Essential Elements of a Business Plan - Free Essay Example

Sample details Pages: 9 Words: 2740 Downloads: 1 Date added: 2017/06/26 Category Business Essay Type Analytical essay Did you like this example? Introduction In this competitive business environment a business plan acts as a roadmap for a successful business. To start a new business the most important document which is need at first is a business plan. It may be used for internal purpose as well as external purpose. Don’t waste time! Our writers will create an original "Essential Elements of a Business Plan" essay for you Create order Every business need a business plan before start it. Whether the business is large or small, profitable or non profitable, it require a effective business plan. Especially it is more require for a large business than a medium scale or small scale business because the function and structure of am large business is more complex than a small business. This study discuss about various field of business plan. The main part of this study consists of the definition of business plan, content of business plan, objectives of business plan, interested parties of business plan, how to write business plan, challenges behind business plan, common pitfalls of business plan, physical factor of entrepreneurship which is essential for a business plan. The success or failure of a business largly depends on an effective business plan. Definition of business plan A plan indicating the whole processes how a new business will achieve its objectives more effectively and efficiently is a known as a business plan. In other words, a formal statement of achieving goals is a business plan. Setting a business goal and achieving the goal is a business plan. Different types of information of a business including the nature of business, the function of business, available raw material, competitor of the business and target market of the business etc contains in a business plan. By seeing a business plan anyone get a clear idea of the whole business. That means it describes the whole business and achieving its goals. All operational, marketing, financial or managerial functions are detail described in a business plan. Business plan is also used for an established business when a changes occurs in it or it wants achieve its objective more effectively. Content of business plan A business plan is a written document that describes the products and services of business, required resources, the opportunity, threats, strengths and weakness of business, target financial returns, environment, and different strategy to achieve its objectives. A business plan always answers three basic questions. These are where we are now? Where we want to go? How we will go there. The goals or objectives of business plan determined the context of business plan. Since business plan is a systematic way of achieving objectives of business. The process of setting objectives of a business , analysis the reason of why objectives is so important and taking different strategy to achieve those objectives all contains in a business plan. All information of a business contains in a business plan. It also indicates the required human resources to accomplish task. Human resources are the most valuable assets for every organization to run perfectly and achieving objectives. The business o bjectives of are mainly two types. One of these objectives is maximizing profits and the other one is maximizing growth of organization. The business plan concentrated on financial returns of investment when the business is run to maximizing profit. The business plan concentrated on increasing market share, its customerà ¢Ã¢â€š ¬Ã¢â€ž ¢s satisfaction and other factors when the objectives are to achieve the sustainable growth of the business. Thus the context of business plan largely depends on the objectives of the business. Objectives of business plan To drive the new business in right direction and keep an established business in a right way is the main objectives of an effective business plan. The alteration of perception as well as branding by customers or taxpayers is directed by a business plan. Shape the business and run the business smoothly is the primary objectives of a business plan. Besides this there are few other types of objectives such as alteration of perception and branding. Generally the process of alteration in perception and branding is known as marketing plan which is very important for every business success or failure. Every business is surrounded by a certain environment which influences business and give business competitive advantages. So the environment of business is an important part of business plan. The managers of a business consider business plan as an important decision making tools. Since there is no fixed context of business plan it varies depending the nature and function of business. So the nature, objectives and function of the business determine the nature and format of business plan. Effective business plans contain all the information which is required to achieve the goals of the business. Importance of business plan Business plan provide a overall summery of total plan, details of business, analysis of competition, different market strategy, development and design, financial operation and management of business which accelerate the success of a business. The important of business plan is given below: A business plan clarifies the purpose and direction of a business. Business plan describe what the business is and where it want to go. Clarifying of a business consists of a simple description of a business as well as different product and services offered by the organization. A business plan contains the details description of the business so the owner of the business can understand why this business is right for him than other professions. So it is a mental satisfaction for the owner of the business. A business plan works as a motivating tool for the management. It is very important for motivating employee. Everybody is well informed about the objectives and goals of the organization. So every works properly to achieve those goals. A business plan presents whether or not the business capability to make profit. A business plan contains different statistics, figures, and facts in details to present the strength or weakness of the business. It is a clear indication of whether or not the business will be profitable. A business plan shows the capital requirement of the business. So the owner of the business takes different steps to obtain finance of his business. So the owner tries to convince the bank and other financial institution to finance for the organization. A business plan helps to understand the need for merger or acquisition of the business. In the recent year it has become a very important tool for dominating market. Different statistical alliances help to get competitive advantages and run business smoothly. A business plan helps a business in getting, maintaining, developing, and retaining human resources for the organization. Employs always make decision whether he join the organization or not by seeing organizationà ¢Ã¢â€š ¬Ã¢â€ž ¢s business plan or its future. A business plan helps to get large contract of the business. Because any party gets all information regarding the future financial position of the company by its business plan. How to write business plan Since business plan is a roadmap which guideline for the success of a business. The writing of a business plan is a very crucial task. The owner of the business can prepare the business plan when he has a good knowledge about the total business, products and service, operation strategy, financial condition, marketing strategy, target market etc. The business owners can get information from outsiders or interns. At recent times there are many consultants specialized in business plan. The business owner can take help from them as his requirement. By taking help from the outside specialist business owner cannot maintain personal commitment. Interested parties of business plan A business plan has a number of audiences as well as secondary uses. The interested parties of business plan include investors, suppliers, executives and lenders. The elementary purpose is to test idea and its probable effect on the organization and evaluating performance according to the goals. In time of serving operational people, marketing people or human resources of an organization, the business plan is not only an operational document. A business plan is generally presented to outside people in most of the time. When the owner of a business needs capital, he may present the business plan to the investors or the creditors. To attract new customer or retain the existing customer, sometimes business plan is presented. A business plan is presented to banks, non-bank financial institution, investors, capital providers, government agencies, managers, business partners and others party. The audiences of business plan and their interest may vary depending on the nature of business. In preparing a business plan, the owners must keep in mind the need of interested party. Otherwise the purpose of the business plan will be in fail. So the need of stakeholders must be kept in mind in preparing a business plan. Common pitfalls of business plan Unrealistic Financial Projections-Investors and lenders expect a realistic picture of business. But business plan contains an unrealistic financial projection because there is no explanation of projections. The plan is overly optimistic and may ignore many obstacles. Not defining the goal- the goals of the business plan may vague. It is not measureable and has no clear idea. There is no time limit of achieving goal. A unrealistic evaluation of goal and lack of proper steps of goal achievement cause problem in goal achievement. The goal must be activity oriented to be successful. Lack of commitment-To get commitment from others the owners must be committed to others. But in a business plan there is no commitment which creates problem in goal attainment. The investors and the creditors expect strong commitment from the owners. Fail to anticipate problem-The business plan may fail to anticipate the problem in future. A business plan is always excessive optimistic. There is no alternative strategy for a business plan. The written document and its implementation is not same and the conflict of different parties is always ignored. It also fails in delivery date and the time of completing the project. The owner always faces some problem when he wants to implement the written plan. Too much detail-The main purpose of a business plan is focus on the basic element of the business not to increase theoretical knowledge. A business plan consists all in detail of a business. It provides much unnecessary information. Instead of clear and concise, it may to much detail. Lack of progress review- There is no progress review of a business plan. So the owners of the business do not know how he is doing well. So he is confused about his performance. If anything happening wrong he cannot know it which hampering in taking right decision. So the business may fail. Failure to learn from experiences- The business owner can learn a lot from his experience. But generally business plan made for a new business has no scope of learn from experience. Since the business is new, all function of it is new. The business plan does not work properly if the outcome of the plan is denied. A mistake by the owner is a great source of knowledge for him. Failure to revise goals-To adapt with all type of readers business plan must need to revise the goals. But there is very little change to revise goals. One of the most noticeable reasons of failure of a business plan is its inflexibility. If the environment of the business changes the business plan cannot be changed with the situation. Common challenges business plan Different type of challenges are faced by a new business so does its business plan. With the growth of business plan different situation demands the not for change which creates challenges for the business plan. The common challenges faced by a business plan described below: Small size of the firm- Limitation of financial resources creates problem in marketing and financial operations. If the size of the business is small then it has very limited resources to implement its plan. So the size of business is a big challenge for business plan. On the other hand, for a big business, the complexity of work al so creates problem for the business plan. Newness of the firm- A new firm is unknown about its market, customers and other parties. No trust on abilities and offerings of new firm has to the customers. The owner of the business is very optimistic about his business and ignored different difficulties of it. No relation with customer and supplier and for other parties is found for a new business. It has no formal structure and process of completing its function. The new firm has no experience of making product or services. No record of success or failure is found in the basket of new business. Uncertainty -Since a new business has no relation with customers, it has low prediction about market and marketing data. Limited information about market creates problem in marketing, planning and marketing decision. It is impossible for a business to need the demands of the market and become a leader in market. The relationship with the supplier, customer or distributer is uncertain for a new business. This uncertainty makes problem in decision making process which is a big challenges for business plan. Spa business and business plan This study focuses spa business in UK. A place where people participate in different activities to keep themselves healthy and fresh is known as spa. Different products and services are offered by a spa business which is used to amend customerà ¢Ã¢â€š ¬Ã¢â€ž ¢s health. The services and product of spa business are used for amendment of customer physical as well as mental health. A therapeutic powder with mineral water is called as spa. Health resort having water treatment plant under the supervision of spa physician is the component of spa plan. In north America, the health resorts where water re[resent a constituent in their treatment is known as spa. The product and services of spa business is for mental and physical health of customer. It focuses the individual requirement of the customer. For managing stress and getting renewal spa business develop their product and services. The main product of spa business include the fun, healthy and balance diet and exercise. The aim of spa business is to provide comfortable environment to the customer. Provide different tools to improve life and motivate customer to their work the main objective of spa business. Physical factor of entrepreneurship The reason why some people emerge as entrepreneurs than other people is given by this study. Many research conducted by different scholar has given the answer of this question which has focus as entrepreneurship as an important field of research. The personality character, creativity, innovation and other factors affect the entrepreneur. Need for achievement-The need for achievement is noticeable among different psychological variables of the entrepreneur. To be an entrepreneur a person must have high need for achievement and strong desire for success. Strong desire for achievement makes the entrepreneur different from others people. Risk taking propensity- Entrepreneurs always work under an uncertain situation. They have to take risk and face different difficulties. The future is always uncertain. So a good entrepreneur takes moderate degree of risk by calculating the objective to be achieved. Power motivation-To be an entrepreneur a person must have the need for power. T hey always try to take the control of the situation which makes them as a good leader. To achieve this power person work more effectively and efficiently. Creativity- Creativity is essential to be a successful entrepreneur. It means innovation, good analytical ability and problem solving ability which make an entrepreneur different from others people. By applying these entrepreneur becomes a successful entrepreneur. Motivation for autonomy- Another factor a man wants to be an entrepreneur is autonomy. An entrepreneur always wants to implement his power. They like to work freely. So they start their own business to enjoy freedom and implement the power which makes them as successful entrepreneur. Conclusion A business plan is a roadmap and guideline of achieving goal of a business. A good business plan has a purpose of communicating a course of action so that it works as a support for the plan to implement. It contains the details of the business including its vision, objectives, marketing strategy, financial strategy, product, market segmentation etc. All of this information is essential to start a new business or develop the existing business. A business plan present the business to outsiders including investors, creditors, suppliers, government and others parties. Thus a business plan plays a crucial role in achieving the goals of the business more effectively and efficiently.

Essay Government Surveillance vs Privacy - 1442 Words

Is the American government trustworthy? Edward Joseph Snowden (2013) released to the United States press* selected information about the surveillance of ordinary citizens by the U.S.A.’s National Security Agency (N.S.A.), and its interconnection to phone and social media companies. The motion picture Citizenfour (2014), shows the original taping of those revelations. Snowden said that some people do nothing about this tracking because they have nothing to hide. He claims that this inverts the model of responsibility. He believes that everyone should encrypt Internet messages and abandon electronic media companies that track personal information and Internet behavior (op.cit, 2014). Snowden also stressed to Lawrence Lessig (2014) the†¦show more content†¦So, one leader disbanded them â€Å"because of the massive number of complaints he received.† But, as often happens within power and human nature, he appointed a civilian organization to perform essentially the same role (Sheldon, 2000). By the late Roman Empire, Sheldon (2000) reported, â€Å"for all their reputation as empire builders, the Romans were never as good at watching their enemies as they were at watching each other,† exacting surveillance within the state. As we see in American politics today, â€Å"often charges of treason were hurled at political rivals rather than real traitors, with the consequence that the security of the empire was compromised† (Sheldon, 2000). Zurcher (2013) enumerates ubiquitous internal surveillance in other points of history: The Inquisition, which lasted for more than 300 years The reign of Elizabeth I, enabling the beheading of her rival The French Revolution, internal surveillance on a half-million citizens The East German Stasi on 10 million citizens—through 1989 Given the Stasi, relations with Germany were understandably strained by the 2013 N.S.A. revelations. Hubertus Knabe, a German activist, said, I think especially in a democracy, the rules are for everybody†¦so its not allowed that any institution doesnt respect the rules†¦Its not allowed to tap somebody without the permission of the judge. Fortunately, its written in the criminal code of Germany (Knabe, 2014). If itShow MoreRelated Government Surveillance vs Privacy Essay1526 Words   |  7 Pagesthe high cost of the loss of privacy that may come with many of these devices. Jim Hightower, an author for Creators.com is very worried about what the new technological age will mean for privacy. In his article, â€Å"Watch Out -- the Drones Are Coming Home to Roost† (http://www.creators.com/opinion/jim-hightower/watch-out-the-drones-are-coming-home-to-roost.html) Jim Hightower proclaims the dangers that an increased number of domestic drones will have on American privacy in an effort to urge the readerRead MoreProtection Vs. 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Kasper asks, â€Å"If it is gone, when did it disappear, and why?†(Kasper 69). Our past generation has experienc ed the baby boom, and the world today is witnessing a technologicalRead MoreGovernment Surveillance: Protection vs. Privacy Essay examples1963 Words   |  8 Pages North American Treaty Organization, the three duties of a government are, to Protect, Preserve, and Provide for the nation that it governs. However it is not all so simple, in order to protect the country, it has to be on guard, watching for threats and dealing with them accordingly. In my reading of the following texts my ideas concerning governments using their power to fulfill their duty to protect while also maintaining the privacy of the people. Waiting for the Barbarians, written by J.M. CoetzeeRead MoreThe Great Debate : Privacy Vs National Security1055 Words   |  5 PagesMichael Haggerty Mrs. Gallos English III Honors 18 April 2016 The Great Debate: Privacy vs National Security In the digital age, the citizens of the United States are torn between which they value more: privacy or national security. On one hand, the people need to be safe from cyber attacks and terrorism, while on the other, the government should be aware of the privacy of the people it governs. The government should not go so far in protecting the country that it interferes with the personal livesRead MoreEssay about Privacy and the American Government1435 Words   |  6 Pagestrapped by the government. They believe that the government is spying on them just to do so and that there is absolutely no reason for it. However this is wrong because the government has several reasons to spy on us Americans. Even though this may seem outrageous, it is needed and there are ways the United States’ citizens have privacy. With all of these false accusations it is simple to see why people would be supportive of our right to privacy. On the other hand, the government eavesdropping onRead MoreP ublic Security Vs. Privacy1288 Words   |  6 Pageswith Surveillance state, Big Brother, doublespeak and thoughtcrimes. Today, many people believe that the book Nineteen Eighty-Four has already become a prophecy in the United States because they are being surrounded by numerous cameras. Although January Mughal in her article â€Å"National Security Vs. Privacy In The Modern Age†(2016), insisted that surveillance is necessary to maintain the security of United States, but it is doubtful based on many research because the uses of government surveillanceRead MoreThe Importance Of Personal Information And How People Feel About It1613 Words   |  7 Pagesthefts use others’ credit cards to cause personal financial loss. It is important to have control and protect personal informations Consumer Privacy Protection Act of 2015 was to protect privacy and sensitive personal information against security breaches, frauds, and misuse of personal information. (Congress 2015). This act ensures the protection of privacy from other individuals so that people have control of their own informations. For many tech companies that offer online services, people haveRead MoreWhat Violates The Fourth Amendment?1194 Words   |  5 Pagespolice action. 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In effect, balancing between privacy and security has continuously been one of twenty-first century’s biggest controversial issues and everyone has their own views about where to value more. Throughout the essay, using various

Marketing Plan Completive Environment

Question: Discuss about the case study Marketing Plan for Completive Environment. Answer: Introduction The marketing plan is very crucial for making and developing of an organization. To make a better position among the competitive markets, every company or organization should make a better marketing plan. It represents the completive environment. The marketing plan of Marks and Spencer may be a valuable example to justify the marketing plan as well strategy. The detailed marketing plan will be discussed in the entire report. The company Marks and Spencer mainly sells clothes and luxury food products. Marketing plan The marketing plan for Marks Spencer is just another part of the development analysis of any particular country. The strategy of this company is clearly related to the development of the country as well as the marketing mix strategy and the different analysis. By observing the current macro environment of any particular country, Marks Spencer creates its marketing plan. This plan does not include the previous mistakes that were made initially when this company was new to the market. Like every other company Marks Spencer also has some strategy to build a solid marketing plan. This plan includes, an overall survey of the people of any particular country, understanding the financial condition of the country, geographical location of the country etc. While observing the peoples daily need through the survey, Marks Spencer should complete half of their marketing plan. This is so because it is an open company that delivers mainly the daily needs of the people. Preparing the marketing plan While preparing a perfect marketing plan one must go through these five aspects, Situation Analysis The situation analysis is introduced with the collection of methods to analyze the internal as well as an external environment for an organization (Cadogan 2009). It makes a better understanding of capabilities, business environment and customer environment of Marks and Spencer. The situation analysis of Marks and Spencer is as follows- Internal Situation Analysis Nowadays Marks and Spencer is known as one of the Market leaders among the entire clothing industry (Cotton, Falvey and Kent 2000). The quality of Marks and Spencer products become very high. That makes the company into the top of the entire market. The leadership of Marks and Spencer also grow their business by expanding many stores in the UK as well other countries. In the human resource area, Marks and Spencer have various teams who plays a crucial role to develop the company (Guide to HR administration 2007). The teams also provide Learning, Payroll, HR administration and pensions to increase the productivity of Marks and Spencer every year. External Analysis The external situation analysis mainly depends on PESTLE analysis, SWOT analysis, and Porter's five forces analysis (Holloway 1998). Describing the target audience The audience or the customers are those, for whom the marketing strategy is being planned. So the first step for any company like Marks Spencer is to describe the audience. It only means that a company should have clear specificities view about the customers or the audience. List of marketing goals A company must set their target before coming in to the market. So the list of those achievable goals must be ready in the form of a target. Communication with the customer A company like Marks Spencer must have a perfect communication skill as far as the authority of the company is concerned. Setting the budget Every renowned company has particular budget in mind before starting any sort of business. This budget must be ready and must be clear to the authority. Otherwise the investment can go in vein. PESTLE analysis Political Some critical situation may be faced by Marks and Spencer for changing the political environment (Labov 2001). It happen when the government changes. It introduces some business policies to take a part in business growth. Sometimes It decreases the profit margin. Economic The situation of UK can be different to impact the business of Marks and Spencer by increasing the VAT from 17.5% to 20%. Social Socially, the consumer observation has been changed towards new fashion including value sensitivity that is making new competitive environment (Market dominance and antitrust policy 2003). Legal Marks and Spencer sell high-quality products to their customers for avoiding the legal issues in their business. Environmental It totally depends on the respective country. In the UK, Marks and Spencer sell their clothes in higher rates on winter. That makes an advantage to MS profit margin (McDonald and Dunbar 2013). Porters Five Forces To find the present situation of the company, it is crucial to introduce porter's five forces analysis. Supplier Power The supplier power is increasing rapidly which itself is a threat to the market dominance of MS. Buyer Power The far better situation for MS is the current financial growth after the financial crisis that hit most of the European countries (Noe 2006). During the current time, there is a significant increase in the buyer power which widens the new opportunities for MS to expand its business. Competitive Rivalry: Alternatively, the aggressive pricing strategy of MS creates a strong competitive rivalry in clothing sector that diminish the effect of competition. Threat of Substitution: At present, there is no significant threat of change as there is no alternative supplier of the line of products MS is offering to its customer base (Polidoro and Toh 2011). Threat of New Entry: In this concern, the threats of new entrants for MS is less efficient because of the high capital expenditure, reputation and customers changing expectations that create substantial barriers to entry Aims and Objectives To see how companies aim and objectives are achieved to increase profit by opening more than four express stores. To see how MS become the world's most good and sustainable major retailer. To analyze in which way MS may become the top family brand in the clothing sector. To develop itself as new brand identities. Targeting-Positioning and Segmentation The target market of MS is mainly concern with all age group of peoples who love to wear clothes (Steele 2008). Clothes like Cotton, Polyester, etc. are the choice of different people. Many of them want to buy branded and costly products. The chosen segmentation criteria are based on gender-related, age-related, behavior related and lifestyle related of the market for MS. Clothing is the favorite for both men and women where the clothing lines can include casual and business perspective (Tracy 2014). Implementation The application or evaluation process can be analyzed by some mix market strategies. One of the best market mix strategies is 4p's of marketing. 4P's of marketing strategy Source: https://professional-paper-writing-service.blogspot.in/2013/05/marks-and-spencers-current-4-ps-of.html Product The garment products of Marks and Spencer are well known as first class quality, variety, and style (Westwood 2011). Marks and Spencer always maintain their product quality to achieve customer loyalty. Price Marks and Spencer's charges a standard to high prices for its garment products which become reasonable price to very costly price. Place There are entire 600 plus stores of Marks and Spencer in the entire United Kingdom. That's why the product of Marks and Spencer can be easily available in all cities and towns of UK. Promotion The promotion process of Marks and Spencer can be done by advertisement on television. Also, the promotion process is going on social media as well as newspaper. Conclusion Currently, the market has been filled with a variety of confronts that is expanding day by day in the base of the competitive environment. In this concern, Marks and Spencer would chase any business strategy in the base of opposition to regulating and manage its staff for completing of aim and objectives and to give a good reason for their need for accessible resources and their involvement with the company. References Cadogan, J. (2009).Marketing strategy. London: SAGE. Cotton, D., Falvey, D. and Kent, S. (2000).Market leader. Harlow: Longman. Guide to HR administration. (2007). Washington, D.C.: Thompson Pub. Group. Holloway, S. (1998).Situation analysis. Aldershot [u.a.]: Ashgate. Labov, W. (2001).Social factors. Malden, Mass: Blackwell. Market dominance and antitrust policy. (2003).Choice Reviews Online, 41(01), pp.41-0440-41-0440. McDonald, M. and Dunbar, I. (2013).Market segmentation. Chichester: John Wiley Sons. Noe, R. (2006).Human resource management. Boston, Mass.: McGraw-Hill. Polidoro, F. and Toh, P. (2011). Letting Rivals Come Close or Warding Them Off? The Effects of Substitution Threat on Imitation Deterrence.Academy of Management Journal, 54(2), pp.369-392. Steele, J. (2008).The Market. New York: Hyperion. Tracy, B. (2014).Leadership. New York: American Management Association. Westwood, J. (2011).How to write a marketing plan. London: Kogan Page.

Is the Customer Aways Right free essay sample

The phrase â€Å"The customer is always right† became popular in 1909 when Harry Gordon Selfridge, the founder of Selfridge’s department store in London, started using it. It is typically said by businesses to convince customers that they will get adequate service at the company. It is also a way to convince employees to give customers what they want. Of course, these entrepreneurs did not completely agree with this phrase. What they wanted to accomplish was to make the customer feel special, even in situations when they were not right. Companies exist to serve the customer so if the customer is complaining, then it is the companys fault. The customer is the single most important person in your business and without them, there would be no business. They are entitled to behave in whatever way they like and, if they do not like the service you provide, they can always choose to go somewhere else. We will write a custom essay sample on Is the Customer Aways Right? or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page That is why companies should treat them like family. As a business you want your customers to return as well as feel welcomed and appreciated. Many businesses lose sight of this fact when they become wealthy, not realizing that they can lose everything without loyal and loving customers.Research suggests that attracting a new customer costs 5 times as much as keeping an existing one. Because of that, companies should focus on providing an equally good service to all of the customers, not only the new ones. It is very easy to lose a customer – all it takes is one simple mistake – but to keep an existing person loyal to you takes so much more. Put yourself in the position of the customer and treat them as you would want to be treated. The better you are to them the better off your business will be.There may be times when a customer is clearly wrong. However, a great company will always act like he is right. Clients approach companies with their needs and you have no right to say that their needs are wrong. Everyone should be treated fairly, no matter if you think that they are right or wrong. If a business loses one customer, it means many potential customers that could be introduced by him will also be lost.