International Business Plan

Try the Interactive Export Planner to create your own international business plan online. For an overview of what points you should consider when preparing your plan, follow the guidelines listed below.

• Company Information
• Advertising/Promotion
• Geographic/Social Analysis
• Pricing
• Product Analysis
• Financing
• Who Are Your Customers?
• Industry Profile/Competitive Analysis
• Distribution

The following questions are designed to help you focus on the aspects of an international business plan which differ from a business plan created for domestic markets. We suggest that when developing your export business plan you follow the basic structure provided. This diagnostic should be revisited for each new region you explore and any new product that you plan to introduce into a foreign market.

Information about the country or region you are interested in can be obtained locally from the Canada/Manitoba Business Service Centre's reference library or online using our country information links .

Company Information

• Company Name
• Address
• Telephone
• Fax
• E-mail
• Web site
• Prepared by:

Geographic/Social/Cultural Analysis

1. Why did you select this area over other possible areas of the world?
2. Are there any factors in this market which would impact on your ability to be successful?
3. Consider climate, geographic location, language and customs, cultural and religious norms, business practices, population, disposable income level, and current imports.

Product Analysis

1. Describe your product, the function it serves, why customers value it and the problems it solves for an end user.
2. Will these functions be valued in the same way in the target export market? Will it change the way things are presently done (eg. a labour saving device may not be required in a low wage environment)?
3. What products are currently available in the target export market to meet the needs of your potential customers?
4. Describe your product's strengths and weaknesses in relation to your competitors' products. Will it do a better job, improve accuracy, save time or do it more cheaply?
5. Describe the technical aspects of your product that users in the target export market may find advantageous or difficult to use. Will its introduction be compatible with the technological capabilities or degree of readiness for product acceptance, or will changes be required?

Who Are Your Customers?

1. Describe the profile of your present customer base. What are their buying habits (eg. limited number of customers with repeat business or one-off sales, tenders, etc.)?
2. How are the customers in your target export market similar to those in your present market, what are the characteristics that are different? Will they have the same buying patterns? Do they require significant personal contact before committing to a product?
3. Are customers in your target market loyal to their suppliers and products presently in use? Will this present problems in penetrating the market?
4. What are some of the concerns your foreign customers may have in buying your product? These might include high prices, servicing problems, financing, technical backup, perception of your long-term commitment to the market, etc.

Distribution

1. What are the main channels of distribution for your product at the present time? Will similar channels be available in the target export market and will they be the most effective in this new market?
2. What are the common industry distribution channel practices in the target export market? How does your proposed method compare (eg. in terms of price, available middlemen, etc.)?
3. For the target market, discuss the quality of the infrastructure, including suitable transportation (roads, trucking, trains, planes), services (reputable banks, electricians, etc.), warehousing, communications (dependable phones), and an accessible legal system.
4. Discuss briefly the logistics of getting your product to the target export area (eg. the mode of transportation, insurance, documentation required, terms of sale such as FOB and CIF).

Advertising/Promotion

1. What promotional activities are you undertaking at the present time?
2. List the promotional vehicles available to promote your product in the target export market (eg. trade publications, trade fairs, competent representatives and distributors, etc.). Are they sufficient and of good quality? Which ones will be used?
3. What are the packaging/labelling requirements in the target export market? What language translations or modifications are needed?

Pricing

1. What is your domestic market price structure and price list?
2. Describe how the price structure may change in the target export market. Discuss the effects of the costs for transportation, insurance, duties, taxes, mark-ups for middle men, changes in packaging, and technical translation, etc. (Have you removed domestic costs such as GST)?
3. What is your price list for the target export market in their currency?
4. How will any required price changes affect your competitiveness in the target export market?
5. What are the terms and prices of existing competitors' products in the target export market?

Financing

1. What are the potential currency problems in your target export market (eg. foreign exchange risk, inflation, multiple exchange rates)?
2. Discuss your target export clients' ability to pay for your goods. Do the target clients have the convertible funds to buy your product? Will purchases be tied to foreign aid or concession financing? Will it be available? Discuss other important financing considerations.
3. Describe the contractual methods your foreign clients will expect. What recourse do you have if the contract is breached?
4. What method of payment do you intend to use for customer billing in the target export market? What is the common industry practice in that market?
5. Have you discussed the international banking system with your bank for letters of credit, etc.? If yes, please explain.

Industry Profile/Competitive Analysis

1. Describe the industry structure in the target export market. Who are your competitors and how would you rank them?
2. What foreign standards (eg. consumer, government health and safety, etc.) should your product meet?
3. Are foreign co-production or assembly requirements an issue?
4. Is there a requirement to maintain and service the products locally in the target market?
5. How will the government of the target area influence the marketing of your products? What are the import regulations and restrictions? Are there requirements to trade through local representatives or through government bodies?
6. Is your product subject to Canadian export controls or is the target export market on the Area Control List?