Fortune 500 companies continue to eliminate jobs; yet the U.S. economy keeps growing. New businesses have created most of the new employment. A key step in starting a new business is a realistic analysis of the people, opportunities, context, risks, and rewards of the venture and the formulation of a business plan. Note the similarities between the questions managers answer in the management process and the questions every great business plan should answer:

● Who is the new company’s customer?

● How does the customer make decisions about buying this product or service?

● To what degree is the product or service a compelling purchase?

● How will the product or service be priced?

● How will the company reach all the identified customer segments?

● How much does it cost (in time and resources) to acquire a customer?

● How much does it cost to produce and deliver the product or service?

● How much does it cost to support a customer?

● How easy is it to retain a customer?

Assume that a new business has hired you as a consultant because of your knowledge of the management process. Write a memo that discusses how the nine questions listed above fit into the management process.