Numerous large businesses operating today once began as small businesses. A new business is created to create a good or service that no other business has ever created or simply a product of higher quality than existing products, with the aim of satisfying customer needs and making profits. Thanks to current technological advances, starting and managing a new business is less laborious. However, aspiring entrepreneurs should be familiar with the proper approaches to starting their own business. The first step in starting a business is creating a business plan. A business plan is a document that outlines the overall strategies of a new venture and how those strategies will be implemented (Ebert & Griffin, 2013). These strategies are used to guide the company's planning and development to achieve its organizational objectives. As a result, a business plan should first define the goals the company intends to achieve in the future. It should therefore include the structure of the business and the particular product that the business will sell (Berry, n.d.). The critical element of a business plan is sales forecasts, which help the entrepreneur deepen his or her understanding of the potential market, as well as the strengths and weaknesses of existing businesses. Sales forecasts are particularly useful for determining the right price of products and marketing them (Ferrell, Hirt, & Ferrell, 2009). Furthermore, market analysis allows the entrepreneur to know all aspects of the market so that he can define the target customers and position the company to get its share in the market (Hormozi, 2004). Financial factors are the last… focus of the document and the reasons for their failure (Report No. SBA-95-C-0403). Retrieved from http://archive.sba.gov/advo/research/rs188.pdfSBA. (n.d.). Choose your business structure. Retrieved from http://www.sba.gov/SBA. (n.d.). Choose your location and equipment. Retrieved from http://www.sba.gov/Urquhart-Brown, S. (2008). The Accidental Entrepreneur: 50 Things I Wish Someone Told Me About Starting a Business. Retrieved from http://library.binus.ac.idZahorsky, D. (n.d.) Accounting for Start-ups. Retrieved from http://sbinformation.about.com/od/taxaccounting/a/accountingstart.htmZahorsky, D. (n.d.). The 10 Commandments of a Great Business Name. Retrieved from http://sbinformation.about.com/od/advertisingpr/a/businessnames.htmZahorsky, D. (n.d.). Set up your home or business office. Retrieved from http://sbinformation.about.com/od/office/a/setupoffice.htm