The current complex domestic situation drives companies to invest abroad, through direct sales, agents, distributors and delocalisation processes.
If you want to go abroad, you must answer to these four questions: WHY, WHEN, WHAT, HOW!
Today, we start from the last one, because if you want to do business abroad a proper market and business analysis is the first step. When I ask enterpreneurs why they want to go abroad, they’re vague. Vague and unfocused. But there are lots of reasons to internationalise businesses: more customers, new opportunities, new suppliers, new selling strategies … and you need to study all of them and plan everything.
Today, we are talking about “business plan”.
The business plan (which covers 3-5 years of company’s life) can provide the first strategic and economic analysis and must have a qualitative and quantitative “soul”, because it must allow you to translate words in numbers and vice versa.
So, what are BP main purpose?
- maintaining focus;
- planning strategies;
- evaluating and optimizing the use of resources;
- targeting customers;
- measuring and evaluating performances;
- limiting the assessments subjectivity;
- improving external and internal communication.
Remember that the business plan must be shared by all corporate structure and must cover from the beginning of the internationalisation process to its potential completion. For example, the business plan related to the opening of a branch office abroad will involve senior management for strategies, administration and finance to find the resources needed, logistics for goods management, production for plants relocation and so on. The document must be complete, intelligible and detailed; the data should be as accurate as possible and responsive to an assessment of the phenomenon in the future.
[more articles here]
What could the correct structure of a good BP be?
The following is an example:
- Executive Summary;
- Company Description;
- Product Description;
- Market&Industry assessment;
- Marketing Plan and Sales Strategy;
- Operation Plan;
- Management Team;
- Financial Projections;
- Risk Assessment and Potential Way out for investors.
Pay attention to the first section (the Executive Summary): it must be written in a clear way and effectively explain the business idea (expecially why and how you want to go abroad), in order to capture the attention of the reader.
Business plan for the internationalisation is a hard work but it clearly is the first key to have a better chance of success.
Avv. Stefano Rossi