A business model ascertains how your business makes money. It identifies the services that your customers value and shows how your business will earn revenue from providing these services. Financial statements form a key part of the business model.
The business plan provides the detailed road map of your business. It takes the focus of the business model and builds upon it. It explains the equipment and staff needed to meet the details of the business model. It also explains the marketing strategy of your business, or how your business will attract and retain customers, and deal with the competition. Furthermore, the business plan illustrates the financial stability of your business at a particular point in time, as well as in the forecasted future.
In brief, the business plan supports the business model and explains the strategy needed to achieve the goals of that model.
The business plan is completely dependent upon the business model. The business model explains the flow of money within the company and the business plan the structure needed to obtain that flow of money.
An action plan integrates all of the strategies you have developed in your business plan into a highly organized and prioritised plan of action designed to achieve your stated business goals. It is a step-by-step action-oriented document that helps you start your business without getting overwhelmed or losing control.