*MONDAY EXPORT CLASS*
With GODWIN OYEFESO _(SUCCESSEDGE EXPORTERS NETWORK)_
*Topic: WRITING AN EXPORT BUSINESS PLAN (PART 3)*
SPECIMEN OF EXPORT BUSINESS PLAN
*The Laurel Export Business Plan*
The following plan—I’ll call it the Laurel export business plan (LEBP) —has worked well for many of my clients. You can focus on each section heading and then build out accordingly based on the questions I pose and comments I make. What many clients experience as they develop an export plan is the eureka moment: “I can do this!” The trick is to craft a plan that suits you and can absorb economic shifts and shocks along the way, yet still allow for you to achieve successful results. And it can’t hurt for you to use both the traditional business export and Laurel export plans to develop yours.
■ Tip I t is important to identify where the cash will come from to support your export operation and, at the same time, access available export financing options. Conduct a complete audit of your cash situation so you are not surprised later on to learn you need more money than anticipated to reach a new overseas market. Face weak links and potential problems before you are knee deep in a fantastic opportunity.
1 . Introduction : Compose an explanation of why you should export and what your company wants to gain from exporting. Your answers will serve as your guiding light and foundation for your entire export business plan.
2. Executive Summary : Specify your long-term financial and nonfinancial vision for developing an export business. Think three, five, and ten years out. This part shows clarity of purpose, direction, and intent. It is an understanding of the company’s identity and a short, concise picture of the company in the future. Think of it as an entire business plan in miniature.
3. Strategic Leadership : State your leadership ability clearly. Do you have what it takes to drive results for your export operation? The business owner must have the ability to set direction, make decisions, and provide longterm planning.
4. Company Description : Explain what do you do and why are you good at it.
5. Target Export Market : Identify your customers in
_______________ (pick a target export market). Think about what would motivate them to pay for your product or service and if they will be able to afford to pay for your product or service. Drill down to a more precise view of your target audience.
■ Caution Are you crystal clear on who your customers are and why they use your product or service? If not, go back and do a major rethink!
6. The Competitive Analysis (Market and Customer) : Distinguish how your product or service is unique, and explain briefly why people in a selected export market would buy it. Do you know the strengths, weaknesses, strategies, opportunities, threats, and financial status of your top five competitors? Spell them out.
7. Marketing and Sales Plan : Detail and clarify how you will effectively and efficiently reach the people with whom you want to connect through your business (direct, indirect, intermediary sales, trade shows, e-commerce, mobile, etc.). Ensure existing local customers are not neglected! Are your products and services suitable for an export market, or will major modifications be required? This part should be strategic in that it outlines specific action steps to achieve future sales goals.
■ Tip Utilizing market and customer intelligence determines a company’s ability to perceive and adapt to changes in the global marketplace. The more homework you do, the better the chance you have to achieve desired results.
8. Operations Plan : Figure out how you will support the business strategies through internal operations, systems, and organizational structures. Describe key factors to use in your business in finding solutions and in meeting the wants and needs of customers, suppliers, employees, and other key influencers. If exporting a product, how will it get made? Do you have the capacity to produce and deliver?
9 . Information Technology Plan : State how you will leverage technology to take advantage of the export marketplace. Will your export business be heavily dependent on technology? List your business’s strengths and weaknesses in the information technology area. IT will support your company’s business processes and decision making and, at the same time, give it an extreme competitive advantage in the global marketplace. Plan the parts of your business you will use technology for (order taking, mailing lists, social media, finances, e-commerce sales) and how you will use it.
10. Logistics Plan : Outline how you will get your product or service to the chosen export market.
11. Management Structure : Identify the people and experts in your business who will implement your plan and exceed your goals. Compile a management team section that describes who is on your team and what expertise each person brings to the table. This section should also include an analysis of strengths and weaknesses in the team and what might be missing.
12. Future Development : Tailor your business plan by defining future milestones that are in line with your desired goals. Describe your vision for your business, including your exit strategy.
13. Financials (Export Budget) : Analyze your available resources
(human, material, and financial) to determine how you will support export initiatives. Get together three types of financial statements: a cash-flow statement, an income statement (also referred to as a profit/loss statement), and a balance sheet. Set budget targets and develop pricing strategies. Confront your company’s finances squarely. You want your export business to be sustainable over the long term.
14. Strategy Implementation : How will you follow up, review, and measure results? Have you set a timeline? Home in on a detailed action plan for execution.
15. Risk and Reward Analysis : Provide an assessment of everything that can go wrong and right, and a discussion of how your export dream team can respond.
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As your export business grows, you will become more aware of external factors that influence your business plan, which will allow you to develop ways to manage and adapt to them. These external factors might include: import regulations, exchange rates, availability of finance, new or unexpected competition, and disruptive technology and logistics, to name just a few. As mentioned earlier, anticipating change and adapting to it requires strategic leadership as well as Backup Plans B, C, and D.
*Summary: Leaving You with Fun and Export Adventure on Your Mind*
Now that you know what is involved, craft your own export business plan and use it as an indispensable tool for building your export business—and don’t forget to maximize profits! Look at it regularly, revise it when necessary, and pay attention to the reality of the market. It will sharpen what you are doing and why you are doing it, and help you define and achieve professional and personal goals.
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If you have questions on today’s class DM me for answers to such questions.
Till then, you will succeed
ELEF 