Starting a new business

One of the most important steps in setting up any business is to develop a business plan. A business plan is an essential roadmap for business success. It allows the owner-manager to manager to crystallize the business idea and to think through the problems before happened. But what exactly is a business plan? According to Gumpert, “Business plan it is a document that convincingly demonstrates that your business can sell enough of its product or service to make a satisfactory profit and be attractive to potential backers”(page 10) And starting a business involves planning, decisions, series of legal activities and growth. Over the years, people have become more and more dependent on others. Business is the exchanging of goods, services, or money for mutual benefit or profit. “Today, the business conducted in and among the United States, Canada, Great Britain, Germany, Japan, and other countries is more complicated than bartering shoes for corn”(Allen, page 5). The development plan highlights the development strategy and also provides a detailed development timeline. Many new ventures will require a significant level of effort and time to launch the product or services. This is the first steeps of a business. For example, new software or hardware products often require months of development. Discuss what types of features business people will develop and tie them to the firm’s competitive advantage. According to Gumpert, “because people do not have a business plan, they do not know how to start.”(Page 99) Two of the best reasons to have a business plan are:
First, banks normally “suggest” that people include a business plan with the loan application. Banks want to know what the company has to offer, with all the ideas and perspectives, thereby taking a decision; it is worth or not worth lending money to people. Second, to the person or the manager of the business have an idea of when will have profit, and as a business grows, to understand the balance between