.

By the end of this section, you will be able to:

• Describe the different purposes of a business plan
• Describe and develop the components of a brief business plan
• Describe and develop the components of a full business plan

Unlike the brief or lean formats introduced so far, the business plan is a formal document used for the long-range planning of a company’s operation. It typically includes background information, financial information, and a summary of the business. Investors nearly always request a formal business plan because it is an integral part of their evaluation of whether to invest in a company. Although nothing in business is permanent, a business plan typically has components that are more “set in stone” than a business model canvas , which is more commonly used as a first step in the planning process and throughout the early stages of a nascent business. A business plan is likely to describe the business and industry, market strategies, sales potential, and competitive analysis, as well as the company’s long-term goals and objectives. An in-depth formal business plan would follow at later stages after various iterations to business model canvases. The business plan usually projects financial data over a three-year period and is typically required by banks or other investors to secure funding. The business plan is a roadmap for the company to follow over multiple years.

Some entrepreneurs prefer to use the canvas process instead of the business plan, whereas others use a shorter version of the business plan, submitting it to investors after several iterations. There are also entrepreneurs who use the business plan earlier in the entrepreneurial process, either preceding or concurrently with a canvas. For instance, Chris Guillebeau has a one-page business plan template in his book The $100 Startup . 48 His version is basically an extension of a napkin sketch without the detail of a full business plan. As you progress, you can also consider a brief business plan (about two pages)—if you want to support a rapid business launch—and/or a standard business plan.

As with many aspects of entrepreneurship, there are no clear hard and fast rules to achieving entrepreneurial success. You may encounter different people who want different things (canvas, summary, full business plan), and you also have flexibility in following whatever tool works best for you. Like the canvas, the various versions of the business plan are tools that will aid you in your entrepreneurial endeavor.

Business Plan Overview

Most business plans have several distinct sections ( Figure 11.16 ). The business plan can range from a few pages to twenty-five pages or more, depending on the purpose and the intended audience. For our discussion, we’ll describe a brief business plan and a standard business plan. If you are able to successfully design a business model canvas, then you will have the structure for developing a clear business plan that you can submit for financial consideration.

Both types of business plans aim at providing a picture and roadmap to follow from conception to creation. If you opt for the brief business plan, you will focus primarily on articulating a big-picture overview of your business concept.

The full business plan is aimed at executing the vision concept, dealing with the proverbial devil in the details. Developing a full business plan will assist those of you who need a more detailed and structured roadmap, or those of you with little to no background in business. The business planning process includes the business model, a feasibility analysis, and a full business plan, which we will discuss later in this section. Next, we explore how a business plan can meet several different needs.

Purposes of a Business Plan

A business plan can serve many different purposes—some internal, others external. As we discussed previously, you can use a business plan as an internal early planning device, an extension of a napkin sketch, and as a follow-up to one of the canvas tools. A business plan can be an organizational roadmap , that is, an internal planning tool and working plan that you can apply to your business in order to reach your desired goals over the course of several years. The business plan should be written by the owners of the venture, since it forces a firsthand examination of the business operations and allows them to focus on areas that need improvement.

Refer to the business venture throughout the document. Generally speaking, a business plan should not be written in the first person.

A major external purpose for the business plan is as an investment tool that outlines financial projections, becoming a document designed to attract investors. In many instances, a business plan can complement a formal investor’s pitch. In this context, the business plan is a presentation plan, intended for an outside audience that may or may not be familiar with your industry, your business, and your competitors.

You can also use your business plan as a contingency plan by outlining some “what-if” scenarios and exploring how you might respond if these scenarios unfold. Pretty Young Professional launched in November 2010 as an online resource to guide an emerging generation of female leaders. The site focused on recent female college graduates and current students searching for professional roles and those in their first professional roles. It was founded by four friends who were coworkers at the global consultancy firm McKinsey. But after positions and equity were decided among them, fundamental differences of opinion about the direction of the business emerged between two factions, according to the cofounder and former CEO Kathryn Minshew . “I think, naively, we assumed that if we kicked the can down the road on some of those things, we’d be able to sort them out,” Minshew said. Minshew went on to found a different professional site, The Muse , and took much of the editorial team of Pretty Young Professional with her. 49 Whereas greater planning potentially could have prevented the early demise of Pretty Young Professional, a change in planning led to overnight success for Joshua Esnard and The Cut Buddy team. Esnard invented and patented the plastic hair template that he was selling online out of his Fort Lauderdale garage while working a full-time job at Broward College and running a side business. Esnard had hundreds of boxes of Cut Buddies sitting in his home when he changed his marketing plan to enlist companies specializing in making videos go viral. It worked so well that a promotional video for the product garnered 8 million views in hours. The Cut Buddy sold over 4,000 products in a few hours when Esnard only had hundreds remaining. Demand greatly exceeded his supply, so Esnard had to scramble to increase manufacturing and offered customers two-for-one deals to make up for delays. This led to selling 55,000 units, generating $700,000 in sales in 2017. 50 After appearing on Shark Tank and landing a deal with Daymond John that gave the “shark” a 20-percent equity stake in return for $300,000, The Cut Buddy has added new distribution channels to include retail sales along with online commerce. Changing one aspect of a business plan—the marketing plan—yielded success for The Cut Buddy.

Link to Learning

Watch this video of Cut Buddy’s founder, Joshua Esnard, telling his company’s story to learn more.

If you opt for the brief business plan, you will focus primarily on articulating a big-picture overview of your business concept. This version is used to interest potential investors, employees, and other stakeholders, and will include a financial summary “box,” but it must have a disclaimer, and the founder/entrepreneur may need to have the people who receive it sign a nondisclosure agreement (NDA) . The full business plan is aimed at executing the vision concept, providing supporting details, and would be required by financial institutions and others as they formally become stakeholders in the venture. Both are aimed at providing a picture and roadmap to go from conception to creation.

Types of Business Plans

The brief business plan is similar to an extended executive summary from the full business plan. This concise document provides a broad overview of your entrepreneurial concept, your team members, how and why you will execute on your plans, and why you are the ones to do so. You can think of a brief business plan as a scene setter or—since we began this chapter with a film reference—as a trailer to the full movie. The brief business plan is the commercial equivalent to a trailer for Field of Dreams , whereas the full plan is the full-length movie equivalent.

Brief Business Plan or Executive Summary

As the name implies, the brief business plan or executive summary summarizes key elements of the entire business plan, such as the business concept, financial features, and current business position. The executive summary version of the business plan is your opportunity to broadly articulate the overall concept and vision of the company for yourself, for prospective investors, and for current and future employees.

A typical executive summary is generally no longer than a page, but because the brief business plan is essentially an extended executive summary, the executive summary section is vital. This is the “ask” to an investor. You should begin by clearly stating what you are asking for in the summary.

In the business concept phase, you’ll describe the business, its product, and its markets. Describe the customer segment it serves and why your company will hold a competitive advantage. This section may align roughly with the customer segments and value-proposition segments of a canvas.

Next, highlight the important financial features, including sales, profits, cash flows, and return on investment. Like the financial portion of a feasibility analysis, the financial analysis component of a business plan may typically include items like a twelve-month profit and loss projection, a three- or four-year profit and loss projection, a cash-flow projection, a projected balance sheet, and a breakeven calculation. You can explore a feasibility study and financial projections in more depth in the formal business plan. Here, you want to focus on the big picture of your numbers and what they mean.

The current business position section can furnish relevant information about you and your team members and the company at large. This is your opportunity to tell the story of how you formed the company, to describe its legal status (form of operation), and to list the principal players. In one part of the extended executive summary, you can cover your reasons for starting the business: Here is an opportunity to clearly define the needs you think you can meet and perhaps get into the pains and gains of customers. You also can provide a summary of the overall strategic direction in which you intend to take the company. Describe the company’s mission, vision, goals and objectives, overall business model, and value proposition.

Rice University’s Student Business Plan Competition, one of the largest and overall best-regarded graduate school business-plan competitions (see Telling Your Entrepreneurial Story and Pitching the Idea ), requires an executive summary of up to five pages to apply. 51 , 52 Its suggested sections are shown in Table 11.2 .

Are You Ready?

Create a brief business plan.

Fill out a canvas of your choosing for a well-known startup: Uber, Netflix, Dropbox, Etsy, Airbnb, Bird/Lime, Warby Parker, or any of the companies featured throughout this chapter or one of your choice. Then create a brief business plan for that business. See if you can find a version of the company’s actual executive summary, business plan, or canvas. Compare and contrast your vision with what the company has articulated.

• These companies are well established but is there a component of what you charted that you would advise the company to change to ensure future viability?
• Map out a contingency plan for a “what-if” scenario if one key aspect of the company or the environment it operates in were drastically is altered?

Full Business Plan

Even full business plans can vary in length, scale, and scope. Rice University sets a ten-page cap on business plans submitted for the full competition. The IndUS Entrepreneurs , one of the largest global networks of entrepreneurs, also holds business plan competitions for students through its Tie Young Entrepreneurs program. In contrast, business plans submitted for that competition can usually be up to twenty-five pages. These are just two examples. Some components may differ slightly; common elements are typically found in a formal business plan outline. The next section will provide sample components of a full business plan for a fictional business.

Executive Summary

The executive summary should provide an overview of your business with key points and issues. Because the summary is intended to summarize the entire document, it is most helpful to write this section last, even though it comes first in sequence. The writing in this section should be especially concise. Readers should be able to understand your needs and capabilities at first glance. The section should tell the reader what you want and your “ask” should be explicitly stated in the summary.

Describe your business, its product or service, and the intended customers. Explain what will be sold, who it will be sold to, and what competitive advantages the business has. Table 11.3 shows a sample executive summary for the fictional company La Vida Lola.

Business Description

This section describes the industry, your product, and the business and success factors. It should provide a current outlook as well as future trends and developments. You also should address your company’s mission, vision, goals, and objectives. Summarize your overall strategic direction, your reasons for starting the business, a description of your products and services, your business model, and your company’s value proposition. Consider including the Standard Industrial Classification/North American Industry Classification System (SIC/NAICS) code to specify the industry and insure correct identification. The industry extends beyond where the business is located and operates, and should include national and global dynamics. Table 11.4 shows a sample business description for La Vida Lola.

Industry Analysis and Market Strategies

Here you should define your market in terms of size, structure, growth prospects, trends, and sales potential. You’ll want to include your TAM and forecast the SAM . (Both these terms are discussed in Conducting a Feasibility Analysis .) This is a place to address market segmentation strategies by geography, customer attributes, or product orientation. Describe your positioning relative to your competitors’ in terms of pricing, distribution, promotion plan, and sales potential. Table 11.5 shows an example industry analysis and market strategy for La Vida Lola.

Competitive Analysis

The competitive analysis is a statement of the business strategy as it relates to the competition. You want to be able to identify who are your major competitors and assess what are their market shares, markets served, strategies employed, and expected response to entry? You likely want to conduct a classic SWOT analysis (Strengths Weaknesses Opportunities Threats) and complete a competitive-strength grid or competitive matrix. Outline your company’s competitive strengths relative to those of the competition in regard to product, distribution, pricing, promotion, and advertising. What are your company’s competitive advantages and their likely impacts on its success? The key is to construct it properly for the relevant features/benefits (by weight, according to customers) and how the startup compares to incumbents. The competitive matrix should show clearly how and why the startup has a clear (if not currently measurable) competitive advantage. Some common features in the example include price, benefits, quality, type of features, locations, and distribution/sales. Sample templates are shown in Figure 11.17 and Figure 11.18 . A competitive analysis helps you create a marketing strategy that will identify assets or skills that your competitors are lacking so you can plan to fill those gaps, giving you a distinct competitive advantage. When creating a competitor analysis, it is important to focus on the key features and elements that matter to customers, rather than focusing too heavily on the entrepreneur’s idea and desires.

Operations and Management Plan

In this section, outline how you will manage your company. Describe its organizational structure. Here you can address the form of ownership and, if warranted, include an organizational chart/structure. Highlight the backgrounds, experiences, qualifications, areas of expertise, and roles of members of the management team. This is also the place to mention any other stakeholders, such as a board of directors or advisory board(s), and their relevant relationship to the founder, experience and value to help make the venture successful, and professional service firms providing management support, such as accounting services and legal counsel.

Table 11.6 shows a sample operations and management plan for La Vida Lola.

Marketing Plan

Here you should outline and describe an effective overall marketing strategy for your venture, providing details regarding pricing, promotion, advertising, distribution, media usage, public relations, and a digital presence. Fully describe your sales management plan and the composition of your sales force, along with a comprehensive and detailed budget for the marketing plan. Table 11.7 shows a sample marketing plan for La Vida Lola.

Financial Plan

A financial plan seeks to forecast revenue and expenses; project a financial narrative; and estimate project costs, valuations, and cash flow projections. This section should present an accurate, realistic, and achievable financial plan for your venture (see Entrepreneurial Finance and Accounting for detailed discussions about conducting these projections). Include sales forecasts and income projections, pro forma financial statements ( Building the Entrepreneurial Dream Team , a breakeven analysis, and a capital budget. Identify your possible sources of financing (discussed in Conducting a Feasibility Analysis ). Figure 11.19 shows a template of cash-flow needs for La Vida Lola.

Entrepreneur In Action

Laughing man coffee.

Hugh Jackman ( Figure 11.20 ) may best be known for portraying a comic-book superhero who used his mutant abilities to protect the world from villains. But the Wolverine actor is also working to make the planet a better place for real, not through adamantium claws but through social entrepreneurship.

A love of java jolted Jackman into action in 2009, when he traveled to Ethiopia with a Christian humanitarian group to shoot a documentary about the impact of fair-trade certification on coffee growers there. He decided to launch a business and follow in the footsteps of the late Paul Newman, another famous actor turned philanthropist via food ventures.

Jackman launched Laughing Man Coffee two years later; he sold the line to Keurig in 2015. One Laughing Man Coffee café in New York continues to operate independently, investing its proceeds into charitable programs that support better housing, health, and educational initiatives within fair-trade farming communities. 55 Although the New York location is the only café, the coffee brand is still distributed, with Keurig donating an undisclosed portion of Laughing Man proceeds to those causes (whereas Jackman donates all his profits). The company initially donated its profits to World Vision, the Christian humanitarian group Jackman accompanied in 2009. In 2017, it created the Laughing Man Foundation to be more active with its money management and distribution.

• You be the entrepreneur. If you were Jackman, would you have sold the company to Keurig? Why or why not?
• Would you have started the Laughing Man Foundation?
• What else can Jackman do to aid fair-trade practices for coffee growers?

What Can You Do?

Textbooks for change.

Founded in 2014, Textbooks for Change uses a cross-compensation model, in which one customer segment pays for a product or service, and the profit from that revenue is used to provide the same product or service to another, underserved segment. Textbooks for Change partners with student organizations to collect used college textbooks, some of which are re-sold while others are donated to students in need at underserved universities across the globe. The organization has reused or recycled 250,000 textbooks, providing 220,000 students with access through seven campus partners in East Africa. This B-corp social enterprise tackles a problem and offers a solution that is directly relevant to college students like yourself. Have you observed a problem on your college campus or other campuses that is not being served properly? Could it result in a social enterprise?

Work It Out

Franchisee set out.

A franchisee of East Coast Wings, a chain with dozens of restaurants in the United States, has decided to part ways with the chain. The new store will feature the same basic sports-bar-and-restaurant concept and serve the same basic foods: chicken wings, burgers, sandwiches, and the like. The new restaurant can’t rely on the same distributors and suppliers. A new business plan is needed.

• What steps should the new restaurant take to create a new business plan?
• Should it attempt to serve the same customers? Why or why not?

This New York Times video, “An Unlikely Business Plan,” describes entrepreneurial resurgence in Detroit, Michigan.

• 48 Chris Guillebeau. The $100 Startup: Reinvent the Way You Make a Living, Do What You Love, and Create a New Future . New York: Crown Business/Random House, 2012.
• 49 Jonathan Chan. “What These 4 Startup Case Studies Can Teach You about Failure.” Foundr.com . July 12, 2015. https://foundr.com/4-startup-case-studies-failure/
• 50 Amy Feldman. “Inventor of the Cut Buddy Paid YouTubers to Spark Sales. He Wasn’t Ready for a Video to Go Viral.” Forbes. February 15, 2017. https://www.forbes.com/sites/forbestreptalks/2017/02/15/inventor-of-the-cut-buddy-paid-youtubers-to-spark-sales-he-wasnt-ready-for-a-video-to-go-viral/#3eb540ce798a
• 51 Jennifer Post. “National Business Plan Competitions for Entrepreneurs.” Business News Daily . August 30, 2018. https://www.businessnewsdaily.com/6902-business-plan-competitions-entrepreneurs.html
• 52 “Rice Business Plan Competition, Eligibility Criteria and How to Apply.” Rice Business Plan Competition . March 2020. https://rbpc.rice.edu/sites/g/files/bxs806/f/2020%20RBPC%20Eligibility%20Criteria%20and%20How%20to%20Apply_23Oct19.pdf
• 53 “Rice Business Plan Competition, Eligibility Criteria and How to Apply.” Rice Business Plan Competition. March 2020. https://rbpc.rice.edu/sites/g/files/bxs806/f/2020%20RBPC%20Eligibility%20Criteria%20and%20How%20to%20Apply_23Oct19.pdf; Based on 2019 RBPC Competition Rules and Format April 4–6, 2019. https://rbpc.rice.edu/sites/g/files/bxs806/f/2019-RBPC-Competition-Rules%20-Format.pdf
• 54 Foodstart. http://foodstart.com
• 55 “Hugh Jackman Journey to Starting a Social Enterprise Coffee Company.” Giving Compass. April 8, 2018. https://givingcompass.org/article/hugh-jackman-journey-to-starting-a-social-enterprise-coffee-company/

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Business Plan Vs Strategic Plan Vs Operational Plan—Differences Explained

Noah Parsons

5 min. read

Updated October 27, 2023

Many business owners know and understand the value of a business plan.  The business plan is a key component  of the startup and fundraising process and serves as a foundation for your organization. However, it only tells part of the story. To get the whole picture and have a framework on which to build your business you also need a strategic plan and an operational plan.

• What is a business plan?

In its simplest format, a  business plan  describes the “who” and the “what” of your business. It lays out who is running the business and what the business does. It describes the products and services that your business sells and who the customers are. 

• What is a strategic plan?

A  strategic plan  looks beyond the basics of a business plan to explain the “how”. It explains the long-term goals of the business and how it expects to achieve those goals over the long term. A strategic plan explores future products and services that your business might offer and target markets that you might expand into. The plan explains your strategy for long-term growth and expansion.

• What is an operational plan?

An operation plan zooms into the details of your business to explain how you are going to  achieve your short-term goals . It is the “when” and “where” of your planning process. The operational plan covers the details of marketing campaigns, short-term product development, and more immediate goals and projects that will happen within the next year.

• What is the difference between a strategic plan and a business plan?

First, let’s look at the difference between a business and a strategic plan. For review:

A  business plan  covers the “who” and “what” of the business. The  strategic plan  gives us long-term goals and explains “how” the business will get there, providing a long-term view.

In broader terms, the business plan tells us who by showing us:

• Who is running the business? What makes them qualified? What do they bring to the table that adds value?
• Who is the competition? What do they offer and what makes you different?
• Who is your customer? How big is the market? Where are they? What do they want and how will you give it to them? Also, how will you connect with your market?

The business plan answers the “what” by telling us:

• What the business provides and how it’s provided. 
• Product, services, and operations are all explained so that readers understand how customer needs are met.

The strategic plan, on the other hand, outlines long term goals and the “how”, focusing on the following:

• Where will the business be in 3, 5, or even 10 years?
• How will you expand to offer different products and services over time?
• Will your market and industry change over time and how will your business react to those changes?
• How will you grow your market and reach new customers?
• What needs to happen so you can achieve your goals? What resources do you need to get there?
• How will you measure success? What metrics matter and how will you track them?

So, your business plan explains what you are doing right now. Your strategic plan explains long-term aspirations and how you plan to transition your business from where it is today to where you want it to be in the future. The strategic plan helps you look more deeply into the future and explains the key moves you have to make to achieve your vision.

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• What is the difference between strategic planning and operational planning?

While strategic planning looks at the long term and explains your broad strategies for growth, an operational plan looks at the short term. It explains the details of  what your business is going to do  and when it’s going to do it over the next twelve months or so. An operational plan covers details like:

• What activities need to happen to achieve your business goals?
• When will each activity take place, who will do it, and when do you need to reach specific milestones?
• How will your business operate? What suppliers will you work with? When do you need to have them in place?
• What marketing campaigns will you run and what will they cost?
• What investments will you make in your products and services this year?

The bottom line, your operational plan is the short-term action plan for your business. It’s the tasks, milestones, and steps needed to drive your business forward. Typically an operational plan provides details for a 1-year period, while a strategic plan looks at a  3-5 year timeline , and sometimes even longer. The operational plan is essentially the roadmap for how you will execute your strategic plan.

• How to use your business plan for strategic development and operations

A great business plan can encompass both the basic plans for the business, the long-term strategic plan, and the near-term operational plan. Using a lean planning method, you can tackle all three phases of planning and make the process easy to review and revise as your business grows, changes, and adapts.

Start with a simple plan

The lean planning methodology starts with a simple,  30-minute business plan  that outlines the fundamentals of your business: who you are, what you are doing, and who your customers are. It’s a great way to provide a brief overview of your business.

Expand your plan

From there, you can expand your plan to include your longer-term strategy. Adding greater detail to elements of the plan to explain long-term goals, milestones, and how your products and services will change and expand over time to meet changing market conditions.

Finally, your lean plan will cover  financial forecasts  that include monthly details about the short-term revenue and expenses, as well as longer-term annual summaries of your financial goals, including profitability and potential future loans and investments.

• Use your business plan to manage your business

Regardless of the type of plan, you are working on, you need a team of players on hand to help you plan, develop, and execute both the operational and strategic plans. Remember, your business needs both to give it a clear foundation and a sense of direction. As well as to assist you with identifying the detailed work that has to happen to help you reach your long-term goals. 

Learn how  LivePlan  can help you develop a business plan that defines your business, outlines strategic steps, and tracks ongoing operations. You can easily share it with your team and all of the right stakeholders, explore scenarios and update your plan based on real-world results. Everything you need to turn your business plan into a tool for growth.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.

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Business Plan vs. Business Model

Back to Business Plans

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on February 19, 2023 Updated on December 11, 2023

If you’re starting a business , you have a business model, whether you know it or not. A business model is the foundation of any business idea; it basically outlines how the concept offers value and potential for growth. Essentially, a solid business model ensures that the business will make money. 

A business plan , on the other hand, is the business owner’s plan to put that model into action. It’s much more detailed and includes financial projections, objectives, management decisions and further steps. 

Still unsure? Have no fear, this handy guide lays out the differences between a business plan and a business model so that you know exactly what you and your business need to succeed.  

• Business Model

In simple terms, a business model is how the business will make money. Selling ice to eskimos, for instance, is a bad business model. Selling team jerseys to rabbit sports fans, on the other hand, is a solid business model. 

The components of a business model are best illustrated by Swiss entrepreneur Alexander Osterwalder’s Business Model Canvas, which is a visual representation with nine sections. Four sections represent internal elements of a business that enable it to function and are related to costs. 

Four other sections represent external elements that enable the business to bring in revenue and are related to the customer. The ninth section is the business’ value proposition. 

Value Proposition

The value proposition is at the heart of your business model. Your value proposition, which should be no more than two sentences long, needs to answer the following questions:

• What are you offering
• Whose problem does it solve
• What problem does it solve
• What benefits does it provide
• How is it better than competitor products

Key Activities

Key activities are all the activities required to run the business and create the proposed value. These can include product development and distribution and any other necessary activities.  

Cost Structure

The cost structure is a sum of all you’ll need to spend to make the business function. It’s the costs you’ll incur to run the business and bring in revenue. 

Key Partners

Key partners are external partners involved in delivering value, such as vendors and suppliers, or maybe a bank. 

Key Resources

Key resources are any necessary practical elements that come with a cost. These might include your office space, employees, and equipment like computers. 

Revenue Streams

Revenue streams are the ways in which you receive payment from customers. You may have more than one revenue stream, such as via direct sales and subscriptions.

Customer Segments

Customer segments are the groups of people to whom you provide goods or services. In other words, your target market. Maybe your products are aimed at younger women, for instance, or older men. Whatever your target segments, you should build customer personas of each group so that you know how and where to reach them with your marketing.

Customer Relationships

Customer relationships refer to how you interact with your customers to deliver value. Your interactions may be online only, by phone, in-person, or all of the above. 

Channels refer to how you reach your customers, such as social media, internet search, direct sales calls, trade shows, and so on. 

To Summarize

If you’re just starting a business, the Business Model Canvas is a great way to understand and examine your business model. One thing to remember is that the elements you put in your Canvas will be based on assumptions that will at some point be tested in the market and adapted as needed. 

Another thing to remember is that you do not need to do a Business Model Canvas. It’s merely an exercise that can help provide insight into your business model.  

• Business Plan

A business plan is a detailed document that describes how the business will function in all facets. The key is in the “plan” part of the name. It will specify how you’ll launch your business, gain customers, operate your company, and make money. A business plan, however, is not a static document . 

The initial version will be based largely on assumptions, supported by research. As you run your business you’ll constantly learn what works and what does not and make endless tweaks to your plan.

Thus, creating a business plan is not a one-time action – it’s a dynamic and continuous process of crafting and adapting your vision and strategy. 

You’ll present your business plan to potential backers, though in recent years some investors have begun to embrace the Business Model Canvas as a tool to assess a business’ potential. 

A strong business plan includes eight essential components .

1. Executive Summary 

The executive summary is the initial section of your business plan , written last, summarizing its key points. Crucial for capturing investors’ and lenders’ interest, it underscores your business’s uniqueness and potential for success. It’s vital to keep it concise, engaging, and no more than two pages.

2. Company Description/Overview

This section provides a history of your company, including its inception, milestones, and achievements. It features both mission (short-term goals and driving force) and vision statements (long-term growth aspirations). Objectives, such as product development timelines or hiring goals, outline specific, short-term targets for the business.

3. Products or Services Offered

Detail the product or service you’re offering, its uniqueness, and its solution to market problems. Explain its source or development process and your sales strategy, including pricing and distribution channels. Essentially, this section outlines what you’re selling and your revenue model.

4. Market Analysis 

• Industry Analysis : Research your industry’s growth rate, market size, trends, and future predictions. Identify your company’s niche or sub-industry and discuss adapting to industry changes.
• Competitor Analysis : Examine main competitors , their unique selling points, and weaknesses. Highlight your competitive advantages and strategies for maintaining them.
• Target Market Analysis : Define your target market , their demographics, needs, and wants. Discuss how and where you’ll reach them and the potential for market shifts based on customer feedback.
• SWOT Analysis : Break down your company’s strengths, weaknesses, opportunities, and threats. Detail your unique attributes, potential challenges, market opportunities, and external risks, along with strategies to address them.

5. Marketing and Sales Strategies

• Marketing and Advertising Plan : Use insights from your target market analysis to decide advertising channels, emphasizing platforms that best reach your audience, like TikTok over Instagram. Develop a concise value proposition to be central to all marketing, detailing how your product addresses specific needs.
• Sales Strategy and Tactics : Define where and how you’ll sell, such as online, in-store, or through direct sales calls. Sales tactics should highlight the customer’s needs, presenting your solution without overly aggressive promotion.
• Pricing Strategy : Decide on pricing based on market positioning, whether you aim to be a discount or luxury option. Ensure prices cover costs and yield profit, and position your product in a manner that aligns with the chosen price range. Justify your chosen pricing strategy in this section.

6. Operations and Management 

• Operational Plan : Outline daily, weekly, and monthly operations, specifying roles, tasks, and quality assurance methods. Include supplier details and order schedules, ensuring clarity on key business functions and responsibilities.
• Technology Plan : For tech-based products, detail the development plan, milestones, and staffing. For non-tech companies, describe the technology tools and software you’ll employ for business efficiency.
• Management and Organizational Structure : Define who’s in charge, their roles, and their backgrounds. Discuss your management strategy and forecast the development of your organizational hierarchy.
• Personnel Plan : List current and future hires, specifying their roles and the qualifications necessary for each position. Highlight the significance of each role in the business’s operations.

7. Financial Plan 

• Startup Costs : Clearly detail every anticipated cost before starting operations. This will be vital for understanding the initial investment required to get the business off the ground.
• Sales Projections : Estimate monthly sales for the first year, with an annual forecast for the next two years.
• Profit and Loss Statement : An overview of revenue minus costs, resulting in either a profit or loss.
• Cash Flow Statement : Provides clarity on the business’s liquidity by showing cash inflows and outflows over a specific period.
• Balance Sheet : Displays the company’s net worth by detailing its assets and liabilities.
• Break-even Analysis : Understand at which point revenues will cover costs, helping to predict when the business will start making a profit.
• Funding Requirements and Sources : Enumerate the required capital and the sources of this funding. This should also include the purpose for which these funds will be used at different stages.
• Key Performance Indicators (KPIs) : Identify the metrics vital for measuring the company’s performance. Use these indicators to spot challenges, understand where improvements can be made, and pivot strategies as necessary. Ensure that each KPI aligns with the business’s objectives and offers actionable insights for growth.

Remember, although the financial section might seem daunting, it is pivotal for understanding the economic feasibility of your business. Proper financial planning helps in making informed decisions, attracting investors, and ensuring long-term sustainability. Don’t hesitate to engage financial experts or utilize tools and software to ensure accuracy and comprehensiveness in this section.

8. Appendices

The appendices section of a business plan is a repository for detailed information too extensive for the main document. This can include resumes of key personnel, full market research data, legal documents, and product designs or mockups. By placing this data in the appendices, it keeps the main plan concise while allowing stakeholders access to deeper insights when needed. Always ensure each item is clearly labeled and referenced at the relevant point in the main document.

As you can see, business models and business plans have some similarities, but in the main they are quite different. Your business model explains the foundational concept behind your business, while a business plan lays out how you’ll put that model into action and build a business. 

When you’re starting a business, it’s best to have both, as the work of getting them done involves learning about your business from every angle. The knowledge you’ll gain is likely to be invaluable, and could even be the difference between success and failure. 

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Understanding The Distinction Between a Business Plan & Business Planning

In the dynamic world of entrepreneurship, our choice of words matters. Our vocabulary can often become a veritable alphabet soup of jargon, acronyms, and those buzzwords (I'm looking at you, "disrupt").

And let's not get started on business cliches – "circle back," "synergy," “deep-dive,” etc.

Yet sometimes, it's worth pausing to consider the words we casually sprinkle around in our business conversations. In a previous article, we explored the differences between strategic and tactical business planning , two related but distinct approaches to guiding a business. Now, we're going to delve into another pair of terms that often get used interchangeably but have unique implications: "business plan" (the noun) and "business planning" (the verb).

The business plan, a noun, is a tactical document. It's typically created for a specific purpose, such as securing a Small Business Administration (SBA) loan . Think of it as a road map – it outlines the route and the destination (in this case, the coveted bank loan). But once you've reached your tactical goal (in this case, getting the loan), it often gets shoved in the glove compartment, forgotten as part of the organization's action plan until the next road trip (i.e., additional funding ).

Business planning is not a static concept, but rather a dynamic verb. It's an ongoing process that necessitates continual adjustments. It's about creating a holistic, interconnected value-creating strategic plan that benefits all stakeholders. This includes attracting top-tier employees, ensuring a return on lending or investment, and making a positive impact on the community, whether online or in real life.

That being said, the customer remains at the heart of this process. Without customers, there are no sales, no revenue, and no value. Everything else is contingent on this key element.

If we were to compare the business plan to a map, then business planning would be the journey. It's a continuous process of making strategic decisions, adapting to new paths, and steering the business towards its goals. Sometimes, it even involves redefining objectives midway.

So, let's do a "deep-dive" (I couldn't resist) into these two terms, examining their application in the real world. Along the way, we'll uncover some tools that can aid us in the ever-evolving process of strategic business planning and the more finite task of crafting a winning business plan.

The Business Plan is a Document

Alright, let's take a closer look at a phrase we've all tossed around: the business plan. Imagine it as the detailed blueprint of your organization's goals, strategies, and tactics. It's like the North Star for your entrepreneurial ship, shedding light on the key questions: what, why, how, and when (speaking of questions, here are some FAQs about the business plan ).

Writing a solid business plan isn't easy , especially if you're just dipping your toes into the world of business planning. But don’t worry; we'll get to that (eventually).

So, let's break it down. What does a business plan document consist of, exactly?

• Executive Summary: Just as it sounds, this is a quick overview of the nitty-gritty that's in the rest of your business plan. It's the introduction to your organization, highlighting your mission statement and serving up the essential details like ownership, location, and structure.
• Company Overview: This is where you will detail your products and/or services, their pricing, and the operational plan. If you're opening a restaurant, this section is where you present your menu, and it's also where you talk about your ingredient sourcing, the type of service you'll provide, and the ambiance you're aiming for. 
• Market Analysis Summary: This section demands a comprehensive analysis of your industry, target market, competitors, and your unique selling proposition. Without access to top-notch (and often not free) research tools, it can be challenging to find current industry data. Check out our  guide on the best market research tools to get started.
• Strategy and Implementation Summary: Here, you'll lay out your short-term and long-term objectives along with the strategies you'll implement to attract and retain customers. This is where you’ll talk about all the different marketing and sales strategies you'll use to charm your future customers.
• Management Summary: This is your chance to spotlight your company's key personnel. Detail the profiles of your key leaders, their roles, and why they're perfect for it. Don't shy away from acknowledging talent gaps that need to be filled, and do share how you plan to fill them!
• Pro Forma Financials: This is where you get down to the dollars and cents with a detailed five-year revenue forecast along with crucial financial statements like the balance sheet and the profit & loss statement.

A business plan is an essential instrument, not just for securing funding, but also for communicating long-term goals and objectives to key stakeholders. But, while a business plan is essential for many circumstances, it's important to understand its scope and limitations. It's a tactical tool, an important one, but it's not the be-all and end-all of business strategy. Which brings us to our next point of discussion: business planning.

Business Planning is a Process

If we view the business plan as a blueprint, then business planning is the architect. But let's be clear: we're not building just any old house here. We're building the  Winchester Mystery House of business. Just as the infamous Winchester House was  constantly under construction , with new rooms being added and old ones revamped, so too is your business in a state of perpetual evolution. It's a dynamic, ongoing process, not a one-and-done event.

In the realm of business planning, we're always adding 'rooms' and 'corridors' – new products, services, and market strategies – to our 'house'. And just as  Sarah Winchester reputedly consulted spirits in her Séance Room to guide her construction decisions, we consult our customers, market data, and strategic insights to guide our strategy. We're in a constant state of assessing, evolving, executing, and improving.

Business planning touches all corners of your venture. It includes areas such as product development, market research, and strategic management. It's not about predicting the future with absolute certainty – we’re planners, not fortune tellers. It's about setting a course and making calculated decisions, preparing to pivot when circumstances demand it (think global pandemics).

Business planning is not a 'set it and forget it' endeavor. It's akin to being your company's personal fitness coach, nudging it to continually strive for better. Much like physical fitness, if you stop the maintenance, you risk losing your hard-earned progress.

Business Planning Case Study: Solo Stove

Now that summer is here, my Solo Stove stands as a tangible testament to effective business planning.

For those unfamiliar, Solo Stove started with a simple yet innovative product – a smoke-limiting outdoor fire pit that garnered over $1.1 million on Kickstarter in 2016, far exceeding its original objective. Since then, it has expanded its portfolio with products tailored to outdoor enthusiasts. From flame screens and fire tools to color-changing flame additives, each product is designed to fit seamlessly into modern outdoor spaces, exuding a rugged elegance that resonates with their target audience.

This strategic product development, a cornerstone of business planning, has allowed Solo Stove to evolve from a product to a lifestyle brand. By continually listening to their customers, probing their desires and needs, and innovating to meet those needs, they've built a brand that extends beyond the products they sell.

Their strategy also includes a primary "Direct To Consumer" (DTC) revenue model, executed via their e-commerce website. This model, while challenging due to increased customer acquisition costs, offers significant benefits, including higher margins since revenue isn’t split with a retailer or distributor, and direct interaction with the customer.

Through its primary business model,  Solo Stove has amassed an email database of over 3.4 million customers . This competitive advantage allows for ongoing evaluation of customer needs, driving product innovation and improvement, and enabling effective marketing that strengthens their mission. The success of this approach is evident in the company's growth: from 2018 to 2020,  Solo Stove’s revenue grew from $16 million to $130 million , a 185% CAGR.

While  85% of their revenue comes from online DTC channels, Solo Stove has also enhanced their strategic objectives by partnering with select retailers that align with their reputation, demographic, and commitment to showcasing Solo Brands’ product portfolio and providing superior customer service.

Solo Stove's success underscores how comprehensive business planning fosters regular assessment, constant evolution, and continual improvement. It's more than setting goals – it's about ceaselessly uncovering ways to deliver value to your customers and grow your business.

However, even successful businesses like Solo Stove can explore additional strategic initiatives for growth and diversification, aligning with their strategic direction and operational planning. For instance, a subscription model could provide regular deliveries of products or a service warranty, creating a consistent revenue stream and increasing customer loyalty. Alternatively, a B2B model could involve partnerships with adventure tourism operators, who could purchase Solo Stove products in bulk.

These complementary business models, when integrated into the operational plan, could support the primary DTC model by driving customer acquisition, providing ongoing revenue streams and expanding the customer base. This strategic direction ensures that Solo Stove continues to thrive in a competitive market.

The Interplay between the Business Plan (Noun) and Business Planning (Verb)

In the realm of business strategy, there's an intriguing chicken-and-egg conundrum: which comes first, the business plan or business planning? The answer is both straightforward and complex: they're two sides of the same coin, each indispensable in its own right and yet inextricably linked.

The process of business planning informs and modifies the business plan, just as the business plan provides a strategic foundation for the planning process. This interplay embodies the concept of Model-Based Planning™, where the business model serves as a guide, yet remains flexible to the insights and adaptations borne out of proactive business planning.

Let's revisit the Solo Stove story to elucidate this concept. Their business model, primarily direct-to-consumer, laid the groundwork for their strategy. Yet, it was through continuous business planning  –  the assessment of customer feedback, market trends, and sales performance –  that they were able to refine their model, expand their product portfolio, and enhance their growth objectives. Their business plan wasn't a static document but a living entity, evolving through the insights gleaned from ongoing business planning.

So, how can you harness the power of both the tactical business plan and strategic business planning in your organization? Here are a few guiding principles:

• Embrace Model-Based Planning™: Start with a robust business model that outlines your strategic plan. But remember, this isn't set in stone—it's a guiding framework that will evolve over time as you gain insights from your strategic planning process.
• Make business planning a routine: Regularly review and update your business plan based on your findings from market research, customer feedback, and internal assessments. Use it as a living document that grows and adapts with your business.
• Foster open communication: Keep all stakeholders informed about updates to your business plan and the insights that informed these changes. This promotes alignment and ensures everyone is working towards the same goals.
• Be agile and adaptable: A key part of business planning is being ready to pivot when necessary . Whether it's a global pandemic or a shift in consumer preferences, your ability to respond swiftly and strategically to changing circumstances is crucial for long-term success.

Fanning the Flames: From Planning to Plan

The sparks truly ignite when you understand the symbiotic relationship between tactical business plans, strategic business planning, and the achievement of strategic goals. Crafting a tactical business plan (the noun) requires initial planning (the verb), but then you need to embark on continuous strategic planning (the verb) to review, refine, and realign your strategic business plan (the noun). It's a rhythm of planning, execution, review, and adjustment, all guided by key performance indicators.

Business planning, therefore, isn't a one-off event, but rather an active, ongoing process. A business plan needs constant nurturing and adjustment to stay relevant and guide your organization's path to success. This understanding frames your business plan not as a static document, but as a living, breathing entity, evolving with each step your business takes and each shift in the business landscape. It's a strategic roadmap, continually updated to reflect your organization's objectives and the ever-changing business environment.

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Extracurriculars.

How to Choose a Major: Business vs. Economics

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What’s Covered:

Overview of business vs. economics.

• High School: Preparing for the Business or Econ Major
• Best Colleges for Business and Economics
• What to Expect in College
• After College: Career Prospects + Continuing Education

Choosing a major can feel overwhelming. For many students, it’s the first step on their path to a career. For some, there is the desire to fulfill external expectations, while others stress over what ripple effects their decision will have down the road. 

If you’re considering business or economics, the good news is that both majors can lead to a successful career in a variety of fields—including business, finance, accounting, and many more. 

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The coursework taken by a business major tends to feel more interdisciplinary than that of an economics major. Business majors share many foundational, introductory classes with economics majors, but their coursework will feature more classes in the humanities along with general business courses that build easily applicable skills like management, marketing, and finance.

Economics majors focus more on big-picture ideas and theories, such as how markets work and how decisions affect markets, as well as how to analyze and explain data. Economics majors are typically very math-centric and STEM-heavy, and feature courses such as Statistical Theory and Applied Mathematics.

Because of the overlapping content of the two majors, some schools house both business and economics in the same school or department. Other colleges and universities have taken it even a step further, combing the two majors into a single course of study, such as the:

• Business Economics major offered by the UC Schools 
• Business, Economics, and Management offered by Caltech
• Economics and Business Administration offered by Northeastern

Business and Economics Career Paths

A major in either business or economics doesn’t limit career options—the fields are similar and a degree in either will not limit the pursuit of a career in one field or the other. However, there are some common positions shared by graduates of these fields.

The benefits of a business degree are easy for students to see, as the skills they learn in school make them well-suited to fill in-demand jobs in a variety of fields like marketing, sales, and project management. Because an economics major doesn’t seem as utilitarian as a business major, its career path can seem a bit more blurry, but their math skills make them great candidates for jobs in accounting, financial and risk analysis, and statistics. 

High School: Preparing for a Business or Econ Major

High school presents an excellent opportunity to build the skills and knowledge base needed to pursue either a business or economics degree. 

Students with an interest in majoring in business in college should take any business-related courses their high school offers—these typically include introductory classes in management, marketing, entrepreneurship, and personal finance. 

Participation in business-minded clubs like DECA and FBLA show colleges your interest in the field while developing leadership skills and building a network of like-minded peers. Service or volunteer projects with a business focus—such as starting a company or creating a non-profit—are great ways to gain real-world experience while demonstrating interest in the business world. 

See our post on more extracurricular activities for business-minded high schoolers .

Economics  

Students with an interest in economics should consider classes like AP or IB Macroeconomics, Microeconomics, Statistics, and Calculus in high school. Because business and economics are adjacent fields, the extracurricular activities for high schoolers looking to enter them are very similar—DECA, FBLA, and business-focused service and volunteer projects are all great ways to build your college profile. 

Students planning on pursuing an economics degree will also want to explore more math-focused extracurricular activities—such as participating in a Math Olympiad or serving as treasurer in a club—to prepare for the rigorous coursework ahead. See our blog post on extracurriculars for students interested in math for more ideas.

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Best Colleges for Business and Economics Majors

Below is a list of the ten best schools for business and economics majors in the U.S. Simply click the school to learn more about its majors, cost, and admissions standards. 

You can also see your chances of acceptance using CollegeVine’s free chancing calculator . It takes into account a variety of factors like GPA, standardized test scores, and extracurricular activities to provide students an accurate assessment of their odds of admission at over 500 colleges. 

Best Colleges for Business Majors

• University of Pennsylvania (Wharton School)
• Cornell University
• California Institute of Technology
• Washington University in St. Louis
• Carnegie Mellon University
• Brown University
• University of Notre Dame
• Georgetown University
• University of Virginia (main campus)
• University of Michigan–Ann Arbor

Best Colleges for Economics Majors

• University of Chicago
• Harvard University
• Stanford University
• Princeton University
• Yale University
• University of California–Berkeley
• Dartmouth College
• Williams College

What to Expect in College: Business vs. Economics

Business and Economics majors may share introductory classes, but as students progress in their college careers, the two majors will diverge. 

Business Majors 

Business majors begin their college career taking foundational classes such as:

• Accounting 
• Business Administration
• Business Communication 
• Human Resources Management
• Intro to Marketing
• Intro to Economics
• Management and Organization 

As they progress, the coursework becomes more focused—allowing students to follow their interests in “general business” or funnel into a concentration, like: 

• Entrepreneurship 
• Health Care Management
• Real Estate 

Extracurricular activities and internships (especially those in a field of concentration) can help business students develop in-demand skills and make themselves more appealing to future employers or MBA programs. The Future Business Leaders of America and Business Professionals of America are two well-respected clubs with reputations for cultivating leaders in the business community. 

Another way to build leadership and your resume is to join an on-campus club or volunteer with a well-known organization—it’s even more beneficial if you’re in a position of influence or working in a business-minded role, such as helping the local soup kitchen with their finances. 

Economics Majors

Economics majors will spend their first few years in college building the foundational skills needed to tackle the more exacting coursework they’ll encounter as they progress through college. Introductory courses include:

• Applied Economics
• Macroeconomics
• Microeconomics

As students advance, they’re exposed to more focused and specific coursework like: 

• Corporate Finance
• Economics of Inequality and Discrimination
• Economics of Social Policy
• Financial Institutions and Markets
• Government Regulation of Industry
• Mathematical Models in Finance 
• Urban Economics

Internships are an excellent way for economics majors to gain firsthand experience with the material they’re learning in the classroom—fields such as finance, wealth and asset management, accounting, and policy advising can pave the way to a post-college career or to admission in an advanced degree program. Participation in an on-campus economics club or an honor society—such as Omicron Delta Epsilon, an international honor society in the field of economics—are great ways to further explore the field and build networks of peers with similar interests and aspirations.  

Business vs. Economics College Graduates

The primary difference between business and economics college graduates is that business degree holders generally leave with a tangible skill in their concentration. For example, a student who focused on entrepreneurship as an undergraduate has learned the skills needed to start and run a new business, while a student who concentrated on marketing has the skills required to work in a company’s marketing department. Economics degree holders have spent more time developing mathematical and quantitative skills, which make them ideal for positions like business and financial analysts, investment and retail bankers, and market researchers. 

After College: Business vs. Econ 

A major isn’t predictive of a career; consequently, both business and economics majors have the potential to work in any number of fields after completing their undergraduate degrees. A number of undergraduates will also continue their schooling, going on to earn an MBA or graduate degree. 

The broad base of knowledge learned while earning a business degree makes business majors versatile candidates in the job market as they’re able to fill a wide variety of positions. Concentrations and internships help set students on the path to a particular field of interest but are not limiting. Common jobs held by candidates graduating with a business degree include:

• Account manager 
• Business analyst
• Marketing manager
• Organizational manager
• Sales manager 
• Sales representative
• Social media manager

Many students will go onto an MBA program—either directly after college or after some time in the workplace. MBAs make candidates more competitive in crowded job markets, build professional networks, and can provide access to more senior and higher-paying positions. As further proof that a college major doesn’t limit your career options, in 2015, 94.4% of MBA applicants considered changing the industry they work in.

Economics Majors 

Candidates graduating with an economics degree might not have the same industry-specific skills as their business major counterparts, but their quantitative, analytical, and critical thinking skills make them leading candidates for a number of positions in the business world, such as: 

• Business consultant 
• Investment banker
• Market analyst
• Retail banker
• Risk management 

Much like graduates with a business degree, some graduates of undergraduate economics programs continue on to pursue an advanced degree—especially those hoping for a career in academia, economic policy creation and advising, and economic writing. 

Business vs. Economics Majors in the Job Market 

The job market for students graduating with an economics degree is smaller than that for those graduating with a business degree. However, while the scope of work is smaller, there is generally less competition for work and higher salaries thanks to the specialized skills possessed by economics majors. Conversely, business majors are competing with graduates from other programs like English, communications, and even economics for more general business positions.  

Networking 

There is some truth to the old saying, “ it’s not what you know, but who you know .” The connections made through college impact your job search as much as the program you participated in and the grades you earned. Internships, job fairs, professors, and on-campus organizations like pre-professional Greek life can all expand your professional network and open otherwise closed doors. 

Secondary Schooling 

While many business and economics degree-holders will go on to an MBA or advanced degree program, others will choose more industry-specific training as a way to further their careers and earn higher salaries. Some professional certifications commonly earned by undergraduate business school graduates include:

• APICS Certified Supply Chain Professional certification (CSCP)
• Certified Business Analysis Professional (CBAP)
• HubSpot Inbound Marketing
• Professional Certificate in Team Leadership
• Project Management Professional (PMP)
• Salesforce certification

Economics degree holders commonly pursue additional financial certifications like:

• Certified Financial Planner (CFP)
• Certified Fund Specialist (CFS)
• Chartered Market Technician (CMT)

Related CollegeVine Blog Posts

Economic and Financial Planning in the preparation of Business Plans and Budgets

Economic and Financial Planning is the strategic process which drives business decisions across the whole enterprise. Achieving competitive advantage is dependent on the definition of a global and sustainable business strategy, supported by adequate economic and financial planning and the proper execution of such a strategy.

The Business Plan, or economic-financial business plan is the document that allows companies to define and outline a business project, including the strategies, objectives and estate planning, both economic and financial. It has not only an internal value, but also an external function, as it also serves the purpose of presenting the business to a third party.

Complementary to the Business Plan is the Budget, the document which defines the centres of  responsibility involved in strategic planning,  assigning to each one specific short-term tasks and objectives.

Studio De Leo offers businesses professional services aimed at improving business performance, the achievement of the right economic and financial balance, as well as the acquisition of more adequate financing instruments to support investment policies, such as:

• analysis of the economic / financial structure leading to the preparation of adequate forecasts of financial needs, along with an appropriate combination of sources of financing and the evaluation of possible alternative financing channels available on the market;
• advice on the improvement of the financial statements of the company, if necessary;
• financial and economic planning and preparation of budgets, business plans and industrial plans in order to highlight the economic / financial dynamism of the firm and demonstrate the sustainability of investments, even in economically stressful situations;
• preparation of documents necessary to present the company in the best light to investors, either venture capital or credit;
• financial and contractual advice on the suitability of funding sources to the needs of the enterprise, on their sustainability and the legal restraints under which the company and its guarantors are placed;
• assistance in recapitalization operations and capital increases in general and in any relations with financial institutions.

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Business Class vs Economy

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Business Class is an airfare option that some people aren’t familiar with. For many years, I thought it was just another term for First Class—until I learned otherwise. But if Business Class isn’t the same as First Class, and it’s not Economy, what is it?

Well, in this guide, I’ll explain the contrasts between Business Class vs. Economy. The two are a bit similar, but they offer different experiences. When I travel, the decision to fly Economy instead of Business Class depends on where I’m going and the time of year it is. But I’ll discuss more about that in the content below. Just keep reading!

Business Class vs. Economy: My Favorite Airfare Option

If I had to choose between Business Class and Economy, I’ll opt for Business Class every time. It offers so much more to passengers—like larger seats and additional baggage.

The Business Class experience makes flying better. I’m a budget traveler , and I’ve purchased plenty of Economy tickets. When I want to take save money, Economy airfare gets me where I’m going for a fraction of the cost. However, I believe that the added amenities offered in Business Class are worth the extra money I’ll spend on an upgraded ticket.

Main Differences Between Business Class vs Economy

The main differences between Business Class vs Economy are:

• Business Class shares some of the same perks as First Class, whereas Economy does not.
• Business Class customers have lounge access, whereas Economy customers do not.
• Business Class tickets are more expensive than Economy tickets.
• Business Class passengers board the plane before Economy passengers.
• Business Class offers more baggage allowance than Economy.

The Key Features of Business Class Airfare

While all airlines are different, there are a few standard amenities that are offered to Business Class customers—no matter which airline you fly with. Here’s what you can expect:

Priority Boarding

When I buy a Business Class ticket, I know I’ll get priority boarding onto the aircraft. Business Class passengers always board after First Class, but before Economy. This is a small perk, but it’s nice to not have to wait in a long line to get onto the plane.

Not only that, but when it’s a full plane, boarding first ensures that I get first dibs on the overhead bins. I’ve been in situations where the overhead bins fill up, and I have to check my carry-on. I don’t like that because I specifically pack a carry-on bag to ensure that I’ll have clothing in case my checked luggage gets lost.

Amenity Kits

When I fly Business Class, I receive an amenity kit that has items like a toothbrush, eye mask, and socks. It’s a nice touch that makes the flying experience more comfortable. I’ve flown domestically with certain airlines and received an amenity kit, while others only offer them for long-haul flights

Larger Seats

The seats in Business Class are almost always bigger than those in Economy. They have more legroom and are wider. Some airlines even have lie-flat seats, which are perfect for long-haul flights. I appreciate having a little extra space to stretch out, especially on international flights that are several hours long.

Complimentary Drinks

Business Class passengers also receive complimentary alcoholic and non-alcoholic drinks. In Economy, you usually have to wait for drinks. But in Business Class, the flight attendants will keep your drink of choice coming.

I noticed that when I fly Business Class, they come out quickly and ask what I would like to drink. In Economy, you have to wait until the flight attendants come around with the serving carts.

Better Meals

The meals served in Business Class are usually better than those served in Economy. They’re more substantial and have more course options. I also find that the food tastes better in Business Class. Some airlines provide chef-curated meals to Business Class passengers, instead of standard packed meals.

This is a nice touch, and I appreciate it when I’m on a long flight. Not to mention, I don’t always like the meal options offered in Economy. In most cases, there are only two meal choices to select from, which doesn’t offer much variety.

Certain First Class Perks

Business isn’t quite like First Class, but a lot of the perks are the same—especially the ground amenities. For instance, most airlines allow First Class and Business Class passengers to get expedited security check-in. This is a nice perk because it saves time.

I also get access to the First Class lounge when I fly Business Class. This is a great space to relax before my flight. I can get a drink and a snack, and use the restroom in peace. I don’t have to worry about the crowds at the airport.

Additional Baggage Allowance

When I fly Business Class, I get an additional baggage allowance. I like that because I can pack more items without having to worry about going over the weight limit. And, if I need to check a bag or two, it’s free of charge.

With an Economy ticket, you have to pay for checked bags—depending on the airline. Therefore, if you plan on checking your luggage, it can get expensive quickly.

• Better Flying Experience: In my opinion, you can’t beat a Business Class flying experience. It’s much better than Economy, and it’s worth the extra money. If you have the opportunity to fly Business Class, I recommend it. Traveling can feel overwhelming at times, so it’s beneficial to pay more for Business Class airfare to get the upgraded amenities.
• Comfortable Seating: I can’t stress enough how nice it is to have comfortable seating when you fly. The seats in Business Class are roomier and feel plusher. This is a huge perk for me when I’m taking a long flight. I can’t imagine being crammed into a small seat for hours on end.
• Expedited Security Check-In: Expedited security check-in is one of my favorite amenities. When I’m running late and the airport is busy, this perk saves me a lot of time.  It’s such a headache to stand in line for nearly an hour. During the holiday season, I always make sure to fly Business Class.
• More Expensive than Economy: If you fly Business Class, expect to pay a lot more money for your ticket. In most cases, you’re looking at a few hundred dollars more than Economy. Therefore, it’s important to weigh the pros and cons before you book your flight. You’ll never go wrong with flying Business Class, but if funds are an issue, Economy is the better option.
• Not Valuable for Short Flights: I always stick to the same rule. I won’t fly Business Class for a short flight. It’s simply not worth the money. I’d rather save my money and fly Economy. For example, I won’t book a Business Class ticket from Los Angeles to San Francisco. The flight is less than two hours, so there’s no need to spend the extra money. However, if it’s the holiday season or summer, I will. That’s because the airport is busier, and the airport amenities make the extra cost worth it.

The Key Feature of Economy Class Airfare

Just like Business Class, the Economy amenities are standard across the board for all airlines. Here’s what’s included with an Economy Class ticket:

Food and Beverages

Even in Economy, airlines make sure to take care of every customer. You may not get an expansive list of meal options like you would in Business Class, but you’re still fed. Even on short flights, you’ll get snacks and beverages.

On longer flights, you can expect a hot meal. I’ve never had too many grievances when I fly Economy. The snacks are fine, and I usually like the meals that I’m offered. If I need something more filling than peanuts and pretzels, I usually eat at the airport before boarding.

Carry-on Luggage

You’re allowed to bring one personal item and one carry-on bag when you fly Economy. The personal item can be a purse, laptop case, or book bag. The carry-on bag must fit in the overhead bin or under the seat in front of you.

If you try to bring more than the allotted carry-on luggage, you’ll be charged a fee. The fee depends on the airline, but it’s usually around $50. However, there are some airlines that allow no-cost checked baggage, but it’s generally for one bag only—no matter if you’re flying domestically or internationally.

Decent Seating

Although the seats aren’t as comfy in Economy as they are in Business Class, they’re not bad. In most cases, you have enough legroom to be comfortable. And, if you need a little extra space, you can always upgrade to an exit row or bulkhead seat.

Just be aware that these types of seats often come with a fee. If you have long legs or need to stretch out, it’s worth paying the fee.

It’s also worth noting that Economy seats do recline. However, the amount of recline varies from airline to airline. On some airlines, the seats barely recline at all. So, if you want to take a nap on your flight, it may not be comfortable to do so.

In-Flight Entertainment

If you want to watch a movie or listen to music on your flight, it’s included in your fare. Only bare minimum airlines—like Spirit—exclude in-flight entertainment. Thankfully, you can keep yourself occupied during takeoff and landing with the in-flight magazine.

I appreciate this because I don’t always have the opportunity to charge my devices before boarding. So, it’s nice to know that I can watch and show and listen to music on the aircraft without using up my phone or tablet battery.

• Affordable: The good thing about Economy Class is that it’s affordable. If you’re on a budget, this is the best way to fly. You can find deals on airlines websites and travel sites. And, you can use miles and points to book your ticket. When I go on vacation, sometimes I like to save the bulk of my money for splurging on hotel accommodations and excursions. Therefore, an inexpensive plane ticket is right up my alley.
• More Availability: The Business Class section of the aircraft is smaller than Economy. During the busy times of the year , those seats might fill up fast. However, there are numerous economy seats, and it’s rare that there isn’t one available. So, if you ever need to book a last-minute trip, chances are you’ll be able to find a seat in Economy.
• Fewer Amenities: The truth is, flying Economy is the bare minimum. You get food and drinks, but the offerings are limited. And, you might have to pay for checked luggage and in-flight entertainment, depending on the airline. If you want any extras—like additional legroom—you have to be willing to pay for it. Essentially, an Economy ticket is designed to get you to your destination without all of the bells and whistles.
• Less Comfort: The seats in Economy aren’t as comfortable as the seats in Business Class. They’re smaller with less legroom. And, they don’t always recline as much. So, if you’re looking for a luxurious flying experience, you won’t find it in Economy. If you’re tall or have a bigger frame, Business Class is better. You won’t feel as cramped, especially on an international flight. If I’m flying for several hours, I always book a seat in Business Class. It makes the trip more bearable.
• No Airport Amenities: Not only are the amenities restricted while in the air, but they are on the ground as well. Economy customers don’t receive complimentary lounge access, priority boarding, or accelerated security screening. If you want any of those things, you have to pay for them. For instance, American Airlines allows Economy customers to Priority Privileges separately.

Alternative Fare Classes to Consider

Premium economy.

Premium Economy airfare is a type of airfare that offers passengers additional perks and amenities not typically found in economy class. These can include more legroom, wider seats, and better food and drink options. Premium economy airfare can cost anywhere from 20-50% more than economy class, but it can make for a more comfortable and enjoyable flight experience. This option is the perfect middle ground for me. It’s not too expensive, but it provides more amenities.

First Class

First Class airfare is the highest class of service offered by an airline. First Class passengers enjoy the best seat availability, the best food and drink options, and the best in-flight entertainment. But as you know, it’s the most expensive type of airfare available. Although I enjoy Business Class, I’d never turn down a First Class flight. If you are taking a long trip, over 10 hours,  First Class is the way to go. A premium ticket will ensure that you have the best experience possible.

Basic Economy

Basic Economy is the bare bones of airfare class options. I’ve booked many Basic Economy flights while budget traveling. In most cases, you can only bring a personal item on board, and you’re the last group to board. Basic Economy is a good option if you’re budget conscious and don’t mind giving up some comforts. This option is ideal for short flights during the slow travel season. If you want to save as much as you can on a flight, this is your best bet.

Question: How Expensive is Business Class?

Answer: The cost of a business class ticket can vary widely depending on the airline, route, and time of year. Generally speaking, though, you can expect to pay anywhere from 50% to 85% more for a Business Class ticket than you would for an Economy ticket.

Question: Is an Economy Ticket Refundable?

Answer: No, an economy ticket is not refundable. You may be able to make changes to your itinerary, but there will usually be a fee associated with this. If you need to cancel your trip entirely, you will likely lose the value of your ticket. However, the majority of airlines will issue a flight credit if you have to cancel.

Question: Is it Possible to Find Deals on a Business Class Ticket?

Answer: Finding a deal on a Business Class ticket is difficult, but it is possible. The best way to find deals is to search online or contact a travel agent. Travel agents typically have access to discounts that are not available to the general public. It is also important to be flexible with travel dates and times.

My Final Thoughts on Business vs. Economy Airfare

Honestly, I’m an advocate for Business and Economy airfare. I’ve taken trips using both options, but Economy can’t beat the Business Class experience. If I had the funds to fly Business Class for every trip, I would. But hey, I’m glad there’s an option for every budget. I hope this guide helps you understand which ticket to buy for your next vacation!

About The Author

Candis Pope

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Infrastructure

Jobs and wages, climate change, student debt.

• Government News

Comparing the Economic Plans of Trump and Biden

President Joe Biden has a unique and challenging task: Managing the nation's economic recovery after a global pandemic that caused unemployment to surge to levels not seen since the Great Depression. The International Monetary Fund (IMF) predicts global growth will be 2.5% in 2023. That's down from a rate of 6.0% in 2021 and a projected rate of 3.2% in 2022.

Joe Biden was inaugurated as President of the United States on Jan. 20, 2021.

The economic agendas of the candidates were even more important during the 2020 election than usual. After all, Franklin D. Roosevelt beat Herbert Hoover by a landslide in the 1932 presidential election because he promised "a new deal for the American people."

President Joe Biden attacked former president Donald Trump's handling of the coronavirus efforts and released a seven-point plan of his own, which included:

• A nationwide mask mandate
• More testing
• Ramping up personal protective equipment production
• Establishing a renewable fund for state and local governments
• Investing $25 billion in a vaccine manufacturing and distribution plan
• Fixing the country's relationship with the World Health Organization (WHO)

Before being elected, Biden also called for the next government stimulus and relief package to be larger than $2 trillion and said it should include much more aid for states and come with a higher degree of oversight. The American Rescue Plan was signed into law by President Biden on March 11, 2021, and cost $1.9 trillion, making it one of the largest economic rescue plans in U.S. history.

Trump signed four bills designed to offer relief to the American economy. The first bill, the Coronavirus Preparedness and Response Supplemental Appropriations Act , was signed on March 6, 2020, and allocated $8.3 billion to fund various efforts. The Families First Coronavirus Response Act was signed on March 18. On March 27, 2020, Trump signed the $2.2 trillion CARES (Coronavirus Aid, Relief, and Economic Security) Act . The fourth package, nicknamed Phase 3.5, was signed on April 24, 2020 and basically refunds programs created in the CARES Act with $484 billion.

Here we compare the economic policies of former President Trump and President Joe Biden . Trump provided few details for his plans for the economy during his second term outside of his 2021 budget proposal, released in February 2020 before the pandemic's impact was fully known, and a second-term agenda with general goals and priorities.

Key Takeaways

• Both Trump and Biden wanted infrastructure bills worth more than $1 trillion.
• Republicans did not want infrastructure spending in coronavirus stimulus bills; Democrats do.
• Biden's plan focused on climate change as well.

Trump, who  campaigned on the promise of rebuilding America, sought an infrastructure bill. There appeared to be bipartisan support for such a bill. He claimed he wanted a big and bold $2 trillion plan, as part of the next congressional coronavirus relief package.

When asked how the U.S. would fund another massive package, he cited the low borrowing rates. He did not provide details of his plan. His agenda mentioned winning the 5G race and establishing a national high-speed wireless internet network.

Joe Biden released a 10-year, $1.3 trillion infrastructure plan as part of his election campaign. He said his plan will move the U.S. to net-zero greenhouse gas emissions and create jobs to expand the middle class. Some of the facets of the plan were:

• $400 billion for a new federal program for clean energy research and innovation
• $100 billion to modernize schools
• $50 billion on repairing roads, bridges, and highways in his first year in office
• $20 billion on rural broadband infrastructure
• $10 billion for transit projects that serve high-poverty areas with limited transportation options

He said his plan will be paid for by "reversing the excesses of the Trump tax cuts for corporations; reducing incentives for tax havens , evasion, and outsourcing; ensuring corporations pay their fair share; closing other loopholes in our tax code that reward wealth, not work; and ending subsidies for fossil fuels."

• Trump wanted to extend the 2017 tax overhaul for individuals.
• Biden planned to roll back tax cuts and apply a payroll tax to those making more than $400,000.
• 75% of Biden's tax hike will be borne by the top 1%.

In the February 2020 budget proposal, the Trump administration assumed the individual income tax provisions included in the massive Tax Cuts and Jobs Act (TCJA) and set to expire in 2025 would be extended. Between 2025 and 2030, these tax cuts would cost the federal government $1.5 trillion, according to the Committee for a Responsible Federal Budget.

The budget also proposed repealing renewable energy tax credits , offering tax credits for then-education secretary Betsy DeVos' Education Freedom Scholarship program, and raising the Internal Revenue Service (IRS) budget by about $15 billion over a decade.

Trump's agenda mentioned Made in America tax credits for companies and expanding the Opportunity Zones program to boost investment in economically distressed communities. The former president also called for permanent payroll tax cuts.

Throughout his campaign, Biden promised that he would limit any tax hikes to people earning above $400,000, and remains committed to his pledge that individuals making under that figure won't have their taxes increased.

Biden proposed to raise the top income tax rate back to 39.6% from 37% and the top corporate income tax rate to 28% from 21%. His plans also included taxing capital gains and dividends at ordinary rates for those with annual incomes of more than $1 million and imposing a 15% minimum tax on the book income of large companies. The tax rate on profits earned by foreign subsidiaries of U.S. firms would be doubled to 21%.

According to the Tax Policy Center, Biden's tax proposals could increase revenue by $4 trillion between 2021 and 2030. It is estimated that 93% of the tax increases would be borne by taxpayers in the top 20% of households by income. The top 1% of households would pay three-quarters of the tax hike.

• Trump's budget proposed spending cuts to Medicare and Medicaid.
• Biden is opposed to Medicare for All but wants to create a public option.
• Biden wanted to lower the Medicare eligibility age to 60.

In the 2021 budget proposal, the Trump administration proposed deep healthcare spending cuts over the next decade, especially to Medicaid and the Affordable Care Act ($1 trillion over ten years) and Medicare ($756 billion over ten years). It requested $94.5 billion for the Department of Health and Human Services, a 10% decrease from the 2020 enacted level.

His agenda, however, mentioned protecting Social Security and Medicare besides lowering healthcare insurance premiums and ending surprise billing. Trump repeatedly promised to bring down drug prices, without significant results.

Biden didn't miss an opportunity to mention he was next to former President Obama when the Affordable Care Act (ACA) was signed into law and vowed to protect and expand it. He said he would eliminate the 400% income cap on tax credit eligibility and lower the limit on the cost of coverage to 8.5% of income. 

Instead of the Medicare for All plan suggested by his progressive rivals, Biden said he wanted to create a similar public health insurance option. He also wanted to lower the eligibility age for Medicare to 60 from 65.

More than an estimated 97% of Americans are covered under this plan, which is expected to cost $750 billion over a decade. It will be paid for through revenue from his capital gains reform. The cost estimation, however, was provided by the campaign in 2020, before expanding Medicare access to younger people was suggested.

• Trump didn't dial back the China trade war rhetoric during his presidency.
• U.S. trade deficit fell for the first time in six years in 2019.
• Biden wanted a coalition with international allies to pressure China.

The trade war with China was the centerpiece of Trump's trade policy during his first term. He promised to put America first in all dealings with countries and penalize those the U.S. has a high trade deficit with or he believed are unfairly taxing American companies overseas.

Angering Beijing while the overburdened U.S. healthcare system depends on China for medical supplies was a risk. in 2018, Chinese medical supplies accounted for 48% of all personal protective equipment imports in the U.S.

The U.S. monthly international trade deficit was $39.9 billion in February 2020, the lowest since September 2016. Contributing to this was the impact of COVID-19 on Chinese manufacturing. On an annual basis, the deficit fell for the first time in six years in 2019 to $616.8 billion.

As he described in his article for Foreign Affairs titled "Why America Must Lead Again," Biden plans to help America's position in the global economy by investing at home in innovation and the middle classes first.

He promised to do this before entering any new trade agreements. He also said the best way to confront China on intellectual property and technology transfers is by forming a coalition with allies and partners, not through unilateral tariffs .

• For both Trump and Biden, creating jobs through infrastructure investments should be a priority.
• Trump planned to continue the "Buy American, Hire American" immigration agenda.
• Biden wanted to raise the minimum wage to $15, but Trump was against it.

The U.S. economy created 6.6 million jobs during the first three years after Trump took office. This was good but not particularly impressive when we look at Labor Department data and consider the state of the economy when he took office. While economic immigration programs became stricter under his tenure, he stopped short of big rule changes like revoking the right of spouses of H-1B visa holders to work.

Millions of jobs were erased amid the COVID-19 crisis and may take a while to return. Trump's idea to spur job creation was through a $2 trillion infrastructure bill. He floated the idea of the government buying four or five years' worth of plane tickets to help the industry with cash. He also put a freeze on new green cards to protect American workers, asking his administration to review guest worker programs. The freeze was initially in place for 60 days until June 2020 and was later extended until Dec. 31, 2020.

Trump also wanted to boost manufacturing in the U.S. and aimed to bring back one million manufacturing jobs from China. He recommended:

• No federal contracts for companies that outsource to the country
• Tax credits for companies that bring jobs back to the U.S.
• 100% expensing deductions for essential industries that return manufacturing to the U.S.

Trump said in the past he would like to see some increase in the federal minimum wage but would prefer to leave it up to states. The left-leaning Economic Policy Institute said the National Labor Relations Board under Trump "advanced an anti-worker, anti-union, corporate agenda that has undermined workers’ ability to form unions and engage in collective bargaining."

Biden said he wanted to create millions of middle-class jobs through his infrastructure plan. The plan involved building renewable energy infrastructure, anchor institutions, and climate resiliency industries. It included increasing funding for such programs as the New Markets Tax Credit, the Community Development Financial Institutions (CDFI) , and the Economic Development Administration, an agency within the U.S. Department of Commerce. 

His plan to help the manufacturing sector included quadrupling funding for the Manufacturing Extension Partnership and providing tax credits for communities that experienced mass layoffs or the closure of a major government institution.

Biden also wanted to increase the federal minimum wage to $15 and believes labor leaders should be involved in new trade deal negotiations. Due to the health crisis, he proposed getting all 50 states to adopt short-time compensation programs that are fully and permanently funded by the federal government.

The plan also included reforms to the temporary visa programs to make sure the government is not disincentivizing recruiting workers from the U.S. Plus, he planned to increase employment-based green cards to 140,000 each year.

• Trump believes climate change is a hoax.
• Biden wanted net-zero emissions by 2050—not soon enough, say critics.
• Trump pulled America out of the Paris climate agreement, while Biden rejoined.

Trump doesn't believe in climate change and is a strong supporter of the fossil fuels industry. As president, he rolled back environmental rules, planned to lease millions of acres of public land for drilling, and began the long process to exit the Paris climate agreement. His agenda vaguely mentioned cleaning up our planet's oceans and maintaining access to clean air and drinking water.

Climate change is mentioned in many of his plans, especially infrastructure and trade. But critics say his plan wasn't ambitious enough.

The requirements for his proposed plan include federal spending of $2 trillion over his first term in an attempt to put the U.S. on the path to achieving a 100% clean energy economy with net-zero emissions no later than 2050. Biden said it will be paid for by reversing Trump-era corporate tax cuts and ending subsidies for fossil fuels among other things.

Here's some of what's in it:

• Rejoin the  Paris Climate Agreement , make climate change part of foreign policy, enact trade negotiations, and demand a worldwide ban on fossil fuel subsidies
• A carbon pollution-free power sector by 2035
• Upgrade and modernize U.S. buildings and infrastructure
• Zero-emissions public transportation options for all cities by 2030
• $400 billion investment in climate innovation and research
• Tax incentives and credits
• 500,000 new EV public charging outlets and use federal procurement to increase demand for American-made, American-sourced clean vehicles
• Methane pollution limits
• No ban on fracking, but he does plan to ban new permits for oil and gas drilling on federal land and offshore
• Trump wanted to scrap loan subsidies and forgiveness for public service.
• Trump planned to create a single income-driven repayment program.
• Biden proposed forgiving student debt for poorer grads but federal courts blocked the program on Nov. 11, 2022. The Supreme Court later ruled the plan was unconstitutional on June 30, 2023.

The Trump administration's 2021 budget proposal requested $66.6 billion for the Department of Education, a $5.6 billion or 7.8% decrease from 2020. It proposed eliminating the Public Service Loan Forgiveness and subsidized loan programs.

Trump also intended to replace the four income-driven repayment programs with a single one that capped monthly payments at 12.5%. It forgave undergraduate loans after 15 years instead of 20 years and raised the period for graduate loan repayment to 30 years from 25 years.

Joe Biden made his student debt plan more generous. His plan includes the immediate cancelation of a minimum of $10,000 of student debt per person, as was originally suggested by Senator Elizabeth Warren.

Biden proposed forgiving all undergraduate, tuition-related federal student debt for low-income and middle-class individuals (earning up to $125,000) who attended public colleges and universities, private historically Black colleges and universities (HBCUs) , and private, underfunded minority-serving institutions. This will be funded by repealing the high-income "excess business losses" tax cut in the CARES Act. 

As of August 2022, the following changes were enacted by the Biden administration;

• A pause on federal student loan repayment until Dec. 31, 2022, because of the COVID-19 pandemic. This was first put into place by Trump in March 2020.
• Up to $20,000 in federal student loan cancelation for those with Pell Grants held with the Department of Education and up to $10,000 for those with non-Pell Grants.
• Proposals to change the Public Student Loan Forgiveness program and the repayment program.

Biden's student loan relief program was blocked on Nov. 11, 2022, following orders from federal courts. The move barred the Department of Education from forgiving any student loan debt. As such, the agency announced it stopped taking any new applications but would hold those that were already submitted. On November 22, 2022, the Department of Education extended federally-held student loan forbearance into 2023.

On June 30, 2023, the Supreme Court ruled that the Biden administration lacked the authority to cancel up to $20,000 federal student debt per borrower. The three-year forbearance on student loan payments and interest is also set to end this year. Student loans will begin accruing interest starting on Sept. 1, while required payments will be due starting in October.

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The White House. " COVID-19 ."

U.S. Congress. " H.R. 1319: American Rescue Plan Act of 2021 ."

United States Congress. " H.R. 6074 ."

U.S. Department of Labor. " Families First Coronavirus Response Act: Employee Paid Leave Rights ."

U.S. Department of the Treasury. " About the CARES Act and the Consolidated Appropriations Act ."

United States Congress. " H.R. 266 ."

Office of Management and Budget. " A Budget for America's Future ."

Trump White House Archives. " Remarks by President Trump on United States 5G Deployment ."

Biden Harris Democrats. " The Biden Plan to Invest in Middle Class Competitiveness ."

Biden Harris Democrats. " The Biden Plan to Build a Modern, Sustainable Infrastructure and an Equitable Clean Energy Future ."

Biden Harris Democrats. " The Biden Plan for a Clean Energy Revolution and Environmental Justice ."

Committee for a Responsible Federal Budget. " An Overview of the President’s FY 2021 Budget ."

Office of Management and Budget. " A Budget for America's Future ," Page 87.

Trump White House Archives. " President Donald J. Trump Achieved the Biggest Tax Cuts and Reforms in American History ."

Department of the Treasury. " General Explanations of the Administration’s Fiscal Year 2022 Revenue Proposals ," Pages 3, 60.

Tax Policy Center. " Biden Would Raise Taxes by $4 Trillion Over 10 Years, Mostly on the Highest-Income Households ."

Center on Budget and Policy Priorities. " Medicare in the 2021 Trump Budget ."

Center on Budget and Policy Priorities. " Trump’s 2021 Budget Would Cut $1.6 Trillion From Low-Income Programs ."

Office of Management and Budget. " A Budget for America's Future ," Page 49.

Biden Harris Democrats. " Health Care ."

The White House. " FACT SHEET: Biden-⁠Harris Administration Lowers Health Care Costs ."

Committee for a Responsible Federal Budget. " Understanding Joe Biden's 2020 Health Care Plan ."

Peterson Institute for International Economics. " COVID-19: China's Exports of Medical Supplies Provide a Ray of Hope ."

Bureau of Economic Analysis. " February 2020 Trade Gap is $39.9 Billion ."

U.S. Bureau of Economic Analysis. " 2019 Trade Gap is $616.8 Billion ."

Foreign Affairs. " Why America Must Lead Again ."

U.S. Bureau of Labor Statistics. " Databases, Tables & Calculators by Subject ."

National Immigration Forum. " President Trump’s Proclamation Suspending Immigration ."

Institute on Taxation and Economic Policy. " Trump-GOP Tax Law Encourages Companies to Move Jobs Offshore–and New Tax Cuts Won’t Change That ."

Twitter. " Economic Policy Institute: @EconomicPolicy ."

Biden Harris Democrats. " The Biden Plan to Ensure the Future Is 'Made in All of America' by All of America’s Workers ."

National Institute of Standards and Technology. " Executive Order on Ensuring the Future Is Made in All of America by All of America’s Workers ."

Pew Research Center. " Key Facts About U.S. Immigration Policies and Biden’s Proposed Changes ."

Office of Management and Budget. " A Budget for America's Future ," Pages 39, 114.

Saving for College. " Donald Trump’s Plan for Student Loans (And What He’s Done So Far) ."

The White House. " FACT SHEET: President Biden Announces Student Loan Relief for Borrowers Who Need It Most ."

AP News. " Appeals Court Ruling Keeps Biden Student Debt Plan on Hold ."

U.S. Department of Education. " Biden-Harris Administration Continues Fight for Student Debt Relief for Millions of Borrowers, Extends Student Loan Repayment Pause ."

Supreme Court. " Biden v. Nebraska ," Pages 24–25.

Federal Student Aid. " COVID-19 Emergency Relief and Federal Student Aid ."

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The Biden-versus-Trump economy: Who did better on inflation, jobs, gasoline prices and more?

An assembly line worker uncrates an LG battery at a General Motors facility in Lake Orion, Mich., in 2023. (AP)

Get ready: In the 2024 presidential race, the candidates will talk about the economy. A lot.

We know because it’s already happening.

Incumbent President Joe Biden has touted the rapid growth of jobs on his watch. His predecessor and front-runner for the Republican nomination, Donald Trump, has focused on the four-decade-high inflation that peaked in summer 2022. 

Biden argues the economy has turned the corner on inflation. Trump, who leads former South Carolina Gov. Nikki Haley comfortably, counters that residual inflation continues to inflict economic pain. 

Voters are listening.

When the Quinnipiac University poll asked respondents in February for what they thought was the most urgent issue facing the country, 20% said the economy — a close second behind preserving democracy at 21%. Among Republicans, 24% chose the economy (second to immigration at 35%) while 24% of independents picked the economy, making it their top issue.

With the Super Tuesday primaries coming this week, PolitiFact decided to look at a few common economic talking points in the presidential race. We compared the nation’s economic performance not just under Biden and Trump but also under their three predecessors: Barack Obama, George W. Bush, and Bill Clinton.

No president is all-powerful on economic matters. The severe but relatively brief interruption the coronavirus pandemic caused also makes comparisons tricky. And beyond the numbers are intangibles, such as leadership qualities.

There’s no simple answer for who has been the better economic steward. On the numbers, Biden has some advantages over Trump, and vice versa. Other economic statistics show both presidents putting up impressive numbers during their first three years in office. (Looking at the first three years in office was the fairest comparison, as Trump’s fourth year was walloped by the coronavirus pandemic, and Biden’s fourth year is just 2 months old.)

In January, Biden highlighted that Trump was the first president to oversee a net loss of jobs since Herbert Hoover, who was in office when the Great Depression hit — but failed to mention the 2020 pandemic caused the nosedive.

When excluding the pandemic year of 2020, we found that the economy under Biden added jobs at a faster rate than under Trump — and faster than any of Biden’s recent predecessors. 

Under Biden, U.S. employment is now 10% above what it was when he was sworn in. Ranking second after three years is Clinton, with almost 8%, followed by Trump with 4.4%. Both Obama and Bush had fewer jobs filled after three years than they had on their first day in office.

Biden benefited from favorable timing. He was inaugurated January 2021, as the pandemic started receding. Although the jobs recovery began under Trump, Biden was blessed with a steady flow of Americans moving back into jobs that had been hampered during the pandemic. 

Still, the simple return of workers sidetracked by the pandemic doesn’t explain all the job gains on Biden’s watch, even though Trump has tried to make that case . Employment data through Biden’s first three years in office significantly exceeds where the workforce stood before the pandemic.

Given that job creation was leveling off during Trump’s last few months in office, "it was not inevitable that we would get the huge bounceback we saw under Biden," said Dean Baker, co-founder of the liberal Center for Economic and Policy Research. Biden’s American Rescue Plan, a pandemic recovery bill passed weeks after Biden took office, "was a huge deal here."

Another factor in the expanding labor market — though one that’s become a political two-edged sword — has been higher immigration rates under Biden. This has helped fuel the economy , according to analyses by the nonpartisan Congressional Budget Office and others, even as it lets critics discuss chaos at the border.

Biden has emphasized the growth of manufacturing jobs when touting bills he’s signed into law, including the Bipartisan Infrastructure Law , the CHIPS and Science Act , and the Inflation Reduction Act . 

The data shows that manufacturing jobs have grown by about 6.5% since Biden took office. Trump ranks second at 3.4%, followed by Clinton at 2.5%. Three years into their terms, Obama and Bush had both overseen losses in manufacturing jobs.

Biden and Trump have dueling messages on inflation, which peaked north of 9% in summer 2022. Economists generally blame pandemic-era supply chain problems, with Biden’s aid package exacerbating the rise in prices.

Biden has emphasized how much inflation has dropped.

"Wages are rising. Inflation is down," Biden said in a Feb. 12 speech in Washington, D.C., to the National Association of Counties. The following day, Biden applauded the release of new inflation statistics showing that prices had risen by 3.1% in the year ended January 2024, about one-third of the 2022 peak level. It remains a bit above the 2% that the Federal Reserve wants to see before lowering interest rates.

The biggest reasons inflation has eased, economists have told us , are factors that the administration doesn’t control: Federal Reserve interest rate hikes, a global oil price decline and a slowdown in China’s economy.

Inflation did not hamper Trump. During his first three years in office, Trump saw wages outpace inflation — the opposite of Biden.

For Biden, the data is improving, but that picture depends heavily on the time frame used. 

If you start with Biden’s first day in office, prices have risen faster than wages — never a good sign for a president seeking reelection. 

"In 2021 and 2022, people went to work and fell further behind," said Douglas Holtz-Eakin, president of the center-right American Action Forum. "They are not over it, despite the gains in 2023."

However, wage growth on Biden’s watch is on pace to exceed price growth within a couple of months. Also, wages have outpaced inflation for more than a year now, and wages have also outpaced inflation since Jan. 2020, the final month before the pandemic. 

One difference between the Biden and Trump economies is data showing that the wage increases under Biden have been especially robust for poorer people.

Trump could make plenty of accurate claims about the pain of inflation. However, he has exaggerated how much prices have risen for bacon , overall food and gasoline. 

In December, Trump said gasoline prices "are now $5, $6, $7 and even $8 a gallon." We rated that claim Mostly False , because just a few gasoline stations nationally had prices that high. The nationwide average per-gallon price at the time was $3.14.

Gasoline prices have been unusually high under Biden, although they’ve dropped from their $5-per-gallon peak. That decline has stemmed from increased production, including in the United States, and the oil market’s realignment after Russia invaded Ukraine in 2022, which drove Western nations to restrict purchases of Russian oil.

Today, gasoline prices remain about one-third higher than they were when Biden took office. That’s a bigger percentage increase after three years than under Clinton, Bush or Trump. Obama fared worse; gasoline prices were 89% higher at his three-year mark.

On several key metrics, Biden and Trump both have records to celebrate.

In June 2023, Biden touted the low unemployment rate on his watch, saying that it has been "below 4% for the longest stretch in 50 years in American history." We rated this Mostly True . Unemployment has remained low partly because companies have more jobs to fill than available applicants; that has drawn some Americans back to work.

However, Trump also oversaw low unemployment rates. During Trump’s first three years in office, the unemployment rate averaged 4%; during Biden’s first three years, which included a few months when unemployment was still settling down after pandemic job losses, the average has been 4.2%.

Meanwhile, a measure called the "misery index" adds the unemployment rate and the inflation rate. 

After spiking when inflation was highest in summer 2022, the metric has fallen to a level lower than it was under Clinton, Bush and Obama at the end of year three. Trump’s misery index was lower at this point in his presidency, but Biden’s current level is lower than it was when Trump left office.

Biden has also trumpeted the growth in the most basic measurement of economic output: gross domestic product, or the collective value of all goods and services made in the U.S.. In January he called a 3.1% expansion in the economy during the fourth quarter of 2023 "good news for American families and American workers. That is three years in a row of growing the economy from the middle out and the bottom up on my watch."

If you ignore the pandemic years of 2020 and 2021, the annual GDP growth rates under the two most recent presidents have been similar, ranging from about 2% to 3%. That range was also typical under Obama’s presidency and for much of Bush’s, except for the two toughest years of the Great Recession, 2008 and 2009.

Meanwhile, Biden has recently taken to touting the stock market’s health, saying on X , "The stock market going strong is a sign of confidence in America’s economy."

As president, Trump often trumpeted stock market gains, although he’s dismissed the gains under Biden as helping only rich people (incorrectly — more than half the public owns stocks.)

Either way, both presidents have overseen rising share prices. During Trump’s first three years, the S&P 500, a broad stock market gauge, rose by 1,050 points. In Biden’s first three years, it has risen by 988 points. (Since Jan. 20, 2024, the S&P has risen an additional 287 points.)

Our Sources

Federal Reserve Bank of St. Louis, " Employed full time: Median usual weekly real earnings: Wage and salary workers: 16 years and over ," accessed Feb. 27, 2024

Federal Reserve Bank of St. Louis, " All Employees, Total Nonfarm ," accessed Feb. 27, 2024

Federal Reserve Bank of St. Louis, " Unemployment Rate ," accessed Feb. 27, 2024

Federal Reserve Bank of St. Louis, " Consumer Price Index for All Urban Consumers: All Items in U.S. City Average ," accessed Feb. 27, 2024

Federal Reserve Bank of St. Louis, " All Employees, Manufacturing ," accessed Feb. 27, 2024

Bureau of Economic Analysis, " Table 1.1.1. Percent Change From Preceding Period in Real Gross Domestic Product ," accessed Feb. 27, 2024

Yahoo! Finance, S&P 500 historical data , accessed Feb. 27, 2024

Energy Information Administration, " U.S. Regular All Formulations Retail Gasoline Prices ," accessed Feb. 27, 2024

Organization for Economic Cooperation and Development, inflation data , accessed Feb. 27, 2024

Quinnipiac University poll , February 2024

Monmouth University poll , February 2024

Marquette Law School poll , February 2024

USA Facts, " Homeownership is rebounding, particularly among younger adults ," January 29, 2024

Conference Board, " Survey: US Job Satisfaction Hits All-Time High ’," May 11, 2023

The White House, " Remarks by President Biden on the September Jobs Report and National Manufacturing Day ," Oct. 6, 2023

The White House, fact sheets on the Bipartisan Infrastructure Law , the CHIPS and Science Act , and the Inflation Reduction Act , accessed Feb. 27, 2024

The White House, speech by Joe Biden to the National Association of Counties, Feb. 12, 2024

The White House, " Statement from President Joe Biden on the January Consumer Price Index ," Feb. 13, 2024

The White House, " Statement from President Joe Biden on Fourth Quarter 2023 GDP Report ," Jan.  25, 2024

Joe Biden, post  on X , Feb. 10, 2024

The Washington Post, " The surge in immigration is a $7 trillion gift to the economy ," Feb. 13, 2024

The Washington Post, " The economy is roaring. Immigration is a key reason ," Feb. 27, 2024 

Steven Rattner, " What Trump Would Do to Our Economy " (New York Times op-ed), Feb. 28, 2024

CNN, " Trump’s avalanche of dishonesty: Fact-checking 102 of his false claims from this fall ," Dec. 1, 2023

Politico, " Biden’s risky new bet: the stock market ," Feb. 14, 2024

Reuters, " Trump bemoans record stock market as just making 'rich people richer ,’" Dec. 17, 2023

PolitiFact, " Trump hints stock market record high linked to optimism about his presidency ," Feb. 16, 2017

PolitiFact, " What percentage of Americans own stocks? " Sept. 18, 2018

PolitiFact, " No, the economy didn't suddenly get strong under Donald Trump ," Feb. 6, 2020

PolitiFact, " Stock market record point rise followed record point drop ," March 19, 2020

PolitiFact, " Fact-checking Joe Biden on auto jobs gained and lost on his watch and Trump’s ," Jan. 29, 2024

PolitiFact, " President Joe Biden said inflation-adjusted wages are up. That’s Half True ," Aug.  3, 2023

PolitiFact, " Sizzle, fizzle. Donald Trump off on bacon price increase under Joe Biden ," Sept. 18, 2023

PolitiFact, " Are gasoline prices under Joe Biden ranging from $5 to $8 a gallon, as Donald Trump said? " Dec. 15, 2023

PolitiFact, " Joe Biden is mostly right about keeping joblessness low for a long stretch ," June 29, 2023

PolitiFact, " Joe Biden links Donald Trump's jobs record to Herbert Hoover's, without any mention of COVID-19 ," Jan. 16, 2024

PolitiFact, " Fact-checking Joe Biden on the creation of 800,000 manufacturing jobs ," Dec. 13, 2023

PolitiFact, " Donald Trump exaggerates food inflation under Joe Biden; prices are not 40% to 60% higher ," Feb. 13, 2024

Arin Dube, post on X , Feb. 8, 2024

Email interview with Dean Baker, co-founder of the Center for Economic and Policy Research, Feb. 27, 2024

Email interview with Douglas Holtz-Eakin, president of the American Action Forum, Feb. 27, 2024

Email interview with Gary Burtless, senior fellow with the Brookings Institution, Feb. 27, 2024

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The Main Differences Between Business Class vs. First Class — and Tips for Booking Each

Here's what to know about each premium cabin type — and how to book them.

Business Class

Domestic first class, international first class, how to book (or be upgraded to) business class, domestic first class, and international first class.

imaginima/Getty Images

If you're tired of flying in economy, it might be time for an upgrade. For a more enjoyable flight, booking a premium cabin — that is, business class, domestic first class, or international first class — provides vast improvements. But each of the cabins offers a fairly different experience, and it's important to know what to expect with each. Here's everything you need to know about the premium cabins available on planes today.

• Typically lie-flat or angled seats
• Multicourse plated meal service
• Priority check-in and boarding
• Extra baggage allowance
• Lounge access
• Amenity kits
• Business class seats, amenities, and services vary greatly per airline and aircraft
• Usually a very expensive option
• No complimentary upgrades

Business class is a premium cabin available on international long-haul flights . Seats are typically lie-flat or angled, not just recliners, offering far more space than in the economy or premium economy cabins . Service is elevated both in the air, from free alcohol to plated multicourse meals, and on the ground, from priority check-in and boarding to lounge access. But not all business-class cabins are created equal. Some more outdated products lack in seat comfort and privacy, while newer ones might include closed-door suite-style seats with extra space. Even within an airline, business-class cabins can vary greatly on different aircraft. Pricing is dramatically greater than economy, often thousands of dollars no matter the route.

Bloomberg/Getty Images

• More spacious and comfortable seats
• Often served plated meals
• Complimentary upgrades for elite status holders
• Not as expensive as business class or international first class
• Typically no lie-flat seats
• Lounge access is not guaranteed

Domestic first class is the top cabin on domestic flights and some short-haul international flights. On most airlines and aircraft, this means you'll sit in a recliner-style seat that offers more space and legroom than economy. Some transcontinental flights, however, may have business-class lie-flat seats, but this varies based on the airline and aircraft. On flights that are a few hours or longer, you'll be served plated hot meals, and on all flights, alcohol is complimentary. Before your flight, you'll receive priority check-in services (including extra baggage allowances), but you usually won't receive lounge access. You'll be one of the first groups to board your plane. The tickets cost more than economy, of course, but they're typically not as expensive as business-class fares — perhaps a few hundred up to a thousand dollars.

• The most privacy, with some seats being fully enclosed
• Fine dining
• First class-only lounges at some airports; general lounge access at others
• Only available on certain airlines and aircraft
• The most expensive option

International first class is the ultimate flying experience — it's the best cabin across the board on commercial aircraft, ranked above business class, and it has the price tag to match. Many airlines don't even offer an international first class; a few notable ones that do have the product include Singapore Airlines , Etihad, and Air France. What makes the cabin so exceptional is the space and privacy of each seat. On some airlines, first-class seats are private suites with closed doors. The dining experience is usually elevated beyond that of business class, with fine wines and over-the-top menu items. As with business class, you'll receive a number of perks on the ground, from priority check-in to exclusive lounge access — some airlines have special first-class lounges that are not accessible to frequent fliers or business-class travelers. And, of course, expect to board in one of the first groups. You'll find this type of first-class cabin on international long-haul flights only — and solely on certain routes on certain airlines.

NurPhoto/Getty Images

You likely already know you can select any of these classes instead of the economy cabin when booking a flight. And you're probably also aware you can use either cash or miles to purchase seats in business or first class.

But what you might not know is that on most airlines, there are other ways to score an upgrade — though it likely won't be free.

Paid Upgrades

It's often possible to pay for upgrades to business or first class in cash or miles later on, depending on availability — and they might be cheaper than the full price at booking. "A lot of airlines these days will tempt you with an option to upgrade during the check-in process that sometimes can be cheaper than buying a business ticket outright," Katy Nastro, travel expert at Going , tells Travel + Leisure . "If this is your game plan, don’t always count on the ticket being downright cheap. It will still be more expensive than your original ticket price, and it all depends on if there is any availability in a higher class."

Even after check-in, you can ask an agent at a transfer desk if you're on a layover or a gate agent if there are any paid upgrades available. "Sometimes, airlines have unsold premium seats that they're willing to upgrade passengers to at a lower cost," Kristin Winkaffe, founder of Winkaffe Global Travel , tells T+L. "It's a bit of a gamble, but it's always worth politely inquiring at the gate if any upgrade options are available. This method can be especially fruitful if you are traveling during off-peak times."

Meet the Expert

Katy Nastro is a travel expert at Going, a website that finds flight deals to more than 900 destinations around the world.

Kristin Winkaffe is the founder of Winkaffe Global Travel, a travel agency with a focus on sustainability and off-the-beaten-path adventures.

Bidding on Upgrades

Additionally, some international airlines allow you to bid on upgrades to premium cabins before your flight. "It's like an auction; you make an offer, and if it's accepted, you get upgraded," says Winkaffe. "The key here is to make a reasonable bid, keeping in mind the flight duration and destination."

Free Upgrades

If you're a "regular" passenger, you probably won't get a free upgrade. "Don’t fall into the trap of thinking that dressing nicely will afford you an automatic upgrade. This is a travel myth that might have been true decades ago, but is just not the case today," says Nastro.

But if you're a frequent flier with elite status, complimentary upgrades are one of your perks — on domestic flights and limited short-haul international trips, that is. Elites can request to be added to the complimentary upgrade list on certain flights, with seats doled out based on availability. "A warning for these methods, though — you will need to fly quite a lot to really reap the rewards of elite status," says Winkaffe. "It's a long-term strategy, but definitely rewarding for those who travel often."

There is one rare case in which you may be able to score a free upgrade without status: accepting a voluntary bump on an oversold flight. "When a flight is oversold, you may see the airline ask for volunteers to switch, and likely will sweeten the deal with cash," says Nastro. "To sweeten the deal even more, inquire whether they would be able to upgrade you on the alternate flight if you give up your seat. No guarantees this will work, as sometimes policies prevent it, but it doesn't hurt to ask."

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It’s fair to say that most of us make do with economy class, also known as coach or standard, but for those of us looking for a little something extra during our flight, there is always the option to upgrade to a different cabin. 

To better understand the different cabin seat options, we’ll run through what you get for your money for your typical economy, premium economy, business and first class tickets. The first and most important thing to remember is that all seat specs and luxuries (or lack thereof), depend on what airline you’re flying, what airplane you’re on and if you’re on a short or long-haul flight. 

You can see what cabin options are available to you on your next flight by using momondo’s cabin class filter. After making a search on momondo , click the drop-down menu next to ‘number of passengers’. You’ll see options for economy, premium, business and first class – so you can select your preferred way of flying.

Search for flights

Economy class

Kiss your knees goodbye

Generally speaking, in economy class you’ll get a seat that takes you from point A to point B. There are some differences however, the most noticeable of which are seat width and pitch (legroom). Pitch can vary from 28-34 in and width from 17-33 in. While these few inches might not seem like much now, when you’re in that seat for 6+ hours – they matter! Other factors that may vary are power outlets, Wi-Fi, food, in-flight entertainment, type of TV screen and level of service.

Before we move on to premium economy class, we should mention that there could be an in-between class on some flights, especially in the US for example. Not quite premium, but certainly one step above economy is what is known as ‘economy plus’ (or Economy Comfort, Economy XL, among other names). This basically means you are flying with the same service as economy, but you will have a few extra inches of legroom as well as seat recline.

It usually costs a few extra dollars to reserve these few select seats, but at least your seat will feel a bit more spacious and who knows, there might even be a few extra perks like food and drink service or speedy boarding (again this depends on the specific airline you’re flying with).

Search economy

Premium economy class

Premium economy can be called many different things. Virgin America calls it Main Cabin Select, British Airways uses the term World Traveller Plus and SAS calls it SAS Plus. But it’s all the same thing: economy with some added oomph. And added cost, of course. That said, it’s not anywhere near as much as business class airfares.

Flying premium economy will give you a dedicated lounge at the airport, and the seats will be in a different cabin to economy. Usually, you’ll get a wider seat with a greater pitch, larger TV screens, better food (this could be a larger selection, complimentary drinks, etc.), and a greater luggage allowance.

Search premium economy

Business class

Now we’re talking

They say that if you fly business class once, you’ll never be happy in economy again. While it might be hard to easily see the benefits of premium economy over economy, the luxuries of business over premium economy are immediately apparent. Business class is in fact becoming so good, that many airlines have abandoned their first class seats altogether.

Simply put: everything is better. From pre-flight drinks in real glasses, to meals served on real china with proper knives and forks, you’re spoilt rotten. Full flat-bed seats are the general standard for business class, with seat width going as wide as 34 in and pitch all the way to 87 in.

Some airlines even offer a chauffeured pick-up and drop-off service if you live within a certain distance from the airport, and most – if not all – have a dedicated lounge in the airport where you can fill up on free food and drinks.

Never one to shy from excess, Emirates has an entire bar on board exclusively for business class passengers on their flagship A380 planes. The bar is a proper, semi-circular, fully-stocked bar, serving hot and cold snacks and all the cocktails you could manage. What more could you want?

Search business class

First class

The pinnacle of air travel, first class is reserved for celebrities and the super-rich (or the super-lucky). Think all the perks from business, lathered with a thick layer of luxury. Aside from privacy and seat size (bear in mind that many first class flights don’t so much have seats, as individual suites),  noticeable difference is price, with seats costing up to five times as much as business class seats.

The standard of service is incomparable in first class, with highly trained crew able to anticipate a passenger’s every need. The standard of food leaps up a notch up too, with many menus and dishes created by Michelin starred chefs.

Search first class

If you’re interested in knowing more about  seats for specific flights, don’t forget you can always check sites like SeatExpert to find out details about particular seats, on particular aircraft, with particular airlines. Alternatively, the airline’s site will have details regarding each of their classes and planes.

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Understanding the differences between economy and premium economy

Premium economy aims to bridge the gap between economy class and business class , and it can be an affordable way to ensure you have a more comfortable journey. If you've never flow premium economy before and are wondering what the differences will be and if it's worth the extra cash and/or points or miles, here are the differences between British Airways (called World Traveller Plus or WTP) and Virgin Atlantic (called Premium), just as an example.

It is worth noting that it is most definitely "premium economy" and not "business light" -- all airlines' premium economy experience will be much closer to economy class than business class. Don't expect a seat that goes fully flat or gourmet cuisine and Champagne -- it's much more like economy class with a few more bells and whistles.

Here are some TPG reviews of premium economy on both British Airways and Virgin Atlantic:

• Refreshed but with room for refinement: A review of British Airways World Traveller Plus on the refurbished 777
• Trifecta of Mediocrity: British Airways' Premium Economy on the Boeing 787-8, 787-9 and 747
• Premium, upgraded: A review of Virgin Atlantic's new Premium product on the A350
• A Fine Mess: A Review of Virgin Atlantic's Premium Economy on the A330 From London to New York

Check-in, baggage and boarding

Virgin Atlantic provides priority check-in for Premium passengers, while British Airways does not for its World Traveller Plus (WTP) passengers. On both airlines, you can expect greater checked luggage allowance in premium economy -- two checked bags with a maximum weight of 50 lbs. each, instead of the standard one bag of 50 lbs. With Virgin, your baggage will also be tagged as priority, so it should be delivered faster than standard economy bags.

Both airlines offer priority boarding to premium economy passengers, so you have a little extra time to settle in before the flight leaves the gate. Be aware that all economy passengers will board by walking through the premium economy cabin first, so if you do decide to use the priority boarding and board nice and early, hundreds of passengers will be trampling down the aisle to get past you to reach the economy cabin.

Lounge access

Neither British Airways nor Virgin Atlantic offers lounge access to economy or premium economy passengers unless they have the required elite status.

The seat and cabin

Perhaps the most noticeable difference between economy and premium economy will be in your seat itself. You can expect a slightly wider seat with one or two fewer seats per row compared with economy, around four to five more inches of legroom and the seat will recline noticeably further. It is still very much an upright seat though -- it doesn't go anywhere close to angled flat .

Virgin Atlantic allows Premium passengers to select their seat for free at any time, while British Airways does not unless you have Executive Club or Oneworld elite status.

The premium economy cabin will be smaller than the economy cabins -- depending on the airline and aircraft type it may just be four or five rows of premium economy versus dozens of rows of regular economy. This will make the cabin feel more intimate, quiet and exclusive.

You'll usually be provided with a small pillow blanket and cheap headphones in regular economy class. You'll receive the same in premium economy although they will be slightly bigger and better quality. You will receive a small, basic amenity kit in premium economy with Virgin and British Airways, which you can expect to contain the following:

In-flight entertainment

The seat-back screen in premium economy will generally be slightly bigger than a standard economy seat, though the content available (the number and type of movies, TV shows and games) will be exactly the same as in economy.

Related: The airlines' moneymaker: Premium economy

Food and drinks

This is the area I have consistently been most disappointed by in premium economy. The easiest way to explain the food is that it is standard economy food served in slightly better containers. British Airways promises its World Traveller Plus passengers that they can expect a main course "from the Club World kitchen," meaning the same as business-class passengers receive.

Don't get too excited. The cut of meat may be marginally better than those down the "back of the bus" receive, but while British Airways recently dramatically improved the presentation of its Club World meals by plating them individually rather than just reheating them in the container they were loaded in, unfortunately, BA did not extend this service improvement to WTP passengers.

So while this is what an actual main meal in Club World looks like:

Here is what the "main from the Club World kitchen" in WTP actually looks like:

While here is the meal served to regular economy passengers on British Airways:

Other than the plates used, there's not a huge difference between economy and premium economy.

Over at Virgin Atlantic, it's not much different. Here's a Virgin Premium meal:

And here's a Virgin economy meal:

Similar food, just served differently.

Beverages wise, it is slightly better. On both airlines, you'll be served a welcome glass of prosecco, water or juice during the boarding process that you certainly won't receive in economy. Singapore Airlines actually has Champagne during the meal service for premium economy, but with BA and Virgin, the beverages are mostly the same as in economy.

You will usually have dedicated crew for your small premium economy cabin. If not, they will at least serve your cabin before making their way back to the economy cabin. This means you'll get your meal faster and the service may be slightly more personalized, though don't expect to be addressed by your name at each interaction like you might in business or first class.

Mileage earning

You'll earn more points or miles for a cash premium economy fare than the equivalent in economy. Virgin awards 100% of miles flown for the cheapest premium fares, while only awarding 50% miles flown for discount economy. On British Airways, you'll also earn 100% on a discount WTP cash fare, versus as little as only 25% on a discounted World Traveller economy fare.

The same applies for your Tier Points if you're chasing elite status -- you'll receive more in premium economy than economy.

Bottom line

I've flown both economy and premium economy on the likes of British Airways, Virgin Atlantic, Norwegian and Singapore Airlines. In my experience, premium economy is slightly better than economy, but not by much. It is unlikely one person would have an amazing experience in premium economy and another person have a terrible experience in economy on the same plane at the same time .

For me, the slightly wider seat, more legroom and recline are the best benefits. I'm consistently disappointed with the food as it is so close to standard economy class food, just slightly better presented.

Business class is where you'll notice the real differences. If you can splurge for premium economy over economy, then it's a slightly more comfortable ride, though set your expectations closer to economy than business class.

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Business Plan vs. Business Proposal

• May 15, 2024

When you start a new business or own a young company, you often hear terms like business plan or business proposal. But the question is: do you need a business plan? Or is it a proposal that you need? Or both?

Being new to the game, these terms can seem quite intimidating, and you probably don’t know where to start.

Don’t worry. We’ve created a simple business plan vs. business proposal comparison so you can determine which one to prioritize.

Let’s start by defining them!

What is a business plan?

A business plan documents a company, its business objectives, and how it plans to achieve them. It includes data regarding business goals, marketing strategies, products, services, market research, financial projections, and the dream team.

Pretty much everything a company will use to achieve its intentions.

Okay! And what about the business proposal?

What is a business proposal?

On the other hand, a business proposal is a document that describes your business’s offerings, like a product or service, to help you win potential clients and partners.

It also outlines your business, including its unique value proposition and how your company can help solve customers’ specific problems.

Now that we know the two business documents aren’t the same let’s see how they are different and in what ways.

Business plan vs. business proposal: How are they different?

Even though used interchangeably (and wrongly), a business plan and proposal are poles apart. Here’s how:

Before you ask why you need a business plan , it’s, first and foremost, to legitimize a business idea that you’ve been brewing in your head.

But it’s also to document company strategies, objectives, and operations that help you create a clear idea on how to achieve your company goals. All that data becomes one source of truth that works as a communication tool. That becomes your golden ticket to wooing investors and lenders.

On the other hand, a business proposal’s purpose is entirely about convincing a potential client and partner that your project is worth their time and money.

Unlike a business plan, it only focuses on a specific product, service, or opportunity instead of the entire business.

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2. Components and Structure

When you write your business plan , it will typically follow a specific structure containing the following components:

• Executive summary: This summary summarizes your entire business plan, highlighting the most important aspects, such as your company’s mission, financial projections, and vision statement.
• Company description: It reveals your company’s history, mission, value proposition, detailed description of products and services, achievements, and target market.
• Industry or market analysis: This is an analysis of the industry landscape to gain statistics about market needs, size, trends, competitors, and target demographics.
• Marketing plan: This includes different marketing strategies and approaches your company will take to market its products and services. It can be your pricing strategy, sales and distribution plan, and unique selling proposition.
• Operations plan: This component reveals how a company’s operations would look on a day-to-day basis.
• Organizational structure and management team: This section provides an overview of your company’s structure and how its management teams will execute the operations plan effectively.
• Financial projections and goals: This section contains a company’s financial performance, including income, sales goals, cash flow projections, and balance sheets.

Similarly, when you write a business proposal , you’ll typically encounter a structure as well. It goes like this:

• Cover or title page: To make a first impression. It can contain aesthetic visuals.
• Introduction: To introduce yourself and your company. Also, briefly explain how your product or service will solve a specific problem.
• Statement of the problem or project: To explain your understanding of the customer’s need, its importance in addressing it, and your right-fit, proposed solution.
• Table of contents: To make your data essay accessible.
• Project details: To communicate essential data, including objective, scope, timeline, key stakeholders, disclaimers, cost, and conclusion.
• Agreement with a signature box: To obtain the client’s signature.

3. Audience

A business plan’s target audience is internal stakeholders, investors, and lenders interested in your company’s long-term goals and path to success.

On the flip side, business proposals go to potential clients from established businesses. They target external or new clients, partners, or funding agencies with a specific focus on:

• Addressing customer needs
• Solving customer problems
• Or seizing opportunities

Do you know how many types of businesses exist today? Two words: Too many!

Now, that implies there are many different types of business plans. But here’s a quick list of the most common types:

• Startup business plan: This plan describes the foundation of a new business with room to adjust as the company grows. It’s given to potential investors to ask for startup funding.
• Internal business plan: In this plan, company leaders communicate business goals, strategy, and performance. The aim is to keep the board and the team in sync regarding business objectives.
• Strategic business plan: This plan documents the framework required to keep long-term goals and company vision intact.
• Growth business plan: Also known as an expansion plan, this plan describes how a company is trying to grow and hence requires greater resources like more employees, funds, materials, etc.

Business proposal types can be broadly divided into two categories:

• Solicited business proposals: In this case, a prospective client requests the informational document from you directly or expects to receive it—implicating their interest in your products or services.
• Unsolicited business proposals: Here, no client requests the documents. Instead, you take the cold email approach and send your unsolicited proposals to people you think are prospective clients or partners.

Business Proposal and Planning Best Practices

It’s already challenging to overcome market entry barriers in saturated markets and persuade potential investors. Creating a compelling business proposal and plan shouldn’t be too!

Here’s how to go about it:

• Clearly define your business goals and objectives.
• Make sure you get your audience right. (Business plans and proposals have different audiences, remember?)
• Conduct in depth research and analysis.
• Use pictures along with words, such as visuals and statistics, to support your claims and projections.
• Pay attention to the writing style, structure, and tone depending on your audience and purpose.
• Use software like an AI business plan generator or proposal templates to save time and effort.
• Review and revise regularly.

Start creating effective business plans and proposals using Upmetrics

It’s okay if you were confused about the difference between a business plan and a proposal before today. You now know the distinction between the two lies in their purpose, components, structure, audience, and type.

While a business plan provides a thorough overview of the entire business and targets internal stakeholders, investors, and lenders, a business proposal focuses on specific projects or opportunities and targets external clients, partners, or funding agencies.

When you understand these differences and employ the best practices in creating both documents, your business can effectively communicate its vision, strategy, and value proposition, securing a solid spot in this competitive world.

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Frequently Asked Questions

What is the difference between a business plan and a business idea.

A business idea is a concept’s initial spark for a product, service, or opportunity. However, a business plan is a detailed document outlining how a business idea will be executed and managed.

How many pages is a business proposal?

A good proposal is 10-20 pages long. However, it can be longer based on the industry, buyer requirements, product or service type, the scale of buyer needs, and other aspects unique to the business.

What comes first, a business plan or business proposal?

The business plan comes first since it legitimizes a business idea. Then comes a proposal because it’s specific to a particular project or opportunity and not the business as a whole.

Do I actually need a business plan?

A business plan is a detailed roadmap for your entire venture. It helps you gain investments, beat competition, make sound decisions, communicate with stakeholders, and identify risks. So, yes, you need a business plan.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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• Key Differences

Know the Differences & Comparisons

Difference Between Economy Class and Business Class

In an airline, these areas are separated by a door or panel. Passengers cannot enter the other area except when they are permitted to do so.

Those who have never travelled by flight always wonder why there is such a big difference between economy class and business class flight tickets. The flight route is the same, and the destination and take-off is also the same. In fact, the plane on which the passengers are travelling and the cabin crew are also the same.

These two flight classes provide significantly different experiences, from ticket prices to privileges. While one focuses on passengers’ affordability, the other focuses on comfort and pampering.

So, friends, it is the ‘ extras ‘ that costs higher in business class. For a person travelling in business class, it is the extra privileges he gets like he is allowed on and off the plane first. In fact, the seats have more arm and leg room.

Content: Economy Class Vs Business Class

Comparison chart, what is economy class, what is business class.

Economy Class is the third-tier or the lowest class in aeroplane travel. Some call it coach , while others call it cattle class , but it is the basic class. The seats are less spacious. The ticket prices are cheaper than the other classes.

Economy class is different on different flights depending on the airline. Similarly, the airlines give different names to it. Passengers of this class are not entitled to get a refund on their tickets or cancel them. To get the tickets at cheaper rates, passengers generally book tickets in advance. And because it is the cheapest of all the classes, it is the highest-selling class of seats . So, the seats get full easily.

What is Premium Economy Class?

It is an additional service which a few airlines offer. They offer better seating facilities to the passengers.

In this class, seats are very close to each other, and overhead bin space is also limited. Furthermore, passengers share the armrest. Also, there are 3 to 4 seats per section. It has minimum legroom.

It is a class for budget-sensitive travellers. However, it is the cheapest option to fly. In this, the passenger does not have to pay for the bells and whistles. You only pay for convenience to reach from Point A to Point B.

Some airlines offer in-flight meals to passengers for economy class. However, the variety of meals to choose from is limited. Also, the food is to be served in large volumes, so conveyor belts are used for cooking economy-class meals.

Flyer Programs

Economy class passengers get more modest benefits by way of frequent flyer programs. Some of those benefits include earning and redeeming points for flights, exclusive discounts, rewards and offers.

Do you know?

All the airline companies began with first class. Delta Airlines came up with the idea of boarding more passengers.

Also Read : Difference Between Domestic and International Business

Business Class is the second-tier class in aeroplane travel. It is the median between economy class and first class. Nevertheless, there are some airlines that offer business class as their best level of service.

Business class tickets provide passengers with larger seats, exquisite meals and other amenities. Basically, in business class, you are paying that extra money for VIP treatment. And all of this comes with a heavy price tag.

Seating size is smaller in comparison to first class but larger in comparison to economy class. So there is enough space to stretch out and relax. Moreover, it offers a recliner, a fully flat, cabin, and angled lie-flat seats. There is more legroom in Business Class seats. The business class passengers get a television screen. Further, there are four washrooms for a small number of passengers.

Business Class seats are expensive. They are just triple the price of Economy Class, but cheaper than First Class. The departure airport has dedicated business class check-in counters, which are less crowded.

Lounge Services

Also, it gives you access to the airport lounge, which you could use to relax and work before you enter the flight. However, the quality of the lounge differs on account of the airline you are boarding and the airport terminal from where you are departing.

When it comes to meals, the menu contains more options. Generally, workstations are used for producing tray seats for passengers.

Priority Check-in

A priority check-in facility is available for the luggage of business class passengers. This means they will come first upon arrival. And for the same flight, business class passengers get more frequent flyer miles.

Business Class passengers get a number of benefits in the frequent flyer programs. They are eligible for upgrades. Also, free flight changes and cancellations are allowed for them.

Qantas was the first airline that offered separate cabins, business class, in the year 1979. Other airline companies adopted this concept. Hence, 3-class service on the long-haul flight has become a practice since then.

Also Read : Difference Between Import and Export

Key Differences Between Economy Class and Business Class

• Economy Class is the basic class in aeroplane travel. It is best for budget-friendly customers. That allows one to travel long distances at a minimum price. On the other hand, there is Business Class, which is a noticeable upgrade over the economy one. It does not just offer comfortable seating and attentive services but also meals cooked by a star chef.
• Generally, a multi-course meal is served in a business class. However, for economy-class passengers, only a single-tray meal is offered.
• The price of the business class is almost three times more than the economy class. However, there are a number of privileges associated with business class tickets,
• Economy Class customers have to board flights from a crowded queue. On the other hand, there is a separate counter for Business Class to board flights that is less crowded.
• Business class passengers are allowed to bring more luggage than economy class passengers.
• Business Class seats are wider. Also, it can be extended, and one can lie down flat on the seat. But seating in the economy class is the narrowest of all. Also, due to its minimum price, it is usually crowded.

Nowadays, all the airlines offer the economy class. It is the best option for short flights. For travellers, who go with affordability, economy-class tickets are the best for you. However, business class is the right alternative if you are looking for a comfortable or pleasant journey.

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Don't call them DINKs. Many childfree adults are ALICEs.

• DINKs are known for having disposable income, but some childfree adults are also struggling.
• In fact, many childfree adults are ALICEs — asset-limited, income-constrained, and employed.
• Without dependents, many low-income workers have a harder time accessing tax credits and government assistance.

America's DINKs — dual-income couples with no children — are known for having disposable income and spending their paychecks on major investments, luxury vacations , and early retirement .

These households have previously told Business Insider that they can spend extra money on their lifestyle because they don't have any child-related costs. By definition, DINKs aren't necessarily rich , but they do have a reputation for living a life of freedom and excess cash.

A growing number of child - free adults , however, are falling through the cracks of the US economy. Many low-income childfree adults fall into the ALICE category — people who are asset-limited, income-constrained, and employed. Twenty-nine percent of US households make too much to qualify for government assistance but not enough to comfortably afford daily life . And ALICEs who aren't parents face unique challenges: it is especially difficult to qualify for financial help or tax credits without young children, even if you need the help.

According to a report published in April by the Brookings Institution, the US doesn't have a strong financial safety net to support childfree ALICEs. This is partly because having financially dependent children is a prerequisite of some government assistance programs .

Poor, non-elderly adults who are not raising children and don't qualify for disability benefits made up nearly 106 million people in 2017, according to a Census analysis . What's more, they have a higher risk of experiencing homelessness and long-term poverty, per the Brookings report.

Low-income adults without children face barriers to government assistance

Low-income, childfree adults have a higher likelihood of falling into poverty, and often stay in poverty long-term because they can't access assistance, wrote Robert Greenstein, the author of the Brookings report.

Related stories

"The safety net for these non-elderly childless adults is so limited, those non-elderly adults who are poor tend to be poorer than others living in poverty," wrote Greenstein, who is also a visiting fellow of economic studies for the Brookings Institution, which is affiliated with The Hamilton Project, an economic policy initiative.

The report found that half of the Americans living in "deep poverty" — those with incomes that are at or below 50% of the poverty line, which is $7,290 annually for one person — are childfree adults not receiving disability benefits.

Greenstein wrote that this population is at a disadvantage when applying for government support, especially as it comes to tax credits and housing assistance, even if their household income is low.

For example, they don't qualify for the child tax credit , which allows families with dependents to receive thousands of dollars in tax breaks each year. The Earned Income Tax Credit — which offers refundable tax credits for low- and moderate-income workers — is also very limited for childfree employees, who receive fewer than 4% of the EITC's overall benefits, according to the Brookings report.

Greenstein also wrote that over 7 million low-income adults who are between the ages of 18 to 61 and don't live with minors pay more than 50% of their income on rent — making them severely rent-burdened. The majority of these adults don't receive any state or federal rental assistance.

Additionally, parents can more easily access SNAP food benefits than childfree adults because they are exempt from having to work a required amount of hours each week to receive assistance.

Many Social Security and Medicare programs also primarily offer assistance to older adults, excluding adults under 62.

Although strengthening the US financial safety net for this population is complex, Greenstein offered a few solutions. He suggested expanding the Earned Income Tax Credit to benefit more adults without children, along with removing the extra qualifications childfree adults must meet to access SNAP benefits.

An expansion of Medicaid through the Affordable Care Act would also allow more adults to get the healthcare they need — even if they don't qualify for disability benefits or Social Security, Greenstein said.

Are you making an income above the poverty line but still struggling to afford daily life? Have you faced challenges qualifying for government assistance because you don't have children? Reach out to this reporter at [email protected] .

Watch: Supreme Court strikes down Biden's student-debt relief plan

• Main content

Business vs. Entrepreneurship: What’s the Difference Between These Degree Paths?

Business is an evolving, in-demand, and dynamic industry full of diverse career paths. Within the field, there is truly something for everyone: number-crunchers, strategic thinkers, creative marketers, organizers, decision-makers, budgeters, motivational leaders, and, of course, ambitious entrepreneurs. No matter your skill sets and interests, the world of business has something to offer you.

For individuals who have maybe dreamt up a start-up, or have goals to run a company, there are two typical pathways you can pursue in business school: business and entrepreneurship. While these terms are often used interchangeably, they involve unique approaches and mindsets, and therefore slightly different studies and career outcomes.

Business vs. entrepreneurship definitions

At a high-level, business refers to the producing, buying, and selling of goods or services in exchange for profit. It is an overarching job sector that encompasses a wide range of operations, including manufacturing, retail, finance, marketing, leadership, and more. At its core, business involves the creation and exchange of value between individuals, organizations, or entities. It often operates within a structured framework, with defined goals, processes, and hierarchies with an organization or company. Businesses can vary in size, from small start-ups to large global corporations, but all types of businesses play a key role in driving economic growth, creating employment opportunities, and satisfying the needs and wants of their consumers. The most successful businesses effectively manage resources, adapt to market changes, and strive for innovation and efficiency to remain competitive in their respective industries.

Entrepreneurship , on the other hand, refers to the process of identifying, creating, and pursuing new business ventures. These ventures are typically established with the goal of addressing unmet needs in an industry, or creating value in new and novel ways. For example, an entrepreneur might start a tech company, launch a new business, or design a new product. Sometimes, entrepreneurs will innovate within existing companies, but all share the common drive to bring their business ideas and concepts to fruition. Entrepreneurship, as a branch of business, embodies a mindset characterized by innovation, creativity, risk-taking, and the willingness to undertake challenges in pursuit of one’s goals. Successful entrepreneurs possess vision, initiative, and determination, as well as the skills needed to break into a competitive market and thrive.

Now, the question is: As an aspiring business leader, which area of study is best for you?

Business degrees vs. entrepreneurship programs

Business and entrepreneurship programs are both incredible options for business-minded individuals, and can help you develop valuable, versatile skills that can be applied to any career. However, the subject matter of these programs can vary, so it’s important to do your research before choosing the best degree program for you.

There are many different types of business degrees but, most commonly, the term “business degree” refers to a business administration degree. Business administration degree programs cover a broad range of topics related to various aspects of operating a business. They typically include courses in management, finance, economics, customer relations, accounting, marketing, and business law and ethics. The specific curriculum will vary depending on the degree you choose, as business administration programs can be found at the associate, bachelor’s, and master’s degree level.

Because of the broader nature of business administration, many programs will enable you to carve your own path through a concentration or customized elective coursework. For example, at Goodwin University, our BS in business offers 27 credits of open electives, as well as directed electives, so that students can hone in on their interests and professional goals. For some, this might involve taking more courses in entrepreneurship and small business management. For others, it might also involve studies in modern marketing methods.

Interested in earning a business degree? Download our free guide to getting started .

Entrepreneurship degree programs, as you might expect, are more concentrated in focus than a business administration degree. These programs focus on the knowledge one needs to start, grow, and manage a new business venture. While entrepreneurship programs may cover some foundational business topics (e.g. accounting and marketing) to prepare students for the daily operations, they typically place a greater emphasis on subjects and skills relevant to entrepreneurship , such as market research, business plan development, and leadership.

Entrepreneurship degrees may be offered in silo. More often, however, you might find that entrepreneurship is a concentration or specialization that you can pursue within a business degree program. At Goodwin University, for example, students within our associate degree program have the option to complete dedicated entrepreneurial coursework and a practical internship. Through this experience, students gain hands-on practice in small business management and walk away with the capacity to bring their own business to life.

While both business and entrepreneurship programs provide valuable knowledge and skills, a business administration degree offers a broader foundation in various aspects of business management, and an entrepreneurship program offers a more specialized focus on starting and growing new ventures. These differences translate to the varying career options and outcomes available after graduation from either type of program.

Business vs. entrepreneurship career options

Business degree programs offer a comprehensive understanding of how businesses function and operate and, as noted above, cover a breadth of topics related to daily management. Business degree candidates learn the ins and outs of strategic planning, operations management, and customer relations. They gain transferable skills and fundamental knowledge in areas from human resources to marketing/advertising. As a result, they leave well-equipped for careers in (but not limited to):

• Business management
• Human resources (HR)

Entrepreneurship studies are specifically focused on bringing business ideas to life, and giving students the tools they need to launch, as well as operate, their own business successfully. They offer students skills in business development, market research, small business management, and more. Graduates of an entrepreneurship-focused program will be best suited to:

• Achieve leadership roles
• Consult other small businesses
• Start and run their own company
• Work within existing corporations to inspire and innovate (called intrapreneurship)

At the end of the day, choosing the right degree for you is as simple as evaluating your specific career goals, interests, and aspirations within the business world. If you desire a lucrative career in business, a business administration degree is a great way to develop your foundational skills and knowledge. But if you are looking for the specific tools and knowledge needed to launch a business of your own, an entrepreneurship program is going to be a better fit for your needs.

Whether you are interested in entrepreneurship, or looking to explore your options in business school, Goodwin is here to guide you. Learn about our business programs in Connecticut by visiting us online here !

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How Biden’s Trade War With China Differs From Trump’s

The president is trying a targeted approach, with allies, to beat Beijing in the race to own the clean energy future. Those weren’t his predecessor’s goals.

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By Jim Tankersley

Jim Tankersley has covered tariffs and China policy across several presidential administrations.

Joseph R. Biden Jr. ran for the White House as a sharp critic of President Donald J. Trump’s crackdown on trade with China. In office, though, he has taken Mr. Trump’s trade war with Beijing and escalated it, albeit with a very different aim.

The two men, locked in a rematch election this fall, share a rhetorical fondness for beating up on China’s economic practices, including accusing the Chinese of cheating at global trade. They also share a building-block policy for countering Beijing: hundreds of billions of dollars in tariffs, or taxes, on Chinese imports. Those tariffs were first imposed by Mr. Trump and have been maintained by President Biden.

On Tuesday, Mr. Biden announced that he is increasing some of those tariffs. That includes quadrupling electric vehicle tariffs to 100 percent, tripling certain levies on steel and aluminum products to 25 percent, and doubling the rate on semiconductors to 50 percent.

But Mr. Biden’s trade war differs from Mr. Trump’s in important ways. Mr. Trump was trying to bring back a broad swath of factory jobs outsourced to China. Mr. Biden is seeking to increase production and jobs in a select group of emerging high-tech industries — including clean energy sectors, like electric vehicles, that Mr. Trump shows little interest in cultivating.

Mr. Biden has pulled more policy levers, some of them created by Mr. Trump. He has imposed more restrictions on trade with China, including limiting sales of American technology to Beijing, while funneling federal subsidies to American manufacturers trying to compete with Chinese production.

And in a sharp break from Mr. Trump’s go-it-alone posture, Mr. Biden’s strategy relies on bringing international allies together to counter China through a mix of domestic incentives and, potentially, coordinated tariffs on Chinese goods.

As they compete for the White House again, Mr. Biden and Mr. Trump are both promising to further increase trade pressure on China, which both men accuse of unfair trade practices that disadvantage American workers. Here is how their plans overlap, and where they diverge sharply.

Mr. Trump’s plan includes more tariffs and less trade.

Mr. Trump broke decades of political consensus by pushing aggressive restrictions on trade with China as president. He imposed tariffs on more than $360 billion worth of Chinese products, including toys, electronics and household furnishings, drawing retaliatory tariffs from Beijing.

In 2020, he struck an agreement with Chinese officials that called for China to increase its purchases of exported goods from America, including agricultural products, and carry out a series of economic reforms. China came nowhere close to fulfilling those terms . Lael Brainard, the director of Mr. Biden’s National Economic Council, told reporters this week that the deal “did not deliver on its promises.”

Mr. Trump has pledged new efforts to sever the nations’ trading relationship if he is elected to a second term. Those include barriers to investment between the two countries, along with bans on imports of Chinese steel, electronics and pharmaceuticals. He has also proposed an additional 10 percent tariff on all imports to the United States, not just those from China. And he has criticized Mr. Biden.

Chinese officials were “petrified of me putting on additional tariffs,” Mr. Trump told CNBC in March. “And we don’t use that, China is right now our boss. They are the boss of the United States, almost like we’re a subsidiary of China, and that’s because the Biden administration has been so weak.”

Mr. Biden is building on his predecessor’s efforts.

Mr. Biden was once a critic of Mr. Trump’s tariffs. “President Trump may think he’s being tough on China,” Mr. Biden said in a 2019 speech , as a candidate for president, “but all he has delivered is more pain for American farmers, manufacturers and consumers.”

Early in Mr. Biden’s administration, his aides debated rolling back many of Mr. Trump’s taxes on Chinese imports to ease the pain of rapid price increases. They ultimately decided against it. Instead, Mr. Biden will announce on Tuesday that he is increasing tariffs on about $18 billion worth of Chinese imports, including solar cells, ship-to-shore cranes and certain medical technologies.

His administration has also imposed new restrictions on exports of American semiconductors and chip-making materials to China, and it has taken the first step to cracking down on imported Chinese smart-car technologies .

Administration officials offer economic rationale for all of those moves. But Mr. Biden is also responding to swing-state political pressures — and seeking to outflank Mr. Trump on the China issue. Last month, he called for higher taxes on Chinese heavy metal imports in a speech to steelworkers in Pennsylvania, a crucial state where polls show he is struggling to overcome voter anxiety about the economy.

And while Biden aides say his tariff approach is more targeted — and, by extension, more effective — than Mr. Trump’s, the president has notably decided not to roll back any of the original tariffs that Mr. Trump imposed on Chinese products.

A greener war, with allies this time.

Mr. Biden has tailored his policy, though. He has consciously coupled new restrictions on China trade with the strategic investments, in the form of government spending and tax credits, that he has used to entice new factory production in a handful of targeted sectors.

Perhaps no product better exemplifies the divergence between Mr. Biden and Mr. Trump on trade policy than electric vehicles. Mr. Trump sees them as a scourge, and has said efforts to accelerate their adoption will result in an “assassination” of American jobs .

Mr. Biden has signed multiple laws meant to supercharge electric vehicle production and consumption in the United States, including an infrastructure bill with funding for 500,000 charging stations and a climate law with lucrative incentives to make and sell the vehicles in the United States. They are part of an ambitious industrial strategy to build up American factory capacity for a host of clean energy technologies meant to fight climate change and to dominate advanced manufacturing industries globally for decades to come.

Mr. Biden is increasingly worried that a flood of low-cost electric cars and other goods from China could undermine those efforts, and he is using trade policy to protect his industrial investments. His tariff increases planned for Tuesday include a quadrupling of the rate on imported electric vehicles, to 100 percent.

And while Mr. Trump antagonized allies by imposing tariffs on steel and aluminum from Japan, the European Union and elsewhere, the president has sought to bring together a coalition of wealthy democracies to battle China in clean energy. His administration led an effort at the Group of 7 summit last year to outline a harmonized strategy of subsidies to compete with China’s state funding for new technologies.

Many current and former administration officials hope that cooperation will now extend to tariffs as well, starting with Europe, which is conducting its own investigations of Chinese trade practices and appears poised to raise its existing tax rate on imported Chinese electric vehicles.

Jim Tankersley writes about economic policy at the White House and how it affects the country and the world. He has covered the topic for more than a dozen years in Washington, with a focus on the middle class. More about Jim Tankersley