why planning is important in business essay

Why Planning Is Important (Explained)

By: Author Paul Jenkins

Posted on May 4, 2022

Categories Business , Productivity

When it comes to planning, most people think of things like schedules and organization. While these are important aspects of effective planning, there’s much more to it than that! Good planning can help you achieve your goals and dreams by keeping you on track and focused – in business, and in life. Here are just a few reasons why planning is so important.

Why Planning Is Important

Plans are important. Although they may seem like an onerous mechanism designed to burden you with strict regulations and stressful deadlines, the planning process can actually be a liberating force that opens your mind to new possibilities and helps you put your ideas into action.

If you stay flexible and dynamic enough, planning can become a way of life. Your plans will change depending on the situation – and like life itself, they won’t always work out the way you hoped. But if you know how to adapt at all times, there’s no reason things can’t turn out for the best.

Planning is important in business and management because it gives companies a firm structure for their future so that their activities are consistent and organized.

Planning is also important in education because it helps students study for exams or complete assignments and learn more about certain subjects by preparing them with easy-to-understand information before the actual exam takes place.

Why Is Strategic Planning Important in an Organization?

Planning is critical for any business. In most cases, companies that don’t have a mission and vision are doomed to fail – because, without goals, there are no targets or actions to guide the company.

Without a plan, it’s almost like you’re flying blind in the dark or playing without a net – which can lead to unpredictable results. And remember, we all know what happens when you shoot in the dark: You usually hit something hard.

So … why is strategic planning important?

Because it enables organizations to achieve their strategic goals and achieve them well. It helps them prioritize and allocate resources effectively – leading to greater efficiency and a higher standard of living for all.

Of course, it takes time to create an effective plan, but when it’s done well, every organization benefits from having it in place as soon as possible, even if there are no immediate benefits at first glance.

Planning Is a Way to Stay Goal-Oriented

Setting goals is one of the most important things you can do as a business leader because they help you stay focused. Planning allows you to create a good structure and keep your team on task.

Once you’ve set your goals, it’s time to develop a plan that will help you achieve those goals.

A good business plan gives direction to your business and serves as a source of inspiration for everyone involved in your business. It provides an overview of what’s going on in the business and how it plans to achieve its goals.

If you don’t have this kind of clarity, it’s much harder for your employees to know what their specific jobs are or how they contribute to the company’s overall mission.

Your business planning doesn’t have to fill several volumes and require a group presentation before it’s approved by all the managers in your organization-you can quickly create it on your own or with a handful of members of your team who’ve relevant experience in the field (or all by yourself if you’re ambitious).

Even though large companies use complex planning methods, that doesn’t mean small companies have to. Even if you just write down a few key points about why certain strategies are effective and what results they’re likely to produce, it can be easier to write down an idea like this when you’re trying to figure out which avenues are worth pursuing next.

Long-Range Plans Provide the Guidance Needed to Meet the Goals of An Organization

For organizations to survive and thrive, they must make good long-term plans. Otherwise, their goals won’t be achieved or they’ll not be able to keep up with the rapid changes the world is currently experiencing.

For plans to be effective, they must be aligned with an organization’s goals.

In addition, a plan is only complete if there are measures to track progress. Long-term planning requires good communication within an organization so that everyone involved understands what needs to be done and how it fits into the big picture.

For example, if you were in charge of a mail delivery company, your plan might include hiring new employees who’ve good interpersonal skills so they can better deal with customers and solve problems that arise. If you include too much detail in your plan or try to cover too many areas without focusing on what’s most important to the success of your business, you could run out of time and resources before you get anything done.

Whether you’re running a small business from home or a large company with thousands of employees around the world, being able to plan for the future will help you keep up with growing demands and changing trends.

Without thoughtful, long-term planning, a business won’t be able to survive in today’s fast-paced global marketplace. Good planning is critical when dealing with organizational change.

It Helps an Organization Meet Its Objectives and Missions

Most companies have a mission statement, sometimes more than one. But what does it mean?

A mission statement is the reason for a company’s existence. It describes what the company wants to achieve and what values guide its behavior. Mission statements usually begin with the words “Our mission is…” or “The mission of [company name] is…”. They’re meant to be inspirational, visionary, and even poetic.

Mission statements are often confused with corporate goals.

A corporate goal describes how you’ll achieve your mission. For example, “Increase our sales by 30% over 2 years” would be a goal of the chief executive officer (CEO) of a chain of toy stores who wants to grow his business.

The CEO might say to his team, “Our mission is to increase sales by 30% over time. To achieve that goal, I want us all to focus on selling more toys.” Although the goal may follow from a discussion of the mission, these are different things, and goals don’t always have to follow directly from an organization’s stated purpose.

The Importance of Strategic Planning

What’s strategic planning?

Strategic planning may sound like a highfalutin term from the business world or something only large corporations need to worry about, but a strategic planning process is actually something every organization can use.

Let’s take online publishing, as an example.

The concept itself is pretty simple: you look at your team and your goals, and then design either a written plan or a visual graphic – the best way to achieve those goals. This way, you can identify what’s working and what could be better in clear steps.

Strategic Planning to Support and Engage Your Audience

The first step in strategic planning is to figure out who your audience is and where they’re going.

Once you’ve done that, you can tailor your content to their interests (and keep them engaged by avoiding the most common social media marketing mistakes). For example, if one of your followers likes Game of Thrones, they might also be interested in posts about medieval weaponry.

Next, think about how you can best communicate with these people.

Do you create short videos? Longer blog posts? Or do you want to set up an email list so people can get information from just one place? If it helps you organize things, take note of how often and when certain posts are optimal – maybe Facebook Live works best in the morning, or maybe Twitter conversations thrive on Tuesday evenings.

Also, think about how much time each strategy will take – some tactics require more energy than others!

Then, once you’ve got everything planned out and all the details ready to go, don’t forget to document it all somewhere. A masterful strategic plan should have some sort of record so everyone knows exactly why things are happening the way they are!

An Effective Business Plan Provides a Roadmap for Success

An effective business plan aims to achieve one or more of the following goals:

• To help attract investors by showing that your company is stable has lots of potential and will yield a high return on investment
• To help you secure financing by providing lenders with financial information about your business
• To guide the management team as they make day-to-day decisions about how to run their business and conduct the organizational activity
• To help you anticipate challenges so you can better manage them as they arise

Of course, if businesses didn’t need plans, it wouldn’t be a bad thing! Having a plan can take time away from other important tasks, like running your business and making money for yourself.

However, most large companies in the United States have written formal business plans that outline their goals for the future and methods for achieving them.

Therefore, it’s safe to assume that if professional businesses include formal plans in their operations, small businesses can benefit from planning as well-at least enough to provide an outline for success but not necessarily an exhaustive guidebook to managing every aspect of their company on a daily basis or down to the last decimal point in Excel spreadsheet projections.

Why Is Planning Important in Management?

Planning is an essential part of management. It helps the company set goals for the future, sets a course to sail from the present into the future, and helps keep things organized and efficient as time passes.

Most organizations will have at least one project manager dedicated to this job.

Planning also sets the course for communication and decision-making within an organization. Daily planning and effective project management ensure that everyone knows what needs to be done and when it needs to be done, helping the business run more smoothly from day to day.

Finally, project planning helps with accountability- when you’re not just making decisions off the cuff, you’ve concrete records of how those decisions have impacted your business (or personal life) in the past, which can help you make better decisions in the future.

A plan may seem like a dull affair at times, but once you realize that it pays off over time, it becomes one of your most valuable tools for staying in control of your situation.

What Should Be Included in a Business Plan

A business plan is a document that clearly communicates the mission, purpose, and goals of your business. The first and most important section of the business plan is the executive summary. This is what investors will read to decide if they want to invest in your business.

To get where you want to go, there are some important things to consider:

• First, how does your business or idea fit into the world?
• What is the business idea?
• What makes it special and different?
• Then, who are your customers or clients?
• What problems do they have that your service or product can provide a solution for?
• You should also take a look at the competition – who’s doing the same thing?
• How is your business better than theirs?

Business Plans Help Facilitate Communication, Establish Priorities, and Set Smart Goals

Planning is important, and your business plan should be the foundation for it. This document lays out your company’s organizational goal, priorities, goals, and strategies (both short and long term) so that everyone involved can work toward the same goal. It also ensures that nothing falls through the cracks.

Good communication is at the heart of good planning, and the implementation of a plan:

• It helps you communicate with others about what your business does and how it does it. Collaboration is an effective way to make smart decisions, improve productivity and quality of work, and increase the success of your business.
• It sets priorities for your team . You can create a plan based on several possible goals that are most important to you – such as increasing revenue or improving customer service – or based on industry standards or benchmarks, such as industry-specific revenue goals.
• It helps you plan your human resource management and the effective funneling of innovative ideas.
• For each goal, you’ll specify exactly what results you want to achieve and by when. You can then use milestones to track progress against those expectations. This gives you insight into where you stand and allows you to re-evaluate if you need to make adjustments.
• This allows you to be flexible with your goals, leaving room for changes that depend on circumstances such as seasonal demands or economic changes beyond your control. While you’ll keep an eye on key performance indicators to make sure no one strays too far from their goals, having some wiggle room gives you more opportunity to adjust when things go wrong and seize opportunities when something unexpected happens that could bring great new value to your organization (or rather, “your” organization).
• In short, a plan helps keep everyone working together toward a common goal while leaving room for spontaneous developments along the way.

Proper Planning for All Areas of Your Business Can Help You Achieve Your Goals

Planning is important in every area of your life, but especially in business. When you create a good plan, you think about the future you want to achieve and lay out steps to get there. It’s the roadmap to ensuring you meet important goals.

In planning, you ask yourself questions and think honestly about what’ll help you achieve your goals. When you have a plan, you’re prepared for unexpected difficulties.

Table of Contents

What is a business plan, the advantages of having a business plan, the types of business plans, the key elements of a business plan, best business plan software, common challenges of writing a business plan, become an expert business planner, business planning: it’s importance, types and key elements.

Every year, thousands of new businesses see the light of the day. One look at the  World Bank's Entrepreneurship Survey and database  shows the mind-boggling rate of new business registrations. However, sadly, only a tiny percentage of them have a chance of survival.   

According to the Bureau of Labor Statistics, about 20% of small businesses fail in their first year, about 50% in their fifth year.

Research from the University of Tennessee found that 44% of businesses fail within the first three years. Among those that operate within specific sectors, like information (which includes most tech firms), 63% shut shop within three years.

Several  other statistics  expose the abysmal rates of business failure. But why are so many businesses bound to fail? Most studies mention "lack of business planning" as one of the reasons.

This isn’t surprising at all. 

Running a business without a plan is like riding a motorcycle up a craggy cliff blindfolded. Yet, way too many firms ( a whopping 67%)  don't have a formal business plan in place. 

It doesn't matter if you're a startup with a great idea or a business with an excellent product. You can only go so far without a roadmap — a business plan. Only, a business plan is so much more than just a roadmap. A solid plan allows a business to weather market challenges and pivot quickly in the face of crisis, like the one global businesses are struggling with right now, in the post-pandemic world.  

But before you can go ahead and develop a great business plan, you need to know the basics. In this article, we'll discuss the fundamentals of business planning to help you plan effectively for 2021.  

Now before we begin with the details of business planning, let us understand what it is.

No two businesses have an identical business plan, even if they operate within the same industry. So one business plan can look entirely different from another one. Still, for the sake of simplicity, a business plan can be defined as a guide for a company to operate and achieve its goals.  

More specifically, it's a document in writing that outlines the goals, objectives, and purpose of a business while laying out the blueprint for its day-to-day operations and key functions such as marketing, finance, and expansion.

A good business plan can be a game-changer for startups that are looking to raise funds to grow and scale. It convinces prospective investors that the venture will be profitable and provides a realistic outlook on how much profit is on the cards and by when it will be attained. 

However, it's not only new businesses that greatly benefit from a business plan. Well-established companies and large conglomerates also need to tweak their business plans to adapt to new business environments and unpredictable market changes. 

Before getting into learning more about business planning, let us learn the advantages of having one.

Since a detailed business plan offers a birds-eye view of the entire framework of an establishment, it has several benefits that make it an important part of any organization. Here are few ways a business plan can offer significant competitive edge.

• Sets objectives and benchmarks: Proper planning helps a business set realistic objectives and assign stipulated time for those goals to be met. This results in long-term profitability. It also lets a company set benchmarks and Key Performance Indicators (KPIs) necessary to reach its goals. 
• Maximizes resource allocation: A good business plan helps to effectively organize and allocate the company’s resources. It provides an understanding of the result of actions, such as, opening new offices, recruiting fresh staff, change in production, and so on. It also helps the business estimate the financial impact of such actions.
• Enhances viability: A plan greatly contributes towards turning concepts into reality. Though business plans vary from company to company, the blueprints of successful companies often serve as an excellent guide for nascent-stage start-ups and new entrepreneurs. It also helps existing firms to market, advertise, and promote new products and services into the market.
• Aids in decision making: Running a business involves a lot of decision making: where to pitch, where to locate, what to sell, what to charge — the list goes on. A well thought-out business plan provides an organization the ability to anticipate the curveballs that the future could throw at them. It allows them to come up with answers and solutions to these issues well in advance.
• Fix past mistakes: When businesses create plans keeping in mind the flaws and failures of the past and what worked for them and what didn’t, it can help them save time, money, and resources. Such plans that reflects the lessons learnt from the past offers businesses an opportunity to avoid future pitfalls.
• Attracts investors: A business plan gives investors an in-depth idea about the objectives, structure, and validity of a firm. It helps to secure their confidence and encourages them to invest. 

Now let's look at the various types involved in business planning.

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Business plans are formulated according to the needs of a business. It can be a simple one-page document or an elaborate 40-page affair, or anything in between. While there’s no rule set in stone as to what exactly a business plan can or can’t contain, there are a few common types of business plan that nearly all businesses in existence use.  

Here’s an overview of a few fundamental types of business plans. 

• Start-up plan: As the name suggests, this is a documentation of the plans, structure, and objections of a new business establishments. It describes the products and services that are to be produced by the firm, the staff management, and market analysis of their production. Often, a detailed finance spreadsheet is also attached to this document for investors to determine the viability of the new business set-up.
• Feasibility plan: A feasibility plan evaluates the prospective customers of the products or services that are to be produced by a company. It also estimates the possibility of a profit or a loss of a venture. It helps to forecast how well a product will sell at the market, the duration it will require to yield results, and the profit margin that it will secure on investments. 
• Expansion Plan: This kind of plan is primarily framed when a company decided to expand in terms of production or structure. It lays down the fundamental steps and guidelines with regards to internal or external growth. It helps the firm to analyze the activities like resource allocation for increased production, financial investments, employment of extra staff, and much more.
• Operations Plan: An operational plan is also called an annual plan. This details the day-to-day activities and strategies that a business needs to follow in order to materialize its targets. It outlines the roles and responsibilities of the managing body, the various departments, and the company’s employees for the holistic success of the firm.
• Strategic Plan: This document caters to the internal strategies of the company and is a part of the foundational grounds of the establishments. It can be accurately drafted with the help of a SWOT analysis through which the strengths, weaknesses, opportunities, and threats can be categorized and evaluated so that to develop means for optimizing profits.

There is some preliminary work that’s required before you actually sit down to write a plan for your business. Knowing what goes into a business plan is one of them. 

Here are the key elements of a good business plan:

• Executive Summary: An executive summary gives a clear picture of the strategies and goals of your business right at the outset. Though its value is often understated, it can be extremely helpful in creating the readers’ first impression of your business. As such, it could define the opinions of customers and investors from the get-go.  
• Business Description: A thorough business description removes room for any ambiguity from your processes. An excellent business description will explain the size and structure of the firm as well as its position in the market. It also describes the kind of products and services that the company offers. It even states as to whether the company is old and established or new and aspiring. Most importantly, it highlights the USP of the products or services as compared to your competitors in the market.
• Market Analysis: A systematic market analysis helps to determine the current position of a business and analyzes its scope for future expansions. This can help in evaluating investments, promotions, marketing, and distribution of products. In-depth market understanding also helps a business combat competition and make plans for long-term success.
• Operations and Management: Much like a statement of purpose, this allows an enterprise to explain its uniqueness to its readers and customers. It showcases the ways in which the firm can deliver greater and superior products at cheaper rates and in relatively less time. 
• Financial Plan: This is the most important element of a business plan and is primarily addressed to investors and sponsors. It requires a firm to reveal its financial policies and market analysis. At times, a 5-year financial report is also required to be included to show past performances and profits. The financial plan draws out the current business strategies, future projections, and the total estimated worth of the firm.

The importance of business planning is it simplifies the planning of your company's finances to present this information to a bank or investors. Here are the best business plan software providers available right now:

• Business Sorter

The importance of business planning cannot be emphasized enough, but it can be challenging to write a business plan. Here are a few issues to consider before you start your business planning:

• Create a business plan to determine your company's direction, obtain financing, and attract investors.
• Identifying financial, demographic, and achievable goals is a common challenge when writing a business plan.
• Some entrepreneurs struggle to write a business plan that is concise, interesting, and informative enough to demonstrate the viability of their business idea.
• You can streamline your business planning process by conducting research, speaking with experts and peers, and working with a business consultant.

Whether you’re running your own business or in-charge of ensuring strategic performance and growth for your employer or clients, knowing the ins and outs of business planning can set you up for success. 

Be it the launch of a new and exciting product or an expansion of operations, business planning is the necessity of all large and small companies. Which is why the need for professionals with superior business planning skills will never die out. In fact, their demand is on the rise with global firms putting emphasis on business analysis and planning to cope with cut-throat competition and market uncertainties.

While some are natural-born planners, most people have to work to develop this important skill. Plus, business planning requires you to understand the fundamentals of business management and be familiar with business analysis techniques . It also requires you to have a working knowledge of data visualization, project management, and monitoring tools commonly used by businesses today.   

Simpliearn’s Executive Certificate Program in General Management will help you develop and hone the required skills to become an extraordinary business planner. This comprehensive general management program by IIM Indore can serve as a career catalyst, equipping professionals with a competitive edge in the ever-evolving business environment.

What Is Meant by Business Planning?

Business planning is developing a company's mission or goals and defining the strategies you will use to achieve those goals or tasks. The process can be extensive, encompassing all aspects of the operation, or it can be concrete, focusing on specific functions within the overall corporate structure.

What Are the 4 Types of Business Plans?

The following are the four types of business plans:

Operational Planning

This type of planning typically describes the company's day-to-day operations. Single-use plans are developed for events and activities that occur only once (such as a single marketing campaign). Ongoing plans include problem-solving policies, rules for specific regulations, and procedures for a step-by-step process for achieving particular goals.

Strategic Planning

Strategic plans are all about why things must occur. A high-level overview of the entire business is included in strategic planning. It is the organization's foundation and will dictate long-term decisions.

Tactical Planning

Tactical plans are about what will happen. Strategic planning is aided by tactical planning. It outlines the tactics the organization intends to employ to achieve the goals outlined in the strategic plan.

Contingency Planning

When something unexpected occurs or something needs to be changed, contingency plans are created. In situations where a change is required, contingency planning can be beneficial.

What Are the 7 Steps of a Business Plan?

The following are the seven steps required for a business plan:

Conduct Research

If your company is to run a viable business plan and attract investors, your information must be of the highest quality.

Have a Goal

The goal must be unambiguous. You will waste your time if you don't know why you're writing a business plan. Knowing also implies having a target audience for when the plan is expected to get completed.

Create a Company Profile

Some refer to it as a company profile, while others refer to it as a snapshot. It's designed to be mentally quick and digestible because it needs to stick in the reader's mind quickly since more information is provided later in the plan.

Describe the Company in Detail

Explain the company's current situation, both good and bad. Details should also include patents, licenses, copyrights, and unique strengths that no one else has.

Create a marketing plan ahead of time.

A strategic marketing plan is required because it outlines how your product or service will be communicated, delivered, and sold to customers.

Be Willing to Change Your Plan for the Sake of Your Audience

Another standard error is that people only write one business plan. Startups have several versions, just as candidates have numerous resumes for various potential employers.

Incorporate Your Motivation

Your motivation must be a compelling reason for people to believe your company will succeed in all circumstances. A mission should drive a business, not just selling, to make money. That mission is defined by your motivation as specified in your business plan.

What Are the Basic Steps in Business Planning?

These are the basic steps in business planning:

Summary and Objectives

Briefly describe your company, its objectives, and your plan to keep it running.

Services and Products

Add specifics to your detailed description of the product or service you intend to offer. Where, why, and how much you plan to sell your product or service and any special offers.

Conduct research on your industry and the ideal customers to whom you want to sell. Identify the issues you want to solve for your customers.

Operations are the process of running your business, including the people, skills, and experience required to make it successful.

How are you going to reach your target audience? How you intend to sell to them may include positioning, pricing, promotion, and distribution.

Consider funding costs, operating expenses, and projected income. Include your financial objectives and a breakdown of what it takes to make your company profitable. With proper business planning through the help of support, system, and mentorship, it is easy to start a business.

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The importance of a business plan

Business plans are like road maps: it’s possible to travel without one, but that will only increase the odds of getting lost along the way.

Owners with a business plan see growth 30% faster than those without one, and 71% of the fast-growing companies have business plans . Before we get into the thick of it, let’s define and go over what a business plan actually is.

What is a business plan?

A business plan is a 15-20 page document that outlines how you will achieve your business objectives and includes information about your product, marketing strategies, and finances. You should create one when you’re starting a new business and keep updating it as your business grows.

Rather than putting yourself in a position where you may have to stop and ask for directions or even circle back and start over, small business owners often use business plans to help guide them. That’s because they help them see the bigger picture, plan ahead, make important decisions, and improve the overall likelihood of success. ‍

Why is a business plan important?

A well-written business plan is an important tool because it gives entrepreneurs and small business owners, as well as their employees, the ability to lay out their goals and track their progress as their business begins to grow. Business planning should be the first thing done when starting a new business. Business plans are also important for attracting investors so they can determine if your business is on the right path and worth putting money into.

Business plans typically include detailed information that can help improve your business’s chances of success, like:

• A market analysis : gathering information about factors and conditions that affect your industry
• Competitive analysis : evaluating the strengths and weaknesses of your competitors
• Customer segmentation : divide your customers into different groups based on specific characteristics to improve your marketing
• Marketing: using your research to advertise your business
• Logistics and operations plans : planning and executing the most efficient production process
• Cash flow projection : being prepared for how much money is going into and out of your business
• An overall path to long-term growth

10 reasons why you need a business plan

I know what you’re thinking: “Do I really need a business plan? It sounds like a lot of work, plus I heard they’re outdated and I like figuring things out as I go...”.

The answer is: yes, you really do need a business plan! As entrepreneur Kevin J. Donaldson said, “Going into business without a business plan is like going on a mountain trek without a map or GPS support—you’ll eventually get lost and starve! Though it may sound tedious and time-consuming, business plans are critical to starting your business and setting yourself up for success.

To outline the importance of business plans and make the process sound less daunting, here are 10 reasons why you need one for your small business.

1. To help you with critical decisions

The primary importance of a business plan is that they help you make better decisions. Entrepreneurship is often an endless exercise in decision making and crisis management. Sitting down and considering all the ramifications of any given decision is a luxury that small businesses can’t always afford. That’s where a business plan comes in.

Building a business plan allows you to determine the answer to some of the most critical business decisions ahead of time.

Creating a robust business plan is a forcing function—you have to sit down and think about major components of your business before you get started, like your marketing strategy and what products you’ll sell. You answer many tough questions before they arise. And thinking deeply about your core strategies can also help you understand how those decisions will impact your broader strategy.

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2. To iron out the kinks

Putting together a business plan requires entrepreneurs to ask themselves a lot of hard questions and take the time to come up with well-researched and insightful answers. Even if the document itself were to disappear as soon as it’s completed, the practice of writing it helps to articulate your vision in realistic terms and better determine if there are any gaps in your strategy.

3. To avoid the big mistakes

Only about half of small businesses are still around to celebrate their fifth birthday . While there are many reasons why small businesses fail, many of the most common are purposefully addressed in business plans.

According to data from CB Insights , some of the most common reasons businesses fail include:

• No market need : No one wants what you’re selling.
• Lack of capital : Cash flow issues or businesses simply run out of money.
• Inadequate team : This underscores the importance of hiring the right people to help you run your business.
• Stiff competition : It’s tough to generate a steady profit when you have a lot of competitors in your space.
• Pricing : Some entrepreneurs price their products or services too high or too low—both scenarios can be a recipe for disaster.

The exercise of creating a business plan can help you avoid these major mistakes. Whether it’s cash flow forecasts or a product-market fit analysis , every piece of a business plan can help spot some of those potentially critical mistakes before they arise. For example, don’t be afraid to scrap an idea you really loved if it turns out there’s no market need. Be honest with yourself!

Get a jumpstart on your business plan by creating your own cash flow projection .

4. To prove the viability of the business

Many businesses are created out of passion, and while passion can be a great motivator, it’s not a great proof point.

Planning out exactly how you’re going to turn that vision into a successful business is perhaps the most important step between concept and reality. Business plans can help you confirm that your grand idea makes sound business sense.

A critical component of your business plan is the market research section. Market research can offer deep insight into your customers, your competitors, and your chosen industry. Not only can it enlighten entrepreneurs who are starting up a new business, but it can also better inform existing businesses on activities like marketing, advertising, and releasing new products or services.

Want to prove there’s a market gap? Here’s how you can get started with market research.

5. To set better objectives and benchmarks

Without a business plan, objectives often become arbitrary, without much rhyme or reason behind them. Having a business plan can help make those benchmarks more intentional and consequential. They can also help keep you accountable to your long-term vision and strategy, and gain insights into how your strategy is (or isn’t) coming together over time.

6. To communicate objectives and benchmarks

Whether you’re managing a team of 100 or a team of two, you can’t always be there to make every decision yourself. Think of the business plan like a substitute teacher, ready to answer questions any time there’s an absence. Let your staff know that when in doubt, they can always consult the business plan to understand the next steps in the event that they can’t get an answer from you directly.

Sharing your business plan with team members also helps ensure that all members are aligned with what you’re doing, why, and share the same understanding of long-term objectives.

7. To provide a guide for service providers

Small businesses typically employ contractors , freelancers, and other professionals to help them with tasks like accounting , marketing, legal assistance, and as consultants. Having a business plan in place allows you to easily share relevant sections with those you rely on to support the organization, while ensuring everyone is on the same page.

8. To secure financing

Did you know you’re 2.5x more likely to get funded if you have a business plan?If you’re planning on pitching to venture capitalists, borrowing from a bank, or are considering selling your company in the future, you’re likely going to need a business plan. After all, anyone that’s interested in putting money into your company is going to want to know it’s in good hands and that it’s viable in the long run. Business plans are the most effective ways of proving that and are typically a requirement for anyone seeking outside financing.

Learn what you need to get a small business loan.

9. To better understand the broader landscape

No business is an island, and while you might have a strong handle on everything happening under your own roof, it’s equally important to understand the market terrain as well. Writing a business plan can go a long way in helping you better understand your competition and the market you’re operating in more broadly, illuminate consumer trends and preferences, potential disruptions and other insights that aren’t always plainly visible.

10. To reduce risk

Entrepreneurship is a risky business, but that risk becomes significantly more manageable once tested against a well-crafted business plan. Drawing up revenue and expense projections, devising logistics and operational plans, and understanding the market and competitive landscape can all help reduce the risk factor from an inherently precarious way to make a living. Having a business plan allows you to leave less up to chance, make better decisions, and enjoy the clearest possible view of the future of your company.

Understanding the importance of a business plan

Now that you have a solid grasp on the “why” behind business plans, you can confidently move forward with creating your own.

Remember that a business plan will grow and evolve along with your business, so it’s an important part of your whole journey—not just the beginning.

Related Posts

Now that you’ve read up on the purpose of a business plan, check out our guide to help you get started.

The information and tips shared on this blog are meant to be used as learning and personal development tools as you launch, run and grow your business. While a good place to start, these articles should not take the place of personalized advice from professionals. As our lawyers would say: “All content on Wave’s blog is intended for informational purposes only. It should not be considered legal or financial advice.” Additionally, Wave is the legal copyright holder of all materials on the blog, and others cannot re-use or publish it without our written consent.

Planning in Business and Project Management Essay

Why planning is important for businesses?

Such a project as introducing a new product will benefit from the existence of a thorough plan. While planning, the project manager outlines the major aims of the project, i.e., to make the product known. When there is a specific aim, it is easy to understand what exactly is necessary to achieve the goal. It is easy to identify certain steps to reach the goal, e.g., identify advantages of the product, identify the target audience, develop an advertising campaign, etc. Having specific steps to undertake will help remain consistent and nothing will be missed. It is also easy to understand when and what went wrong, which can help diminish possible negative effects. Finally, it is possible to evaluate the effectiveness of the project as well as the effectiveness of the plan and to make some changes if necessary to be able to use the plan in other projects.

Implementation of the plan on how to improve sales in the coming quarter

Firstly, I will make sure all the stakeholders are aware of the plan and the major goals. Secondly, I will also make sure all people involved know exactly what to do. Thirdly, I will develop a form of a brief report, which will be completed at certain stages. Furthermore, there will be several checkups to understand whether all deadlines can be met. Finally, I will evaluate each stage, and I will make some changes in further stages if necessary.

Five tools important in planning

First, communication is essential in planning. All stakeholders should take part in this process as each employee or department is aware of the peculiarities of certain tasks. Besides, motivation is very important. Each employee should understand the benefits of the project implementation. Understanding goals may not be enough, and such stimuli as promotion, bonuses, etc., may be helpful. Availability of information is crucial as employees should have all the necessary data to develop a plan. While planning, it is important to take risks into account. Thus, risk management is an important part of planning in any business. Finally, it is also important to remember that any plan may need changes, so it is necessary to be able to make the changes at any stage of planning or implementation of the plan.

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Why Is Planning an Important Step in Starting a Business?

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What Are the Main Purposes of a Business Plan?

What are the six elements of a business plan, how to develop a one-year business plan.

• The Importance of Business Plans
• What Are the 4 Important Parts of a Business Plan?

There are two primary reasons for writing a business plan. The first is to organize yourself, set priorities and identify the steps needed to achieve them. Secondly, a business plan is a principal means of showcasing your business to investors. However, not all companies need to develop a formal plan.

What Is a Business Plan?

A business plan is a means of ensuring systematic planning in entrepreneurship. It is an important tool for starting a business and planning expansions of well-established businesses.

The U.S. Small Business Administration (SBA) considers a business plan to be the foundation of a small business startup. As the SBA describes them, business plans generally are written documents that can either be lengthy and highly detailed or shorter "lean" plans that act more as bullet-point style summaries of the business-to-be.

Business plans are usually written documents, but in the electronic age, they also take the form of Powerpoint slides or other styles of graphical presentation. Whatever the form, business plans typically cover several major areas:

• Executive summary: A quick overview of the business and the detailed information to follow in the plan
• Business description: What the new business will do, how it will make money, and why it will be successful against its competitors
• Market analysis: Typically, a quantitative presentation of the market for a company's goods or services and the competition in the marketplace
• Structure and management: The principal executives of the company and how the firm will be organized
• Marketing: The strategies the company will use to reach out to prospective customers and build up sales
• Finances: Money the company has on hand and anticipated near-term and long-term income and expenses

A business plan may include an explicit funding request that specifies how much it needs from lenders or financiers to take the steps envisioned in the overall plan.

Planning as an Organizational Tool

The importance of a business plan to an entrepreneur is hard to overstate, especially for entrepreneurs who are planning a sizable operation.

The preparation of a business plan forces a company's founders to confront the realities of building a successful business. Covering each of the planning topics requires you to articulate who will do what in the new company and identify the strengths and weaknesses of your ideas.

For example, preparing a market analysis requires you to research the competition in your field, identify realistic pricing for your products, and get a handle on what realistic sales numbers might look like in your initial years of operation.

Importance of a Business Plan to Investors

Whether you approach a bank for a business loan, angel investors for startup funding, or your friends and family for some financial help, would-be financiers want to have a good understanding of your business strategy, who will be involved in building the business, and your overall prospects of success.

These areas are all communicated, at least in part, through your business plan. In addition, business people are often asked to make in-person presentations, much as you might see on Shark Tank , and your business plan can provide the basis for the information you present in person.

Does Every Business Need a Formal Plan?

Almost all sizable businesses benefit from going through the process of creating a business plan.

However, most businesses in the U.S. are very small, one-person businesses known as sole proprietorships. Many of these are part-time enterprises that are expansions of existing hobbies such as dog-walking or photography. While businesses this small may not need a formal plan, it certainly doesn't hurt to think through the content of a typical plan to take away any lessons that may apply to your small business.

• U.S. Small Business Administration: Write Your Business Plan
• Shark Tank: Homepage

David Sarokin is a well-known Internet specialist with publications in a wide variety of business topics, from the best uses of information technology to the steps for incorporating your business. He is the author of The Corporation, Its History and Future (Cambridge Scholars, 2020) on the role of big business in the modern world, and Missed Information (MIT Press, 2016), detailing how our social systems like health care, finance and government can be improved with better quality information.

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Importance of Planning Essay Example

Plans are something we often do in our daily life. In our everyday life, we always make plans one such example is planning our expenses when buying certain products with a list, here we plan out how we are going to spend, what can and how many products will I be able to afford with what I have. Just as we use planning in our everyday life, this extends to the business side of things like how we plan to improve previous weaknesses and fix blunders if made and done correctly; it is possible to do so. Based on what I read and my existing knowledge regarding planning, I can summarize what planning is, its importance, advantages, limitations, and most importantly how one can overcome said limitations to give it higher chances of success. We know that businesses be it already existing ones or new ones yet to be made all start with planning. 

Planning done knowing what we can realistically reach and what we may reach based on results must always be considered when making plans as it will be essential to its success. Planning is a way to prepare and take notes on how we should proceed about a particular goal or task in mind. In a business sense, one of the core reasons for planning is to make a profit by assessing what is possible with our current resources. Making a plan that is impossible with what you currently have is essentially a plan that is no doubt going to fail which is why knowing limitations will help one organize plans better. The right mindset should be starting with what we have and then growing it from there until we reach new heights, something we previously can’t achieve at the time, and like so the general logic is that as we grow our businesses, what we can do also rises with it. 

The importance of planning is that it lets one focus on a goal and with that goal in mind, we can make decisions that will help us get closer to that goal as well as thinking of future directions we can take for when we get to that point making new objectives to reach afterward. The advantages of planning include being able to identify threats to our business, what opportunities we can take, how we can adapt to changes in the environment, what countermeasures do we have for problematic scenarios, do we have full control of the situation, how are we going to effectively and efficiently use our workforce so that unnecessary tasks are lessened and lessening of risks we can encounter are some of the more known advantages and there are a lot more to list. That being said, the limitations involving planning leans on what available resources are at hand which I have previously reiterated many times throughout this reflection along with the fact that planning is costly, and it will not always go the way we want due to many factors such as time restraints, inflexibility, external factors, and the like. 

To overcome such limitations, it is imperative that in planning, we should consider proper and realistic objectives that can be met and understood by employees, the managers in the business having a means of obtaining accurate information about situations in the business so that it gets addressed correctly and them having initiatives to make beneficial decisions, careful planning about what may happen in the future and making countermeasures in place so that we are prepared for when issues arise, keeping track of current resources and having a means of having alternatives, having flexibility so that the business can change with regards to external change and lastly making it so that the plan will incur more benefits than the costs made to sustain it. 

My conclusion for this paper would be that all in all, planning is the core and preparation of sorts before doing things to reach the goals we have in mind and for it to be successful, we must always know what is realistic at the moment and knowing our limitations makes ways to overcome them and with this mindset will one be able to make an effective and efficient plan in incorporating various ideas for the improvement of a business.

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Planning - is The Road to Success

• Categories: Planning Strategic Planning Success

About this sample

Words: 525 |

Published: Aug 30, 2022

Words: 525 | Page: 1 | 3 min read

Works Cited

• Drucker, P. F. (2008). The Practice of Management. HarperBusiness.
• Mintzberg, H., Ahlstrand, B., & Lampel, J. (2008). Strategy Safari: A Guided Tour Through the Wilds of Strategic Management. Free Press.
• Blank, S. G. (2013). The Startup Owner's Manual: The Step-by-Step Guide for Building a Great Company. K&S Ranch.
• Covey, S. R. (2004). The 7 Habits of Highly Effective People: Powerful Lessons in Personal Change. Free Press.
• Gino, F. (2018). Sidetracked: Why Our Decisions Get Derailed, and How We Can Stick to the Plan. Harvard Business Review Press.
• McKeown, G. (2014). Essentialism: The Disciplined Pursuit of Less. Crown Business.
• Allen, D. (2015). Getting Things Done: The Art of Stress-Free Productivity. Penguin Books.
• Gladwell, M. (2008). Outliers: The Story of Success. Little, Brown and Company.
• Sinek, S. (2009). Start with Why: How Great Leaders Inspire Everyone to Take Action. Portfolio.
• Vanderkam, L. (2016). What the Most Successful People Do Before Breakfast: And Two Other Short Guides to Achieving More at Work and at Home. Portfolio.

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Why Planning is Important in Business – 15 Reasons

September 10, 2023 by Yusuf Ali

Running a successful business requires more than just having a great idea and the right resources. It also takes careful planning to ensure that you are making the most of your opportunities, minimizing risks, and setting yourself up for success.

Planning is an essential part of any business strategy and can help you stay on track with achieving your goals.

In this article, we’ll explore fifteen of the most important reasons why planning is important in business.

Table of Contents

15 Benefits of Planning in Business

Planning is the process of setting goals and establishing strategies to achieve those goals. It is an important tool for businesses of all sizes, as it helps you make sure that your operations are running smoothly and that you are accomplishing what needs to be done.

A good plan can help you stay organized and on track with your overall objectives. Here are 15 Reasons why planning is important in Business:

1. Planning in Business Helps to Make Better Decisions

When you plan, you take the time to consider all available options and make an informed decision. This helps you avoid making costly mistakes or wasting resources on unsuccessful ventures.

If you are having difficulty making decisions or if you want to ensure that your decision-making process is efficient, planning can help.

2. Planning in Business Improves Employee Morale

Having a clear plan of action helps employees feel more confident about their work , which can lead to increased job satisfaction and productivity.

It can also help to create a sense of purpose within the workplace and make employees feel valued. This, in turn, can help to reduce employee turnover and increase job satisfaction.

3. It Helps to Set Realistic Goals

Planning helps you set realistic goals that are achievable within a certain timeframe. This ensures that you’re not trying to do too much at once or setting yourself up for failure .

Through this process, you can also establish milestones that will help you measure your progress and keep yourself motivated.

4. It Helps to Establish Priorities

When you plan, you prioritize tasks and goals, making sure that the most important ones get done first. This helps you focus your time and resources on the things that are most likely to help your business succeed.

For instance , you might prioritize developing a customer service strategy over creating an online presence .

5. Planning in Business aid to create a Budget

Planning helps you create a budget so that you can manage your finances better and make sure that you have enough money to cover all of your expenses .

Through this process, you can also identify areas where you may need to make cuts or increase spending. This will help you ensure that your business is running as efficiently and cost-effectively as possible.

6. Planning in Business Provides Direction

Having a plan in place helps you stay focused and on task, as it provides you with a clear idea of where you’re going and how to get there.

It will also ensure that all of your employees are on the same page and working towards the same goals. This can help to minimize confusion and keep everyone motivated.

7. It Improves Communication

When everyone is working towards the same goal , it’s easier to communicate effectively and ensure that everyone is on the same page.

Planning helps to break down complex tasks and make them easier to understand. This can help to reduce misunderstandings and ensure that everyone is working towards the same objectives.

8. Planning in Business Enhances Efficiency

Planning ahead can help you anticipate problems and develop strategies to address them before they occur, which can save time and money in the long run . Therefore, it’s important to take the time to plan ahead so that you can ensure that all of your operations are running as efficiently as possible.

9. Planning in Business Reduces Stress

Having a plan helps reduce uncertainty and anxiety, as it gives you something to refer to when things get difficult.

Planning also helps to create a sense of control , as it will give you the confidence that you can handle whatever challenges come your way.

10. It Fosters Collaboration

Planning encourages collaboration , as it helps you involve all of your team members in the process and figure out how to best utilize everyone’s skills and talents.

It also ensures that no one person is making all of the decisions and that everyone has a stake in the success of the business.

Through planning , you can create an environment where everyone feels valued and is working together to achieve the same goals.

11. It Increases Motivation

Having a plan can help boost morale and motivate employees to work harder, as they know that their efforts will contribute to the success of the business.

Planning in business is a powerful tool to increase motivation . It helps create a sense of purpose, ownership, and collaboration among employees.

When individuals have a clear idea of what tasks need to be done and how their efforts contribute to the overall success of the organization , it will naturally motivate them to put in the extra effort. Having a plan in place also makes it easier for managers to reward employees for their hard work, further increasing motivation and performance.

12. It Strengthens Relationships

When you plan, you get to know your team members better and foster stronger working relationships with them. This can result in increased trust and collaboration between departments.

Planning helps establish effective communication , which further strengthens relationships and helps to prevent misunderstandings.

13. Planning in Business Helps Manage Risks

Planning helps you identify potential risks and develop strategies to minimize or avoid them. This helps you stay on budget and avoid unplanned losses.

It can also help you anticipate problems and make adjustments as needed, reducing the potential for mishaps or errors. For instance, if you identify a potential risk ahead of time, you can plan for ways to mitigate it and avoid costly mistakes.

Having a comprehensive plan in place can help to ensure that your business operations run smoothly and efficiently, helping you achieve success.

14. It Increases Profitability

By setting realistic goals, creating a budget, and managing risks effectively, planning can help businesses maximize their profits.

Planning ahead can help you identify opportunities for growth and develop strategies to capitalize on them. This can lead to increased sales and improved efficiency, resulting in higher profits.

15. Planning in Business Leads to Growth

Planning is essential for any business that wants to expand or develop new products or services. It helps you determine what resources you need and how to obtain them in order to reach your goals.

Planning in the business allows you to create an actionable roadmap that outlines the steps you need to take to reach success. This can help you develop new ideas, products, and services that lead to increased growth for your business.

Overall, planning is an essential tool for any business that wants to succeed and grow. It helps you make informed decisions, set realistic goals, manage risks, and create a budget.

In conclusion, planning is an important business tool that can help you make better decisions, stay organized, and reach your goals. By taking the time to create a strategic plan for your business, you can ensure that it is running smoothly and that you are accomplishing what needs to be done.

When used correctly, planning can lead to increased profits and growth for your business. It is a necessary tool that should not be overlooked if you want to achieve success. Take the time today to plan for your business’s future and reap the rewards of planning.

Yusuf is interested in exploring the world around him and making meaningful connections with it. He then express these ideas with words for the world to enjoy. In his free time, Yusuf loves to spend time with books, nature & his family.

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Why You Need Sustainability in Your Business Strategy

• 06 Nov 2019

In today’s ever-evolving world, debating whether to incorporate sustainability into your business strategy is no longer an option. Considering a values-driven approach when developing business strategies can be vital to long-term success.

Before getting into why sustainability is essential to successful business strategies, it's important to define what sustainability in business is.

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What Is Sustainability in Business?

In short, sustainability in business refers to the effect companies have on the environment or society.

A sustainable business strategy aims to positively impact one or both of those areas, thereby helping address some of the world’s most pressing problems.

Some of the global issues that sustainable business strategies help to address include:

• Climate change
• Income inequality
• Depletion of natural resources
• Human rights issues
• Fair working conditions
• Racial injustice
• Gender inequality

Although it may sound like it, sustainability in business is not purely altruistic. As Harvard Business School Professor Rebecca Henderson notes in the online course Sustainable Business Strategy , you can't use business to do good in the world if you're not doing well financially. Doing well and doing good are intertwined, and successful business strategies include both.

Many of today’s firms have adopted the triple bottom line , which suggests that organizations should focus on more than just profits, or the “bottom-line,” and also measure their environmental and social impact. These focuses can be referred to as “the three Ps,”: people, planet, and profit. Quite often, this sustainable approach to business ultimately boosts business performance.

Why Is Sustainability Important?

In addition to driving social and environmental change, sustainability initiatives can contribute to an organization's overall success. It may seem counterintuitive that spending more money on sustainable business practices can boost a company’s profitability, but studies show that the most sustainable companies are also the most profitable.

Environmental, social, and governance (ESG) metrics are often used to determine how ethical and sustainable an organization is. According to McKinsey , companies with high ESG ratings consistently outperform the market in both the medium and long term. While sustainability strategies might be an investment in the short term, they can lead to long-term benefits.

Benefits of Sustainability in Business

1. you’ll protect your brand and mitigate risks.

Ending up on the front page because of a scandal is a CEO’s worst nightmare. Not only do improper practices damage an organization’s reputation and cost it customers, but dealing with a public relations disaster can divert valuable human and financial resources from the core business.

You don’t want to become the company that allowed an oil spill or forced employees to work in unsafe conditions. By instituting a sustainable strategy that protects the environment and your workers, you also protect yourself from any damaging incidents.

2. Being Purpose-Driven Is a Competitive Advantage

Sustainability doesn't detract from business goals, and infusing your company with purpose can help attract a motivated, skilled workforce that drives financial success . In a Facebook Live discussion , Henderson noted a recent study showing that 89 percent of executives believe an organization with shared purpose will have greater employee satisfaction. Additionally, 85 percent say they're more likely to recommend a company with strong purpose to others.

Making your company an organization that does good in the world—rather than just a place that provides a paycheck—can be a competitive advantage when attracting the best talent.

Related : HBS Professor Explores the Impact Purpose Can Have on Your Organization

3. There's a Growing Market for Sustainable Goods

A 2019 study found that 73 percent of global consumers are willing to change their consumption habits to lessen their negative impact on the environment, and sustainable product sales have grown by nearly 20 percent since 2014. Millennials in particular are more willing to pay more for products that contain sustainable ingredients or products that have social responsibility claims. If your organization commits to sustainable products and practices, it could gain market share by converting sustainability-minded customers and increasing sales.

4. Cooperative Action Can Drive Change

As an individual, it can feel overwhelming, isolating, or simply impossible to effect change in a meaningful way. That’s not the case when the most innovative, successful, and powerful companies are collaborating to solve some of the world’s most pressing problems. While governments struggle to address public goods problems, purpose-driven companies working together to address these issues have experienced great success.

For example, palm oil is cheap, versatile, and found in about half of all packaged products, including soap, lipstick, and ice cream. But palm oil production has resulted in record greenhouse gas emissions and contributed to climate change.

In light of this, consumer goods producer Unilever committed to only using palm oil from certified sustainable sources in 2008. The organization cooperated with its competitors—as well as governments, NGOs, and indigenous peoples’ organizations—to lead an industry-wide adoption of sustainable palm oil. As a result, Unilever continues to be a thriving organization, and the world has reaped the environmental benefits of sustainable palm oil harvesting practices.

The Value of Sustainability

Sustainability doesn’t mean sacrificing profits or putting success on the backburner. Instead, it has become a crucial element to any organization’s successful strategy. A business that doesn't factor in sustainability risks is less successful in several measures, including profitability, growth, and employee retention.

By integrating sustainability into your business strategy , you can find success because, rather than in spite, of sustainability.

Do you want to take a more values-driven approach to business? Explore our three-week online course Sustainable Business Strategy and learn how organizations can succeed financially while also playing a role in solving some of the world’s most pressing problems.

This post was upated on March 22, 2021. It was originally published on November 6, 2019.

About the Author

Essay writing

• Introduction

Answering the question

Generating ideas, planning your essay, different planning methods.

• Writing your essay
• Developing your essay writing

Useful links for writing essays

• Study Advice Helping students to achieve study success with guides, video tutorials, seminars and one-to-one advice sessions.
• Academic writing LibGuide Expert guidance on punctuation, grammar, writing style and proof-reading.
• Guide to citing references Includes guidance on why, when and how to use references correctly in your academic writing.
• Reading and notemaking LibGuide Expert guidance on managing your reading and making effective notes.
• Academic Phrasebank Use this site for examples of linking phrases and ways to refer to sources.
• Ten stages of assignment success (Prezi) Based upon Burns and Sinfield, Essential Study Skills.
• Critical Thinking A short video on Critical Thinking that the BBC have prepared in partnership with The Open University

The first thing to do when preparing to write an essay is to make a plan. You could just rush in and write everything that comes into your head, but that would make it difficult for your marker to read and would reduce the effectiveness of your ideas. These will make much stronger arguments if you group them together than they would do on their own.

The guidance on this page will show you how to plan and structure your essay to produce a strong and focused response to the question.

A very common complaint from lecturers and examiners is that students write a lot of information but they just don't answer the question. Don't rush straight into researching – give yourself time to think carefully about the question and understand what it is asking.

Underlining key words – This is a good start point for making sure you understand all the terms (some might need defining); identifying the crucial information in the question; and clarifying what the question is asking you to do (compare & contrast, analyse, discuss). But make sure you then consider the question as a whole again, not just as a series of unconnected words.

Re-read the question – Read the question through a few times. Explain it to yourself, so you are sure you know what it is asking you to do.

Try breaking the question down into sub-questions – What is the question asking? Why is this important? How am I going to answer it? What do I need to find out first, second, third in order to answer the question? This is a good way of working out what important points or issues make up the overall question – it can help focus your reading and start giving your essay a structure. However, try not to have too many sub-questions as this can lead to following up minor issues, as opposed to the most important points.

• Answering the question and planning (video) Watch this brief video tutorial for more on the topic.
• Answering the question and planning (transcript) Read along while watching the video tutorial.

The kinds of things to note briefly are:

• What you already know about the topic – from lectures, seminars, general knowledge.
• Things you don't know about the topic, but need to find out in order to answer the question.
• Initial responses or answers to the question – what you think your conclusion might possibly be.

This helps you start formulating your argument and direction for answering the question. It also helps you focus your reading, as you can pinpoint what you need to find out and go straight to the parts of books, chapters, articles that will be most relevant.

After reading - After your reading, it is often good to summarise all your findings on a page. Again, a spider diagram can help with this.

Bringing together the key points from your reading helps clarify what you have found out, and helps you find a pathway through all the ideas and issues you have encountered. If you include brief details of authors and page nos. for key information, it can act as a quick at-a-glance guide for finding the evidence you need to support your points later.

It also helps you see how your initial response to the question might have changed or become more sophisticated in light of the reading you've done. It leads into planning your essay structure.

• It enables you to work out a logical structure and an end point for your argument before you start writing.
• It means you don't have to do this type of complex thinking at the same time as trying to find the right words to express your ideas.
• It helps you to commit yourself to sticking to the point!

You need to work out what to include, and what can be left out. It is impossible to cover everything in an essay, and your markers will be looking for evidence of your ability to choose material and put it in order. Brainstorm all your ideas, then arrange them in three or four groups. Not everything will fit so be prepared to discard some points (you can mention them briefly in your introduction).

Outline what you are going to include in each section:

• Introduction : Address the question, show why it's interesting and how you will answer it.
• Main body : Build your argument. Put your groups of ideas in a sequence to make a persuasive argument. One main point in each paragraph.
• Conclusion : Summarise your arguments and evidence, and show how they answer the original question.

Writing a summary - Some people plan best once they have written something, as this helps clarify their thinking. If you prefer to write first, try summarising the central idea of your essay in a few sentences. This gives you a clear direction for working out how you are going to break it down into points supported by evidence. You can then use one of the methods below to write a more detailed plan.

• Structuring your essay (video) Watch this brief video tutorial for more on the topic.
• Structuring your essay (transcript) Read along while watching the video tutorial.

Bullet points / linear plans - This type of plan lists the main points using bullet points or numbers. It can be a brief outline of the main point per paragraph, or a more detailed plan with sub-points and a note of the evidence to support each point (e.g. source and page no.).

No plan is perfect, so be prepared for your ideas to change as you write your essay. However, once you have an initial plan it is much easier to adapt it and see where new things fit if your thinking does change.

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6 Common Leadership Styles — and How to Decide Which to Use When

• Rebecca Knight

Being a great leader means recognizing that different circumstances call for different approaches.

Research suggests that the most effective leaders adapt their style to different circumstances — be it a change in setting, a shift in organizational dynamics, or a turn in the business cycle. But what if you feel like you’re not equipped to take on a new and different leadership style — let alone more than one? In this article, the author outlines the six leadership styles Daniel Goleman first introduced in his 2000 HBR article, “Leadership That Gets Results,” and explains when to use each one. The good news is that personality is not destiny. Even if you’re naturally introverted or you tend to be driven by data and analysis rather than emotion, you can still learn how to adapt different leadership styles to organize, motivate, and direct your team.

Much has been written about common leadership styles and how to identify the right style for you, whether it’s transactional or transformational, bureaucratic or laissez-faire. But according to Daniel Goleman, a psychologist best known for his work on emotional intelligence, “Being a great leader means recognizing that different circumstances may call for different approaches.”

• RK Rebecca Knight is a journalist who writes about all things related to the changing nature of careers and the workplace. Her essays and reported stories have been featured in The Boston Globe, Business Insider, The New York Times, BBC, and The Christian Science Monitor. She was shortlisted as a Reuters Institute Fellow at Oxford University in 2023. Earlier in her career, she spent a decade as an editor and reporter at the Financial Times in New York, London, and Boston.

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NPR suspends veteran editor as it grapples with his public criticism

David Folkenflik

NPR suspended senior editor Uri Berliner for five days without pay after he wrote an essay accusing the network of losing the public's trust and appeared on a podcast to explain his argument. Uri Berliner hide caption

NPR suspended senior editor Uri Berliner for five days without pay after he wrote an essay accusing the network of losing the public's trust and appeared on a podcast to explain his argument.

NPR has formally punished Uri Berliner, the senior editor who publicly argued a week ago that the network had "lost America's trust" by approaching news stories with a rigidly progressive mindset.

Berliner's five-day suspension without pay, which began last Friday, has not been previously reported.

Yet the public radio network is grappling in other ways with the fallout from Berliner's essay for the online news site The Free Press . It angered many of his colleagues, led NPR leaders to announce monthly internal reviews of the network's coverage, and gave fresh ammunition to conservative and partisan Republican critics of NPR, including former President Donald Trump.

Conservative activist Christopher Rufo is among those now targeting NPR's new chief executive, Katherine Maher, for messages she posted to social media years before joining the network. Among others, those posts include a 2020 tweet that called Trump racist and another that appeared to minimize rioting during social justice protests that year. Maher took the job at NPR last month — her first at a news organization .

In a statement Monday about the messages she had posted, Maher praised the integrity of NPR's journalists and underscored the independence of their reporting.

"In America everyone is entitled to free speech as a private citizen," she said. "What matters is NPR's work and my commitment as its CEO: public service, editorial independence, and the mission to serve all of the American public. NPR is independent, beholden to no party, and without commercial interests."

The network noted that "the CEO is not involved in editorial decisions."

In an interview with me later on Monday, Berliner said the social media posts demonstrated Maher was all but incapable of being the person best poised to direct the organization.

"We're looking for a leader right now who's going to be unifying and bring more people into the tent and have a broader perspective on, sort of, what America is all about," Berliner said. "And this seems to be the opposite of that."

Conservative critics of NPR are now targeting its new chief executive, Katherine Maher, for messages she posted to social media years before joining the public radio network last month. Stephen Voss/Stephen Voss hide caption

Conservative critics of NPR are now targeting its new chief executive, Katherine Maher, for messages she posted to social media years before joining the public radio network last month.

He said that he tried repeatedly to make his concerns over NPR's coverage known to news leaders and to Maher's predecessor as chief executive before publishing his essay.

Berliner has singled out coverage of several issues dominating the 2020s for criticism, including trans rights, the Israel-Hamas war and COVID. Berliner says he sees the same problems at other news organizations, but argues NPR, as a mission-driven institution, has a greater obligation to fairness.

"I love NPR and feel it's a national trust," Berliner says. "We have great journalists here. If they shed their opinions and did the great journalism they're capable of, this would be a much more interesting and fulfilling organization for our listeners."

A "final warning"

The circumstances surrounding the interview were singular.

Berliner provided me with a copy of the formal rebuke to review. NPR did not confirm or comment upon his suspension for this article.

In presenting Berliner's suspension Thursday afternoon, the organization told the editor he had failed to secure its approval for outside work for other news outlets, as is required of NPR journalists. It called the letter a "final warning," saying Berliner would be fired if he violated NPR's policy again. Berliner is a dues-paying member of NPR's newsroom union but says he is not appealing the punishment.

The Free Press is a site that has become a haven for journalists who believe that mainstream media outlets have become too liberal. In addition to his essay, Berliner appeared in an episode of its podcast Honestly with Bari Weiss.

A few hours after the essay appeared online, NPR chief business editor Pallavi Gogoi reminded Berliner of the requirement that he secure approval before appearing in outside press, according to a copy of the note provided by Berliner.

In its formal rebuke, NPR did not cite Berliner's appearance on Chris Cuomo's NewsNation program last Tuesday night, for which NPR gave him the green light. (NPR's chief communications officer told Berliner to focus on his own experience and not share proprietary information.) The NPR letter also did not cite his remarks to The New York Times , which ran its article mid-afternoon Thursday, shortly before the reprimand was sent. Berliner says he did not seek approval before talking with the Times .

NPR defends its journalism after senior editor says it has lost the public's trust

Berliner says he did not get permission from NPR to speak with me for this story but that he was not worried about the consequences: "Talking to an NPR journalist and being fired for that would be extraordinary, I think."

Berliner is a member of NPR's business desk, as am I, and he has helped to edit many of my stories. He had no involvement in the preparation of this article and did not see it before it was posted publicly.

In rebuking Berliner, NPR said he had also publicly released proprietary information about audience demographics, which it considers confidential. He said those figures "were essentially marketing material. If they had been really good, they probably would have distributed them and sent them out to the world."

Feelings of anger and betrayal inside the newsroom

His essay and subsequent public remarks stirred deep anger and dismay within NPR. Colleagues contend Berliner cherry-picked examples to fit his arguments and challenge the accuracy of his accounts. They also note he did not seek comment from the journalists involved in the work he cited.

Morning Edition host Michel Martin told me some colleagues at the network share Berliner's concerns that coverage is frequently presented through an ideological or idealistic prism that can alienate listeners.

"The way to address that is through training and mentorship," says Martin, herself a veteran of nearly two decades at the network who has also reported for The Wall Street Journal and ABC News. "It's not by blowing the place up, by trashing your colleagues, in full view of people who don't really care about it anyway."

Several NPR journalists told me they are no longer willing to work with Berliner as they no longer have confidence that he will keep private their internal musings about stories as they work through coverage.

"Newsrooms run on trust," NPR political correspondent Danielle Kurtzleben tweeted last week, without mentioning Berliner by name. "If you violate everyone's trust by going to another outlet and sh--ing on your colleagues (while doing a bad job journalistically, for that matter), I don't know how you do your job now."

Berliner rejected that critique, saying nothing in his essay or subsequent remarks betrayed private observations or arguments about coverage.

Other newsrooms are also grappling with questions over news judgment and confidentiality. On Monday, New York Times Executive Editor Joseph Kahn announced to his staff that the newspaper's inquiry into who leaked internal dissent over a planned episode of its podcast The Daily to another news outlet proved inconclusive. The episode was to focus on a December report on the use of sexual assault as part of the Hamas attack on Israel in October. Audio staffers aired doubts over how well the reporting stood up to scrutiny.

"We work together with trust and collegiality everyday on everything we produce, and I have every expectation that this incident will prove to be a singular exception to an important rule," Kahn wrote to Times staffers.

At NPR, some of Berliner's colleagues have weighed in online against his claim that the network has focused on diversifying its workforce without a concomitant commitment to diversity of viewpoint. Recently retired Chief Executive John Lansing has referred to this pursuit of diversity within NPR's workforce as its " North Star ," a moral imperative and chief business strategy.

In his essay, Berliner tagged the strategy as a failure, citing the drop in NPR's broadcast audiences and its struggle to attract more Black and Latino listeners in particular.

"During most of my tenure here, an open-minded, curious culture prevailed. We were nerdy, but not knee-jerk, activist, or scolding," Berliner writes. "In recent years, however, that has changed."

Berliner writes, "For NPR, which purports to consider all things, it's devastating both for its journalism and its business model."

NPR investigative reporter Chiara Eisner wrote in a comment for this story: "Minorities do not all think the same and do not report the same. Good reporters and editors should know that by now. It's embarrassing to me as a reporter at NPR that a senior editor here missed that point in 2024."

Some colleagues drafted a letter to Maher and NPR's chief news executive, Edith Chapin, seeking greater clarity on NPR's standards for its coverage and the behavior of its journalists — clearly pointed at Berliner.

A plan for "healthy discussion"

On Friday, CEO Maher stood up for the network's mission and the journalism, taking issue with Berliner's critique, though never mentioning him by name. Among her chief issues, she said Berliner's essay offered "a criticism of our people on the basis of who we are."

Berliner took great exception to that, saying she had denigrated him. He said that he supported diversifying NPR's workforce to look more like the U.S. population at large. She did not address that in a subsequent private exchange he shared with me for this story. (An NPR spokesperson declined further comment.)

Late Monday afternoon, Chapin announced to the newsroom that Executive Editor Eva Rodriguez would lead monthly meetings to review coverage.

"Among the questions we'll ask of ourselves each month: Did we capture the diversity of this country — racial, ethnic, religious, economic, political geographic, etc — in all of its complexity and in a way that helped listeners and readers recognize themselves and their communities?" Chapin wrote in the memo. "Did we offer coverage that helped them understand — even if just a bit better — those neighbors with whom they share little in common?"

Berliner said he welcomed the announcement but would withhold judgment until those meetings played out.

In a text for this story, Chapin said such sessions had been discussed since Lansing unified the news and programming divisions under her acting leadership last year.

"Now seemed [the] time to deliver if we were going to do it," Chapin said. "Healthy discussion is something we need more of."

Disclosure: This story was reported and written by NPR Media Correspondent David Folkenflik and edited by Deputy Business Editor Emily Kopp and Managing Editor Gerry Holmes. Under NPR's protocol for reporting on itself, no NPR corporate official or news executive reviewed this story before it was posted publicly.

• Katherine Maher
• uri berliner

Best Cruise Travel Insurance of April 2024

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The offers and details on this page may have updated or changed since the time of publication. See our article on Business Insider for current information.

Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate insurance products to write unbiased product reviews.

A cruise vacation can take much of the stress out of planning a vacation. With a pre-set itinerary on the high seas, you don't have to worry about how you're getting to your destination and what you're going to do there. However, an unexpected emergency can take the wind out of your sails and money out of your travel budget. So you'll want to ensure you have the best cruise insurance plan that won't leave you high and dry in an emergency.

Our top picks for the best cruise insurance

• Best Overall: Nationwide Travel Insurance
• Best for affordability: AXA Assistance USA
• Best for seniors: Seven Corners Travel Insurance
• Best for expensive trips: HTH Worldwide Travel Insurance
• Best for exotic locations: World Nomads Travel Insurance

How we rate cruise insurance companies »

Best overall: Nationwide

Nationwide Travel Insurance  is a long-standing and reputable brand within the insurance marketplace that offers cruise insurance plans with solid coverage and reasonable rates.

It has three cruise insurance options: Universal, Choice, and Luxury. The Nationwide Choice plan, for example, offers $100,000 in emergency medical coverage and $500,000 in emergency medical evacuation coverage.

The right plan for you depends on your budget and coverage needs. But each plan offers cruise-specific coverages like ship-based mechanical breakdowns, coverage for missed prepaid excursions if your cruise itinerary changes, and covered service disruptions aboard the cruise ship.

Read our Nationwide Travel Insurance review here.

Best for affordability: AXA

AXA Assistance USA  offers three comprehensive coverage plans: Gold, Silver, and Platinum. Each of these plans offers coverage for issues like missed flights, medical emergencies, lost luggage, and more.

The highest-tier Platinum plan provides $250,000 in medical emergency coverage and $1 million in medical evacuation coverage. The baggage loss coverage is $3,000 per person, and their missed connection coverage is $1,500 per person for cruises and tours.

In addition, travelers can take advantage of AXA's concierge service, which provides an extensive network of international service providers. They'll be able to assist you with things like restaurant reservations and referrals, golf course information, and more. This service could come in handy if you're stopping at a variety of unfamiliar destinations during your cruise.

The coverage limits on AXA's policies are on the higher end compared to other providers. And you can buy coverage for a little as 4% of your trip cost depending on your age, travel destination, and state of residence.

Read our AXA Travel Insurance review here.

Best for seniors: Seven Corners

Seven Corners Travel Insurance lets cruisers enjoy traveling in their golden years with the knowledge they're covered in the event of an accident or emergency. While other providers do offer coverage to those 80+ years old, Seven Corners is known for its affordable premiums while offering above-average medical expenses and medical evacuation coverage limits — two areas of travel insurance coverage that are even more important as we get older.

Seven Corners also offers the option of a preexisting conditions waiver and CFAR insurance at an additional cost, plus "Trip Interruption for Any Reason" coverage, which you won't find on many policies.

You can choose between the Trip Protection Basic or Trip Protection Choice plans, with the higher-tier Choice plan costing more but providing more coverage.

Read our Seven Corners Travel Insurance review here. 

Best for expensive trips: HTH Worldwide

HTH Worldwide Travel Insurance  offers three levels of trip protection: TripProtector Economy, Classic, and Preferred. The higher the tier, the more coverage you'll get for things like baggage delays, trip delays & cancellations, and medical expenses. But their premiums remain reasonable even at the highest tier of coverage.

Not only does the HTH Worldwide Trip Protector Preferred plan offer higher-than-average medical emergency and evacuation coverage limits ($500,000 and $1 million, respectively), but you'll also get a baggage loss coverage limit of $2,000 per person and coverage for trip interruption of up to 200% of the trip cost. You also have the option to add CFAR coverage for an additional cost.

Read our HTH Worldwide Travel Insurance review here.

Best for exotic locations: World Nomads

World Nomads Travel Insurance  has been a top choice for comprehensive travel insurance for many years now. And it's a great option when it comes to cruise coverage, too.

Even the most basic Standard Plan comes with $100,000 in medical emergency coverage and $300,000 in emergency evacuation coverage. And you'll get higher coverage limits with their Premium Plan. Plus, unlike many other providers, World Nomads trip cancellation and emergency medical coverage include COVID-19-related issues.

What sets World Nomads apart from many other insurance companies is that its policies cover 200+ adventure sports. This can be important for adventurous cruisers who plan to take part in activities like jet skiing, scuba diving, or parasailing during their cruise.

Read our World Nomads Travel Insurance review here.

Introduction to Cruise Insurance

Cruise insurance may offer unique coverage like missed port of call and medical evacuation coverage. You might not need the flight protections of a regular travel insurance plan if you're catching a cruise at a port near you, but medical and cancel for any reason coverage could be critical. The best travel insurance plans will provide flexibility to add coverage options to fit your travels needs.

Understanding the Basics of Cruise Insurance

At its core, cruise insurance is your financial lifeboat, designed to protect you from unforeseen events that could disrupt your sea voyage. Whether it's a sudden illness, adverse weather, or other unexpected occurrences, having the right insurance can make a world of difference.

Why Cruise Insurance is Important

Picture this: You're all set for your dream cruise, but a sudden family emergency means you can't set sail. Or worse, you fall ill in the middle of the ocean. Without cruise insurance, you're not just missing out on an adventure, but also facing potentially huge financial losses. That's why securing cruise insurance isn't just recommended; it's a crucial part of your cruise planning.

Types of Cruise Insurance Coverage

Cruise insurance isn't a one-size-fits-all life jacket. There are various types of coverage, each tailored to protect different aspects of your cruise experience.

Trip Cancellation and Interruption Coverage

This coverage is like your safety net, catching you financially if you need to cancel your trip last minute or cut it short due to emergencies, be it due to personal, health-related, or even certain work conflicts.

Medical Coverage

Being on a cruise shouldn't mean being adrift from medical care. Medical coverage ensures that if you fall ill or get injured, your medical expenses won't sink your finances.

Emergency Evacuation Coverage

In the rare case that you need to be evacuated from the ship due to a medical emergency or severe weather, this coverage ensures you're not left adrift in a sea of expenses.

Baggage and Personal Effects Coverage

Imagine reaching your dream destination only to find your luggage lost at sea. This coverage ensures that lost, stolen, or damaged baggage doesn't dampen your cruise experience.

Buying Cruise Insurance

Securing the best cruise insurance isn't just about finding the best price; it's about ensuring it covers all your potential needs. 

When to Purchase Cruise Insurance

Timing is everything. Purchasing your insurance soon after booking your cruise can often provide additional benefits and ensure you're covered for any early surprises. As you get closer to your trip your coverage options may get more expensive, and certain providers may not be able to offer you coverage.

How to Find the Best Deals on Cruise Insurance

Keep a lookout for deals, but remember, the cheapest option isn't always the best. Balance cost with coverage, and ensure you're getting the protection you need at a price that doesn't rock your financial boat. A travel insurance comparison site like SquareMouth is a good place to compare multiple quotes from all of the major carriers at once.

How we reviewed cruise insurance plans

When comparing cruise travel insurance providers, we evaluated them based on the following criteria to come up with our list of top picks:

Customer Satisfaction

We look at ratings from JD Power and other industry giants to see where a company ranks in customer satisfaction. We also look at customer review sites like Trustpilot and SquareMouth.

Policy Types

We look at policy types and offerings, from standard travel protections to adventure sports coverage. We look at the amount of insurance offered

Average Premiums

We compare average premiums per trip. Some companies also offer annual plans, and we compare policies accordingly.

Claims Paid

How frequently do companies pay claims easily and quickly? We check customer reviews and other resources to see which companies honor policies most effectively.

We look at the company's overall behavior. Is it operating ethically? Companies can earn additional points for such behaviors.

You can read more about how Business Insider rates insurance here.

How much does insurance cost for a cruise?

As a rule of thumb, you can expect to pay between 5% and 10% of your prepaid, nonrefundable trip expenses for cruise insurance coverage. The price will vary depending on factors like your age, your travel destination, and whether you require additional coverage.

When is the best time to buy cruise insurance?

If you're booking a cruise, we recommend purchasing travel insurance when you make your first trip payment. That could be for the cruise itself or an expense like airfare to get you to your cruising destination. This way, if you have to cancel your trip, you'll have the most extended coverage period possible.

Can I buy my own cruise insurance?

You can buy your own cruise insurance that isn't offered directly through the cruise line operator. In fact, this could be a better option if you want coverage for your travel to the cruise's departure point, not just for the cruise itself.

What is the difference between travel insurance and cruise insurance?

The difference between traditional travel insurance and cruise insurance is that cruise insurance offers more specialized coverage, for situations such as missing a departure port and more coverage for medical evacuations, since it's more expensive to evacuate someone at sea than on land. 

Can I claim for missed ports on a cruise?

Most cruise insurance includes coverage for missing a departure port, so you should be able to claim for a missed port. Just make sure you check the details of your policy before you file a claim, and before you travel so you know what compensation you're entitled to.

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