Sections For Your International Business Plan:
Define The Nature And Scope Of The Business:This should include the nature and scope of your business, the reasons for choosing it, geographical areas of operation, financial requirements, risk assessment and expected return on investment.
Product/Service Definition: Details of the product to be produced or service to be provided and the processes and technology to be used. This could also include customer target market. An excellent product is of no use if it does not have a viable target market. Your product should also have a USP (unique selling point).
Corporate History: Details of the founders of the business (their personal details as well as their experience and expertise).
Licenses and Permits: List of all the required licenses and permits, and trademarks and patents to be registered. You need to be legally safe.
International Legal Compliance: List all the laws that you would need to comply with in your international areas of operation.
Finance: You need to estimate how much money you will need to set up your business and run it for awhile, factoring in minor expansion plans. This includes fixed costs such as equipment, premises and raw materials. It also includes variable expenses like sales and marketing and licenses. You will need to calculate how much in loans you will need and which lending agencies will offer you the most favorable borrowing terms. You need to calculate the interest component as well, because this has to be included into your costs.
Break-Even Period: You need to calculate your expected break-even period – this will tell you when your business will start supporting itself and when it will begin to earn a profit.
Size and Location of Premises: This includes manufacturing and sales premises, if they are in different locations. Locating manufacturing premises outside city limits will help you to economize, while having sales premises within city limits affords you easy access to your potential customers. Ensure that the size of the premises allows you to meet your immediate needs and room for expansion.
Equipment: You need machines with sufficient capacity to meet immediate demand as well as to meet the short-term expansion plans. List the source of any new machinery you need to procure and details of the service agents for equipment that you already possess.
Price Definition: The price you charge should cover expenses, earn you a profit and be competitive in the market.
Cost of Overhead: The cost of overhead, such as energy, administration, marketing, sales, and leases can kill a business. Ensure that an accurate estimate of these expenses is built into your business plan.
Optimum Employee Force: This includes the number of employees, their areas of expertise and skill sets and the cost of employing them. This could also include recruitment and training strategies.
Customer Definition: You need to identify your customers, their location, the size of the demand and the expected increase in demand.
Supplier Network: Having an excellent product or service is useless unless you can get it to your customer. Calculate the number of suppliers you will need. Then research the location of prospective suppliers, their qualifications, and method of ordering. You must plan for processing, handling and shipping of orders, and insurance coverage.
Sales Strategy: Your points of sale, promotional material and incentives, market practices and sales promotion budget.
Foreign Market and Environment: When setting up an international business, you need to be thoroughly aware of local conditions in your proposed areas of operation. The local culture and customs, political climate, demand, competitive products available, economy and pricing structure are some of the main aspects that will impact your business.
Setting up an international business is a formidable task and calls for a lot of guts and determination. There are a lot of organizations and professionals who can help you achieve this goal. The Internet is an important source of information for local as well as international resources that you will need. Formulating an international business plan is the first step in ensuring that your international business will be successful.
