The Importance of a Business Plan or Proposal

Importance of a Business Plan or Proposal

A business plan explains the entire business, including its executive summary, background, marketing plan, production plan, vision, and mission. It ensures whether the company will be successful or not. Entrepreneurs should have a business proposal to start a new business to avoid risk. It also assists the employees in accomplishing the business. The importance of a business plan becomes crucial to start up a new company.

A business proposal is a short business plan. The business proposal describes the business process. However, a business proposal includes an executive summary, problem statements, product, finance, and solution. The example of a business proposal for students certainly guides others to create a business plan. This business plan sample teaches how to write business plan assignments for students. Students might learn how to write a simple business plan and proposal.

Business Plan Examples For Student Entrepreneurship


The Ten Importance of a Business Plan are:

  1. Evaluating the Business Ideas
  2. Stakeholder Collaboration
  3. Bank Loan Sanction
  4. Analyzing Feasibility
  5. Assisting Entrepreneur
  6. Assisting Employees
  7. Customer Segmentation
  8. Product Description
  9. Financial Projection
  10. Risk Reduction
Evaluating the Business Ideas

Firstly business plan validates the reasonableness of profit from the business. It is written evidence to test the business idea’s profitability. A business plan also assists stakeholders and employees in evaluating the business idea and working accordingly. It also helps the management team in adequately managing and conducting business activities. A business plan shows entrepreneurs the way to start up a new business.

Stakeholder Collaboration

A business plan is essential for collaborating with stakeholders. The organizations provide the business profile to collaborate with each other. It represents the company to other parties to make a deal. It also assists the organization in winning the negotiation. For example, two companies want to collaborate on promoting each other products. In this situation, both universities share their company profile and business plan to know each other before signing the MoU. Additionally, It is crucial to persuade clients and investors.

Bank Loan Sanction

The business plan is also important to get get a bank loan. Most companies submit a company profile while applying for a bank loan. The bank authority surely evaluates business feasibility through the business report. It assists the Bank authority in assessing the business feasibility as well as sanctioning the loan.

Analyzing Feasibility

The business plan is crucial for the start-up business and new programs or business plans under the company. For example, a TV program plan is compulsory to get permission to telecast a new program on Television. The authority analyzes the program’s feasibility through the written plan.

Assisting Entrepreneur

Thus, a business plan or proposal is significant for students who want to become entrepreneurs. It certainly shows the way for entrepreneurs to start a new business.

Assisting Employees

Additionally, the business plan assists employees in understanding their goals in the particular organization. Every business proposal includes an executive summary and company background information. So, It is a perfect written document for getting business ideas. It also demonstrates the employee’s common goals. Therefore, this business plan teaches employees how to work effectively in the organization.

Customer Segmentation

Customer segmentation is a way of identifying the group of customers who want to buy specific products. The business proposal mentions the demographic and psychographic factors to identify those groups of customers. Therefore, the organization sends the products to the specific customers who need them.

Product Description

A business plan describes product details to customers. The customers learn about the products through it.

Financial Projection

The business plan describes financial projections, including determining capital conditions. It shows how to divide and invest the fund nicely for different purposes. It also maintains proper cash flow.

Risk Reduction

The business proposal assists in reducing risk for new organizations. The business plan includes a SWOT analysis to assess the business risk. A complete business proposal shows how to overcome threats to achieve the goal.

SWOT Analysis

Eugene White’s Model of Communication Example With Pros and Cons

Eugene White’s Model of Communication Example, Explanation, Types, Components, Advantages, and Disadvantages. Examples of Eugene White’s Model of Communication.

Eugene White’s Model of Communication

Eugene White’s model is a transactional communication theory that explains oral discussion. In 1960, scientist Eugene White introduced a transactional communication theory. Consequently, it is known as  Eugene White’s model of verbal discussion. The most important component of Eugene White’s model is feedback, and feedback makes it a transactional model of communication.

According to Eugene White, Feedback is the most important concept of his model. Additionally, the communication process is circular nor linear.

Eugene White’s model shows communication occurs in two directions. It also indicates communication is a circular, not a linear process. The discussion occurs between two people, and it is reciprocal.

According to Eugene White’s model (1960), people think to symbolize the speech; they then speak to send the message to receivers. The receivers decode the message to provide feedback to senders. The sender and receiver monitor the context to continue the conversation. It is the best communication mode to describe a talk show and debating program.

Examples of Eugene White’s Model of Communication

The five examples of Eugene White’s model are the talk-show program, debating, bargaining between buyer and seller, small group discussion, and interview session discussion.

The talk show program is an example situation of Eugene White’s stages of oral communication. In talk show programs, the speaker and host follow eight stages of communication, including thinking, symbolizing, expressing, transmitting, receiving, decoding, feedbacking, and monitoring the context.

Debating is another example of White’s communication model. The speaker and receiver follow a cyclical communication process in this context. Sometimes, the senders play the role of receiver. Consequently, the receivers play the role of the sender. They speak and listen simultaneously.

The bargaining between buyers and sellers is an example situation of Eugene White’s model. In this communication context, a circular conversation occurs reciprocally.

In addition, small group discussion is an example situation of White’s model. Many people converse recurrently.

Finally, the interview session is an example situation for White’s communication model. The interviewer asks several questions to assess the applicant. Sometimes, the applicants follow the STAR interview questions and answer samples to reply to the interviewer. The communication process is circular.

Eugene White's Model of Communication Example, Explanation, Elements and Advantages, and Disadvantages. Eugene White's Model 1960
Eugene White’s Model
Eugene White’s Model Elements

White’s stages of oral communication examples are:

  1. Thinking
  2. Symbolizing
  3. Expressing
  4. Transmitting
  5. Receiving
  6. Decoding
  7. Feedbacking
  8. Monitoring

Eugene White’s model describes the face-to-face communication process with eight communication components: thinking, symbolizing, expressing, transmitting, receiving, decoding, feedbacking, and also monitoring. Communication is a recurring process in which the sender and receiver work simultaneously.


Thinking is the sender’s thoughts and perceptions. The sender thinks to organize and deliver messages to receivers. Thinking is the initial stage of the communication process.


Symbolizing means representing something to express thoughts. People symbolize words and utter them to communicate. For example, every word of a speech is a symbol of communication. In written communication, letters are the symbol of communication.


Expressing is the process of articulating thoughts and messages to receivers. People express ideas by symbolizing them. For example, a physician delivers his speech to stop people from smoking. He expresses a persuasive speech to influence people.


Transmitting is the process of conveying messages or thoughts from senders to listeners. In face-to-face communication, the sender transmits the message directly to the receiver without a channel. In mass communication, the sender uses TV, radio, or newspaper to transmit the message.


Receiving is the process of receiving messages from the receivers. The receiver accepts ideas and decodes them to provide feedback.


Decoding is the way of interpreting an encoded symbol into intelligible language.


Feedback is the process of providing a response to the sender’s message. It validates the communication process is transactional, not linear. Feedback ensures that the communication is transactional, not linear.  It also validates that Eugene’s communication model is the transactional model of communication.


Speakers try to understand whether the listener accomplishes the message or not. It is all about observation. The speaker observes how the message impacts the audience.

Eugene White’s Model Advantages and Disadvantages
White’s Model of Communication Advantages

Firstly, White’s communication model can explain the transaction communication process with feedback. It is the perfect model to explain oral communication.

Additionally, this model shows how two-way communication occurs, like debating and talk shows.

Moreover,  White’s model suits effective communication processes; therefore, organizations use this model to communicate with clients.  For example, the marketing team discusses with clients over smartphones to motivate them.

White’s Model of Communication Disadvantages

Firstly, the White model cannot describe the one-way communication process; because it is a transactional communication model with feedback. Contrastly, the linear communication models enable us to explain the linear or one-way communication process.

In addition, it cannot explain communication with radio, television, book, newspaper, and no-reply email.

Furthermore, Eugene White’s model presents a complex framework compared to linear models such as Aristotle’s model of communication with five elements.

In conclusion, Eugene White’s model is a transaction communication theory. It is one of the significant models to describe the two-way communication process with eight elements.