What are the essential elements of a export business plan?

Promoting an international business plan requires accurate planning and a care of time.  As with any new business operation, the decision to export must be envisioned with a long-term business investment attitude more than a short-term profit objective. 


Before making a commitment to penetrate international market, the development of an international business plan is an important and important step for determining a product’s readiness for export.  


A well-prepared plan will help the business in evaluating the potential of a product in international markets, facilitate financing decision , determine if there is a market for the product, and how much it will cost to export a product.  The core elements of a business plan include the following:

Factor                                            Explanation                                    
                                                        

Executive Summary                      Determine what makes the company successful and then list the competitive advantages over domestic and foreign competition;

 

Present Situation                           Clarify the company’s products with export potential;

 

Objectives                                      Specify long-term goals and how exporting will help to carry out them;

 

Management                                 Develop a company analysis in order to ensure the export decision  and  is supported by all levels of management and, second, to decide who will execute what functions;

 

Description                                    Answer the question:  Why is the product/service unique in an international market?

 

Market Analysis                            Specify what the opportunities in this market are;

 

Target Customers                          Discover what the demographic and socio economic profile of the target customer is;

 

Competitors                                   Develop an industry to determine the firm’s competitiveness within the industry.  In analyzing competition, it is helpful to know what market shares are and what the excepted industry/market trends are;

 

Focus Group Research                 Research a focus group of potential customers in order to get feedback and constructive criticism;

 

Calculated Risk                             Assess the industry and the firm’s performance over a period of three to five years so that the firm may accurately calculate risks; 

 

Marketing Strategy                      Specify how customers will be attracted and their interest sustained.

 

Pricing/Profitability                        Define an international pricing strategy;

 

Selling Tactics                               Acting direct mailing, cold calling, and advertising tactics;

 

Methods of Distribution                Specify where and how to deliver overseas;

 

Advertising                                     Take in consideration foreign labeling and packaging requirements, literature translations, and customer relations;

 

Public Relations                             Develop a regular and consistent product/service update programme, internal newsletter, write for technical magazine, press releases etc.;

 

Business Relationship                   Promoting a plan for developing international business relationships, include culture training.  Determining the type of relations (e.g. agent/distributor, representative, supplier, direct export, etc.);

 

Manufacturing Plan                       Refer to initial volume, expansion requirements, sources of materials, location of manufacture, etc.

 

Financial History                            Include a five-year Profit and Loss Statement;

 

Financial Projections                      Remain realistic and conservative;

 

12-Month Budget                           Anticipate costs for fish year of exporting;

 

Cash-Flow Projection                     Calculate Cash Receipts vs. Cash Disbursements;

 

Balance Sheet                                Illustrate liquidity and cash position;

 

Break-Even Analysis                    Calculate number of units to sell for break-even,

 

Source/Use of Funds                     Decide from where the funds will be obtained to start or expand export operations;

 

Use of Proceeds                            Decide where profits and loans will be dedicated;

 

Conclusions                                   Conclude exporting goals, total capital required, profile expected, schedule and general comments; 

 

Appendix                                        Add the curriculum vitae of key persons involved in the company’s export programme, as will as key accounts, potential customers, market survey data, drawings, agreements and financial projections to the plan as an appendix.