Most people know that an important step to begin a new business is to write out a business plan.

The biggest problem with a business plan is that it is typically a compilation of subjective material designed to support an entirely emotionally-based decision-making process (no matter how logical and objective we think it is).

Believe me …I’ve seen LOTS of plans and even written a few for myself.

And, let’s face it: We come up with a ‘brilliant’ idea, then look for all sorts of data sources that support and prove our assumptions about the market demand for our idea, the brilliant people on our team, 5-year forecast and revenue model, and so forth.

Steve Blank wrote and excellent post that describes the difference between a business plan and a business model.

As Steve succinctly illustrates, while a business PLAN is static and “forces you to think through all the parts of your business” and make it profitable, a business MODEL is dynamic and “describes how your company creates, delivers and captures value.”

The business model shows how all the different parts of your business actually sync together as the gears are turning.

The MODEL creation step also incorporates developing a real-world testing model, such as landing pages, keywords and customer acquisition costs to gather hard-core, preliminary data.

Both are necessary, yet few start-ups ever develop initial real-world scenarios to see if their idea or projection costs are actually viable.

Are your “worst case” scenarios REALLY worst case?

As a marketer who has consulted with countless businesses about their online strategy, I can’t begin to tell you how many genuinely sharp-minded business people simply budget for “online” with zero modeling or testing …blindly assuming that the idea they implement will simply work the first time through.

Then, they’re surprised when their sites are sandboxed by Google (or worse) for 6 to 12 months -a potentially fatal oversight to their business.

I fully agree with Steve that, while it’s necessary to completely think things through in your head and compile them into a formal profitability plan for your new business, you must also go out and gather external, measurable, tangible real-world data from a scaled-down model before you begin day one.

Without crucial, objective testing, you are heavily pitted in favor of complete failure.

“Unless you have tested the assumptions in your business model first, outside the building, your business plan is just creative writing.” ~ Steve Blank

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Mike Lewitz is an innovative marketer who truly 'gets' the mental and emotional buying process of consumers. He's shown thousands of global business owners proven, cutting-edge marketing methods that bring abundant results.  Mike is a Google Certified Advertising Professional, holds two Bachelor's degrees (business & marketing) and M.B.A. in Management.

You may freely distribute, copy & share this article with acknowledgment.

Consider these two questions:
A.) If you want someone to buy from you, who has the power to determine whether a transaction takes place or not, them or you?
B.) If someone wants to buy something from you, NOW who has the power to determine whether a transaction takes place or not?

On one side of the power equation you are giving up your power.  On the other side you keep your power.

In which scenario would you rather have your business?

Businesses and people who achieve peak sales levels have discovered ways to use psychological triggers to entice people into wanting to buy from them without ever trying to convince anyone of anything.

People who really want something will always figure out a way to obtain it.  Discovering how to create this desire in people will cause others to demand what you sell …keeping you on the preferred side of the power equation.

If you stay on the ‘convincing’ side of the power equation, your success will only be based on how many doors you can tirelessly knock on per day, working to convince people that they should buy from you.

If you master the principles of marketing using psychological triggers to entice people to want to buy from you, your sales will close much easier.

While the old ‘sales-based’ approaches of convincing people to buy still work and will likely always produce a certain level of results, if your business uses a sales-based ‘convincing’ approach to get clients and close deals, you will discover that as time moves forward it will become increasingly difficult to grow until you learn the psychological factors that attract buyers to you.

“The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn.” ~ Alvin Toffler

Mike Lewitz is an innovative marketer who truly 'gets' the mental and emotional buying process of consumers. He's shown thousands of global business owners proven, cutting-edge marketing methods that bring abundant results.  Mike is a Google Certified Advertising Professional, holds two Bachelor's degrees (business & marketing) and M.B.A. in Management.

You may freely distribute, copy & share this article with acknowledgment.

The businesses who struggle focus on the ideas of themselves.

Does the name of your company and/or product mean something clever to you, or does it mean something valuable to your customers.

Here’s how to test:
The first time people see or hear your business/product name, do they instantly recognize it as something valuable to them, or do people ask “What’s that?” or “What does that mean?”

Businesses who survive have discovered ways to gain an instant recognition of value in the mind of their customer the moment the name of their company or product is seen or heard.

If you become a master of getting into the mind of your customer and understand his or her needs, fears, frustrations and goals, you will connect with them on many levels, building trust.  This will quickly increase your sales and attract many who will benefit from what your business has to offer because they will recognize your value much faster, enticing them to want to buy from you.  The application of this level of connection will give you power and influence over others and attract other to you, asking what you your secrets are.

If you choose not to develop a profound understanding of your customer’s needs, fears, frustrations and goals, you will need to use outdated sales methods of trying to convince people to buy from you.  In our now over-communicated society, buyers are more skeptical than ever, inundated with businesses trying to convince them to buy from them.  So, using methods of convincing people to buy is a steep, uphill battle that cause people to become less trusting of you and your business.  Failing to achieve the connection with others by not profoundly understanding their needs, fears, frustrations and goals will require you to work much harder to keep your business alive.

Mike Lewitz is an innovative marketer who truly 'gets' the mental and emotional buying process of consumers. He's shown thousands of global business owners proven, cutting-edge marketing methods that bring abundant results.  Mike is a Google Certified Advertising Professional, holds two Bachelor's degrees (business & marketing) and M.B.A. in Management.

You may freely distribute, copy & share this article with acknowledgment.

EVERY decision in your business should be based only on the perspective of your prospect and solid DATA.  The #1 rule in marketing is to test EVERYTHING!

The reason why most business decisions fail is because most owners make decisions based on their opinion or how they feel about something.

If you always make your business decisions based only on quantifiable data, your business will consistently grow in the direction of what your customers want, you’ll continually attract a larger audience, and you’ll have power and influence over significant groups of people.

If you typically make your business decisions based on how you feel (as most inexperienced business owners do), you will frequently struggle to give your customers what they want because your successes will be ‘hit or miss,’ the audience you attract will become stagnant, and you’ll actually tend to push people away from doing business with you, giving you very little influence over people.

Mike Lewitz is an innovative marketer who truly 'gets' the mental and emotional buying process of consumers. He's shown thousands of global business owners proven, cutting-edge marketing methods that bring abundant results.  Mike is a Google Certified Advertising Professional, holds two Bachelor's degrees (business & marketing) and M.B.A. in Management.

You may freely distribute, copy & share this article with acknowledgment.