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

Please share your comments.

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 ‘thing’ that separates the successful from the unsuccessful lies in WHERE one searches for their success: externally vs. internally.

In my time of helping others, a common theme I have noticed among those who are struggling in any particular area have the mindset of:

If someone would just show/tell me what to do, just give me a system I can use, I would do it… whatever it is, whatever it takes.  I’m dedicated and committed.

They’ll walk across broken glass to find the solution.

Sure, we need others to teach and show us important concepts so we can grow and evolve, but those who are successful recognize the ability to perform and demonstrate knowledge to achieve what they want will only be discovered within themselves.

Those who always struggle never choose to look deep within themselves to find the answers.  They’re constantly looking to others for the answers.

Here’s a simplistic example… when we were first learning to tie our shoe, someone showed us, helped us… until we slowly got it.  A couple people showed us different ways.  The first time we got it was luck.  We still had to practice.  Eventually, we developed our own way of tying shoes.  Today we’re a pro and could teach anyone.

Now, imagine being an adult, never learned to tie a shoe and now want to learn.  When asking that “pro” how to tie a shoe, the conversation will probably go something like… “Oh, it’s really easy.  All you have to do is…”

They’ll give a simple system for tying any shoe, and “all you have to do is” keep following their system and have the perfect tied shoe every time, right?  …because they said exactly what to do, they even gave a simple system.  This just isn’t true.

Other examples some may identify with…

Starting a business.
Some have the instinct of what it takes to make it in business and know enough to create everything themselves.  They’ll go study knowledge they need and then figure out how to mold that information to expand their success model.  They’ll even employ others into the model they created.  Unfortunately, many are looking for an existing system to make them successful …someone to show them what to do so they can mold themselves into an existing model.  This isn’t a path to success.

Happiness.
Happy people are like successful people …they figured out where to find it.  People who are unhappy and seeking happiness search endlessly for external happiness: intimate relationships, money, material possessions, alcohol, etc.  Sure, there are techniques that help bring happiness, such as exercise, stress relievers, but there is no person, system, or tool that can bring happiness to anyone.  Happy people discovered happiness within themselves by learning and applying techniques that helped them find happiness.  The exact same follows with successful people.

This is a difficult concept to explain, but the core message is:
There is no shortcut to success.

Too many people are out looking for an existing system, or the perfect business opportunity, or ‘something’ that is going to make them successful.  They continue believing they’re struggling because they simply “haven’t found something that works for them” yet.  With this mentality, it will never be found.

This is also contrasted as the employee vs. the employer mentality.

The employee mentality is looking for something that’s already working and do more of it, doesn’t like to take risks, wants security and is afraid of re-inventing the wheel.

The employee mentality is constantly seeking ways to benefit themselves.

The employer mentality is always trying to figure out new ways to do things, takes risks, prefers the thrill of the unknown and desires creating new concepts from scratch, even at the risk of re-inventing the wheel.

The employer mentality is constantly trying to figure out new ways to provide more to other people.

To evolve from the employee to the employer mentality we must evolve our thought processes from following someone else’s creation to becoming the creator of our own processes.

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.