The aim of the paper is to show the importance and the effect of business planning on all the business activities of the company. Moreover, different types of planning are presented and explained in detail according to the management level, time limit, and formality. Business planning is based on the intended goals that the company wants to reach, and the paper shows how it is incorporated and implemented. While implementing the business plan,every company researches and chooses the best alternative ways to reach their goals. In associated companies, business planning is more demanding and complicated than the classic business conduct. Associated companies, especially those whose headquarters are not located in the same country, have to take into account all the rules and regulations of the country in which they conduct business. Also, when setting the budget, the companies need to pay close attention to all the laws of the included countries. Besides that, the results which are shown numerically should be analysed and presented in one currency so that the assessment and understanding of the data would be as clear as possible. In such associated companies, everyone must work towards reaching the intended goals, which is why the main company sometimes places greater focus on the goals of associated companies.