International Business plan: What it is and How to write it

An international business plan is a framework that identifies goals, target markets, resources and strategies to be developed in pursuit of global business opportunities. The steps of writing an international business plan entails drafting an executive summary, establishing financial requirements of your business, defining your product and service as well as explaining your marketing strategies.

The importance of an international business plan includes helping in understanding global markets, risk mitigation, assisting in resource allocation and enhancing compliance with local laws.

An international business plan does not have all the components of a traditional business plan hence does not follow the normal structure of a business plan. It takes three to four weeks to write an international business plan and you can hire a business plan writer to prepare one for you. Platforms such as t-mobile and AT&T offer business wireless and mobile plans.

What is an international business plan?

An international business plan is also known as a global business plan and is a document that prepares businesses to enter the international market place. It helps businesses leverage global markets’ opportunities and challenges. Before venturing into international markets, your business has to craft an international business plan to help you set goals, allocate resources effectively and determine which countries offer the best prices for your products.

Additionally, an international business plan helps you determine how to reach clients in foreign markets and make competitive offers. For businesses that already have market presence, the plan assists them to better  organize their existing international business activity. Strategies developed  in pursuit of international business opportunities include marketing, communications, production, sales and financial strategies. 

How to write a international business plan

Writing an international business plan is a step by step process which requires you to first define your reasons for going global. Challenge yourself to understand why you want your business to trade internationally.

Secondly, you must allocate time and resources to research the international market. There exists variation in political,economic and legal climates in different countries that you need to be aware of. Research also on what will be your suitable business model be it franchising or selling directly. Consider joining a trade delegation to get introduced to the global market or sign up for a trade show to get an understanding of the particular market that you are going to.

Components of an international business plan are an executive summary, products and service description,  marketing and sales strategy as well as the management and organizational structure of your global business.

Write an executive summary

An executive summary is an overview of what the international business plan hopes to accomplish. It summarizes key points from the entire business plan in 1 or 2 pages. The executive summary includes a short profile of your company, the product to be traded and the country with which  you wish to trade. You will include a brief relevant  history of the country as well as its geographical setting in terms of location, climate and topography.

In addition, outline social institutions such as family, social organizations, social classes and their role as well as business customs and practices. Outline also the religious belief systems, living conditions and language used in the specific country.

Establish the financial requirements for your global business

Establishing the financial requirements for your global business entails analyzing what funding is required to support the global business initiative. International business planning helps you identify the cash needs of your business as there are various costs to be considered. These costs include export costs, cargo insurance premiums and business development costs.

It is essential for a business to clearly analyze available resources to ensure that you have the capacity to accommodate the desired global business activity.Conduct projections on revenue in terms of the payback expected from this venture while considering factors such as currency fluctuations and local taxes. Establish also if you will need external financing and sources of funding for your global business.

Define your product or service

Defining your product or service entails describing in detail the products or service that you are going to offer. In your descriptions, be specific in terms of the things that make your products unique and the benefits that they will offer to international customers. Include aspects such as manufacturing, packaging, distribution and purchasing. Mention any trademark, copyright or patent related to your products and services. Indicate how much you will charge for your products, how you will handle its distribution in the market and how it compares to other similar products in the market. It will be beneficial to have a visual representation such as a photo or brochure of your product as part of the appendix of your international business plan. 

Explain your marketing and sales strategy

A sales strategy is a plan that focuses on how your business can effectively reach its target market. Entering an international market gives your business access to a new customer base which results in more revenue. It is for this reason that you must define your sales strategy in your global business plan. A marketing strategy helps your business create value for your potential customers by identifying your target market and studying consumer behavior. For example, you could use e-commerce as a marketing and sales strategy so as to reach global customers. Additionally, you will need to adjust your marketing and sales strategy to fit the needs of prospective customers in other countries.

Explain the customer target market in each country or region

The step of explaining the customer target market in each country entails outlining the segment of customers that are most likely to purchase your offerings because of their shared characteristics such as age, income and lifestyle. Identifying your target market is critical for a successful global business venture because it informs product’s specification, packaging as well as distribution.

A well defined target market helps your business to attract new customers and thereby increase profits by enhancing  marketing efficiency.This is because your business will not waste time and resources trying to sell its offerings to uninterested consumers. When explaining your customer target market, include their demographics such as income, geographics which includes physical location, psychographics such as hobbies and behavioral patterns such as purchasing habits.

Define your expertise in handling global business operations

Defining your expertise in handling global business operations entails showcasing your skills and capabilities in running a global business. As a business owner, you need to possess knowledge and skills in international business to prevent and handle costly mistakes that normally occur. Expertise in handling global business operations allows your business to navigate the complexities of international markets as well as leverage emerging opportunities.

To thrive in international trade, you need excellent networking abilities to develop a strong network of connections. These connections lead to opening doors of opportunities for your business globally. State that you are open to establishing partnerships and alliances for sale and distribution of your products in foreign countries.

Define all the required licenses, permits, and other legal or regulatory statutes

Defining all the required licenses, permits, and other legal statutes shows that you understand the regulatory requirements. Conducting global business requires compliance with legal and other regulatory requirements. Obtaining licenses and required permits is essential to start any business. These regulatory statutes serve to protect stakeholders’ interests, maintain fair competition and promote a stable business environment. Other regulatory statutes include tax obligations, visas and labor regulations. Your business gains the trust and confidence of investors,customers and partners by stating all the required licenses, permits and other regulatory statutes.

Identify the management and organizational structure

Identifying the management and organizational structure entails explaining how your business is set up. Organizational structure provides a blueprint for how your business is organized and how people contribute to its success. Begin by presenting the organizational structure by indicating how your business is structured and who is involved. Business structures include sole proprietorship, partnership, company and corporations. Management refers to who is involved in the daily operations of your business. There is top level, middle level and lower level management. Give details on the name, roles and responsibilities, education background, experience as well as skills and qualifications of your management team.

Identify your suppliers

Identifying your suppliers is the process of searching for potential suppliers who will have the ability to deliver products or materials as required by your business. Global business operations require an efficient supply chain to ensure smooth operations. Choosing the wrong supplier results in low quality products and late delivery of products hence causing customers to shun your business. Assess suppliers’ capabilities by considering factors such as production capabilities, quality assurance processes and ethical standards. Engage them to know if they are willing and able to meet your specific needs. Negotiate favorable payment terms, delivery schedules to optimize value and have  clear communication channels for accountability and mutual understanding.

What is the importance of an international business plan?

The main importance of an international business plan is that it is essential for capitalizing on global markets and opportunities to ensure a well organized , strategic approach to foreign markets. A global business plan promotes better market entry strategies by enabling you tailor market entry strategies to each country where you intend to operate. This enhances the competitive edge of your business.

An international business plan helps in risk mitigation by allowing you to identify threats and coming up with strategies to address them. With every country having its own regulatory requirements, a global business plan assists in navigating these complexities to ensure compliance.

A comprehensive international business plan ensures prudent management of resources and financial preparedness because going global for a business entails resource allocation and additional finances. A global business plan identifies potential partners as collaboration with foreign entities is essential for business success. It helps you gain a competitive edge by helping you analyze competition when entering foreign new markets. 

Is an international business plan similar to immigration business plan?

No, an international business plan is different from an immigration business plan. A business plan for immigration also known as a visa business plan, is a document that is required for visa applications when your business is moving to another country. It contains a business proposal which is tailored to meet particular visa program requirements. An immigration business plan communicates your expertise and vision as a visa applicant. The main purpose of an immigration business plan is to show authorities that your business venture is viable, sustainable and aligns with the economic goals of the country of immigration. 

Does an international business plan have all components of a traditional business plan?

No, some business plan components change from one type of business plan to another.  The components of a traditional business plan include an executive summary which introduces your business and is an overview of the entire business plan. Next up is a company description containing the mission and vision and mission of your business. Other elements of a business plan include a description of your products and services, market analysis, organization and management structure, competitive analysis as well as a marketing plan. Additionally, marketing strategy, financial plans and projections and a funding request are components of a business plan.  

How to write a traditional business plan?

Writing a comprehensive traditional business plan is a step by step process that requires careful thought and a lot of research. Know the purpose of your business plan and identify your audience. Use clear and concise language by avoiding technical jargons so that it is easily understood by stakeholders.The steps of writing a complete business plan include drafting an executive summary, writing the company description, describing your products and services as well conducting market analysis. Other steps include outlining the organizational management structure, developing a marketing and financial plan as well as making  financial projections. 

Can one hire an international business plan writer?

Yes. There are professional business plan writers online that will help you write an international business plan.When hiring an international business plan writer, first ensure that they have the necessary expertise and experience in writing a global business plan. Check their profiles online to see their ratings and reviews from clients they have worked for. Expert international business plan writers save you the time and energy that goes into business plan writing. This ensures you focus on other critical aspects of your global business operations. 

What is the cost of an international business plan?

The cost of an international business plan lies between $ 2000 and $ 25000. However, this cost depends on factors such as length of your document, size of your business, quality required of your plan as well as turnaround time. Longer global business plans cost more than shorter ones. An international business plan for a big company is expensive to write as compared to that of a small business. Shorter turnaround time means increased cost of a business plan.

How long does it take to write an international business plan?

It takes three to four weeks to write a comprehensive international business plan. Several factors such as size of the business, research requirements and experience of the writer affect the time taken to write a business plan. The larger and more complex your business is, the longer it will take to write your business plan. You will need to do a lot of research when writing an international business plan because you are entering a new market by going global. Research takes time and hence more time will be required to complete writing your business plan. An experienced writer will take less time to write your business plan than a writer with little or no experience.

International business plan example

An example of an international business plan is an illustration of how it looks. Examples of international business plans are found online whereby different templates are outlined showing the structure and contents. Check online platforms such as  websites for businesses that have published theirs on company profiles. For example,you will  find international business plans on platforms such as t-mobile and AT&T which sell custom made  wireless and mobile business plans.