How To Formulate An International Business Plan
Business plans are essential while starting a new business and a well-drafted plan will pave the way to success of any business. Without a cohesive business plan your business is doomed from the start. Even companies with a product heavily in demand have gone out of business because of the lack of a good business plan. In an international business atmosphere the need for a well-drafted business plan is even more indispensable.
Steps involved in International Business Plan
1 Write down the nature and scope of the business opportunity, why it has been selected, why a particular country has been selected, what the financial requirements are, what the risk assessment is, and what the expected return on investments may be.
2 Write about the nature of the business, description of the business, corporate history, such as, its founders, milestones achieved and its products, processes, technology and services.
3 Plan and procure the required licenses and permits, registering trademarks and patents etc.
4 Decide on the size and location of the business premises needed. Then figure out the cost of the lease.
5 Give a detailed description of the equipment you need. How old is this equipment and how often will it need to be repaired? Figure out the capacity of your equipment and any applicable leases.
6 You should research the cost of the overheads, such as materials, equipment, labor, administration, marketing, sales, and leases.
7 Calculate the number of employees needed. Research the skills required and educational level for each job. Now is a time to think about recruitment and training strategies.
8 You must build a supplier network. Calculate the number of suppliers needed. 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.
9 Studying the potential customers and creating a customer profile based on the research made about the categories, age, occupations, income level, spending pattern, etc.
10 Write a list of the factors that influence purchase such as price, quality, features of the product, after sales service, and reliability of the product.
11 Describe the product or the service you shall offer. What are the features that distinguish it from the competition? Is the product viable or can it become obsolete. Research how to improve the features and quality of the product.
12 Analyze the current market in terms of value, volume and geographic distribution, demographic and social changes, and regulatory changes. 13 Compile a marketing objective by studying the volume and market shares.
14 Work out a pricing strategy.
15 Plan methods on how you shall improve sales such as promotional offers. Do detailed research on sales tactics, promotional techniques to be used, how to manage internal and external sales staff, and the budget allocated for sales promotion.
16 Study the Foreign Market and the Environment Thoroughly. If the business is to be started in a foreign country you must contact a local attorney to know about the legal aspects of starting a business in that country. You must research its political environment and stability, and the market available for the proposed product or service.
17 If a loan is necessary, explore all options available and make an informed decision. Borrow only as much as can be repaid and formulate a plan to accelerate debt payoff. Plan carefully and prioritize expenses. Keep operating costs to a bare minimum until the debt is paid off.
The Inter-Net is a Big HelpThere are lots of services and professionals available to help aspiring wannabe businessmen succeed. This includes assistance making plans, getting finances, starting the business and administering the business. A lot of this help can be found on the inter-net.
About the Author:David Gass is President of Business Credit Services, Inc. His company publishes afree weekly e-newsletter on Small Business Consulting at their web site http://www.smallbusinessconsulting.com
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