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Sample Export Plan
Sample export plan .
Completing an international business plan helps you to anticipate future goals, assemble facts, identify constraints and create an action statement. It should set forth specific objectives and implement a timetable and milestones. A strategy for entering or expanding into targeted markets is critical to your success in the global marketplace.
Conduct an “audit” of your company to determine how exporting will impact your operations. Consider the management issues for exporting, approaches to exporting, distribution channels and other important considerations that will impact your business.
Understand the key components of an effective, actionable export plan. Just as no two companies are alike, there is no one-size-fits-all export plan. Your export plan should be an extension of your overall business plan, if not infused completely into your business plan. Many of the same questions for your international sales strategies will apply to your domestic sales plan.
Have a clear idea of the information you need to collect and sources where you might find that information.
Creating an international export plan is important for defining your company’s present status and internal goals and commitment. It is also required if you plan to seek export financing assistance. Prepare a plan prior to requesting bank loans. This can save both time and money.
Sample Outline of an Export Plan
Part I: Export Policy Commitment Statement
Part II: Situation or Background Analysis
Product/Service for Export
Export License (if needed)
Personal Export Organization
Products/Services to be Exported
Products that Qualify Under FTAs
Resources Outside the Company
Industry Structure, Competition, Demand Operations
Export Control Compliance
Product Classifications
Resources Inside the Company
Part III: Marketing Component
Identifying, Evaluating, and Selecting Markets
Product Selection and Pricing
Distribution Methods
Internal Organization and Procedures
Sales Goals (Profit and Loss Forecasts)
Terms and Conditions
Pricing with Consideration of Duties, Taxes
Freight Costs, and Logistics Included
Part IV: Tactics—Action Steps
Primary Target Countries
Indirect Marketing Efforts
Quarterly Accomplishments
Secondary Target Countries
Part V: Export Budget
Pro-forma Financial Statements
Marketing Materials
Travel
Website Enhancements
Trade Show Visits
Other Costs
Part VI: Implementation Schedule
Periodic Operational and Management Review (Measuring Results against the Plan)
Addenda: Background Data on Target
Basic Market Statistics (Historical and Projected)
Background Facts
Competitive Environment
- International Trade
- International Negotiations
- International Contracts
- Business Etiquette
- Emerging Markets
- Business Guides
Global Negotiator Blog
What is an export business plan.
Posted by: Olegario Llamazares on 15 September, 2020 in International Trade Comments Off on What is an export business plan?
The purpose of the Export Business Plan is to prepare companies, specially middle and small, to enter the international marketplace or to better organize their existing international business activity. The Plan will serve as a step-by-step guide to lead the company through the process of exporting products and services to international markets. The purpose of the Plan is to address the main issues that arise in the development and implementation of international marketing strategy:
- Assessment of export potential and capabilities.
- Identify target markets.
- Choose the best market entry strategy.
- Selection of most suitable marketing actions.
- Better management of international business operations.
- Evaluate the financial resources, sales goals and profits.
The Export Business Plan is divided into six sections following a time sequence. Each section helps to plan international business strategies and take effective export decisions. The Plan provides worksheets with corresponding explanatory notes so that the user does not have difficulty developing and completing the Plan. It also offers a case study that is used as an example to apply the methodology. Below we develop briefly the contents of an Export Business Plan in six sections. Complete information on the Export Business Plan methodology with worksheets, explanatory texts and case study can be found on the link Export Business Plan.
SECTION 1: EXPORT DIAGNOSTICS
In order to make the most of your company’s strengths and improve your weaknesses, the internationalisation plan begins with an analysis of the competitive capacities of the company in relation to the foreign markets in order to achieve profit maximisation. The Export Business Plan analysis leads to an identification of the economic, policies and social trends etc, which may affect the international evolution of the sector where the company plans to develop its activity. Once the principal strengths, weaknesses, opportunities and threats are identified you must extract some conclusions and at the same time decide which actions you wish to proceed successfully in the foreign markets. These conclusions are double-sided: business strategy and resources.
SECTION 2: MARKET SELECTION
Before initiating the process of market selection, the company should decide whether a concentration or a diversification strategy is better to approach the foreign markets:
- Concentration: a limited number of markets are selected to focus commercial efforts on them and achieve a certain level of penetration.
- Diversification: the company operates in a large number of markets. The growth strategy is based on selling to these markets to achieve a high level of penetration in each one of them.
In the first pre-selection of the markets, it is not suitable to just consider the individual countries. It is advisable to consider them in groups or combinations of countries. Following the initial filter, you should select areas or markets which complete the basic criteria and these countries will subsequently be analysed in depth. It is not about selecting the most favourable countries; the most important is to eliminate those countries which do not comply with the basic criteria. Once that most favorable geographic areas, have been chosen, the next step is to select countries belonging to those geographic areas. Finally, it comes to selecting target countries for the following stages of the Plan (Stage 3: Marker Entry Methods and Stage 4: International Offer).
Export Business Plan Methodology
SECTION 3: MARKET ENTRY METHODS
The entry form chosen for foreign markets will be a critical decision in the Export Plan. The main alternatives to market products abroad are:
- Direct exports.
- Commercial Agent.
- Importer/Distributor.
- Trading companies.
- Piggyback agreement.
- Franchise agreement.
- Licence agreement.
- Joint venture agreement.
- Sales Branch.
Once the form of entry is chosen it is advisable to develop the company´s profile –even if you have final clients, intermediaries or partners– through those you will efficiently penetrate the market. The aspects that must be defined in this role are the following: Size of the company; business culture; product range; solvency; international experience; and commercial practices.
SECTION 4: INTERNATIONAL OFFER
At this section of the Plan it comes to choosing products or services offered by the company, mainly those that have more export capacity. Companies who have a very wide range of products should not select products but strategic units that will consist of products that have the same characteristics. With regards to the product´s policy it is advisable to define the characteristics of each one of their attributes and the necessary adaptations for its sale in foreign markets. There exist two alternatives:
- Standardization: to sell the same product in all foreign markets.
- Adaptation: consists in adapting the main attributes of the products for each market. In a double sense: on one side the legal normative of the country and on the other side the needs of the client in each country.
In this section it should also be designed a pricing strategy for the products in the target countries.
SECTION 5: COMMUNICATION STRATEGY
Section 5 starts verifying if the brand which the company uses in the domestic market adapts appropriately to the foreign markets or if it is advisable to create a new brand. The tools required to promote the product in foreign markets are basically the same tools employed in the domestic market. You can classify them into two groups: promotion tools and publicity tools. Between the first ones you can choose advertising as a means of communication and publicity through the internet while the promotion includes the elaboration of the documentation and promotional videos, the assistance to trade fairs, promotion at the point of sale etc. The activities of communication imply some necessarily some financial resources which should not be considered as an expense but as an investment. The SME with export vocation, no matter how small the company may be, it should dedicate some amount of the budget to promote their products in foreign markets.
SECTION 6: BUSINESS PLAN
The evaluation of the success of the Export Business Plan should be done in relation to certain objectives, between them, target sales are the most common. In the international activity these objectives should be accomplished at least with regards to the following three requirements:
- Geographic delimitation: this should be determined for each one of the selected markets.
- Precision: refer to a concrete concept, something which is easily calculated by the exporting company.
- Time: establish a period of time. Plans are generally annual.
The international operating account is the instrument that gathers, in a provisional form, the costs and economic contributions of the contemplated actions in the plan. This determines the cost to evaluate, the cost of implantation of the plan and the expected economic output (commercial margin and operating balance). The concepts included in this account are:
- Foreign sales: target sales established for each foreign market.
- Gross margin: the average margin that applies to the foreign sales.
- Structural costs: these are the functioning costs of the department of foreign trade classified by concepts.
- Selling costs: costs which are directly related to the activity of the sales for each one of the established concepts.
- Operating balance: this is the difference between the gross margin and the structure and sales costs.
In conclusion, planning is essential for any business. Before venturing into international markets companies have to draft an Export Business Plan as this document will help them set their goals, effectively allocate their resources and determine which countries offer the most potential for their products as well as how to reach the clients and how to make competitive offers.
Tagged with: business business plan Export export business plan
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3 Types of Export Business Plans
Now you’re ready to get organized and create your own plan. To keep the process manageable, let’s look at three different types of sample template plans, each with distinct advantages for business people with different needs. Pick the one that works best for you, keeping in mind that you can shorten the analysis while keeping the major components of the plan intact.
- The back-of-the-napkin export business plan (suitable for born-global entrepreneurs)
- The traditional-export business plan
- The Laurel export business plan
The Back-of-the-Napkin Export Business Plan
The back-of-the-napkin export business plan is for folks who are big on ideas and pressed for time and want to get to market fast. While it’s typically short and sweet, it serves a better purpose than having no export business plan at all. A back-of-the-napkin export business plan can be as simple as explaining what the business does, what you want to do next export-wise, and how you are going to get there (who is going to be on board). It might look like this:
- “We make the absolute-best purple widgets on the planet.”
- “We will export purple widgets.”
- “We will export purple widgets to France.”
- “We will consider making other type widgets, say in red, if a customer in France is large enough to justify the change.”
- “Suzy, Ted, Mike, and I will work on this initiative.”
- “We will export, at a minimum, twenty thousand purple widgets within the first year.”
- “We will not reduce efforts from our domestic business to apply them to the export business.”
- “We will figure out how much money we need and when we need it.”
- “We will finance the exports of purple widgets with profits from our domestic business.”
- “We will find our own customers directly via our Web site, blog, and Facebook.”
- “We will consult with our banker to provide payment options on all export sales.”
- “We will have fun in the export journey to success!”
Add a Web site link to show what the business does and provide an executive summary that includes the founder’s bio and the key team members, and you’re done.
The Traditional Export Business Plan
It’s important to have a business plan, but you don’t have to reinvent the wheel to create one. One place to visit and bookmark online is the Small Business Administration’s “ Export Business Planner ”. It is a free, customizable tool for small-business owners who are exploring exporting. When you are using the planner, you can refer to Getting Started: Creating an Export Business Plan. It outlines the following (in Chapter 12, we guide you on market research so don’t overly challenge yourself if you can’t answer all the questions at the initial planning stage):
1. Profiling Your Current Business
- Identify current successes.
- Determine competitive advantages.
- Evaluate companywide commitment.
2. Conducting an Industry Analysis
- Find export data available on your industry.
- Research how competitive your industry is in the global markets.
- Assess your industry’s international growth potential.
- Research government market studies.
3. Identifying Products with Export Potential
- Select the most exportable products/services that your company will offer internationally.
- Evaluate the product/services(s) that your company will offer internationally.
4. Marketability: Matching Your Product/Service with a Global Trend or Need
- Classify your product.
- Find countries with the best-suited markets for your product.
- Determine which foreign markets will be the easiest to penetrate.
- Define and narrow down those export markets you intend to pursue.
- Talk to your US customers or other companies who are doing business internationally.
- Research export efforts of US competitors.
5. Determining Market Expansion Benefits/Trade-Offs
- Assess the benefits to exporting.
- Determine the trade-offs to exporting.
6. Identifying Markets to Pursue
- Select the top three most penetrable markets (see the sidebar at the end of this list).
7. Conducting an Export Marketing and Sales Analysis
- Come up with an overall marketing strategy.
- Figure out sales strategies.
- Write a detailed product or service description.
- Map out the product life cycle.
- Make a list of copyrights, patents, and trade secrets.
- Determine research and development activities.
Short-and Long-Term Goals
- Define short-term goals.
- Define long-term goals.
- Develop an action plan with timelines to reach your short-term goals.
In summary, the most difficult aspect in developing an export business plan is determining the demand for a product or service offering in a foreign country. It’s one thing to know a product can be sold in a market—after all, that’s why you selected a particular market—but it is a totally different ballgame when it comes to forecasting how much you can sell and over what time frame. Assume that the demand for a product develops in direct proportion to the economic development in each country. This might be a useful way to think about it, especially when data might be unknown.
Next Week’s Extract
Did you enjoy the extract? Next week we’ll be running the final extract from Laurel’s book. Make sure to check back in if you’re interested. If next week is too long to wait and you want to bulk of the substance ASAP, Laurel Delaney’s book is available for purchase on Amazon , Barnes & Noble and Apress .
Laurel Delaney
Laurel J. Delaney is founder and president of Chicago-based GlobeTrade.com , a management consulting company that helps entrepreneurs and small businesses go global. She is the publisher of The Global Small Business Blog , which is ranked No. 1 in the world for entrepreneurs and small businesses interested in going global and the author of “Exporting: The Definitive Guide to Selling Abroad Profitably,” published by Apress , 2013.
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Step-by-step guide to exporting – step 3 – charting your route: developing your export plan.
- Previous: Step 2 Globalization: linking to global value chains
- List of steps
- Next: Step 4 Setting out: identifying your target market
PDF Version (14.4 MB)
It is critical to understand your target market abroad and the major focus of your business before you enter the international marketplace. – Export Award Winner
Contact your industry association to find names of successful exporters who can provide you with practical advice. BDC and the Canada Business Network are two sources for advice.
Table of Contents
3.1 why plan, 3.2 foundation: your business plan, 3.3 building on the foundation: your export plan.
If you plan your export project thoroughly, you'll have a better chance of doing well in your target market. Bad planning (or no planning) can lead to major failure abroad and could severely damage your domestic operations as well.
Financial institutions and other lending agencies will not normally provide funds to a business that lacks a well-developed export plan. In addition, potential partners and investors will want to see exactly how you plan to achieve your objectives.
In short, you'll get nowhere without an export plan. This chapter will help you create one.
Export myth: Exporting is too complicated for my company to undertake
Remember, you don't have to do everything yourself. Outside experts can represent you, find overseas customers, manage sales orders, handle paperwork and deliver the goods.
A good export plan begins at home. Now is the time to review and renew your business plan if it is out of date. If you don't have one, this is definitely the time to create one.
Once you've polished up your business plan, you can start creating your export plan. This step isn't something you'll finish in a week. Even after you've begun exporting, you'll need to update it regularly.
An export plan is a business plan that focuses on international markets. It identifies your target market(s), export goals, necessary resources and anticipated results.
Your export plan should contain the following:
- Introduction
- business history
- vision and mission statements
- purpose of the export plan
- organizational goals and objectives
- international market goals
- short- and medium-term objectives for exporting
- location and facilities
- Organization
- level of commitment by senior management
- relationship between exporting and domestic operations
- corporate experience and expertise in exporting
- strategic alliances
- labour market issues abroad
- Products and services
- description of products and services
- key and/or unique features that distinguish your product/services from those in the target market adaptation and redesign required for exporting
- production of products and services
- future products/services pipeline
- comparative advantage in production
- Market overview
- political environment
- economic environment
- size of market
- key market segments
- purchasing process and buying criteria
- description of industry participants
- market share held by imports
- tariff and non-tariff barriers
- industry trends and other market factors
- market outlook
- Market-entry strategy
- target market(s)
- description of key competitors
- analysis of competitive position
- product positioning
- pricing strategy
- terms of sale
- distribution strategy
- promotion strategy / development of sales leads
- description of intermediaries and partners
- Regulatory and logistical issues
- intellectual property protection
- other regulatory issues
- modes of transportation and cargo insurance
- trade documentation
- use of trade service providers
- Risk factors
- market risks
- credit and currency risks
- political and other risks
- Implementation plan
- key activities
- evaluation criteria and process
- Financial plan
- revenues or sources of funding
- operating budget
- cost of sales
- marketing and promotion costs
- other expenses or expenditures
Get Ready to Export: My Export Plan My Export Plan
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Developing an Export Plan
The purpose of an export plan is to assemble facts, constraints, and goals, and to create an action statement that takes these elements into account. The plan includes specific objectives, sets forth time schedules for implementation, and marks milestones so that the degree of success can be measured and can motivate personnel.
Export Plan Tips
- The first time an exporting business plan is developed, it should be kept simple. It need be only a few pages long because important market data and planning elements may not yet be available. The initial planning effort itself gradually generates more information and insight. As you learn more about exporting and your company’s competitive position, the export plan will become more detailed and complete.
- Your plan should be written and viewed as a flexible management tool, not as a static document. Plan objectives should be compared with actual results to measure the success of different strategies. Don’t hesitate to modify and make the plan more specific as additional information and experience are gained.
- A detailed plan is recommended for companies that intend to export directly, meaning selling to an end-user in another country. If your company chooses indirect export methods or sells via your or a third party’s website, you may use much simpler plans.
The Value of an Export Plan
- Written plans give a clear understanding of specific steps that need to be taken and help assure a commitment to exporting over the longer term.
- Only about a third of small -and medium-sized U.S. manufacturers have a written plan. Absent a plan, your business may overlook much better opportunities. In addition, reactive exporters may quickly give up on selling to international customers, concluding prematurely that it’s not worth the effort, or that it’s easier to serve customers closer to home even if that base may not grow, and could even shrink in the future.
- Remember that while 59 percent of all U.S. exporters export to only a single market (predominantly Canada), many small exporters sell to more countries than they have employees, and these sales account for a growing percentage of total sales. These mini-multinationals are becoming more common, and your company can be one of them.
Length of the Export Plan
Product or service.
- What need does my product or service fill in the global marketplace?
- What modifications, if any, must be made to adapt my product for export markets?
- Do I need special licenses or certificates from the U.S. or the buyer’s government?
- Do I need to modify packaging or labeling?
Pricing Considerations
- What is the cost to get my product to market (freight, duties, taxes and other costs)?
- Given an estimate of the shipping costs, what is my pricing strategy?
- What, if anything, do I need to protect my intellectual property?
- What modifications, if any, should I make to my website for marketing purposes?
- Should I sell on third party eCommerce platforms?
- What kinds of social media should I use to build awareness?
- Should I attend a trade show where international buyers are present?
Management Issues
- Are the reasons for pursuing export markets solid objectives (such as increasing sales volume or developing a broader customer base), or more frivolous (for example, the owner wants an excuse to travel)?
- How committed is top management to exporting? Is exporting viewed as a quick fix for slumping domestic sales? Will export customers be neglected if domestic sales pick up?
- What are the expectations? How quickly does management expect export operations to become self-sustaining? What level of return on investment is expected?
- With which countries has business already been conducted, or inquiries already received?
- Which product lines are talked about the most?
- Are domestic customers buying the product for sale or shipment overseas? If so, where?
- Is the trend of sales and inquiries up or down?
- Who are the main domestic and foreign competitors?
- What are some lessons learned from past export experiences?
Management and Personnel
- What in-house international expertise does the company have (international sales experience, language capabilities, etc.)?
- Who will be responsible for the export department’s organization and staff?
- How much senior management time should/could be allocated?
- What organizational structure is required to ensure export sales are adequately serviced?
- Who will follow through after the planning has been done?
Production Capacity
- How is the present capacity being used?
- Will filling export orders hurt domestic sales?
- What about the cost of additional production?
- Are there fluctuations in the annual workload? When? Why?
- What minimum-order quantity is required?
- What is required to design and package products specifically for export?
Financial Capacity
- What amount of capital can be committed to export production and marketing?
- What level of operating costs can be supported by the export department?
- How are initial expenses of export efforts to be allocated?
- What other new development plans might compete with export plans?
- By what date must an export effort pay for itself?
- Do you qualify for any type of export financing?
Sample Outline of an Export Plan
Part i: export policy commitment statement , part ii: situation or background analysis.
- Product/Service for Export
- Export License (if needed)
- Personal Export Organization
- Products/Services to be Exported
- Products that Qualify Under FTAs
- Resources Outside the Company
- Industry Structure, Competition, Demand Operations
- Export Control Compliance
- Product Classifications
- Resources Inside the Company
Part III: Marketing Component
- Identifying, Evaluating, and Selecting Markets
- Product Selection and Pricing
- Distribution Methods
- Internal Organization and Procedures
- Sales Goals (Profit and Loss Forecasts)
- Terms and Conditions
- Pricing with Consideration of Duties, Taxes
- Freight Costs, and Logistics Included
Part IV: Tactics—Action Steps
- Primary Target Countries
- Indirect Marketing Efforts
- Quarterly Accomplishments
- Secondary Target Countries
Part V: Export Budget
- Pro-forma Financial Statements
- Marketing Materials
- Travel
- Website Enhancements
- Trade Show Visits
- Other Costs
Part VI: Implementation Schedule
- Periodic Operational and Management Review (Measuring Results against the Plan)
Addenda: Background Data on Target
- Basic Market Statistics (Historical and Projected)
- Background Facts
- Competitive Environment
- If your business is just getting started, contact your nearest Small Business Development Center (SBDC ) or Score representative for help in developing an overall business plan.
- If you are an established firm with a record of domestic or overseas sales and are looking to export, your local U.S. Commercial Service office can assist.
- Country Commercial Guides provide the latest market intelligence on more than 140 countries from U.S. embassies worldwide.
- A Basic Guide to Exporting provides a roadmap for developing an export plan. See Chapter 2: Developing an Export Strategy.
Get Ready to Export: My Export Plan
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Home » How to Write a Business Plan for Your Import-Export Business
How to Write a Business Plan for Your Import-Export Business
January 20, 2021
The world is more interconnected than it’s ever been. This provides a perfect opportunity for you to create your own import-export business. Whether it’s importing beautiful textiles from another continent or exporting local Canadian products abroad, all you need is passion and drive to get started.
You probably have plenty of ideas swirling around in your head, but the only way to make your business a reality and ensure your success is to write a winning business plan. Business plans are notoriously long and complex but don’t be disheartened. Here are 6 steps to writing the perfect business plan for your import-export company:
1. Start with an Executive Summary.
Think of this as the ultimate introduction to your business. It should concisely delineate exactly what you want as a business owner. Remember, you need to know where your business is going. It’s up to you to clarify your vision. No one is going to be as passionate about your import-export storefront as you are.
Your executive summary should have:
- Your business concept : what you’ll sell, who will purchase it, and why your business will work
- Financial points : your sales, profits, cash flows, and ROI
- Required finances : what capital is needed and how it will be used
- Current business state : a short history of your business including key members of staff
- Achievements : may include test marketing, facility locations, important contracts, etc.
Keep it short and sweet. Ideally, your executive summary will be no more than half a page. The rest of your business plan is where you’ll go into greater detail about these components.
It might be helpful to go through How to Start an Import Export Business before you create your executive summary to ensure everything is carefully thought out before you present it in your business plan.
2. Include a Business Description.
This is your opportunity to describe exactly what you’re importing or exporting and how it will succeed. Are you importing Congolese avocados? Show how you can guarantee perfect ripeness when they reach stores. Are you exporting blenders to Bolivia? Demonstrate you’ve found the perfect blender to suit the demand of that market.
Here are some questions to consider and incorporate:
- How does the industry look now and how might it change in the future?
- Is your business brand new or already established?
- What kind of business is it (e.g. partnership, corporation)?
- What are the ins and outs of the distribution of your product?
- How is your business better than your competitors?
- What exactly makes your business profitable?
Don’t forget insurance. Investors and lenders need to see you’re responsible and won’t lose money from major oversights. You might think skipping product insurance will help you make more money, but this is a huge mistake in the long run. Find a premium insurance company and include that information in your business description.
3. Conduct a Market Analysis.
Roll up your sleeves—this part takes a lot of effort. If you put the work in and do the research, it will pay off. The point of your market analysis is to demonstrate your knowledge of the market and your ability to claim a significant share of it.
A great market analysis can look like this:
- Define the market : talk about size, trends, rules and regulations, prospective growth areas, and sales potential
- Nail down the total feasible market : specifically address the portion of the market your business can realistically capture
- Estimate market share : take into consideration industry growth and your product’s life cycle
- Determine pricing : discuss your reasons for pricing and how you will cover costs
- Explain your promotion strategy : this includes advertising, packaging, PR, etc.
Factor in exchange rates. As you’re figuring out your price, be sure to include exchange rates in your calculations. Neglecting this could sink your business. You might want to consider using the local currency of the country you’re working with, especially if they use an international currency such as euros or US dollars. Are you planning on exporting to the EU? Don’t miss this helpful guide .
4. Summarize a Competitive Analysis.
Not quite the same as your market analysis, your competitive analysis focuses mainly on the strengths and weaknesses of your competitors. Planning to import Italian cars? Put yourself in your buyer’s shoes. What options do they have for purchasing an Italian car? What are the strengths and weaknesses of each option?
After you make a list of all your potential competitors, you’ll want to organize all the information in a competitive strength grid, which outlines which competitors are strong in each skill category and which ones are weak (e.g. price, product quality).
Lastly, you’ll need to clearly define your competitive advantage. Do you have a lower price point? Are your cars of better quality? Do you have a more solid advertising plan? Can you break into a new market?
Your price equates to your product’s value. If you price your product too far below your competitors, it may cheapen your product in the eyes of consumers. There’s nothing wrong with trying to outpace your competitors in pricing, but make sure you don’t overdo it and cause your customers to overlook your product due to a lower perceived quality.
5. Create a Design & Development Plan.
This is where you focus on details, details, details. How are you going to make your business a reality? Now is your opportunity to get it all on paper.
Here are some questions to answer in this section:
- What are your goals for product development?
- Which procedures will you have in place for product review, marketing, and distribution?
- What is your exact production schedule?
- What’s in your detailed development budget?
- How many employees need to be recruited and in what areas?
- What possible risks are apparent?
- How will your business function on a continuing basis?
- What is the organizational structure of your business?
If you’ve left any of these questions unanswered, you’ll need to add more details.
Don’t go it alone. You might prefer to do everything on your own, but that will only leave you overworked and exhausted. There are so many specifics in the import-export world that you can easily get overwhelmed. Do yourself a favor and hire a team to help.
Are you planning on selling your product on Amazon? Check out these useful logistical tips .
6. Don’t Forget the Financial Data.
When it comes down to it, this is what investors really want to see. This is how they’ll determine whether your business – anything from exporting dresses to importing sailboats – will succeed or not.
You’ll need to include three statements in the financial section:
- Income statement : a simple report on monthly sales and expenses
- Cash flow statement : a schedule of what money is needed and where it will come from
- Balance sheet : a summary of your business’s assets, liabilities, and equity
Let your words be few. You should include a short analysis statement after the income statement, but resist the temptation to ramble. The idea is to let the financial statements in this portion speak for themselves.
Once you’ve finished your business plan, send it out to investors and lenders you’ve already established a connection with. Make big asks—you never know who might say yes! With an excellent import export business plan at your disposal, you’re well on your way to becoming a successful business owner.
BorderBuddy creates importing and exporting solutions for any size of business. We specialize in smoothing the process for you—handling the paperwork and logistics so you can focus on growing your company. We love supporting small businesses and are proud of the success stories we’ve been a part of. Give us a call and let us help you create a unique and sustainable import-export business today.
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There are several reasons prompting a firm to sell its products in the international market. It is not difficult, but as most things in business, it requires adequate preparation and training. Although creating an export business plan does not in itself guarantee success, it minimizes risks and optimizes operational efficency.
Published by ConnectAmericas
What is an export plan?
An export business plan is a useful tool that allows businessmen to know where they stand in regard to external markets. It serves as a tool for previously analyzing the risks that may be encountered and for establishing a specific contingency plan in this regard. It is also useful for learning more about the final markets and for preparing an export strategy, or for improving relations with suppliers, sales agents or financial entities.
An export plan has no predetermined structure since it varies depending on the particular products, services and features of each SME (small and medium-sized enterprise). A report by the International Export Business Plan of ProMéxico affirms that, “an export business plan seeks to systematically penetrate a product or service in the international market to maximize efficiency and profitability.”
In other words, the continuity of exports at lower costs and higher earnings to optimize the business. The export business plan is just an organized way of recording the exports sought, where to, how, and the resources that are available.
Succesful export plans should include the following:
Description of the business
It is essential to include detailed information on the firm. In particular, a description of its capacity, experience and abilities to implement the project. Con Tu Negocio also advises defining the strengths and weaknesses of the firm. It is also necessary to include long and short-term objectives, any former export business plan, the final market insertion strategy, and the description of the product or service.
This last point should also include tariff classifications, consumer and market descriptions, main competitive products, technologies, quality standards, product adjustments, costs, prices, and research and development of new products.
Market Analysis
All export plans must include desired exporting destination and the main features of that market. This entails political, legal, economic, social and cultural aspects. According to ProMéxico it is important to include “a description of the industry in the export market, analysis of the competition, market segmentation, and tariff barriers.”
Human Resources
In PromPerú's publication “Preparing an Export Plan”, Paredes Bullón considers worthy to “include the human capital available at the firm for the export project” in addition to all information related with international trade experience and skills and the organization structure of the firm and of its international department. Furthermore, it is important to specify whether the firm has any external international trade advisors or strategic alliances.
Operational Phase
According to ProMéxico this is the core of the export plan. This section defines the market penetration strategy towards the target market, compatible with the fimr's long-term objectives. It should state that the operation is feasible from an administrative, technical, financial, and commercial point of view. It must also include everything related to the international aspects of the operation and production. Elements to be taken into account:
- International Aspects:
-Export price -International logistics -Formal requirements to export/import -Tariff and non-tariff barriers -Quotes (INCOTERMS) -Contracts, forms of payment, negotiations -Containers/wrappings -Insurance -Advertisements -Distribution -Market development activities -Contacts abroad
- Production Aspects:
-Raw materials -Quality and standards -Capacity -Installations -Localization -Manpower -Subcontracting -Suppliers -Technology -Inventories
Risk Analysis
According to PromPerú, an important aspect of the export plan is “to identify potential problems that might have a negative impact on the project.” It is also necessary to specify the contingency plans to counter same. One of the easiest ways to mitigate risks is to take out export credit insurance to cover credit sales in the international market (exports under credit conditions). Firms providing these services point out that generally insurance protects exporters from the following risks:
- War, civil war, revolution or occupation of a territory by foreign forces
- Expropriation or confiscation, requisition of merchandise
- Delay in transferring foreign currency for lack of the latter or government instructions
- Cancellation of export or import permits
- Unilateral cancellation of contract by the importer’s government
Financial Projections
Con Tu Negocio specifies that many SME’s lack adequate financial projections that are necessary for preparing solid export plans. In this regard, entrepreneurs should record: the resources available to complete the export project, historical financial information, cash flow, financial statements and key financial information on liquidity, activity and profitability.
This is a summary of the export plan. Its purpose is to concisely depict the current status of the firm and the plans for the new operation. According to Con Tu Negocio , it must include the profile of the firm, a precise description of its business, an explanation of the product or service offered, the competitive advantages and financial requirements.
Creating an adequate export plan will not only help SMEs from a commercial standpoint but it will enable self-evaluation and generate greater participation in, and awareness of, the operation. As with any management tool, the plan must be flexible and adaptable and must be review as business progresses.
BIBLIOGRAPHY
Compañía de Seguros de Crédito Continental. Tipos de seguros de crédito. Compañía de Seguros de Crédito Continental SA, 2013
Ortiz, Rafael. Claves para desarrollar un plan estratégico en una pyme. 9 August 2012. Con tu negocio, Movistar, 2012
PromPeru. Paredes Bullón, David. Elaboración del plan de Negocio de exportación. PromPeru, 2013
ProMexico. Plan de Negocios Internacional de Exportación. ProMexico, 2010
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Import Export Business Plan Template
Written by Dave Lavinsky
Import-Export Business Plan
Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their import-export businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through an import-export business plan template step-by-step so you can create your plan today.
Download our Ultimate Business Plan Template here >
What Is a Business Plan?
A business plan provides a snapshot of your import-export business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.
Why You Need a Business Plan
If you’re looking to start an import-export business, or grow your existing business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your import-export business in order to improve your chances of success. Your import-export business plan is a living document that should be updated annually as your company grows and changes.
Sources of Funding for Import-Export Businesses
With regards to funding, the main sources of funding for an import-export business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the lender will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for social media marketing businesses.
How to Write a Business Plan For an Import-Export Company
If you want to start an import-export business or expand your current one, you need a business plan. Below are links to each section of your import-export business plan template:
Executive Summary
Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.
The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of import-export business you are operating and its status. For example, are you a startup, do you have an import-export business that you would like to grow, or are you operating import-export companies in multiple markets?
Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the import-export industry. Discuss the type of import-export business you are operating. Detail your direct competitors. Give an overview of your target market. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.
Company Analysis
In your company analysis, you will detail the type of import-export business you are operating.
For example, you might operate one of the following types of import-export companies:
- Export management company – these types of businesses handle all the details (hiring distributors, handling logistics, creating marketing materials, etc) for companies wishing to export a product.
- Export trading company – these types of businesses determine what products foreign buyers want, and then find domestic companies who make the product.
- Import-export merchant (or free agent) – this type of business buys merchandise from a manufacturer, and resells that merchandise around the world.
In addition to explaining the type of import-export business you will operate, the Company Analysis section of your business plan needs to provide background on the business.
Include answers to question such as:
- When and why did you start the business?
- What milestones have you achieved to date? Milestones could include the volume of products you have exported or imported, number of import-export contracts signed, etc.
- Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.
Industry Analysis
In your industry analysis, you need to provide an overview of the import-export industry.
While this may seem unnecessary, it serves multiple purposes.
First, researching the import-export industry educates you. It helps you understand the market in which you are operating.
Secondly, market research can improve your strategy, particularly if your research identifies market trends.
The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.
The following questions should be answered in the industry analysis section of your import-export business plan:
- How big is the import-export industry (in dollars)?
- Is the market declining or increasing?
- Who are the key competitors in the market?
- Who are the key suppliers in the market?
- What trends are affecting the industry?
- What is the industry’s growth forecast over the next 5 – 10 years?
- What is the relevant market size? That is, how big is the potential market for your import-export business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.
Customer Analysis
The customer analysis section of your import-export business plan must detail the customers you serve and/or expect to serve.
The following are examples of customer segments: manufacturers, wholesalers, retailers, and consumers.
As you can imagine, the customer segment(s) you choose will have a great impact on the type of import-export business you operate. Clearly, individuals looking to purchase coffee beans online would respond to different marketing promotions than mobile phone manufacturers, for example.
Try to break out your target market in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most import-export companies primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.
Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.
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Competitive Analysis
Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.
Direct competitors are other import-export companies.
Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes manufacturers with vertically integrated distribution operations, or consumers who prefer to purchase similar products made domestically.
With regards to direct competition, you want to describe the other import-export companies with which you compete. Most likely, your direct competitors will be import-export businesses located very close to your location.
For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:
- What types of customers do they serve?
- Do they specialize in specific products, or in imports from a specific country or region?
- What is their pricing (premium, low, etc.)?
- What are they good at?
- What are their weaknesses?
With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.
The final part of your competitive analysis section is to document your areas of competitive advantage. For example:
- Will you provide a wider variety of products or maintain distribution contracts with more manufacturers?
- Will you offer extra services, such as brokerage?
- Will you provide better customer service?
- Will you offer better pricing?
Think about ways you will outperform your competition and document them in this section of your plan.
Marketing Plan
Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For an import-export business plan, your marketing plan should include the following:
Product : In the product section, you should reiterate the type of import-export company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to mobile phones, will your import-export business offer other consumer electronics such as laptops or wireless headphones?
Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.
Place : Place refers to the location through which you will sell your imported/exported goods. For example, will you distribute your goods directly to consumers online, or will you maintain supply contracts with retailers and wholesalers? In this section, document each method by which you will sell your products.
Promotions : The final part of your import-export marketing plan is the promotions section. Here you will document how you will drive customers to your business. The following are some promotional methods you might consider:
- Advertising in trade papers and magazines
- Direct contact with potential clients (cold calling)
- Social media marketing
- Exhibits at Trade Shows
Operations Plan
While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.
Everyday short-term processes include all of the tasks involved in running your import-export business, including determining which products are needed, sourcing product manufacturers, securing and maintaining all necessary licenses and permits, arranging logistics, etc.
Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sign your 100 th supply contract, or when you hope to reach $X in revenue. It could also be when you expect to expand your import-export business to a new market.
Management Team
To demonstrate your import-export business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.
Ideally you and/or your team members have direct experience in managing import-export companies. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.
If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in logistics, or successfully running small businesses.
Financial Plan
Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.
Income Statement
An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.
In developing your income statement, you need to devise assumptions. For example, will you import from one country, or will you operate globally? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.
Balance Sheets
Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your import-export business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.
Cash Flow Statement
Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.
In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing an import-export business:
- Warehouse build-out including fixtures, construction, etc.
- Cost of buying or leasing the necessary transportation equipment (containers, cargo ship / airplane, etc.), or otherwise securing the means of transporting your goods
- Payroll or salaries paid to staff
- Business insurance
- Taxes and permits
- Legal expenses
Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your warehouse lease, or contracts with manufacturers and distributors.
Putting together a business plan for your import-export business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the import-export industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful import-export business.
Import Export Business Plan FAQs
What is the easiest way to complete my import export business plan.
Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Import Export Business Plan.
What is the Goal of a Business Plan's Executive Summary?
The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of import export business you are operating and the status; for example, are you a startup, do you have an import export business that you would like to grow, or are you operating a chain of import export businesses?
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