Business plan, its importance for exporting

The business plan Is the reference document for any internationalization strategy within each company, whatever industry you are in.

It contains all the information on every step needed to begin an export journey, starting with your company overview and feasibility analysis.

Expanding one's sales activity outside the country's borders requires great care, and a business plan allows one to have all the guidelines of the activities to be carried out to achieve the desired goals at all times at hand.

There is no single model of business plan, can be processed differently and contain different information, depending on the needs of the single enterprise. 

In any case, it's about a document that may be modified over time, because any strategy may undergo changes, for example in relation to situations that impact the market (see the crisis in the Suez Canal).

The guidance that this document provides, will accompany each step aimed at penetrating the foreign market, enabling a clear view of what needs to be done in the export process at all times.

Business plan: what it contains and why it is important to do so

The drafting of a business plan must be made at the time when the d’ strategy is developed.’internationalization, and must be shared with the entire team engaged in the project, so that everyone has an overall view of the activities to be accomplished. It includes objectives, strategies, sales, marketing, and forecasting at the financial level.

Let us take a closer look at the main features of this important document. 

What should comprise a business plan?

A business plan designed for export will need to contain the following information:

Overview of the company and the products/services it intends to export

This section should include all information about the enterprise, such as the following:

• the form legal
• the type of goods sold and its sector
• The overall brand vision and corporate values
• The company's presence, if any, in the target country
• the structure of the team 

 
Market analysis targeting the countries where the investment is directed 

In particular we refer to:

• To the economic performance of the country
• To the demand for certain products in the country and application areas
• to competition
• To the customer base and relative purchasing power

 
The market analysis should then capture the company's strengths and weaknesses, e.g., experience in foreign markets, the presence of certifications and/or patents on the products to be sold, the possibility of implementing partnerships in the short term.

Defining the operational strategy 

Included in this section are key elements that refer to all those activities that relate to achieving the set goal, such as:

• The preparation of the business model;
• The identification of the best location (e.g., identification of the warehouse)
• the supply chain
• logistics
• pre/post sales services

 
Defining the marketing strategy 

Marketing strategy, even in the digital sphere, must be focused on the target customers you are targeting.

Drawing inspiration from sections of the business plan discussed earlier, will have to highlight which aspects emphasize the qualities of the products and allow them to stand out from those of competitors. The best communication channels, including social channels, will also have to be chosen to best convey the brand's identity and strength. 

Financial plan that forecasts inflows and outflows

A financial plan may contain more or less information, depending on the type of audience and objectives. Generally includes:

• the sales forecast
• the profit and loss account
• the cash flow
• capital budget 

 
In addition, it is advisable to include indices such as ROE, ROI, ROS, etc., which give a good idea of the return on investment made.

Goals for the short, medium and long term

Finally, it is essential to include in the business plan the objectives that we set ourselves to achieve by a certain deadline. For example., targets can be given within 6 months of the start of the export activity, and those at 1 year and 2 years, and so on. In planning, it is appropriate not only to identify goals, but also to schedule activities and milestones.

Simulations of unanticipated events

To best cope with all kinds of situations, it is appropriate hypothesize what actions to take in the event of worst-case events that could negatively impact sales. Know what to do in a change of scenario unexpected, allows the company to adopt appropriate strategies that can support sudden changes in the market.

There is no set order in the list of points that we exhibited, some may indeed be eliminated if they are deemed not essential. Other steps, on the other hand, may be explored in greater depth, depending on the needs of your business. 

Prepare a Business Plan, because we feel it is necessary to do so

Investing time and money in writing a business plan may appear superfluous, But it may be a serious mistake to disregard it.

Even if your company has already undertaken foreign sales activities, we suggest you implement it as often as you intend to expand your business in the country where you already have a presence, or you want to penetrate the market of other nations. 

There are specific reasons why this is necessary: 

• the business plan is essential if your business wants to apply for funding and/or if you want to open a branch office abroad;
• represents the calling card when your company needs to interact with entities and potential business partners in the country to which you wish to expand, so that you can demonstrate that there is a viable and sustainable strategy in a congruent time frame;
• allows the enterprise's goals to be always at hand, with a clear outline that includes actions and investments. 

The support needed to draft a business plan winning

Anyone can technically prepare a business plan, But the real challenge is to make it as realistic as possible and leave nothing to chance. Very often some aspects are overlooked that are fundamental  For the success of the company. 

The lack of certain information can jeopardize the project itself, which is why the drafting of business plan requires specific analytical skills.

Therefore, it is important to rely on figures able to produce a business plan that is complete in every part, and that accurately reflects the purposes of your company. Octagona provides his skills and experience to support you in this, if you would like information please contact us.