Define Global Business Plan
When you want to widen your business's reach into international territories, you'll need to put together a global or international business plan. Investors and foreign governments want to know that your business plan outlines your present reality, anticipates your future goals and communicates how and when you plan to reach your objectives.
Your global business plan works in the same way as any other business plan in that clarifies and solidifies your vision and shows that you've researched and prepared for your international business launch. Your plan communicates your "sales pitch" to potential investors so they understand and can analyze how you'll make a profit. It also includes a strategy for understanding the global marketplace, foreign location operations, legal commitments and the necessary parameters to make your business work in the proposed location.
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Basic Contents
In your global business plan, include a definition of the nature and scope of your business and the product or service you provide. Outline the geographic area you've chosen and justify why it is a good location for your business. That means you need to determine the risks and potential return on investment (ROI). Outline your company's history and past successes to establish credibility and profile the main personnel involved in the implementation of the international business. Finally, show the numbers. Detail the startup costs, operational costs, expansion plans and the initial and ongoing investment necessary to function.
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To give your investors an understanding of how you plan to penetrate or capture the market, point out your business's unique selling points (USP), that is, why your product can meet the customer's need and your target consumer market. Cover your proposed locations and why they fit your business plan. The plan should specify how you plan to utilize and train a local workforce and the costs to relocate management. Identifying vendors and suppliers should be part of your overall plan. This is also where you list all licenses, permits, trademarks, patents and other legalities. Finally, indicate your break-even point--the point at which your income will equal your startup expense and after which you begin making a profit.
International Markets
According to the website More Business, "When setting up an international business, you need to be thoroughly aware of local conditions in your proposed areas of operation." That means you've explored the local culture and customs and you've researched the political climate to make sure you can operate there safely. Determining demand is more difficult, so you need to scope out competitive products available, economic realities and viable pricing structures. On May 7, 2010, The Wall Street Journal reported that utilizing the annual World Bank "Doing Business" survey can help you determine if a country is healthy for doing business. For instance, in 2010, the World Bank rated Greece's economy unstable. Another option is the Organization for Economic Co-operation and Development (OECD), which rated Greece 109th out of 183 countries and at the bottom of all European Union countries for doing business.
Currency and Economic Issues
A reality of international business is fluctuating currency exchange rates. Economic turmoil and unexpected market forces in your international business can reduce the value of your international market rapidly, like the Venezuelan currency devaluation in January 2010. Your plan should include thorough research into your international market's economy, the forces that can change it and the future outlook.
- Investor Business Plan: "Global Business Plan"
- The Wall Street Journal: "The Greek Economy Explained"; May 2010
- More Business: "Tips of Formulating an International Business Plan"; May 2007
Dana Griffin has written for a number of guides, trade and travel periodicals since 1999. She has also been published in "The Branson Insider" newspaper. Griffin is a CPR/first-aid instructor trainer for the American Red Cross, owns a business and continues to write for publications. She received a Bachelor of Arts in English composition from Vanguard University.
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