why do we need to have a business plan

“My main financial concern will be ensuring I can have a comfortable work/life balance, as at present I am struggling to maintain this due to picking up a lot of overtime to make ends meet.”

“Although it takes up a large amount of our time, life doesn't necessarily have to be all about work. It's because I have a job that I'm able to enjoy my personal life. And it's because I enjoy my personal life that I'm able to work hard at my job. I reckon it's precisely because I have fulfilment in both of these areas that I'm able to be my true self.”

“It is very important for me to work remotely and work flexible hours. It gives me more time to take care of my personal life, my mental health, my home life with my partner and for me to have better quality of life…Flexibility is very important, and I believe it is a trend without return, that all employers should adapt to.”

“I have rejected some jobs because the companies are only interested in your services, rather than paying attention to how their employees are, so that they can perform to their best ability in the workplace. In this case, I’m specifically referring to the issues of mental health, and gender equality.”

“I’ve turned down employers and assignments, because I believe in environmental sustainability, and I refuse to be part of something that does not take the environment into account.”

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Gen Zs and millennials are facing a unique combination of challenges during a pivotal point in their lives as they progress in their careers and plan for their futures. It is crucial for employers to understand these generations and continue driving progress on the issues that matter most to them. This will not only help boost productivity and retain talent—it will ultimately build trust and value for business in society more broadly.

Employers can—and must—act. As businesses face new headwinds, it will be important to stay focused on maintaining the progress they've made and driving greater momentum.

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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:

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.

Send invoices, get paid, track expenses, pay your team, and balance your books with our free financial management software.

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:

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 graphic showing you a “Business Plan Outline.” There are four sections on the left side: Executive Summary at the top, Company Description below it, followed by Market Analysis, and lastly Organization and Management. There was four sections on the right side. At the top: “Service or Product Line.” Below that, “Marketing and Sales.” Below that, “Funding Request.” And lastly: “Financial Projections.” At the very bottom below the left and right columns is a section that says “Appendix.

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.

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.

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What Is a Business Plan?

Understanding business plans, how to write a business plan, elements of a business plan, special considerations.

Business Plan: What It Is, What's Included, and How To Write One

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

Investopedia / Ryan Oakley

A business plan is a document that defines in detail a company's objectives and how it plans to achieve its goals. A business plan lays out a written road map for the firm from marketing , financial, and operational standpoints. Both startups and established companies use business plans.

A business plan is an important document aimed at a company's external and internal audiences. For instance, a business plan is used to attract investment before a company has established a proven track record. It can also help to secure lending from financial institutions.

Furthermore, a business plan can serve to keep a company's executive team on the same page about strategic action items and on target for meeting established goals.

Although they're especially useful for new businesses, every company should have a business plan. Ideally, the plan is reviewed and updated periodically to reflect goals that have been met or have changed. Sometimes, a new business plan is created for an established business that has decided to move in a new direction.

Key Takeaways

Want Funding? You Need a Business Plan

A business plan is a fundamental document that any new business should have in place prior to beginning operations. Indeed, banks and venture capital firms often require a viable business plan before considering whether they'll provide capital to new businesses.

Operating without a business plan usually is not a good idea. In fact, very few companies are able to last very long without one. There are benefits to creating (and sticking to) a good business plan. These include being able to think through ideas before investing too much money in them and working through potential obstacles to success.

A good business plan should outline all the projected costs and possible pitfalls of each decision a company makes. Business plans, even among competitors in the same industry, are rarely identical. However, they can have the same basic elements, such as an executive summary of the business and detailed descriptions of its operations, products and services, and financial projections. A plan also states how the business intends to achieve its goals.

While it's a good idea to give as much detail as possible, it's also important that a plan be concise to keep a reader's attention to the end.

A well-considered and well-written business plan can be of enormous value to a company. While there are templates that you can use to write a business plan, try to avoid producing a generic result. The plan should include an overview and, if possible, details of the industry of which the business will be a part. It should explain how the business will distinguish itself from its competitors.

Start with the essential structure: an executive summary, company description, market analysis, product or service description, marketing strategy, financial projections, and appendix (which include documents and data that support the main sections). These sections or elements of a business plan are outlined below.

When you write your business plan, you don’t have to strictly follow a particular business plan outline or template. Use only those sections that make the most sense for your particular business and its needs.

Traditional business plans use some combination of the sections below. Your plan might also include any funding requests you're making. Regardless, try to keep the main body of your plan to around 15-25 pages.

The length of a business plan varies greatly from business to business. Consider fitting the basic information into a 15- to 25-page document. Then, other crucial elements that take up a lot of space—such as applications for patents—can be referenced in the main document and included as appendices.

As mentioned above, no two business plans are the same. Nonetheless, they tend to have the same elements. Below are some of the common and key parts of a business plan.

Unique Business Plans Help

The best business plans aren't generic ones created from easily accessed templates. A company should entice readers with a plan that demonstrates its singularity and potential for success.

Types of Business Plans

Business plans help companies identify their objectives and remain on track to meet goals. They can help companies start, manage themselves, and grow once up and running. They also act as a means to attract lenders and investors.

Although there is no right or wrong business plan, they can fall into two different categories—traditional or lean startup. According to the Small Business Administration (SBA) , the traditional business plan is the most common. It contains a lot of detail in each section. These tend to be longer than the lean startup plan and require more work.

Lean startup business plans, on the other hand, use an abbreviated structure that highlights key elements. These business plans aren't as common in the business world because they're short—as short as one page—and lack detail. If a company uses this kind of plan, it should be prepared to provide more detail if an investor or lender requests it.

Financial Projections

A complete business plan must include a set of financial projections for the business. These forward-looking financial statements are often called pro-forma financial statements or simply the " pro-formas ." They include an overall budget, current and projected financing needs, a market analysis, and the company's marketing strategy.

Other Considerations for a Business Plan

A major reason for a business plan is to give owners a clear picture of objectives, goals, resources, potential costs, and drawbacks of certain business decisions. A business plan should help them modify their structures before implementing their ideas. It also allows owners to project the type of financing required to get their businesses up and running.

If there are any especially interesting aspects of the business, they should be highlighted and used to attract financing, if needed. For example, Tesla Motors' electric car business essentially began only as a business plan.

Importantly, a business plan shouldn't be a static document. As a business grows and changes, so too should the business plan. An annual review of the company and its plan allows an entrepreneur or group of owners to update the plan, based on successes, setbacks, and other new information. It provides an opportunity to size up the plan's ability to help the company grow.

Think of the business plan as a living document that evolves with your business.

A business plan is a document created by a company that describes the company's goals, operations, industry standing, marketing objectives, and financial projections. The information it contains can be a helpful guide in running the company. What's more, it can be a valuable tool to attract investors and obtain financing from financial institutions.

Why Do Business Plans Fail?

Even if you have a good business plan, your company can still fail, especially if you do not stick to the plan! Having strong leadership with a focus on the plan is always a good strategy. Even when following the plan, if you had poor assumptions going into your projections, you can be caught with cash flow shortages and out-of-control budgets. Markets and the economy can also change. Without flexibility built into your business plan, you may be unable to pivot to a new course as needed.

What Does a Lean Startup Business Plan Include?

The lean startup business plan is an option when a company prefers a quick explanation of its business. The company may feel that it doesn't have a lot of information to provide since it's just getting started.

Sections can include: a value proposition, a company's major activities and advantages, resources such as staff, intellectual property, and capital, a list of partnerships, customer segments, and revenue sources.

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The scientific benefits of business planning

Do You Need a Business Plan? Scientific Research Says Yes

Noah Parsons

13 min. read

Updated March 8, 2023

Male entrepreneur sitting in an office in front of computer. Reviewing a research study covering the impact of small business success due to planning.

Should you spend some time developing a plan for your business, or just dive in and start, figuring things out as you go? There has been plenty of debate on this topic, but no one has pulled together the scientific evidence to determine if planning is worthwhile—until now .

With the help of my friend Jeff, from the University of Oregon, I’ve been looking at academic research on business planning—the actual science around planning and how it impacts both startups and existing businesses.

But, before we dive into the data, why do we even need to look at research on business planning? It seems like most advice on starting a business includes writing a business plan as a necessary step in the startup process. If so many people encourage you to write one, business plans must add value, right?

Well, over the past few years, there’s been a lot of controversy about the value of business plans. People look at certain companies that have been very successful but haven’t written business plans and conclude that planning is a waste of time.

After all, taking the time to plan is a bit of a trade-off. The time you spend planning could be time spent building your company. Why not just “get going” and learn as you build your company, instead of taking the time to formulate a strategy and understand your assumptions about how your business might grow?

Well, the research shows that it’s really not a “write a plan” or “don’t write a plan” conversation. What really matters is what kind of planning you do and how much time you spend doing it.

On this page

Planning can help companies grow 30 percent faster

The quality of the plan matters, being prepared matters when you’re seeking funding, when you start planning is important—the earlier the better, planning makes you more likely to start your business, you’re less likely to fail if you have a plan, your success depends on the type of planning you do.

One study (1) published in 2010 aggregated research on the business growth of 11,046 companies and found that planning improved business performance . Interestingly, this same study found that planning benefited existing companies even more than it benefited startups.

But, this study still doesn’t answer the question it raises:

Why would planning help a business that has a few years of history more than one that is just starting up?

The answer most likely lies in the fact that existing businesses know a bit more about their customers and what their needs are than a new startup does. For an existing business, planning involves fewer guesses or assumptions that need to be proven, so the strategies they develop are based on more information.

Another study (2) found that companies that plan grow 30 percent faster than those that don’t plan. This study found that plenty of businesses can find success without planning, but that businesses with a plan grew faster and were more successful than those that didn’t plan.

To reinforce the connection between planning and fast growth, yet another study (3) found that fast-growing companies—companies that had over 92 percent growth in sales from one year to the next—usually have business plans. In fact, 71 percent of fast-growing companies have plans . They create budgets, set sales goals, and document their marketing and sales strategies. These companies don’t always call their plans “business plans” but instead often refer to things like strategic plans, growth plans, and operational plans. Regardless of the name, it’s all forward-looking planning.

Action: Carve out some time to set goals and build a plan for your business. More importantly, re-visit your plan as you grow and revise it as you learn more about your business and your customers.

Business planning is not an activity you undertake only when you’re getting your business up and running. It should be something you return to, time and time again, to revise and improve upon based on new knowledge.

But, it’s not as simple as it might appear. Just having a plan doesn’t guarantee faster growth. It’s the kind of plan you have and how you use it that really matters .

It turns out that startups, especially ones building highly innovative businesses, should create shorter, less detailed plans (4). That’s because these innovative startups are learning new things about their product and customers at a very fast pace and their strategies change more frequently. Simpler plans get updated more frequently and are more helpful to these companies because they can review their strategy at a glance.

Meanwhile, more established companies know a lot more about their products and customers and can craft more detailed strategies that are less likely to change as quickly. For these companies, more detailed planning is generally more helpful.

And it’s not just the size of the plan that matters. What you include in your plan is important as well.

The same study we talked about above—the one that found that businesses grow faster with a plan—also found that companies that did a good job defining their value proposition do even better than companies that have a hard time defining their customers’ needs.

These researchers also found that having a plan is less about accurately predicting the future, and more about setting regular goals, tracking your actual progress toward those goals and making changes to your business as you learn more about your customers. Silicon Valley businesses like to call the act of changing strategic direction “pivoting.” All it really means is that you need to stay nimble, keep your eyes open, and be willing to make changes in your business as you compare your actual results to your goals and gather additional feedback from your customers.

Action: Skip the 40-page business plan and instead focus on simpler planning that defines your goals and documents your customers’ needs. Adjust your plan frequently as you learn more about your business.

Over and over again, you hear venture capitalists talk about how much the team matters in a funding decision. Beyond just the team, you also hear them talk about passion—how much the entrepreneur believes in the idea.

But, it turns out that there is something that trumps passion when VCs make their decisions. Research shows (5) that how well an entrepreneur is prepared is much more important than how much passion they have.

This doesn’t mean that VCs will ask for a business plan. In fact, they probably won’t ask for one.

What it means is that entrepreneurs need to have done some planning, in some form, so that they can be prepared to talk intelligently about their idea, their target market, their sales and marketing strategies, and so on.

So, the formal 40-page business plan document may not be useful when you’re pitching VCs. But, you’d better have done some planning, so that you can communicate verbally or through a pitch deck what would normally have been found in that written document.

And, not only will business planning help you be more prepared, it will actually improve your chances of getting funded. A study at the University of Oregon (6) found that businesses with a plan were far more likely to get funding than those that didn’t have a plan .

Action: Know your business inside and out. Document your strategy in an internal document, but skip all the time and effort creating a well-crafted business plan document.

So, if business planning increases your likelihood of success, and in fact helps you grow faster, when should you start working on a business plan?

Research shows (7) that entrepreneurs who started the business planning process early were better at what the scientists call “establishing legitimacy.” That’s a fancy way of saying that these entrepreneurs used business planning to start the process of talking with potential customers, working with business partners, starting to look for funding, and gathering other information they needed to start their business.

Entrepreneurs that did a good job of using their business plan to “establish legitimacy” early were more likely to succeed and their businesses tended to last longer.

Not only that, starting the planning process before starting marketing efforts and before talking to customers reduces the likelihood that a business will fail ( 8).

That said, planning should never take the place of talking to customers. An ongoing planning process—one in which the plan is constantly revised as new information is gathered—requires that you talk to your potential customers so that you can learn more about what they need, what they are willing to pay, and how you can best reach them.

Action: Start the planning process early. Even if all you do is build out a simple elevator pitch to try your idea on for size, it will help you begin the conversation with potential customers and kick-start your business.

If you’re like me, and like most entrepreneurs, you like to dream up new business ideas. You constantly think of new ways to improve existing businesses and solve new problems.

But, most of those dreams never become a reality. They live on as ideas in your head while other entrepreneurs see the same opportunity and find a way to make it happen.

It turns out that there’s a way to turn more of your ideas into a viable business. A study published in Small Business Economics found that entrepreneurs that take the time to create a plan for their business idea are 152 percent more likely to start their business ( 9). Not only that, those entrepreneurs with a plan are 129 percent more likely to push forward with their business beyond the initial startup phase and grow it. These findings are confirmed by another study that found that entrepreneurs with a plan are 260 percent more likely to start their businesses (10).

Interestingly, these same entrepreneurs who build plans are 271 percent more likely to close down a business . This seems counterintuitive to the stats above, but when you think about it a bit more, it makes a lot of sense.

Entrepreneurs with plans are tracking their performance on a regular basis. They know when things aren’t going to plan—when sales aren’t meeting projections and when marketing strategies are failing. They know when it’s time to walk away and try a different idea instead of riding the business into the ground, which could have disastrous results.

Action: If you really want to start a business, start committing your goals and strategy to paper. Even if it’s just a simple one-page business plan, that will help you get started faster. And, once you do start, track your performance so you know when to change direction and try something different.

Nothing can absolutely prevent your company from failing, but it turns out that having a plan can help reduce your risks.

Yet another study of 223 companies found that having a plan reduced the likelihood that a business would fail. Having a plan didn’t guarantee success, unfortunately. But, those companies with a plan had better chances of success than those that skipped the planning process.

Having a plan and updating it regularly means that you are tracking your performance and making adjustments as you go. If things aren’t working, you know it. And, if things are going well, you know what to do more of.

Action: Build a plan, but don’t just stick it in a drawer. Track your performance as you go so you can see if you’re reaching your goals. Your plan will help you discover what’s working so you can build your business.

In the end, creating a business plan seems like common sense. You wouldn’t set out on a trip without a destination and a map, would you?

It’s great to see research back up these common-sense assumptions. The research also validates the idea that the value of business planning really depends on how you approach it.

It’s not a question of whether you should plan or not plan—it’s what kind of planning you do. The best planning is iterative; it’s kept alive and it adapts.

It’s not about predicting the future as if you’re a fortune teller at a carnival. Instead, it’s a tool that you use to refine and adapt your strategy as you go, continuing to understand your market as it changes and refining your business to the ever-changing needs of your customers.

I recommend starting with a one-page plan. It’s a simpler form of planning where you can start by documenting your business concept on a single page. From there, iterate, gather feedback, and adjust your plan as needed. If you need some inspiration, check out our gallery of over 500 free sample business plans .

Finally, a big “thank you” to Jeff Gish at the University of Oregon , who was immensely helpful in gathering and analyzing the research mentioned in this article.

What has your experience with business planning been like? Will you approach the planning process differently in the future? Tell me on Twitter @noahparsons.

References:

1 Brinckmann, J., Grichnik, D., & Kapsa, D. (2010). Should entrepreneurs plan or just storm the castle? A meta-analysis on contextual factors impacting the business planning–performance relationship in small firms. Journal of Business Venturing, 25(1), 24-40. doi: 10.1016/j.jbusvent.2008.10.007

2 Burke, A., Fraser, S., & Greene, F. J. (2010). The multiple effects of business planning on new venture performance. Journal of Management Studies, 47(3), 391-415.

3 Upton, N., Teal, E. J., & Felan, J. T. (2001). Strategic and business planning practices of fast growth family firms. Journal of Small Business Management, 39(1), 60-72.

4 Gruber, M. (2007). Uncovering the value of planning in new venture creation: A process and contingency perspective. Journal of Business Venturing, 22(6), 782-807. doi: 10.1016/j.jbusvent.2006.07.001

5 Chen, X.-P., Yao, X., & Kotha, S. (2009). Entrepreneur passion and preparedness in business plan presentations: A persuasion analysis of venture capitalists’ funding decisions. Academy of Management Journal, 52(1), 199-214.

6 Ding, E., & Hursey, T. (2010). Evaluation of the effectiveness of business planning using Palo Alto’s Business Plan Pro. Department of Economics. University of Oregon.

7 Delmar, F., & Shane, S. (2004). Legitimating first: Organizing activities and the survival of new ventures. Journal of Business Venturing, 19(3), 385-410. doi: 10.1016/s0883-9026(03)00037-5

8 Shane, S., & Delmar, F. (2004). Planning for the market: Business planning before marketing and the continuation of organizing efforts. Journal of Business Venturing, 19(6), 767-785. doi: 10.1016/j.jbusvent.2003.11.001

9 Hechavarria, D. M., Renko, M., & Matthews, C. H. (2011). The nascent entrepreneurship hub: Goals, entrepreneurial self-efficacy and start-up outcomes. Small Business Economics, 39(3), 685-701. doi: 10.1007/s11187-011-9355-2

10 Liao, J., & Gartner, W. B. (2006). The effects of pre-venture plan timing and perceived environmental uncertainty on the persistence of emerging firms. Small Business Economics, 27(1), 23-40. doi: 10.1007/s11187-006-0020-0

Noah is currently the COO at Palo Alto Software, makers of the online business plan app LivePlan.

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15 Reasons You Need a Business Plan Whether you're just starting out, growing your business or seeking outside help, a well-thought-out business plan is the vehicle you need to get you there.

By Tim Berry • Mar 13, 2006

Opinions expressed by Entrepreneur contributors are their own.

Why do you want a business plan? You already know the obvious reasons, but there are so many other good reasons to create a business plan that many business owners don't know about. So, just for a change, let's take a look at the less obvious reasons first and finish with the ones you probably already know about. Think of this as a late-show top 10, with us building up to the most important reasons you need a business plan.

15. Set specific objectives for managers. Good management requires setting specific objectives and then tracking and following up. I'm surprised how many existing businesses manage without a plan. How do they establish what's supposed to happen? In truth, you're really just taking a short cut and planning in your head--and good for you if you can do it--but as your business grows you want to organize and plan better, and communicate the priorities better. Be strategic. Develop a plan; don't just wing it.

14. Share your strategy, priorities and specific action points with your spouse, partner or significant other. Your business life goes by so quickly: a rush of answering phone calls, putting out fires, etc. Don't the other people in your business life need to know what's supposed to be happening? Don't you want them to know?

13. Deal with displacement. Displacement is probably by far the most important practical business concept you've never heard of. It goes like this: "Whatever you do is something else you don't do." Displacement lives at the heart of all small-business strategy. At least most people have never heard of it.

12. Decide whether or not to rent new space. Rent is a new obligation, usually a fixed cost. Do your growth prospects and plans justify taking on this increased fixed cost? Shouldn't that be in your business plan?

11. Hire new people. This is another new obligation (a fixed cost) that increases your risk. How will new people help your business grow and prosper? What exactly are they supposed to be doing? The rationale for hiring should be in your business plan.

10. Decide whether you need new assets, how many, and whether to buy or lease them. Use your business plan to help decide what's going to happen in the long term, which should be an important input to the classic make vs. buy. How long will this important purchase last in your plan?

9. Share and explain business objectives with your management team, employees and new hires. Make selected portions of your business plan part of your new employee training.

8. Develop new business alliances. Use your plan to set targets for new alliances, and selected portions of your plan to communicate with those alliances.

7. Deal with professionals. Share selected highlights or your plans with your attorneys and accountants, and, if this is relevant to you, consultants.

6. Sell your business. Usually the business plan is a very important part of selling the business. Help buyers understand what you have, what it's worth and why they want it.

5. Valuation of the business for formal transactions related to divorce, inheritance, estate planning and tax issues. Valuation is the term for establishing how much your business is worth. Usually that takes a business plan, as well as a professional with experience. The plan tells the valuation expert what your business is doing, when, why and how much that will cost and how much it will produce.

4. Create a new business. Use a plan to establish the right steps to starting a new business, including what you need to do, what resources will be required, and what you expect to happen.

3. Seek investment for a business, whether it's a startup or not. Investors need to see a business plan before they decide whether or not to invest. They'll expect the plan to cover all the main points.

2. Back up a business loan application. Like investors, lenders want to see the plan and will expect the plan to cover the main points.

1. Grow your existing business. Establish strategy and allocate resources according to strategic priority. You can find more information about growing your business with a business plan by reading " Existing Companies Need Planning, Too ."

Entrepreneur, Business Planner and Angel Investor

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Why You Need a Plan: 5 Good Reasons

Developing strategy takes time and resources. It requires the time and commitment of some of the most highly paid and highly experienced people in your organization. So, if your team isn’t willing to invest what is needed, I recommend that you don’t do it. Poor planning is often worse than no planning at all.

So, why do you need a strategy? Why take time for planning? There are many reasons. But the Drivers Model focuses on five in particular.

1) To set direction and priorities:

First and foremost, you need a strategy because it sets the direction and establishes priorities for your organization. It defines your organization’s view of success and prioritizes the activities that will make this view your reality. The strategy will help your people know what they should be working on, and what they should be working on first.

Without a clearly defined and articulated strategy, you may very well find that your priority initiatives—the ones that will drive the highest successare being given secondary treatment.

2) To get everyone on the same page:

If you find that you have departments working to achieve different aims, or going in different directions, you need a strategy.

Once you define your strategic direction, you can get operations, sales, marketing, administration, manufacturing, and all other departments moving together to achieve the organization’s goals.

3) To simplify decision-making:

If your leadership team has trouble saying no to new ideas or potential initiatives, you need a strategy. Why? Your strategy will have already prioritized the activities necessary for success. Priorities make it easier to say no to distracting initiatives.

4) To drive alignment:

Many organizations have hard-working people putting their best efforts into areas that have little to no effect on strategic success. They’re essentially majoring in the minors—because their activities aren’t aligned with the priorities. Your strategy serves as the vehicle for answering the question, “How can we better align all our resources to maximize our strategic success?”

5) To communicate the message:

Many leaders walk around with a virtual strategy locked in their heads—they know where their organization needs to be and the key activities that will get it there. Unfortunately, the strategy isn’t down on paper and hasn’t been communicated thoroughly. As a result, few people are acting on it.

When your staff, suppliers, and even customers know where you’re going, you allow even greater opportunities for people to help you maximize your success in getting there.

Once you recognize the need to plan, you now have the role of becoming the catalyst: for facilitating the buy-in and commitment of your leadership team and the rest of your organization.

I’ve found that very few executives truly understand how to maximize their role in facilitating strategy. This chapter is focused on you, the leader of the organization, and on the vital role you play in facilitating strategy throughout your organization. Let’s get started.

__________________________

Michael Wilkinson is the CEO and Managing Director of Leadership Strategies, Inc., “The Facilitation Company” and author of Amazon best-seller “ The Secrets of Facilitation ”, “ The Secrets to Masterful Meetings ”, and the brand new “The Executive Guide to Facilitating Strategy.” Leadership Strategies is a global leader in facilitation services, providing companies with dynamic professional facilitators who lead executive teams and task forces in areas like strategic planning , issue resolution, process improvement and others. They are also a leading provider of facilitation training in the United States.

Michael Wilkinson

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Strategic Planning Facilitator: Guiding the Planning Process

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Moneyball: The Role of the Chief Strategy Officer

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Execution Trumps Strategy

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Jump-start your creativity with Generative Fill and make stunning updates to your images with text prompts within the Photoshop (beta) app on your desktop.

Try Generative Fill in the Photoshop (beta) app To install the Photoshop (beta) app on your desktop, visit the Beta apps tab of your Creative Cloud desktop app and select Install next to Photoshop (Beta) .

Topics in this article:

Tips and tricks while using Generative Fill

Questions we have answers.

Meet Generative Fill — the revolutionary and magical new suite of AI-powered capabilities grounded in your innate creativity, enabling you to add, extend, or remove content from your images non-destructively using simple text prompts. You can achieve realistic results that will surprise, delight, and astound you in seconds.

We’re building these capabilities in collaboration with our community so that real-time feedback shapes these new experiences. To share your valuable feedback, visit the Adobe Photoshop beta community .

To explore more about generative AI and find answers to common questions, see Generative AI FAQ .

With Generative Fill, you can:

How to use Generative Fill in your image

Before you proceed, ensure you're connected to the internet, as Generation Fill requires cloud processing.

Generate an object

Select an area in your image, then describe what you’d like to add.

Make a selection

Use any selection tool in Photoshop to make a selection around a desired object or an area in your image.

Access Generative Fill

Select the Generative Fill button in the contextual taskbar that appears.

You can also choose Generative Fill from any of the following options:

Add your text prompt

A text-entry prompt box appears in the contextual taskbar where you can describe the object or scene you want to generate in your image in English only, or feel free to leave this blank. If you leave this blank, Photoshop will fill in the selection based on the surroundings.

Currently, the prompts used for the description are supported in English only. For best results, use descriptive nouns and adjectives in text prompts instead of instructive prompts like, “fill the area” or “create a scene".

Generate variations

In the contextual taskbar, once your text prompt is complete, click Generate .

Generate more variations

(Optional) To generate more variations, click Generate again in the Properties panel.

Further, you can modify your text in the prompt box and click Generate to create new variations with the revised text.

You can now view the variations in the Properties panel and click on the thumbnail preview to see the results on your image.

Generate backgrounds

Select the background behind your subject, then generate a new scene from a text prompt.

To do so, choose Select > Subject , then choose Select > Inverse . Then follow steps 2-5 from Generate an object section above.

Extend images

Extend the canvas of your image, then select the empty region and apply Generative Fill . Applying Generative Fill without a prompt will create a seamless extension of your image.

Select the Crop tool from the toolbar. Crop borders display on the edges of the photo.

Drag the corner and edge handles outward to extend your canvas size.

Press Enter/Return on the keyboard or the commit checkmark in the Crop options bar. By default, the extra canvas will use your background color.

Use the rectangular Marquee tool to select the extra canvas by clicking and dragging to make the selection.

Follow steps 2-5 from Generate an object section above.

Leave the text-entry prompt box blank after clicking Generate if you want the selection to be filled based on the surrounding pixels in your image.

Remove objects

Select the object(s) you want to remove, then let the Generative AI technology make it disappear.

Leave the text-entry prompt box blank after clicking Generate if you want the selection to be filled based on the surrounding in your image.

Remove objects from your image using text prompts

Avoid making a tight selection and always overlap some areas around the selection in your image to generate a better resultant image and enable seamless blending.

Benefits of using Generative Fill

Let’s take a look at how Photoshop’s new AI feature will be able to help you in your day-to-day work:

We're excited to continue to build on Generative Fill in the coming months and plan to bring it to most Photoshop customers by the end of the year.

Here are some tips and tricks to help you get the most out of using Generative Fill :

To find answers to Generative AI common questions, see Generative AI FAQ .

What is the Photoshop (beta) app, and where can I find it?

The Photoshop (beta) app enables you to test apps, try new features and functionality, and share your feedback directly with Adobe. Learn more about the Photoshop (beta) app here .

To install the beta app on your desktop, visit the Beta apps tab of your Creative Cloud app and select Install next to Photoshop (Beta) .

I'm not seeing the latest updates in the Photoshop (beta) app. What should I do?

If you don't see an update next to Photoshop (Beta) , you can manually look for the update in your Creative Cloud desktop app by going to the Updates tab and selecting Check for Updates .

Who can access the Photoshop (beta) app?

The Photoshop (beta) app is generally available to Photoshop users.

How do I provide feedback in the Photoshop (beta) app?

In the Photoshop (beta) app you can provide feedback by clicking on the beaker icon in the upper-right corner. You’ll also be able to thumb up, thumb down, or report directly from the contextual taskbar.

Why can’t I access Generative Fill?

Generative Fill in the Photoshop (beta) app is only available to users of at least 18 years of age with a Creative Cloud Individual license along with CC Teams , CC Enterprise , and our Educational customers.

For users under 18, Generative Fill is visible but disabled. Also, for non-RGB 8/16 bits documents, the feature is visible but disabled. Hovering over the Generate button will show a tooltip explaining why the feature is unavailable.

Generative Fill is not available in China at this time.

Why is the Generative Fill button greyed out if I'm over 18?

If you find that Generative Fill is greyed out for you and you're over the age of 18, it is possible that you may not have a valid Date of Birth associated with your Adobe ID account. To update your Date of Birth , you can do either of the following:

Once your Date of Birth is up to date, relaunch the Photoshop (beta) app to enable Generative Fill .

Is Generative Fill only available in the Photoshop (beta) app?

Yes, Generative Fill is only available in the Photoshop (beta) app.

How should I use Generative Fill? What can I do with Generative Fill?

Generative Fill is a magical new suite of AI-powered capabilities that enable you to add, extend, or remove content from your images non-destructively, using simple text prompts to achieve realistic results that will surprise, delight, and astound you—in seconds.

What differentiates Generative Fill in Photoshop?

Do I need to be experienced with Photoshop to use Generative Fill ?

Photoshop users of all levels can use Generative Fill . Generative Fill capabilities can be accessed with a simple text prompt to achieve realistic results that will surprise, delight, and astound you—in seconds.

Got a question or an idea?

If you have a question to ask or an idea to share, come and participate in the Adobe Photoshop community or Photoshop beta community . We'd love to hear from you.

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How to protect your investments in the debt ceiling standoff

No one can say yet which day the US Treasury would no longer be able to pay all the bills of the United States in full and on time if lawmakers refuse to raise the debt limit.

That day — the so-called “X-date” — is currently estimated to fall sometime between early June and early August.

Bond market experts still expect lawmakers to strike a deal before the X-date hits, if only at the 11th hour and 59th minute.

“[N]o one in Washington has any incentive to see the US default … [but] no one is also really incentivized to compromise before the actual deadline….. Nevertheless, we remain confident that a deal will happen in time to avoid any sort of breach,” said Libby Cantrill, managing director and head of public policy at PIMCO.

First on CNN: CEOs warn of 'devastating scenario' if America defaults

But even if that’s the case, between now and then bond investors should expect volatility .

“As long as the discussions are ongoing between the Biden administration and Congress, we’d expect volatility to be relatively elevated,” said Collin Martin, director and fixed income strategist at the Schwab Center for Financial Research.

Bond investors are all about pricing in the risk that they may not be paid back on debt they buy — either on time or at all. Normally, US Treasuries are considered to be the world’s safest assets because they are backed by the full faith and credit of the United States. But the lack of a deal to raise lawmakers’ self-imposed debt ceiling so close to the X-date is introducing unwanted risk into each investor’s calculus.

“We’ve already seen some pricing stress around short-term bills, Treasury bills, and a little bit of change in the… sovereign credit default swap spreads,” said Gary Gensler, chair of the Securities and Exchange Commission, at an event on Monday.

Short-term Treasury bills that mature on June 1 or soon thereafter have seen a spike in yields in the past month, indicating investors want to be paid more for taking on what they perceive to be higher risk that they may not be paid back on time.

That’s an important distinction from assuming they won’t be paid back in full, Martin notes. The assumption is that even if the United States briefly goes past the X-date, it will resolve things quickly and will make good on all the payments it must make. In contrast to corporate debt, the risk is that a bond investor would only be able to recover a portion of their investment. “But with Treasuries, it’s more about ‘When will I get the money back?’” he said.

Right now, yields on one-month T bills are well above the yields for 10-year and 30-year Treasury bonds. For bills maturing on or before May 30, yields have fallen and their prices have risen because investors are willing to pay up to have a near guarantee of prompt repayment, Martin noted.

So what, if anything, should bond investors do now?

Those who have invested in Treasury bills maturing on or right after June 1 and who definitely need their money at that time — for example, to pay their own bills — might consider selling those bills now and reinvesting in bills that mature sooner, Martin suggested.

If you’re invested in bond funds, check to see that the bond portion of your portfolio has adequate exposure to intermediate and longer-term bonds, rather than being too heavily weighted toward short-term higher yielding bonds. With the latter, “you face reinvestment risk down the road when it might be better to lock in rates with certainty now,” he said. Those rates are currently running between 3.5% to 4%.

And to the extent there is any uncertainty about being paid on time by the Treasury, there may be a flight to 10-year Treasury bonds — which means their prices will go up, which can help buffer your portfolio. “They are still the most liquid investment and the safest investment out there,” Martin said.

When it comes to your exposure to bonds other than Treasuries, Martin recommends sticking more heavily with high-quality investments, rather than corporate junk bonds or emerging market bonds. The reason: If the economy turns south — or the unthinkable happens and the United States does default on its debt — those high-risk debt instruments will come under the most pressure.

“If you need to borrow money, you need the confidence of the markets to lend to you,” Martin said. If there is a recession or any concern about the Treasury paying back investors on time, there will be less confidence to go around.

As for your 401(k), Martin said the best thing you can do now is to review your equity-to-bond allocation and make adjustments if necessary. As we move closer to June, stocks are likely to see a lot more volatility because they are inherently riskier assets than bonds.

Considering the longer-term picture for your investments is also the advice from Vanguard, according to spokesperson Jessica Schifalacqua.

“Our general guidance is for investors to maintain a balanced portfolio in keeping with their goals and to remain disciplined. A long-term view is especially important during periods of uncertainty,” she said.

– CNN’s Elisabeth Buchwald contributed to this report

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Netflix launches paid account sharing in the United States: How much it will cost you

The Netflix password-sharing crackdown has officially begun in the United States.

Just months after enforcing new restrictions in Canada, Spain, Portugal and New Zealand, Netflix is rolling out account-sharing limits in the U.S.

Only people who live under the same roof can share accounts , the streaming company says. So you have two options: transfer your friends and family members mooching off your account to a new membership or share your Netflix account for an additional $8 monthly fee.

“Your Netflix account is for you and the people you live with – your household,” Netflix said in an email to U.S. subscribers.

The monthly fee is less expensive than the basic ad-free plan, which is $10 a month, but more than the ad-supported plan, which is $7 a month. Standard plans cost $15.49 a month and premium plans cost $20 a month.

Who has your Netflix password? Check who's logging into your Netflix account and boot them

It's not me, it's Netflix: With password sharing on the block, how to boot your friends

Netflix password-sharing rules

Now it’s looking to squeeze a few more bucks out of freeloaders.

“This is a way of getting folks who watch and enjoy Netflix to also contribute to the future of content ,” Ted Sarandos, the co-CEO of Netflix, told the Toronto Star on April 6.

Cowen senior research analyst John Blackledge estimates that Netflix could pick up 2.1 million new U.S. subscribers from the initiative. Netflix accounted for 7.3% of total TV viewing in February 2023, according to Nielsen.

Moody's Investors Service says the password-sharing initiative could cause "short-term subscriber discontent and disruption but presents the company with a material revenue growth and margin expansion opportunity."

Wells Fargo Securities says paid password sharing could be a bigger earnings opportunity for Netflix than people signing up for its ad-supported subscription.

Will you pay for a Netflix account?

New Street Research says its survey of paying and nonpaying Netflix users found that more than half – 54% – would pay for their own subscription if their access was yanked, 70% would choose a subscription that is not supported by advertising and 37% would pay extra for people who don't live in their household."While only a small sample of the broader population of U.S. Netflix users, we think results bode well for traction of password restrictions," New Street Research said.

Will you cancel Netflix?

There is some risk, however. Netflix lost more than 1 million users in Spain in the first three months of 2023 after cracking down on password sharing in February, according to market research group Kantar.

However, Netflix told investors that after a wave of cancellations, subscribers began adding "extra member" accounts. In Canada, the number of paying subscribers is now higher than before, the company said.

Why is Netflix cracking down on password sharing?

Forty percent of consumers in U.S. internet households share credentials or use shared credentials, up from 27% in 2019, a Parks Associates survey found in 2022.

Some 100 million people watch Netflix using someone else’s account, the company says.

Citi analyst Jason Bazinet estimated that streaming services lose about $25 billion a year. Netflix accounts for about 25% of that lost revenue.

How does Netflix know who is in your household?

Netflix began testing features in Chile, Costa Rica and Peru that would let accounts pay extra to share access with up to two people outside their household in 2022. About one-third of Netflix subscribers live in the U.S. and Canada.

Netflix uses IP addresses, device IDs and account activity from devices signed into an account to determine who shares a household.

When will Netflix stop password sharing?

The gradual rollout of more limited password sharing has sparked a backlash among subscribers elsewhere in the world, especially families with children in college or long-distance couples.

Netflix says it has no choice but to crack down on “unpaid viewing” as subscriber growth slows. While executives say they know the new policy isn’t popular and some people may cancel their accounts, they hope to lure them back with quality programming.

How will Netflix enforce password sharing crackdown?

When the account owner signs in, they will set their primary location. Netflix will then use device and network signals to determine if other account users are part of the household.

Can I use Netflix in two different houses?

If not, those users will be prompted to start their own accounts or be locked out. The account holder can also pay a monthly fee to add another household.

Netflix says people who’ve been mooching off of other people’s accounts can transfer their viewing history and other settings to a new paid subscription.

Can I watch Netflix when I travel?

You can still watch while you travel on your personal devices or by logging into a new TV at a hotel or Airbnb.

Politics Hub

Politics latest: health secretary 'wants to see boris back' as mp in next parliament; admits delay on new hospitals pledge.

Steve Barclay, the health secretary, spoke to Trevor Phillips on Sky News about the latest allegations against Boris Johnson, the government's record on migration, why a Tory 2019 election promise on new hospitals could fall short and his tough stance on pay for nurses.

Sunday 28 May 2023 16:15, UK

Former prime minister Boris Johnson leaves his home in London, the day after his appearance before the Commons Privileges committee over his denials of No 10 parties during the pandemic. In testimony lasting more than three hours, Mr Johnson insisted there was not a "shred of evidence" to show he lied to MPs. Picture date: Thursday March 23, 2023.

Key points

The "doorstep".

It's an often necessary but rarely tidy journalistic exercise - locating and asking pertinent questions of an unwilling participant who has gone to some effort to avoid them, writes Sky News US correspondent James Matthews .

Boris Johnson had been on a lengthy US trip, through Texas to Las Vegas in the west and Washington DC in the east.

He had dined with former presidents George W Bush and Donald Trump.

He had given speeches, at least one for a reported six-figure sum, and spoken on a range of issues - Ukraine, in particular.

Mr Johnson had covered some distance and considerable subject matter.

But he hadn't covered COVID, until we caught up with him upon his departure through Dulles Airport in Virginia.

And "doorstepping" the former prime minister wasn't tidy, as he was escorted by aides and security personnel towards a check-in desk, initially reluctant to answer questions.

Read the full analysis here:

By Faye Brown, political reporter

Boris Johnson has insisted fresh claims he broke lockdown rules are "total nonsense" and that elements of his ministerial diary were "cherry-picked and handed to police".

The former prime minister was confronted by Sky News about the allegations as he made his way through the Dulles International Airport in Washington following a brief tour of the US.

Asked if he broke the rules he told Sky's US correspondent James Matthews : "This whole thing is a load of nonsense from beginning to end.

"I think it's ridiculous that elements in my diary should be cherry-picked and handed over to the police, to the privileges committee without even anybody having the basic common sense to ask me what these entries referred to."

Mr Johnson was referred to the police by the Cabinet Office on Wednesday over events in Chequers and Downing Street following a review of his official diary as part of the official COVID inquiry.

Pressed on whether the entries showed him "mingling with friends", Mr Johnson insisted "that is absolutely not what these diary entries show".

Read his comments in full here:

Earlier today, Labour's shadow work and pensions secretary Jonathan Ashworth told Sky News that his party will not shut down existing oil and gas fields (see post at 9.19).

He said that Labour's focus will be on sustainable energy, particularly nuclear and tidal, and said the party will outline its plans further "in the coming weeks".

The Conservative Party has now responded to Mr Ashworth's comments, accusing Labour of strenghthening Russian president Vladimir Putin's use of "energy as a weapon."

Energy Security Secretary Grant Shapps said: "In the midst of high energy prices for families, Labour's ideological vendetta against British energy independence not only risks hundreds of thousands of jobs but strengthens Putin's campaign to use energy as a weapon against the west.

"The Conservatives are taking a pragmatic approach supporting sectors that have enabled us to end our reliance on Russian oil and gas, while investing in the clean technologies we need for the future."

By Tim Baker, political reporter

Health Secretary Steve Barclay held a "constructive" meeting with Royal College of Nursing (RCN) chief Pat Cullen - but made clear that a new pay offer for nurses will not be forthcoming.

Ms Cullen previously recommended the members of her union accept the deal agreed with the government, but it was rejected by members.

However, the offer was imposed because a majority of the NHS Staff Council body wanted to take the deal - despite the opposition from the RCN.

Speaking to Trevor Phillips, who was hosting Sophy Ridge on Sunday on Sky News, Mr Barclay was asked about a recent summit with Ms Cullen.

He said they "had a very constructive meeting this week" - but described what was offered previously and accepted by the NHS Staff Council as a "full and final" offer.

Read his full comments here:

Net migration to the UK rose to 606,000 in the 12 months to December 2022, the highest number for a calendar year on record - despite a Tory 2019 manifesto commitment to "bring overall numbers down".

The figures, published by the Office for National Statistics, show that most people arriving to the UK last year were non-EU nationals.

The body attributed a "unique year" for migration to "world events" including the war in Ukraine and unrest in Hong Kong.

On the Sky News Daily, Niall Paterson breaks down the numbers with Sky's data and forensics correspondent Tom Cheshire and picks through the fallout in Westminster with political correspondent Ali Fortescue .

Plus, Madeleine Sumption, director of the Migration Observatory at Oxford University, explains how what the government says actually impacts the number of people that come to the UK.

Click to subscribe to the Sky News Daily wherever you get your podcasts

Every week there are stories in the newspapers about resignation honours supposedly expected imminently, but yet to materialise.

If you're unfamiliar, resignation honours refers to the tradition of an outgoing prime minister granting a peerage, knighthood, or other kind of honour to a number of people.

The appointments are vetted by the House of Lords Appointments Commission, as well as the Cabinet Office.

Both Boris Johnson and (controversially) Liz Truss have drawn up individual lists, and they could be published by the government at any time.

So what do we know about those lists, and when could they be published?

Boris Johnson's resignation honours

After his departure from office in September, it was reported that Boris Johnson had drawn up a list of 50 people to receive peerages.

It has previously been reported that three sitting Tory MPs are on the list - former culture secretary Nadine Dorries, former cabinet office minister Nigel Adams, and COP26 president Sir Alok Sharma.

Those appointments could cause a giant unwanted headache for Rishi Sunak, because one cannot sit in both the House of Commons and the House of Lords at the same time.

It has been reported that they will not be allowed to defer their peerages until after the next general election, when they are all set to stand down, meaning that it could lead to three by-elections that the current prime minister will be in no mood to fight (and potentially lose) as he tries to resuscitate his party's position in the polls.

In today's Sunday Times, it is reported that the Conservative Tees Valley mayor Ben Houchen could also be named on the list.

The paper also reports that the vetting of Mr Johnson's list has finished, and Rishi Sunak is due to have a phone call with his predecessor this week that Mr Johnson wants to be about peerages, but Mr Sunak wants to avoid.

So, when we get to see the list is very much up in the air, but it is another headache on the horizon for the prime minister.

Liz Truss' resignation honours

Having been prime minister for just 49 days, Liz Truss having drawn up an honours list is certainly controversial.

Nonetheless, she has reportedly selected around 12 people to be honoured, said to include Tory party donor Jon Moynihan, aide Ruth Porter, ex-Vote Leave's Matthew Elliott and think tank boss Mark Littlewood.

Mr Littlewood is director of the Institute of Economic Affairs, a free-market supporting think tank strongly associated with Ms Truss and her economic philosophy.

Mr Elliott helped found the low-tax think tank the Taxpayers Alliance group and was chief executive of the main pro-Brexit campaign during the 2016 referendum.

Ms Porter ran Ms Truss' Tory election leadership campaign and briefly served as her deputy chief of staff in Number 10.

And Mr Moynihan donated tens of thousands of pounds to Ms Truss' leadership campaign, according to the register of MPs' financial interests.

When the list will be announced is unclear, but although Ms Truss granting peerages is controversial, it will likely see a shorter backlash for Mr Sunak than Mr Johnson's list due to the lack of sitting MPs.

Plans to encourage supermarkets to introduce voluntary price caps on food staples in a bid to help with the cost of living crisis are being drawn up by Downing Street, according to reports.

The scheme would aim to get retailers charging the lowest possible amount for some basic products like milk and bread, the Sunday Telegraph reported.

A government source told Sky News that any scheme "would be voluntary", adding: "Government has no plans to cap the price of food.

"We recognise retailers operate on low margins. But we are acutely aware of the cost of living squeeze people feel."

A Treasury source told the Sunday Telegraph: "Food inflation is much more resilient and difficult to get rid of than we anticipated."

Supermarkets are expected to be allowed to select which items they would cap and only take part in the initiative, modelled on similar agreement in France, on a voluntary basis, the paper reported.

It comes after Chancellor Jeremy Hunt backed interest rate hikes, even if they risk of plunging the UK into recession, in order to combat soaring inflation.

Although down from 10.1%, the Consumer Prices Index of inflation remains high at 8.7%, while experts have warned that alarmingly expensive food is set to overtake energy bills as the "epicentre" of the cost of living crisis.

Food prices are expected to keep rising, having already increased by 19.1% in the year to March, placing additional pressure on families.

Surging support for Labour among rural voters could put some cabinet ministers at risk of losing their seats at the next general election, a new poll has suggested.

The survey, conducted by Survation on behalf of the Country Land and Business Association (CLA), found that support for Sir Keir's Starmer's Labour Party has risen by 16 points since 2019 in the 100 most rural constituencies, with the party trailing just five points behind the Tories.

This would suggest that more than 20 Conservatives in the "rural wall" could be in line to lose their seats to opposition parties - including Chancellor Jeremy Hunt, whose constituency is being split in half at the next election.

Also at risk are:

Although all four have majorities of around 15,000, bigger majorities in rural seats have been overturned of late.

Mark Tufnell, president of the CLA, blamed "outdated" planning restrictions, a lack of infrastructure and the cost of living for the fall in support for the Tories, but suggested rural seats were still up for grabs.

The poll found 34% of people thought the Tories did not understand rural communities, while 31% said the same about Labour and 23% about the Liberal Democrats.

He said: "I think we have seen that any party, whether it’s Labour, the Liberal Democrats or the Conservatives, that wants to show an understanding of the countryside could easily hold and win those seats."

Saying that he expected the next election to be "tightly fought", Mr Tufnell added that the 12 million rural voters “could end up controlling who wins the general election".

Civil servants working for the Driver and Vehicle Licencing Agency (DVLA) have announced 15 days of strike action in an ongoing protest over pay.

Members of the Public and Commercial Services (PCS) union who work for Output Services Group at TY Felin and Morriston in Swansea will walk out from 11-25 June.

These staff print materials from the DVLA, among other government departments, meaning that there will be backlogs for things like driving licences and tachographs, and no vehicle tax reminders will be printed.

This group went on strike in February, and the print machines were switched off with no one else to operate them.

In a statement, PCS general secretary Mark Serwotka said: "Managers struggled last time and they’ll struggle this time.

"We’re not afraid to turn up the pressure on ministers to achieve our reasonable demands – a fair pay rise to help our members through the cost-of-living crisis and beyond."

A DVLA spokesperson said: "The quickest and easiest way way to deal with DVLA is through our online services which, along with our Contact Centre, is operating as normal during this period of industrial action."

As you might expect, the Tories have not exactly praised Labour's proposals for immigration reform (more details in the post at 12.00).

In a rather punchy statement, Tory chairman Greg Hands said: "This morning Labour once again showed us they are all over the place on immigration.

"The fact is that lefty lawyer Keir Starmer put freedom of movement as one of his key leadership pledges and previously said all immigration controls are racist.

"The Conservatives have implemented a points-based system and reformed student visas, giving us the tools to control numbers as we deliver on our five priorities."

It should be noted that net migration hit a new calendar year record of 606,000 people in the year to December 2022.

For more, Sky's data and forensics correspondent Tom Chesire examines net migration in detail...

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5 reasons you need a business plan
Here are 5 reasons why you need a business plan: 1. It will help you steer your business as you start and grow. Think of a business plan as a GPS to get your business going. A good business plan guides you through each stage of starting and managing your business. You'll use your business plan like a GPS for how to structure, run, and grow ...
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