The first and most important step in starting a new business is to prepare a business plan.
A business plan is a written summary of what the business hopes to accomplish and what resources are required to achieve success. A good business idea may not be a viable business opportunity with potential for success. The research, evaluation and preparation of a business plan separate the real opportunities from casual ideas by eliminating the misunderstandings that can arise by not putting thoughts and research in writing. The preparation of the written business plan fully develops the concept, identifies areas of concern and distinguishes the planning stages. If the business start-up requires financing, the financial institution of choice will require that a business plan be submitted.
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