The Importance of an Import Export Business Plan
An import export business plan is essential to success in your import export business. While in some respects, running a business involved in international trade is similar to running a successful domestic business, in other ways it is not. Doing research and coming up with a business plan that outlines goals, procedures, and schedules is crucial to your success as an international entrepreneur.
What is a Business Plan?
An Import Export business plan is a document that details the way a company intends to do business and make money. It has several basic parts which can be expressed in a variety of ways. These include a formal statement of the goals of the business, why the goals are attainable and ought to be attained, and the plan for reaching them. It should include a plan for marketing, finances, and any other areas that may be involved. The business plan may also include background information about the organization.
Import Export Business Plan
An import export business plan has all of the features of a regular business plan. However, the challenges involved in starting an import export business are such that it is perhaps even more crucial for these businesses to have a very detailed plan. Coming up with a business plan forces the organization to sit down and think about what its goals are and how to meet them. It will also require thinking about how to handle the risks inherent in international trading.
Defining the Organization
The first part of an import export business plan involves defining the organization. This means putting in writing who is involved in the organization, what they do, and who they report to. It means talking about where the funds to start the company came from, what the expenses will be, and projected profits. Finally, the import export business plan will discuss what kind of import export products the company will be involved in, what area of the world it focuses on, or what kind of products it will specialize in.
Import Export Goals
The second part of the import export business plan is the part where the business lays out what its goals are and how it will achieve them. If the business is going to specialize in a certain area of the world, what contacts do they have and how are they going to expand those contacts? It will also talk about what kinds of products the company will be importing or exporting, what kind of marketing they are going to do, and how potential trading partners will be found. It will have to discuss any licenses that might be required and how they will be applied for.
Important Aspect of an Import Export Business Plan
Risks to Import Export
Another important aspect of an import export business plan involves the area of risk management. International trade has strong elements of risk, so companies need a plan for mitigating risk as much as possible. A business risk management plan will set guidelines for evaluating how risky a transaction is and deciding how much risk is too much. It will also identify a process for vetting potential trading partners to be sure that they are good companies to get involved with.
The import export business can be highly lucrative but it can also be highly risky. Developing an import export business plan will help to minimize risk and maximize business profits as well as outlining where the company is and where it hopes to go. Don’t start an import export business without one!
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