Many large businesses operating today once started as small businesses. A new business is created to create a good or service that no other business has ever created or simply a better quality product than existing products, with the aim of meeting customer needs and making a profit. Thanks to today's technological advancements, starting and operating a new business is less laborious. Nonetheless, potential entrepreneurs need to know the proper approaches to starting their business. The first step to starting a business is to create a business plan. A business plan is a document that outlines the overall strategies of a new business and how those strategies will be implemented (Ebert and Griffin, 2013). These strategies are used to guide the planning and development of the company to achieve its organizational goals. Therefore, a business plan must first define the goals of the business that it plans to achieve in the future. It should then include the structure of the business and the particular product that the business will sell (Berry, n.d.). The essential element of a business plan is sales forecasting because it helps the business owner gain a deeper understanding of the potential market as well as the strengths and weaknesses of existing businesses. Sales forecasts are particularly useful in determining the right price of products and marketing products (Ferrell, Hirt, and Ferrell, 2009). Additionally, market analysis allows the business owner to become familiar with all aspects of the market so that they can define target customers and position the business to gain market share (Hormozi, 2004). Financial factors are the ultimate middle of the documents and the reasons for their failure (Report No. SBA-95-C-0403). Retrieved from http://archive.sba.gov/advo/research/rs188.pdfSBA. (nd). Choose your business structure. Retrieved from http://www.sba.gov/SBA. (nd). 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. (nd) Startup Accounting. Retrieved from http://sbinformation.about.com/od/taxaccounting/a/accountingstart.htm Zahorsky, D. (nd). The 10 commandments of a great business name. Retrieved from http://sbinformation.about.com/od/advertisingpr/a/businessnames.htm Zahorsky, D. (nd). Set up your home office or business office. Retrieved from http://sbinformation.about.com/od/office/a/setupoffice.htm