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A Guide to Preparing an International Business Plan

By: FITT Team

An international business plan acts as a framework that identifies goals and objectives, specific target markets and clients, resources required and strategies to be developed in pursuit of international business opportunities. The plan allows for the monitoring of progress via metrics against which success and failure can be measured. A comprehensive international business plan will be comprised of a number of integrated strategies related to business functions, including communications, sales and marketing, finance and production.

What Is an International Business Plan?

An international business plan is a valuable management tool that describes who a business is, what it plans to achieve and how it plans to overcome risks and provide anticipated returns. It can be used for a wide variety of purposes, such as to:

• Set goals and objectives for the organization’s performance.
• Provide a basis for evaluating and controlling the organization’s performance.
• Communicate an organization’s message to managers and staff, outside directors, suppliers, lenders and potential investors.
• Help the planner identify the cash needs of the business.
• Provide benchmarks against which to compare the progress and performance of the business over time.

A comprehensive and detailed plan forces the planner to look at an organization’s operations and re-evaluate the assumptions on which the business was founded. In doing so, strengths and weaknesses can be identified.

Although highly dependent on the individual business case, on average it takes a three-year commitment to establish a successful presence in a foreign market. This process may require tremendous human, technical and financial resources during the developmental period.

The Planning Process

An international business plan is subject to repeated adjustment and revision to keep it current with the changing circumstances of the organization. The plan is a feedback mechanism through which new information is continually incorporated into the organization’s operations. Planning always precedes action. Therefore, planning must be thought of as a continuous cycle. The analytical tools presented here are not intended to be used just once. If they are to be useful, they should be used repeatedly as part of a process of improvement and incremental adjustment.

Plan Preparation Guidelines

These 7 guidelines will help in preparing a comprehensive international business plan:

• Clearly define the objectives for producing the plan : Who is going to read the plan, and what will they need to do? These objectives can help you decide how much emphasis to put on various sections.
• Allocate sufficient time and resources to thoroughly research the plan : A plan is only as good as the research that went into producing it.
• Show drafts of the plan to others : It can be very useful to obtain feedback from others, both inside and outside the business.
• Create an original plan that is done specifically for each business case : A common mistake entrepreneurs make is to borrow heavily from a sample plan and simply change the names and some of the numbers. There are two big problems with this approach. First , the emphasis placed on various sections of the plan must reflect what is important to the particular business in question. Second , a good plan should flow like a story, with the sections working together to demonstrate why the business will succeed. Plans that borrow too heavily from other plans tend to be disjointed, with some sections contradicting others and various key issues left unaddressed.
• Outline the key points in each section before the writing starts : These points must then be reviewed to ensure the sections are consistent with each other, there is little duplication and all key issues have been addressed.
• Ensure financial projections are believable : For many readers, the financial section is the most important part of the plan because it identifies the financing needs and shows the profit potential of the business. In addition, a good financial plan will give the reader confidence that the author really understands the business.
• Consider writing the executive summary as the last step in the process: It is usually easier to provide a concise overview after the detailed content has been created.

If you’re having trouble getting started with your business plan, try writing like it’s a series of tweets—one for every section of your business plan. To get your point across, 140 characters is all you need.

Forcing yourself to boil each section of your business plan down to one main point is an exercise in decision making and strategy all in itself. When you’re done, you’ll have everything you need to take your next step, whether that’s practicing your pitch to potential investors or a business partner, or sitting down to expand each tweet into a full section of a more traditional business plan.

Core Content

The international business plan is the culmination of all of the work done to determine the appropriate venture for the organization’s growth. As part of the feasibility process, the organization will have determined its own internal readiness, conducted comprehensive target market research and carefully analyzed any relevant risks.

At this point, the organization can take all of this information and analysis and formally document the plan for moving forward. There are many different models and examples of how to put together a formal business plan, rather than one correct way.

The right format will depend on the organization, the venture being pursued and who will be accessing the business plan and for what purpose. However, there are some basic guidelines to follow.

One of the reasons business plans are developed is to convince investors and/or bankers to invest in the venture.

Increasingly, they are looking for a business plan to include two sections: one relating to online strategy (in terms of e-marketing, social media and ROI) and the second relating to corporate social responsibility (including quality, health, safety and environment policies).

The inclusion of these topics gives more credibility to the company by demonstrating its commitment to the community and to employees’ well-being.

Telling a Story 

One trend in business planning is to use a narrative structure in the document, rather than traditional technical writing techniques. Storytelling techniques are increasingly being used throughout the business world to create personal and organizational brands, deliver marketing messages and develop persuasive plans.

Stories make presentations better. Stories make ideas stick. Stories help us persuade. Savvy leaders tell stories to inspire us, motivate us. That’s why so many politicians tell stories in their speeches. They realize that “what you say” is often moot compared to “how you say it.

Instead of using bulleted points and cold, technical language, organizations employ a “beginning, middle and end” narrative style. This engages the audience by establishing the context, describing the conflict or obstacles and arriving at a successful resolution.

The Executive Summary

Usually the last step of preparing the international business plan is to develop the executive summary, a short overview of what the plan proposes to accomplish. For some purposes, a one-page business plan can also be useful.

There is not a great deal of difference between an executive summary and a one-page business plan. The most significant distinction is the one-page plan must completely fit on one page in a readable font, while an executive summary may spread over two or three pages.

One-Page Business Plan

There is a trend towards the one-page business plan, especially if the plan is to be presented to potential partners for their consideration. Audiences for the one-page plan will be looking for a “quick hit”: a clear and concise description of what the opportunity is and how it is being pursued.

For example, a one-page business plan might include the following topics, as described in Noah Parson’s article “How to Write a One-Page Business Plan” on the website Bplans :

• Customer problem/opportunity
• Your solution/approach
• Business model (how you make money)
• Target market (who is the customer and how many are there)
• Competitive advantage
• Management team
• Financial summary
• Funding required

The one-page plan (or the executive summary, if used in place of the one-page plan) may provide the first impression the audience has of the business. This is the most important document generated out of the business planning process, and significant effort and care should be taken in its creation.

There are many websites the provide blank samples of one-page business plans, including Bplans , the GoForth Institute and Startup.com.

A Note on Strategic Plans

A strategic plan covers many of the same points as a business plan. However, a strategic plan sets out the detailed action plan to be followed to achieve the objectives of the international business plan.

It must outline specific activities, their due dates and who is responsible for each activity. It is a project plan with a critical path. A strategic plan ensures any venture is carried out in a coordinated, informed and systematic way.

A key consideration in action planning is how quickly to enter the market, which is driven by the chosen market entry strategy. If market entry is done too quickly, the potential for costly mistakes increases. However, if it is completed too slowly, opportunities may be missed and competitors will have more time to react.

The Planning Cycle

Attaching the word “cycle” to planning implies that it happens more than once. International business plans need to be reviewed periodically because new information that has an impact on both planning and operations is continually coming in.

All plans, including international business plans and strategic plans, need to be reviewed every time there is a major event impacting the business, such as civil unrest, a currency fluctuation or the presence of a new competitor.

About the author

Author: FITT Team

The Forum for International Trade Training (FITT) is the standards, certification and training body dedicated to providing international business training, resources and professional certification to individuals and businesses. Created by business for business, FITT’s international business training solutions are the standard of excellence for global trade professionals around the world. View all posts by FITT Team

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Featured reviews, contact info, how to start an international business from scratch: a newbie’s guide.

• by Anurag Jain
• June 24, 2023
• 9 minutes read
• 11 months ago

Introduction : International Business Decoded

Over the past 2 decades I have built dozens of million-dollar consumer brands, and have realized that the framework to build and scale any international business has been pretty consistent time and again.

While the framework is pretty simple, it takes a lot of experience and experimentation to get this right. Hence, I can relate to a lot of my students who feel great deal of ambiguity as they venture to building their own business. Embarking on the journey to start an international business can be thrilling, yet challenging. But with determination, strategic planning, and some insider knowledge, you can navigate the path to global success.

Once during my experience with Godrej Consumer Business, I was tasked to scale a business 5x in 3 years for an international market while also addressing a bleeding bottom line. I was able to put the exact framework I am sharing below to accomplish this goal. I continue to share similar deep learnings from my experience, so I encourage you to check out my Online Business Blog and subscribe so you have access to all this wealth of information. 

Hence, I have created this in-depth step-by-step guide to help you build a thriving international business, leveraging real-world examples, data-driven insights, and expert tips.

Step 1: Discover Your Profitable Niche

Crafting your niche in the international marketplace is the first crucial step. Harvard Business School’s research found that companies focused on niche markets outperformed their competitors by 1.4 times on average. Some aspects to consider while researching your niche:

• Interests & Skills: Begin by identifying your interests and skills. A niche you are passionate about is more likely to keep you motivated.
• Market Trends: Utilize tools like Google Trends, Keyword Planner, and SEMrush for in-depth market trend analysis.
• Competitor Analysis: Tools like Ahrefs or SpyFu can reveal what your potential competitors are doing and where gaps might exist.

Example: A successful example of identifying a unique niche is the story of Uber. The founders identified a gap in the transportation sector, leading to the creation of a business model that revolutionized the taxi industry globally.

Expert Tip: Utilize tools such as Google Trends and Ubersuggest to analyze market trends and search volumes for your prospective niche. These tools offer a visual representation of potential niche markets over time and across different regions.

Step 2: Comprehensive Market Research

Market research is fundamental to understand market dynamics, gauge potential competition, and uncover potential opportunities. You should use a combination of both primary and secondary research so you can look at existing resources, but also resist proxies by connecting directly with your target cohort.

• Primary Research: Conduct surveys and interviews. For example, SurveyMonkey can help you create surveys, while services like Qualaroo allow you to gather on-site feedback. You can also engage with agencies like Nielsen to do consumer surverys like in-depth interviews, focus groups, product trials or even communication review.
• Secondary Research: Resources like Statista, World Bank Data, and MarketResearch.com are excellent for gathering global economic data and industry-specific information.

Example: Airbnb’s success is a result of detailed market research, which helped the founders identify that travelers were seeking more personalized and affordable accommodation options.

Expert Tip: Leverage both primary and secondary research. For primary research, use survey tools like SurveyMonkey or Google Forms to gather firsthand data from your target demographic. For secondary research, websites like Statista and World Bank Data provide a treasure trove of market statistics and trends.

Step 3: Business Plan Development

A well-drafted business plan is a map that guides your business journey. It’s like the blueprint of your business and fundamental to get right before getting into the execution. In fact, 70% of businesses that used a business plan reported growing their business compared to 50% of those who didn’t. 

Some of the key elements of a well drafted business plan include:

• Executive Summary: Summarize your business idea, goals, and strategies in a nutshell. This is like your 1 minute clear compelling pitch which hooks the audience.
• Market Analysis: Discuss your target market, customer demographics, and competitors, with data-backed insights.
• Business Structure & Model: Outline your business structure (sole proprietorship, partnership, LLC), and the business model you’ll be using (e-commerce, dropshipping, franchising, etc.).
• Marketing & Sales Strategy: Detail how you’ll attract and retain customers.
• Financial Projections: Use financial management software like QuickBooks to develop accurate forecasts.

Example: Warby Parker’s business plan, outlining a disruptive “buy a pair, give a pair” model, was instrumental in securing early-stage funding and currently, the company is valued at over $1 billion.

Expert Tip: For creating a detailed business plan, use tools like LivePlan or BPlans. They offer pre-designed templates that guide you through each section of your plan, making the process more manageable.

Step 4: Legalities and Business Registration

It’s imperative to understand and comply with local and international business laws. Firms like LegalZoom and Rocket Lawyer can assist with some of the legal aspects of starting a business. Failing to comply with local, national, and international laws can lead to severe penalties. 

For instance, according to a study by the legal firm Nolo, small businesses may face an average fine of $30,000 for non-compliance with international trade regulations.

Here are some areas to consider from a legal and regulatory perspective:

• Business Registration: Register your business in your home country and the target countries.
• Licenses & Permits: Obtain necessary licenses and permits.
• International Trade Laws: Familiarize yourself with international trade laws to avoid legal troubles.

Example: Amazon faced multiple legal challenges in Europe for not adhering to regional data protection and tax laws, leading to fines worth millions of euros.

Expert Tip: Consult with a business attorney or use online legal services like LegalZoom or Rocket Lawyer. They provide guidance on legal issues ranging from business registration to copyright protection and contractual agreements.

Step 5: Financial Management for International Business

Effective financial management is crucial for business sustainability. Xero’s “Make or Break?” report found that 65% of businesses that practiced regular financial monitoring survived compared to those who didn’t. Also, a U.S. Bank study revealed that 82% of businesses fail due to poor cash flow management. Here are a few areas which are important to regularly review for your international business:

• Budgeting: Use tools like Mint or Personal Capital for budgeting and expense tracking.
• Cash Flow Management: Tools like Float can help with cash flow projections.
• Financial Analysis: Regularly review your financial statements to understand your business’s financial health.

Example: Elon Musk almost bankrupted Tesla due to severe financial mismanagement in its early years.

Expert Tip: Utilize accounting software like QuickBooks or FreshBooks for tracking income, expenses, and cash flow. For complex financial issues, consider hiring a financial advisor or a CPA, especially while dealing with international tax laws.

Step 6: Building a Winning Team

Building the right team is integral to your business success. Research by McKinsey found that companies with diverse teams are 35% more likely to have above-average profits. Some of the critical aspects of building a winning team include:

• Recruiting: Use platforms like LinkedIn and Indeed to recruit talent.
• Remote Team: Tools like Slack and Asana can help manage a remote team.
• Diversity: Make sure your team is representative of your customer segments, as diversity can help you build a world class international business.

Example: Google attributes much of its success to its employee-focused approach, resulting in a highly motivated and productive team.

Expert Tip: Use hiring platforms like LinkedIn or Indeed to source talent. For virtual teams, tools like Slack and Trello can help in collaboration and project management.

Step 7: Product Development and Testing

Your product/service is the backbone of your business. As per the Harvard Business Review, companies that invest in product development and customer experience have 1.5 times higher shareholder returns. Some of the key aspects include:

• Product Development: Focus on creating a unique, high-quality product that meets your target market’s needs.
• Beta Testing: Launch a beta version of your product/service. Gather feedback and refine the product accordingly.

Example: PepsiCo’s Tropicana underwent a costly packaging redesign in 2009, which was not properly tested with consumers. The result? A 20% sales drop within two months. During my role at Amazon, we had a culture of doing an AB testing for every new product or capability and the experimental culture helped us make many breakthrough innovations with large scale customer adoption.

Expert Tip: Apply Lean Startup methodologies like “Build-Measure-Learn” for efficient product development and testing. For software businesses, use beta testing platforms like BetaList or TestFlight.

Step 8: Formulating Marketing and Sales Strategy

Marketing and sales strategy is your game plan to attract and retain customers. Businesses using a documented strategy are 313% more likely to report success (Content Marketing Institute). Some of the key aspects include:

• Digital Marketing: Leverage SEO, content marketing, and social media. Tools like Moz and Buffer can help.
• Sales Strategy: Create an efficient sales process. CRM software like Salesforce can streamline your sales process.

Example: Dropbox used a simple yet effective referral marketing strategy that increased its user base from 100,000 to 4 million within 15 months.

Expert Tip: Implement a multifaceted digital marketing strategy including SEO, social media marketing, email marketing, and content marketing. Tools like SEMrush, MailChimp, and Hootsuite can assist in implementing these strategies.

Step 9: Launching Your International Business

Your launch sets the pace for your business trajectory. As per Forbes, 50% of new businesses survive past the five-year mark, making a strong start essential. Making a big bang first impression helps in garnering momentum for the business so it’s important to have a launch gameplan, like:

• Launch Planning: Plan a well-orchestrated launch. Use PR, social media, and email marketing to create a buzz.
• Opening Event: Consider hosting a grand opening event, either physically or virtually.

Example: Apple’s iPhone launch in 2007 is considered one of the most successful product launches. It created hype that revolutionized the smartphone industry and catapulted Apple’s market valuation.

Tip: Develop a comprehensive launch plan including PR, social media campaigns, email marketing, and launch events. Platforms like PR Newswire and Eventbrite can aid in getting the word out.

Step 10: Scaling Your International Business

Scaling allows your business to handle increased demand. The 2019 ScaleUp Survey found that 34.5% of scaled businesses outperformed their industry counterparts. Here are a few key levers to further scale your international business:

• Operations Optimization: Streamline your operations. Software like Zoho One can help you manage various aspects of your business.
• Growth Strategy: Develop a growth strategy based on market trends, customer feedback, and business performance.
• Partnerships & Franchising: Consider partnerships or franchising as avenues for international growth.
• Customer Retention: Use customer relationship management (CRM) tools like HubSpot to enhance customer experience and retention.

Example: Slack is a classic case of successful scaling. It gradually grew its user base from a few thousand to millions by adding more servers and refining its app to handle the increased load.

Expert Tip: Optimize your operations, refine your marketing strategies, focus on customer retention, and use tools like Salesforce or Zoho for efficient CRM.

Conclusion: International Business Guide

Starting an international business from scratch is a remarkable journey filled with opportunities, challenges, and immense potential for growth. This comprehensive guide provides a roadmap to navigate your path to international success.  Use these strategies and resources to build, launch, and scale your international business successfully. 

Remember, the journey of a thousand miles begins with a single step. Embrace the journey, learn from every stage, and make your mark on the global business stage.

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How to Write an International Business Plan: Example Included

• Ivy N. McQuain MBA
• Categories : Entrepreneurs , Business
• Tags : Office entrepreneurs topics business planning

Your ambition has led you to start your own business and now it is moving you to expand your business to an international level. You know your company is going to instantly become a success but you are unsure of how to present your company to an international investor or even how to effectively market to customers in other countries. You may have a basic business plan which enabled you to gain start-up capital and other immediate and initial necessities, but now you are at a point where you can rightfully look into expanding into other areas including the international fronts.

There are many components to a standard business plan that you should have carefully crafted to your particular industry and targeted customer base. This article with an international business plan example will give you insight to writing an international business plan based on the criteria of a simple business plan. The formatting will assist you with establishing the sections of an international business plan and direct you on how to include the needs of positioning your company in another country.

I. COMPANY (BUSINESS) PROFILE - This profile is essentially a detailed overview of your company. It should address the who, what, where, why, and how of your company so that potential investors are able to gain insight.

A. BUSINESS DESCRIPTION – You want to state the mission and vision of your company; detail the business model, which tells why you are not like your competitors; outline your short- and long-term objective strategies; discuss current strategic relationships which will prove beneficial in your overall company success; and outline your strengths, weaknesses, opportunities and threats ( also known as a SWOT Analysis ).

B. PRODUCT OR SERVICE DESCRIPTION - When you give a description of your company you want to describe what product or service you are offering to customers. If you are producing a product then you want to detail your method of manufacturing or distributing. Your goal in this section is to be as detailed as possible regarding what your company is offering to the market and customers.

C. LOCATION AND INTELLECTUAL PROPERTY DESCRIPTION – This section is important to an international business plan because it details the projected location of the company or warehouses; details the copyrights, trademarks and patents and other important documents needed to prove ownership.

D. LEGAL STRUCTURE AGREEMENT – In this section you want to describe what your company is legally registered as. For instance if you are a warehouse distributor you cannot enter into a market selling services only. You should, if applicable, include resumes of key personnel and detail their strengths in this section. How you secure and insure your business internationally should be included in this section.

E. MANAGEMENT AND PERSONNEL – Investors want to know who is running the company and if they are capable of effectively running it. This section lists the people who are or will be operating the company internationally. A resume is usually a supporting document. Since you are entering international areas you want to address who you want working for your company, their projected salaries, and any future needs for your company, given growth projections . You can also include your external consultants such as accountants and lawyers.

NOTE: Developing a business plan for an international company requires more research than in your current country. You need to do your best to know the country in which you desire to enter into. The wording of your business plan must be specific to the country of entrance to avoid confusion and delay in investor participation.

Image Credit: Salvatore Vuono / FreeDigitalPhotos.net

Continue to page 2 to view more sections included in the international business plan example.

II. MARKETING OVERVIEW – Marketing your company is one of the single most important aspects of a company and internationally it will prove to be even more significant. Your marketing overview should address how you plan to inform your target market about your company’s offerings.

A. MARKET ANALYSIS – In this section you should explain who are in your target markets; your competition; trends in your targeted market; and any conducted market research. The primary goal of this section is to allow you to understand, as you research, who you are in competition against and if you have a strong enough company to compete with.

B. MARKETING STRATEGY – How do you plan on informing customers that you are open for business? This is the primary function of this section. As you explain each product or service your company offers customers you will need to give a brief description; how you plan on selling or distribution it; packaging needs, if applicable and branding; your sales and advertising strategy; and any media communications you will perform. You can also include your approach to customer service in this section.

C. IMPLEMENTATION AND ASSESSMENT OF MARKETING STRATEGY – While not pressing to write an effective business plan you should include this section so that you are capable of informing investors how you plan to implement and monitor your marketing strategy. This enables investors and yourself to make corrections and changes if needed.

NOTE: When preparing your company to move internationally you need to know how effective your marketing overview will be. Common research methods such as Internet use and other minimalistic approaches will not give you a full understanding of the actual area you are seeking to enter into. The effective implementation of your marketing strategy is dependent on facts and accurate forecasting data.

III. FINANCIAL OVERVIEW – This section informs your investors, if you are seeking funding, of what capital you currently possess and will have. You cannot accurately forecast your profits and expenses until you have developed your marketing strategy and costs associated with being an international company. You will include several documents or sheets to show that you are worthy of the risk which include a balance sheet, your credit reports, financed agreements and contracts, financial statement analysis, income statements and other pertinent financial documents.

A. CURRENT AND PROJECTED BUDGET – Regardless if you are seeking funding or not you need to have a current and projected budget sheet detailing how you are handling your current finances.

B. PROJECTED INCOME SHEET – This sheet is based on the projected sales and revenue of your product or service. This sheet is subject to change and depends on the market.

C. FINANCIAL HISTORY – You should include this information in your business to show what you have earned from the start of your business to its current state.

NOTE: If you are unsure how to effectively complete your FINANCIAL OVERVIEW section then you should consult an international accountant. You want to include the currency exchange rate in your FINANCIAL OVERVIEW in order to determine if you will earn a profit, break-even or lose money from being in an international environment.

Continue to page 3 to view the last sections included in the international business plan example.

IV. INTERNATIONAL TRADE - This section is dedicated to understanding the needs of an international market. You must perform due diligence when you are seeking to enter into an international market. In this section you want to address any export/import requirements and counseling; your company’s readiness to export/import products or services ; any agreements with distributors; an evaluation of the risks associated with international set-up or trade.

NOTE: You must describe your plan to enter and capitalize internationally. This section is applicable to each international market you are seeking to enter.

V. OTHER – The primary function for this section is to include any supporting documents you may need for your business plan’s validity. You can inquire with the different international trade offices to determine its specific document needs.

When you put together your business plan you want to have it reviewed by an attorney with international business law skills so that you are including the correct terminology and following all applicable country and international laws. You also may want to include a cover sheet which gives pertinent contact information for your company; an executive summary which is an overview of the business plan and should not be composed until you are finished with the business plan; and a table of content to provide for an easy read.

Now that you understand how to effectively write an international business plan you must remember to first perform the task of due diligence and research your targeted international market. There are many rules which apply to every country and you must ensure that you are above reproach when you seek to enter into these markets. Not every country operates on the basic business principles therefore you need to understand the risks involved. Consult all manners of professionals who are well versed in international business, finance and law to avoid losses. International business opportunities are available and now you know how to write the plan to take part of what is available.

Here is an example of an internationally position business plan which is retrieved from www.bplans.com . Included is an outline to assist you with composing your international business plan:

International Travel Agency Business Plan Outline

• 1.0 Executive Summary

o Objectives

o Keys to Success

• 2.0 Company Summary

• 3.0 Services

• 4.0 Market Analysis Summary

• 5.0 Strategy and Implementation Summary

• 6.0 Management Summary

• 7.0 Financial Plan

You can read more about this international business plan example at: https://www.bplans.com/international_travel_agency_business_plan/executive_summary_fc.cfm?CMP=AFC-entrepreneur_com&affiliate=entrepreneur_com#ixzz0tmD3ig1d

Craft Your International Business Plan: A How-To Guide

Are you ready to take your business across borders? International expansion is a great way for businesses to grow and succeed in new markets. But before you dive into an international market, there are specific steps you need to consider: crafting a strategic plan. Whether it’s determining the competitive landscape of a target country or understanding local customs and regulations, an effective international business plan can lay the foundation for long-term success while also providing guidance on how best to allocate resources and manage risks. But where should one begin? Let’s dive into it!

Analyze Potential Markets

In today’s global market, expanding your business into new markets can open up a world of opportunities for ecommerce revenue growth. To get ecommerce revenue from new markets , the first step is to analyze potential markets. This involves conducting market research to identify which countries or regions hold the greatest potential for your business. You can start by looking at demographic data, economic trends, and consumer behavior in different parts of the world.

Of course, you should also delve into the market-specific data. Analyzing the competitive landscape and potential barriers to entry is sure to determine which markets are most viable for your business. Additionally, understanding cultural differences and local customs can give you insight into how your product or service may be received in a new market. Businesses can now expand their reach and increase their revenue streams in ways they never thought possible.

Set Clear Goals and Objectives

Once you have identified potential markets, it’s time to set clear goals and objectives for your international expansion. These goals should align with your overall business strategy and take into account the resources needed to enter a new market successfully.

Do you want to increase brand awareness, generate more revenue, or establish partnerships in a particular region? Or maybe you want to expand into a new market to diversify your customer base and reduce risk. Whatever the reason may be, setting clear and measurable goals can guide your decision-making process and ensure that your international business plan is aligned with your long-term vision.

Develop A Robust Strategy

With potential markets and goals in mind, you need to develop a robust strategy for entering the international market. But how do you know which strategy will work best for your business?

Direct Exporting

Direct exporting involves selling your products or services directly into the international market. This approach can be a low-cost way to test the waters and gain valuable information about overseas markets without the commitment of setting up a physical presence. However, it does require careful planning and research. Consider your product’s suitability for the market, the logistics of shipping and delivery, legal and regulatory requirements, and how you’ll handle customer service.

Licensing and Franchising

If you prefer a more hands-off approach, licensing and franchising can be viable options. Licensing involves granting another company the rights to use your intellectual property, such as trademarks or patents, in exchange for royalties or fees. Franchising is similar but typically involves a more comprehensive arrangement where the franchisee follows your established business model and brand guidelines.

Joint Ventures and Strategic Alliances

Collaborating with a local business through joint ventures or strategic alliances can also be an effective way to enter a new market. This approach allows you to benefit from the other company’s expertise and established networks while sharing the risks and costs associated with entering a new market.

Mergers and Acquisitions

For businesses looking to make a big splash in the international market, mergers and acquisitions can provide a quick way to gain market share, access new technologies or products, and expand your customer base. These transactions require significant financial resources and due diligence to ensure compatibility and avoid potential risks.

Identify The Resources You Need

No matter which strategy you choose, entering the international market requires a significant investment of time, money, and resources. It’s essential to identify what you need to make your international expansion a success.

Consider the staffing and expertise needed to manage operations in a different country. Will you need to hire local employees? If so, do you understand labor laws and cultural norms for managing a workforce in that country? Will you need to partner with local vendors or suppliers? How will you handle language barriers and cultural differences? It’s also crucial to assess your financial resources and determine how much capital you’ll need for market research, legal expenses, marketing efforts, and other related costs. Secure funding or explore financing options early on to avoid delays in your expansion plans.

Consider Different Countries or Regions

As businesses expand globally, you must first understand the unique culture, customs, and laws of different countries or regions to effectively reach and connect with their target audience. For example, did you know that in Japan, it’s considered impolite to loudly slurp noodles? Or that in China, the color red symbolizes good luck and happiness? Or that in Germany, punctuality is highly valued?

When you consider the cultural nuances and preferences of your target market, you can tailor your marketing strategies, product offerings, and overall business approach to resonate with local consumers. This can go a long way in building trust and brand loyalty in the global marketplace.

Decide How You Will Marke Yourself Abroad

Now that you have a clear understanding of your target market and their cultural preferences, it’s time to decide how you will promote and market your business abroad. This can include tactics such as translating your website and marketing materials into the local language, partnering with local influencers or businesses, and utilizing social media platforms popular in that region.

Even consider any legal or regulatory requirements for advertising and marketing in the target market. In certain countries, there may be restrictions on certain types of advertising or requirements for labeling and packaging. Other countries may have specific rules for online advertising and data collection.

Venturing into the international arena can be a game-changer for your business, opening up new avenues of growth and diversification. The journey, however, is paved with its unique set of challenges and complexities.

A strategically crafted international business plan acts as the compass guiding you toward success. It entails rigorous market analysis, clear goal-setting, robust strategic development, resource identification, cultural understanding, and effective marketing. Such a plan ensures that your business meets the needs and expectations of your new customers, stands tall amidst global competition, and reaps the rewards of global expansion. Get ready to embrace an exciting journey filled with opportunities, learning, and growth. Now that you have a step-by-step guide in hand, the world is truly your oyster!

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7 steps to create your international business plan

Congratulations! You’ve made the decision to go global . Now how do you get started?

First, determine your company’s export readiness by taking this nine question quiz created by the U.S. Department of Commerce. The website calculates your readiness score and provides additional resource links to help overcome any corporate weaknesses.

Next, develop a plan. Stanley Pfrang, Market Development Director – India, the Middle East and Africa, WEDC , and Jen Pino-Gallagher, Bureau Director, International Market Development, DATCP , shared a seven step plan at a program I recently attended.

• Proactively develop a plan. Some companies reactively dive into the international market after receiving a product or service inquiry from overseas. A better strategy is to first think through planning steps two-seven to help avoid costly missteps.
• Conduct market research. Is there a need or demand for your product or service? Is market expansion feasible? Who are your competitors? What financial and legal paperwork is required? Do your current customers also operate in global markets? If so, what can you learn from them about opportunities and potential pitfalls?
• Entering new markets. Who can help you distribute your product? Do you need storage space? Will you need a manufacturing partner located in your target destination?
• Logistics. How important is your delivery speed? The decision will help you select transportation carriers and/or delivery routes.
• Payments. Determine what currency you will accept. Will you sell in U.S. dollars and/or foreign currency? Will you offer a discount if payment is received in U.S. dollars? Will you accept letters of credit? Will you require a down payment before production begins on goods or services?
• Visit the market before entering it. How do your competitors operate? How will your customers use your products or services as compared to those of your competitor? Trade shows are a good, inexpensive resource to help you see market potentials and downsides.
• Resources. Explore state and federal government online resources. Join an industry association knowledgeable about international trade. Talk to customers and maybe even competitors to learn from their mistakes and wise decisions.

After sharing the seven step plan, Pfrang, Pino-Gallagher and other program panelists offered additional tips.

Don’t be afraid to ask questions about companies interested in your product. How long have they been in business? Obtain customer and vendor references. A face-to-face meeting to establish a relationship before doing business is best and can be done using Skype or a similar internet connection if necessary.

When seeking a trade consultant, hire a native of the foreign market you wish to enter because she will better understand the market needs and difficulties. At a minimum, hire someone with English as his second language.

Never automatically dismiss a lead that comes your way. Always explore the possibilities. It may lead to big things.

Be ruthlessly conservative in planning when internally strategizing your approach to new markets and opportunities that arise. Remember to include the impact on staff resources, time zone differences and product distribution methods.

Read Kiss, Bow or Shake Hands , a book that provides insights into business culture and customs in many different international markets. Lastly, always remember the primary goal of marketing.

So now it’s your turn to share advice. What resources do you use? What wisdom have you developed through experience? I’d love to hear from you. You can leave your comments below or you can reach out to us on Twitter and Facebook .

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One Response to 7 steps to create your international business plan

I run a small time web business in the evening, and have been operating globally for over a decade. If you have any type of web presence for your product, you quickly find yourself doing global sales on a small scale in terms of units – i.e. single items – though not necessarily on a small scale in terms of income- about 30% of my sales are out of country -that is where my strongest customers are (and oddly in the countries with universal health care and some of the highest tax rates). Many local banks are not set up to handle those type of transactions economically so I use various on line payment systems. You lose 3-4% but it is a lot simpler than any other option. I learned this the hard way when my community bank took 4 months to finalize a simple overseas bank transfer from the Philippines. For screening customers I am basically linked to other people working in the same type of business. We share mainly which customers to avoid, scammers and the like. Likewise I have come to learn a lot about what countries to ship to an which to avoid as well as the various headaches of different import customs and other processes. It can be a tricky process but a lot of local small businesses are doing it . In terms of language barriers – if you are not dealing with English speaking customers there are various free translation services on line – In todays world though you need these markets – Wisconsin is the weakest state I have for sales and overseas is by far the most profitable.

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International Business Plan Template

What is an International Business Plan?

An international business plan outlines the goals and objectives of a business that is looking to expand into international markets. It is a comprehensive document that outlines the strategy and tactics of a business that is looking to enter into the global marketplace. The international business plan is a critical component of the overall business plan and should be developed in concert with other elements of a business’s overall strategy.

What's included in this International Business Plan template?

• 3 focus areas
• 6 objectives

Each focus area has its own objectives, projects, and KPIs to ensure that the strategy is comprehensive and effective.

Who is the International Business Plan template for?

The International Business Plan template is designed for organizations of all sizes and industries who are looking to expand their operations and business into other countries. The template provides a comprehensive framework for businesses to establish effective international business relationships, utilize digital platforms, and recruit qualified international talent. It is a powerful tool that can help businesses develop and grow their international presence.

1. Define clear examples of your focus areas

When creating an international business plan, it is important to define the focus areas that will be addressed. Focus areas are the broad topics that the plan will address, and should be tailored to the specific needs of the business. Examples of focus areas could include establishing effective international business relationships, utilizing digital platforms, and recruiting qualified international talent.

2. Think about the objectives that could fall under that focus area

Objectives are the specific goals that the business wants to achieve within each focus area. Objectives should be tailored to the business’s specific needs and should be achievable and measurable. Examples of objectives could include building an international network, developing international partnerships, creating an online presence, and strengthening online connections.

3. Set measurable targets (KPIs) to tackle the objective

KPIs, or Key Performance Indicators, are measurable targets that help to quantify the success of a project or objective. KPIs should be tailored to the specific objectives of the business and should include an initial measure, a target measure, and a unit of measure. Examples of KPIs could include increasing the number of international advisory board members, increasing the number of website visits, and increasing the number of international hires.

4. Implement related projects to achieve the KPIs

Projects are the specific actions that the business will take to achieve each objective. Projects should be tailored to the specific objectives of the business and should be achievable and measurable. Examples of projects could include creating an international advisory board, establishing strategic alliances, developing an international website, and expanding social media presence.

5. Utilize Cascade Strategy Execution Platform to see faster results from your strategy

Cascade is a powerful strategy execution platform that helps businesses quickly and effectively develop and execute their international business plans. Cascade provides businesses with the tools and insights they need to stay organized and ensure their plans are executed accurately and efficiently. With Cascade, businesses can stay on track and achieve their goals faster than ever before.

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How to draw up an international business plan

Nick Farmer – International Tax Specialist

Many businesses have heard about the benefits of trading internationally, but haven’t yet taken the plunge. Others may have started on this journey, but are still trying to figure out how to improve their international experience.

To make a success of international trade, it is important to approach it as a separate part of your business and draw up a specific international business plan.

So how do you put together a clear plan that will help you realise your international ambition?

The easiest way to start is to map out your plan into the following key segments: reasons, research, resources, relationships and review.

Steps to create a global business plan

Step 1 – reasons for going global.

To start with it is important to define your reasons for wanting to trade internationally. It could be the perfect next step, but just because someone says it would be a good idea doesn’t necessarily mean it is right for your business. So really challenge yourself to understand why you are taking your business down this path. Here are a few reasons that often arise:

• Spread the customer base;
• Reduce dependency on home economy;
• Next stage of business development;
• Helps the business innovate and remain competitive;
• Increases status of the business;
• Fulfils personal ambition

Taking time to deliberate on your reasons and being able to articulate them will give you a greater sense of purpose and help you galvanise the team around you.

How to go global in the tech sector

Step 2 – research the market.

Once you have determined that trading internationally is right for your business, then it’s time to start doing your research.

Firstly, there is now a considerable amount of data available from behind your desk. From spending time undertaking this research you are trying to find answers to questions such as:

• What markets are right for your products or services?
• What’s the competition like and are there gaps in the market?
• How easy is it to do business in the target market?
• What changes need to be made to the product; branding, colours, name etc?
• How do you comply with local regulations?
• What documentation and translations will be required?

At the same time as researching the market, you will need to think through what operating model is going to be suitable for your business in each of your target markets. Will you be looking to sell directly from the UK, or instead use in-country agents or distributors. Maybe your product can be licensed to a local business, or franchising arrangements will work for you. If you are prepared to make more of a commitment then it could be worthwhile looking for a local joint venture partner, or even set up your own operations in the local market.

Once you have exhausted the desk based research, it’s then important to carry out some in-country research to really get a feel for your audience and the opportunities that exist. It may be possible to join a trade delegation, and these can often be a good way to get introductions, but only if the visit is particularly relevant to your sector. Alternatively you might sign up for a trade show, or contact potential customers from online marketplaces, before you leave and put together an itinerary for your visit. Part of the reason for your visit will of course be to better understand the local customs and culture and to make sure you go into the market with your eyes open.

Step 3 – Resources

Whilst it is crucial to do your market research, it’s also vital that you clearly analyse the resources that are available to you to make sure you have the capacity to accommodate the desired international activity within your business. Carrying out a health check on the existing business will help you determine if you have the capability and resources to make international a successful part of your business. This will include:

Do you and your team have the time and capacity to devote to international trade or do you need to recruit appropriate expertise?

Management team

Who is going to be involved in managing the process and making sure control procedures are in place?

What employee involvement will be necessary, and will any movement of staff or local hires be required?

What funding is going to be required to support the initiative and what is the payback on this?

Language skills

What language skills will you need and are these available to you?

Is your website set up for international trade or does it need to be ‘internationalised’?

Step 4 – Relationships

There’s no doubt that trading internationally could be rewarding for your business, but to be successful it is certain that you are going to need to get some outside support. There’s a whole community of businesses set up to support international traders and understanding who is who, and getting the right people behind your business, is all part of the key to success. Collaboration partners would include:

Accountants

Providing commercial support and making sense of the numbers involved, as well as sourcing local advice from overseas network partners.

Tax advisers

Tax will play its part in any cross border transaction, so it will be important to understand the implications before it’s too late, such as VAT, Customs Duties and Withholding taxes.

Trading outside your home market will require specific insurance, and you may wish to have credit insurance to protect against non-payment.

Immigration

Where your activities involve the movement of people, there may be local visa requirements that need to be fulfilled.

There will be legal paperwork involved, such as contracts, commercial agreements and invoices, as well as the labelling and need to protect your intellectual property.

Logistics providers

To help you transport and distribute your product and ensure you have the right export documentation.

If additional finance is required you will need to explore the alternatives and find out what export finance is available to you.

Foreign Exchange

Trading internationally will usually involve foreign exchange exposure and the need for specialist FX support.

Drawing up an international business plan is only the start, and this will need to be kept constantly under review so that you are able to assess the benefits for your business. Key to this process will be the data that you collect, as this will enable you to determine the profit that you are actually making from your international activities. Making sure that your accounting system is correctly configured to provide you with this information, and that there is a regular review process (monthly, quarterly) including comparison between budget and actual, is part of the process of going international.

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What Is a Business Plan?

Understanding business plans, how to write a business plan, common elements of a business plan, how often should a business plan be updated, the bottom line, business plan: what it is, what's included, and how to write one.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

A business plan is a document that details a company's goals and how it intends to achieve them. Business plans can be of benefit to both startups and well-established companies. For startups, a business plan can be essential for winning over potential lenders and investors. Established businesses can find one useful for staying on track and not losing sight of their goals. This article explains what an effective business plan needs to include and how to write one.

Key Takeaways

• A business plan is a document describing a company's business activities and how it plans to achieve its goals.
• Startup companies use business plans to get off the ground and attract outside investors.
• For established companies, a business plan can help keep the executive team focused on and working toward the company's short- and long-term objectives.
• There is no single format that a business plan must follow, but there are certain key elements that most companies will want to include.

Investopedia / Ryan Oakley

Any new business should have a business plan in place prior to beginning operations. In fact, banks and venture capital firms often want to see a business plan before they'll consider making a loan or providing capital to new businesses.

Even if a business isn't looking to raise additional money, a business plan can help it focus on its goals. A 2017 Harvard Business Review article reported that, "Entrepreneurs who write formal plans are 16% more likely to achieve viability than the otherwise identical nonplanning entrepreneurs."

Ideally, a business plan should be reviewed and updated periodically to reflect any goals that have been achieved or that may have changed. An established business that has decided to move in a new direction might create an entirely new business plan for itself.

There are numerous benefits to creating (and sticking to) a well-conceived business plan. These include being able to think through ideas before investing too much money in them and highlighting any potential obstacles to success. A company might also share its business plan with trusted outsiders to get their objective feedback. In addition, a business plan can help keep a company's executive team on the same page about strategic action items and priorities.

Business plans, even among competitors in the same industry, are rarely identical. However, they often have some of the same basic elements, as we describe below.

While it's a good idea to provide as much detail as necessary, it's also important that a business plan be concise enough to hold a reader's attention to the end.

While there are any number of templates that you can use to write a business plan, it's best to try to avoid producing a generic-looking one. Let your plan reflect the unique personality of your business.

Many business plans use some combination of the sections below, with varying levels of detail, depending on the company.

The length of a business plan can vary greatly from business to business. Regardless, it's best to fit the basic information into a 15- to 25-page document. Other crucial elements that take up a lot of space—such as applications for patents—can be referenced in the main document and attached as appendices.

These are some of the most common elements in many business plans:

• Executive summary: This section introduces the company and includes its mission statement along with relevant information about the company's leadership, employees, operations, and locations.
• Products and services: Here, the company should describe the products and services it offers or plans to introduce. That might include details on pricing, product lifespan, and unique benefits to the consumer. Other factors that could go into this section include production and manufacturing processes, any relevant patents the company may have, as well as proprietary technology . Information about research and development (R&D) can also be included here.
• Market analysis: A company needs to have a good handle on the current state of its industry and the existing competition. This section should explain where the company fits in, what types of customers it plans to target, and how easy or difficult it may be to take market share from incumbents.
• Marketing strategy: This section can describe how the company plans to attract and keep customers, including any anticipated advertising and marketing campaigns. It should also describe the distribution channel or channels it will use to get its products or services to consumers.
• Financial plans and projections: Established businesses can include financial statements, balance sheets, and other relevant financial information. New businesses can provide financial targets and estimates for the first few years. Your plan might also include any funding requests you're making.

The best business plans aren't generic ones created from easily accessed templates. A company should aim to entice readers with a plan that demonstrates its uniqueness and potential for success.

2 Types of Business Plans

Business plans can take many forms, but they are sometimes divided into two basic categories: traditional and lean startup. According to the U.S. Small Business Administration (SBA) , the traditional business plan is the more common of the two.

• Traditional business plans : These plans tend to be much longer than lean startup plans and contain considerably more detail. As a result they require more work on the part of the business, but they can also be more persuasive (and reassuring) to potential investors.
• Lean startup business plans : These use an abbreviated structure that highlights key elements. These business plans are short—as short as one page—and provide only the most basic detail. If a company wants to use this kind of plan, it should be prepared to provide more detail if an investor or a lender requests it.

Why Do Business Plans Fail?

A business plan is not a surefire recipe for success. The plan may have been unrealistic in its assumptions and projections to begin with. Markets and the overall economy might change in ways that couldn't have been foreseen. A competitor might introduce a revolutionary new product or service. All of this calls for building some flexibility into your plan, so you can pivot to a new course if needed.

How frequently a business plan needs to be revised will depend on the nature of the business. A well-established business might want to review its plan once a year and make changes if necessary. A new or fast-growing business in a fiercely competitive market might want to revise it more often, such as quarterly.

What Does a Lean Startup Business Plan Include?

The lean startup business plan is an option when a company prefers to give a quick explanation of its business. For example, a brand-new company may feel that it doesn't have a lot of information to provide yet.

Sections can include: a value proposition ; the company's major activities and advantages; resources such as staff, intellectual property, and capital; a list of partnerships; customer segments; and revenue sources.

A business plan can be useful to companies of all kinds. But as a company grows and the world around it changes, so too should its business plan. So don't think of your business plan as carved in granite but as a living document designed to evolve with your business.

Harvard Business Review. " Research: Writing a Business Plan Makes Your Startup More Likely to Succeed ."

U.S. Small Business Administration. " Write Your Business Plan ."

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How To Start A Business Internationally [Detailed Guide]

In the past, opening an international business literally meant crossing oceans to reach foreign markets. Fortunately, times have changed, and today venturing into the global market is much easier, safer and more popular than ever before.

In fact, international business is currently experiencing a significant boom. According to a recent study by the World Bank, international trade is growing at a rate of 3.8% per year, surpassing global GDP growth. Now, that’s a whole lot of opportunities waiting to be seized.

However, it’s crucial to acknowledge that starting a business internationally comes with its own set of hurdles. Cultural differences, language barriers, and legal requirements are just a few examples of the challenges businesses need to overcome. Yet, the rewards can be substantial.

That’s why we’ve put together this guide to help you navigate the process of setting up a business internationally. We’ll walk you through the steps, provide valuable insights, and offer practical tips to make your international business venture a success.

Step 1: Choose Your Market

The first step to take when starting a business internationally is to conduct thorough market research . This will help you identify and narrow down potential markets for expansion. You’ll be required to gather and analyse lots of data based on the economic, political and cultural environment of the countries you’re considering and the demand for your offerings in their local markets.

You can consult a variety of sources to gather information for your market research, which could include: 

• Government websites: Many governments have websites that provide information about the economy, the regulatory environment, and their country’s culture.
• Trade associations: Trade associations can provide information about your industry, as well as the regulations and standards that apply in different countries.
• Business directories: Business directories can help you identify potential partners and customers in a new market.
• Online forums, focus groups and online surveys: Joining online forums or focus groups can be a great way to connect with people who are already doing business in a new market. You can also conduct online surveys to gather direct feedback and insights from potential customers and industry experts.
• Consulting firms: Consulting firms can provide specialised advice on market research and international expansion.
• Academic resources : Universities and research institutes often publish studies, papers, and research findings on various markets that can help you provide a deeper understanding of the economic, social, and cultural aspects of the target country.

Step 2: Develop Your Business Plan

The next is to come up with a solid business plan . You’ll have to start by defining specific goals and objectives for your international expansion and outlining your strategies to make it happen.

Here’s what your business plan should include:

• Executive Summary: This is a brief overview of the business plan , and it should include the goals and objectives of the international expansion, as well as the strategies that will be used to achieve them.
• Company Description: This section should provide an overview of the company, including its history, products or services, and target market.
• Market Analysis: This section should analyse the target market , including the size and growth potential of the market, the level of competition, and the regulatory environment.
• Marketing Plan: This section should outline the marketing strategies that will be used to reach the target market, including the messaging, distribution channels, and promotional activities.
• Financial Plan: This section should provide an overview of the financial projections for the international expansion, including the costs and revenue.
• Sales Plan: This section should outline the sales strategies that will be used to reach the target market, including pricing, product positioning, and sales channels.
• Operations Plan: This section should outline the operational strategies that will be used to support international expansion, including the supply chain, manufacturing, and customer service .
• Logistics Plan: This section should outline the logistics strategies that will be used to get products or services to the target market , including transportation, warehousing, and customs clearance.
• Management Team: This section should introduce the management team and their experience.
• Appendix: This section should include any supporting documents, such as market research reports or financial statements.

A well-developed business plan will develop the success of your business in international markets. You’ll not stay focused and on track, but you’ll also have a roadmap for your future expansion efforts. Your business plan will serve as an official record proving the viability of your business, which would open numerous avenues to secure funding and attract potential investors .

Step 3: Set Up Your Business Entity

Even setting up your business’s legal entity could be a hassle when it comes to international business. There are two aspects to it:

Choosing The Right Legal Structure

There are many different legal structures available. However, choosing which would be the best for you will depend on a number of factors, including the size and nature of your business, the level of liability you are comfortable with, and the tax implications in the country you are expanding into.

Some of the most common legal structures for international businesses include:

• Sole proprietorship: This is the simplest and most common legal structure for small businesses. In a sole proprietorship, the business owner is personally liable for all debts and liabilities of the business.
• Partnership: A partnership is a business owned by two or more people. The partners are jointly liable for the debts and liabilities of the business.
• Limited liability company (LLC): An LLC is a hybrid business structure that combines the benefits of a corporation and a partnership. The owners of an LLC are not personally liable for the debts and liabilities of the business, but the LLC itself is a separate legal entity. If you need assistance, Incfile can help you file for your own LLC online for free.
• Corporation: A corporation is a legal entity that is separate from its owners. The owners of a corporation are shareholders, and they are not personally liable for the debts and liabilities of the corporation.

Registering With The Appropriate Authorities

Once you have chosen the right legal structure, you must register your business with the appropriate authorities in the country you are expanding into. The registration process will vary from country to country, but it typically involves providing information about your business, such as its name, address, and contact information.

Step 4: Get the Necessary Permits And Licences

The specific permits and licences you will need will vary depending on the country you are expanding into. However, some common permits and licences include

• Business registration: You will need to register your business with the appropriate authorities in the country you are expanding into.
• Employment permits: If you plan to hire employees in the country you are expanding into, you will need to obtain employment permits for them.
• Tax registration: You will need to register your business for tax purposes in the country you are expanding into.
• Intellectual property registration: If you have intellectual property, such as trademarks or patents, you must register them in the country you are expanding into.
• Import and export licences: If you plan to import or export goods, you will need to obtain import and export licences.

If you’re struggling to figure out which permits or licences your business needs, BetterLegal can research for you so you can focus on getting your business off the ground.

Step 5: Open a Bank Account

Opening a bank in your target market will greatly help you develop a local financial presence. Plus, you’ll easily facilitate transactions, all while complying with local regulations. Here are a few things to consider before you open your bank account:

• Research local banking options : Start by researching the local banks in your target market. Look for reputable local banks that offer suitable business services, such as international transactions, account types, foreign exchange services and international banking facilities. If you are a non-resident, you will need to find a bank that is willing to open a LLC bank account for non residents for you.
• Check the requirements : Different countries have different rules when it comes to opening a bank account. Make sure to check requirements for documentation, business licences, minimum deposit requirements, and identification. In case you need any help, consult the local authorities, business associations, or legal advisors for guidance. Gather the necessary documentation: Once you have chosen a bank, prepare the necessary documentation to open an account. This typically includes identification documents (such as passports or national ID cards) for the account signatories, proof of address (utility bills or lease agreements), business registration or incorporation documents, and tax identification numbers. Some countries may ask you for additional documents, so ensure you have a comprehensive list based on local regulations.
• Open the account online or in person: Some banks allow you to open an account online, while others require you to open an account in person. If you are opening an account in person, be sure to schedule an appointment in advance.
• Transfer your funds : Once your account is successfully opened, transfer funds to it by wire transfer, bank transfer or check. Make sure to familiarise thoroughly with the processes, fees, and any currency conversion requirements. You may also explore options such as foreign exchange services or international payment platforms to streamline your cross-border transactions.

Step 6: Hire Employees

Expanding on the sixth step of opening a business internationally, which is hiring employees, make sure to find qualified professionals in your target market and make them a part of your team. But before you hunt for potential candidates, familiarise yourself with the local labour laws and regulations. If you need any help, you can also consult local legal counsel or HR experts.

Step 7: Market Your Business

When marketing your business internationally, the first thing you need to do is to create a solid marketing plan. This plan should include your goals, target audience, marketing channels , and budget. Once you have created your marketing plan, you can start promoting your business. This can be done in two ways: online and offline.

Online marketing can include:

• Search engine optimisation (SEO): Create a user-friendly, visually-appealing website that showcases your offerings. Use SEO techniques to improve your website’s organic rankings on search engine results pages. This means optimising your website’s content, using relevant keywords, and obtaining high-quality backlinks.
• Invest in online advertising: Consider running online advertisements through platforms like Google Ads, social media ads, and display advertising networks. Target your ads based on demographic and geographic factors to reach your desired audience effectively.
• Social media marketing: Establish a popular presence on social media platforms within your target market. Engage with your audience, build a connection and use it to promote your business.
• Email marketing: Build an email list and send targeted email campaigns to nurture relationships with potential customers. To keep them engaged, provide relevant information, exclusive offers, and updates about your business.

Offline marketing can include:

• Participate in trade shows and industry events: Attending relevant trade shows and industry events is a great way to showcase your products, network with potential customers, and gain industry exposure in your target market.
• Localise your marketing materials: Translate and adapt your marketing materials, including brochures, flyers, and promotional videos, to the local language and culture of your target market. This shows that you value their customs and increases your credibility.
• Collaborate with local influencers or partners: Be on the lookout for influential individuals or businesses in your target market who can help promote your brand . Partner with them for joint marketing campaigns or sponsorships to reach a wider audience.
• Engage in public relations (PR): Build solid relationships with local media outlets, journalists, and bloggers to generate positive coverage for your business. Issue press releases, arrange interviews, or participate in relevant PR opportunities to increase your brand’s visibility.
• Utilise traditional advertising: Consider placing advertisements in local newspapers, magazines, radio stations, or television networks to reach a wider audience. Adapt your messaging to align with the cultural preferences of the local market.

Marketing your business internationally requires an in-depth understanding of the target market and the cultural differences. So, make sure to adapt your marketing strategies accordingly, monitor their effectiveness, and leave enough room to make changes or incorporate new ideas as you go.

Step 8: Manage Your Finances

Managing your finances is a crucial part of running an international business. A healthy financial record ensures stability, legal compliance, risk mitigation, and efficient operations. Here are some important steps that’ll help you keep your finances in order:

• Keep track of your money: Set up a system to track your income and expenses. This could be using accounting software or getting help from an accountant. It’s important to have a clear picture of your finances.
• Pay your taxes on time : Make sure you understand the tax requirements in the countries where you operate. Stay updated on tax laws and regulations. If need be, seek advice from a tax expert who can optimise your tax planning and avoid penalties.
• Watch out for currency exchange risks : Dealing with different currencies can be tricky. Make it a point to stay informed about exchange rates. Also, consider working with a foreign exchange provider who could manage currency conversions and minimise risks for you.
• Build good banking relationships: Choose a reliable international bank that suits your business needs. This will help you handle transactions across borders and access global financial services.
• Implement strong financial controls: Establish clear policies and procedures for financial transactions within your business. This includes authorisations, invoice approvals, and segregation of duties. Regularly review and update these controls to minimise the risk of fraud or errors.
• Stay compliant with regulations : Make sure you understand and comply with financial regulations, such as anti-money laundering and Know Your Customer requirements. Stay informed and keep your operations aligned with these regulations.

Remember, good financial health creates a solid foundation for long-term success in the global marketplace.

Tips to Keep in Mind While Starting a Business Internationally

Stepping foot in the global marketplace can be exciting. However, growing your business overseas also comes with its own sets of challenges. To make sure you’re set up for success, here are a few important tips you need before you ahead and take the plunge:

• Establish physical presence: You can do so by partnering with a local company, forming a joint venture or setting up your own local offices in the target market.
• Adapt your pricing strategy: Make sure to adjust the price of your offerings as per the local market conditions, the competitive landscape and the purchasing power of the target customers. If need be, introduce discounts or promotions to attract more customers.
• Invest in cross-cultural training: This will help your employees to develop cultural intelligence. They’ll better understand the cultural norms and expectations of the target market, which would help them build solid relationships with international partners and customers.
• Develop a comprehensive risk management plan: While coming up with a risk management plan, make sure to address the political, economic, and legal risks associated with operating in different countries. Also, include contingency plans just to be prepared for unexpected events or scenarios.
• Use digital tools : Incorporate digital tools and platforms to facilitate remote collaboration, virtual meetings, and seamless communication with international stakeholders.
• Build a strong brand reputation: Prioritise your customers’ satisfaction above anything else, make sure your offerings are simply top-notch and maintain ethical business practices.
• Stay up-to-date on trade agreements. Tariff changes and geopolitical events can significantly impact your business operations or supply chain. It is important to stay up-to-date on these changes so that you can make informed decisions about your business.
• Seek feedback and testimonials : This will help you understand what your customers actually want and need, and it will also help you improve your offerings. Positive feedback from customers can also help you build credibility and generate word-of-mouth within the target market.

While there are many challenges one may encounter while operating a business internationally, here are some of the most common ones: Cultural differences: Each country has its own unique cultural nuances and practices that can vary significantly across countries, affecting communication styles, business etiquette and customer preferences. Adapting to and respecting these differences is crucial to ensure successful operations. Language barriers: Not being able to speak the local language can make conducting business a lot more difficult, especially when you need to constantly communicate with your customers, suppliers, partners, and employees. This can be a challenge, especially if you are operating in a country with a language that is very different from your own. Regulatory hurdles: Each country has its own set of regulations, and it is important to understand these regulations in order to comply with the law. This can be a challenge, especially if you are operating in a country with a complex regulatory environment. Financial risks: Operating a business in a new market can be risky, as you may not be familiar with the local market conditions. For example, you may be exposed to currency fluctuations or political instability. Logistics challenges: Shipping products or services to a new market can be challenging, especially if the country is located far away. You will need to factor in the cost of shipping, as well as the time it takes to get your products or services to your customers. Competition: The level of competition in a new market can vary greatly. There may be very little competition in some markets, while in others, the competition can be quite high. You will have to assess the level of competition in the market before you enter and develop a strategy accordingly to compete effectively.

There are a number of countries that are relatively inexpensive and easy to start a business in. Here are a few of them, as per the World Bank’s “Doing Business” report: New Zealand: New Zealand is ranked as the easiest country in the world to start a business. The cost of registering a business in New Zealand is just NZ$43, and the process can be completed in less than a day with minimum paperwork. Rwanda: Rwanda is another relatively inexpensive country to start a business in. The cost of registering a business in Rwanda is just RWF10,000 (around US$10). Similar to New Zealand, the process can be completed in less than a day. Slovenia: Slovenia is a country in Central Europe known for its business-friendly environment. The cost of registering a business in Slovenia is just EUR750, and the process takes about a week to complete. United Kingdom: We all know the United Kingdom is a developed country with a strong economy. The cost of registering a business in the UK is just GBP12, and the process can be completed in about a week. Denmark: Denmark is a Nordic country with a high standard of living. The cost of registering a business in Denmark is just DKK3,000, and the process takes about a week or so to complete.

You can hire bilingual or multilingual staff, utilise professional translation services, and invest in cross-cultural communication training to overcome language and communication barriers.

An ardent reader, full-time writer and a lover of all things purple. Riya is an entrepreneurial spirit, making her way in the start-up industry through her expressive writing. When not working, you can find her jamming to music, watching period films, eating sushi, or petting cats.

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What Is a Global Expansion Strategy & How to Create One

If your business is interested in embracing globalization, developing a global expansion strategy is vital to your success.

Global expansion is undoubtedly one of the best ways to tap into international markets, acquire world-class experts, and set your company up for long-term success. But without a solid strategy, global expansion is near-impossible and can result in delays, extra costs, and wasted resources.

This guide will give you a clear understanding of what a global expansion strategy is and how your business can formulate its own plan successfully. You’ll learn the best practices for planning market expansion step by step, from the consideration phase to launch.

Why You Need a Global Expansion Strategy

Having a considered business expansion strategy in place will help you to:

• Expand into the right markets at the right time
• Use time and money efficiently
• Mitigate risk and stay compliant with local regulations
• Build a competition-crushing team
• Scale your business faster
• Increase profitability

What Is a Global Expansion Strategy?

A global expansion strategy is a formal business plan that outlines how a company intends to expand its operations into foreign countries and markets, while mitigating risks and enhancing revenue growth. To be successful, it should include clear timelines and budgets, thorough research, realistic goals, and dedicated talent.

Your strategies for international expansion should give clear structure and guidance to those in charge of executing it, thus making it a crucial part of your overall global expansion process.

How to Create a Successful Global Expansion Strategy

Creating a robust global expansion strategy is a big task; it requires enough time, dedication, and resources. But it’s not an impossible feat, and when done right, your global expansion plan will make scaling your business far easier and more successful in the long run.

To help you hit the ground running, we’ve broken down the global expansion strategy process into six simple steps.

1. Set Company Goals to Guide Your International Expansion Strategies

Before you jump into a global business expansion, you first need to set clear company goals. This will give you and your teams direction and purpose for the short, mid, and long term, driving the business forward sustainably.

Setting company-wide goals will help you to understand where global expansion fits into your company vision and which goals it can help you achieve. It’ll also help you prioritize certain aspects of global expansion, set aside an appropriate budget, and give you a clearer timeframe for when you need to achieve each step in the expansion process.

When setting goals, consider what the main aim(s) of your global expansion should be. For example, your global expansion plans may be led by factors such as:

• Widening your talent pool to build a diverse team and source niche skills
• Expanding your business into lucrative new markets
• Proving economic stability for your business by diversifying markets
• Saving money by moving operations abroad
• Building a globally recognized brand or improving your existing reputation

Each of these potential drivers for global expansion will result in very different goals that you would need to set and plan.

To help you set achievable company goals, there are many frameworks you can use, such as OKRs (Objectives & Key Results) or WIGs (Widely Important Goals). But whichever framework you use, your goals should be S.M.A.R.T.:

2. Do Thorough Market Research

Once you’ve set company goals and understand where global expansion fits into them, you need to carry out thorough research into the markets you wish to enter. This will help you identify opportunities and obstacles before you start spending money to execute your expansion strategy.

When done well, market research can help you maximize profitability, decrease risk, and reassure stakeholders and investors that your global expansion plans are substantiated.

Here are just some of the questions you should answer before entering a new market:

• Is there a demand for your product or service?
• What is the total addressable market (TAM)?
• What’s the socio-political and cultural landscape like? Is it ready for a product like yours?
• Who are your competitors and can your product or service offer something new?
• How will the local laws and regulations affect your expansion plans? Can you overcome these barriers?
• Will you need to invest in localization to make your product or service successful in the new market?
• What kinds of talent are readily available in the target country? For example, does the country produce high-quality academics, leaders in a specific industry, or an abundance of tech talent?

There are many tools you can use to help make researching target markets easier, such as country-specific databases like the OECD . Once completed, you should have a better idea of which markets to prioritize in your global expansion strategy.

While the end goal may be to expand into dozens of countries across all continents, it’s best to stick with a select few high-priority, low-risk markets to begin with. You could start by expanding into Europe or another strategic area, for example.

This expansion method will allow you to test out your international expansion strategy and make any necessary adjustments before investing more money and resources.

3. Evaluate the Different Types of Global Expansion Strategies Available & Choose Wisely

There are many methods to expanding business globally, but what works for one company may not work for yours. Use your market research, company goals, and budget to determine which international expansion strategy is right for your company. The main types of expansion strategies are:

• Exporting goods or services
• Licensing & franchising
• Forming strategic partnerships
• Acquiring or merging with foreign businesses
• Setting up wholly owned subsidiaries abroad (also known as Greenfield Venture )

Each market expansion strategy has pros and cons. For example, licensing is fairly inexpensive and allows your business to expand rapidly, but it can lead to a loss of control over quality, messaging, and reputation.

On the other hand, Greenfield Venture allows your business to remain in full control of operations, but it’s an expensive and complex process from start to finish.

Which Option Should You Use to Expand Internationally?

Choosing the right business expansion strategy depends on your timescale, budget, and goals. Global expansion isn’t just for big corporations anymore, but the size of the company will likely determine the type of expansion strategy you use.

For enterprise companies with an expansive budget and plenty of resources, acquisition or Greenfield Venture may be the most attractive option, for example.

However, for start-ups and SMEs with a lower budget, partnerships, licensing, and exportation may be more cost-effective methods of global expansion that allow you to get your foot in the door.

At Omnipresent, for example, we use a mixture of owned entities and strategic partnerships to carry out our own global expansion strategy. Our two main reasons for expanding internationally are:

      1. To hire the best talent available around the globe       2. To build a network of entities and local expertise to be able to offer the very best service to            our clients.

To achieve these goals, we’ve adopted a thorough and multi-faceted approach to global expansion. Here’s a brief overview of what we do:

• Conduct research on local regulations all over the globe
• Analyze client demand and growth patterns
• Research the complexity of setting up and acquiring the proper licenses to be fully compliant
• Evaluate internal expertise to determine which markets we should prioritize and how aggressive we should be
• Set up local entities in viable markets
• Partner with trusted local service providers to harness their expertise and resources
• Build a world-class team by remote hiring from across the globe using our own product and EOR solution

4. Hire the Best Local Talent

Hiring local talent can make global expansion simpler and more cost-effective, especially if the target market is very different culturally and linguistically from your existing markets. Having staff on the ground helps you to:

• Tap into local expert talent
• Gain first-hand knowledge of the market and local culture
• Benefit from local language skills
• Save money by not having to travel as much or relocate existing staff
• Gain trust in the local market by building on existing relationships
• Leverage existing business contacts and networks

If you’re worried about the costs of hiring a lot of new talent, don’t! You don’t need to hire a fully fledged team in each new market to reap the rewards. Think strategically:

• Do you want customer support staff available in the local time zone?
• Do you need sales representatives who can speak the local lingo?
• Would you benefit from project managers who have strong existing relationships with local service providers?

Every business has different needs, so evaluate what local talent would benefit your global expansion strategy the most.

How to Hire Local Talent

Hiring remote employees abroad may seem daunting. After all, setting up a local entity in each new market can be time-consuming and requires a sound knowledge of local regulations for compliance. You may be tempted to hire independent contractors instead, but that can be risky, too .

The simplest solution is to partner with an Employer of Record (EOR) service, like Omnipresent, which employs staff on your behalf and handles all the associated administration for you. Using an EOR is faster and less risky than employing international talent directly, and it’ll make the global expansion process much smoother as a result.

5. Select Local Partners Carefully

Even with employees based in your target market, you’ll likely need to work with local partners in some capacity. For example, you may need third-party logistics partners, legal advisors, or marketing & PR agencies to execute your international expansion strategy successfully.

But before signing any contracts, be sure to do your due diligence. Here’s what to look for in a reliable global expansion company partner:

• An impressive portfolio of existing clients mirroring your own business
• Positive references from those clients
• A competitive quote for their services
• Timely and considerate customer support

You may even consider implementing a trial period with your chosen partners to assess how well they work with your business before committing to a long-term relationship.

6. Launch Your Product or Service in New Market & Continually Monitor

Now’s the time to launch your product in the new market and get your message out to your target audience! First impressions matter, so use a range of relevant marketing channels to create a stir, including localized advertising campaigns, dedicated social media accounts, local media coverage, and special events.

Once launched, you should continually monitor progress and adapt your strategy as appropriate. By seeking regular feedback from local customers, you’ll have a better understanding of the target market and what you need to improve to meet their specific needs.

Assessing the success of your initial global expansion strategies will help guide any subsequent market expansion plans you may have. That way, your business can continue to grow sustainably and you can enjoy the many benefits of globalization while mitigating risk as much as possible.

How Omnipresent Takes the Hassle out of Global Expansion

As a fully remote and international team with clients based around the world, we understand the complexities of taking business operations global. That’s why we help companies like yours save time, money, and headspace by making international employment simple.

Our global employment services allow you to focus on developing an internationally renowned product, service, and team by:

• Setting up local entities, so you don’t have to
• Drawing up compliant employment contracts
• Enrolling employees into global payroll
• Managing employee benefits
• Handling the onboarding and offboarding process
• Providing HR support in over 160 countries and territories

Whether you’re at the consideration phase or if you’re ready to go, learn how we can help with your global expansion strategy by booking a free consultation with our team. ‍

Uriel has been working in the tech space for the past six years; first as a Tech-Regulation Lawyer and a Venture Capital Investor in Tel Aviv, then in Berlin as VP of Business Development in an AI startup. Most recently, he joined Omnipresent as Head of International Expansion. Having gained degrees in Law, Business Management, and Accounting, Uri is passionate about the interaction between technology and business, and loves learning about how different cultures approach it.

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4 Skills You Need to Get Involved in International Business

• 04 May 2021

The modern economy— for better or worse —is an international story. The ever-increasing rise in global cooperation has led to partnerships, supply chains, labor pools, and markets throughout virtually every sector of the economy. Where once international business was only a concern of large conglomerates, today, virtually every business, regardless of its size or maturity, is impacted by international considerations.

Are you employed by, or aspire to be employed by, an organization with an established or fledgling international footprint? Do you work within an industry or sector of the economy with significant international exposure? Are you a business owner with your eyes set on expanding your business globally? Do you aspire to craft policy—whether at the local, state, or federal levels—that might be impacted by global trends or international developments? Are you interested in potentially partnering with an organization located in a foreign country?

If you answered “yes” to any of the questions above, there are skills you should master to increase your chances of success. Here are four of the most important skills to develop if you’re interested in international business.

Access your free e-book today.

Essential International Business Skills

1. strong communication.

Communication skills are essential for any business professional—especially those who aspire to work in a leadership or management position. It’s through communication that business is done, and taking the time to develop your verbal and written communication skills is essential.

In the context of international business, there are several steps you can take to bolster your communication skills.

First, consider what languages are most important to your career. What languages do your potential employers, partners, suppliers, and customers speak? Becoming proficient in those languages can open doors that might otherwise remain closed to you. Second, consider nonverbal communication that occurs through body language, posture, and eye contact. This can vary significantly from culture to culture, so it’s important to understand how your nonverbal communication can influence the message you’re trying to convey.

2. Emotional Intelligence

Emotional intelligence is a concept that refers to an individual’s ability to perceive and manage others’ emotions while also recognizing and regulating their own.

There’s no specific definition as to what constitutes an emotionally intelligent person. However, they tend to exhibit:

• Self-awareness: Emotionally intelligent people understand their strengths, weaknesses, emotions, beliefs, and motivations, and leverage them to reach their goals.
• Self-regulation: Emotionally intelligent people can recognize their emotions and impulses—especially negative emotions, such as anger—and regulate their response to prevent an outburst that could threaten a negotiation or business deal.
• Empathy: Emotionally intelligent people are capable of understanding others’ personal experiences and emotions.
• Motivation: Emotionally intelligent people are capable of motivating not just themselves, but others.

Emotional intelligence, like communication, is a critical skill for all business professionals to develop. It’s especially important in global business, where cultural or language barriers can make it difficult to form a connection with others.

3. Cultural Awareness

Every culture has unique nuances and quirks, which ultimately makes the world a varied, beautiful, and interesting place. Yet, these cultural differences can occasionally lead to misunderstandings, wrecked deals, or international embarrassment (depending on the prominence of the faux pas).

If you’re interested in breaking into international business, you need to develop a firm understanding of the various cultures you’ll interact with. In addition to learning their languages, you should familiarize yourself with their beliefs, traditions, and social norms.

Strong cultural awareness can ensure the message you communicate and the actions you take are always propelling you closer to your goal. For example, you might want to craft a marketing campaign that resonates with the local community or foster an atmosphere of respect during a negotiation. Poor cultural awareness can leave you with a message that flops or a business deal that breaks down due to a perceived slight you never intended.

4. Hard Skills

In addition to the “soft” skills mentioned above, working globally requires “hard” business skills. As in all business, you need a firm understanding of basic economic principles , financial accounting , and entrepreneurial frameworks .

It also requires knowledge that’s specific to an international context. For example, while macroeconomic theory impacts all businesses, it can impact those operating globally to an even greater degree. Having a foundation in this area can prove essential for anyone interested in moving into a leadership position within a firm that operates internationally.

Additionally, multinational corporations can find their margins exposed to various political and social considerations that businesses operating solely in a domestic capacity don’t encounter. Taxes, tariffs, and trade deficits can quickly become threats—and occasionally opportunities—that must be handled appropriately.

Gaining the Skills for Success

When it comes to developing communication and emotional intelligence skills, there’s no better way than through practice. Find opportunities in your current role to put your skills to the test and become more proficient, especially in the areas where you find yourself the weakest.

To develop cultural awareness, seek opportunities to connect with others internationally. You might join an international trade association, for example, or find an online community that allows you to speak with and learn from others around the world.

If you find yourself lacking the hard skills mentioned above, taking an online course focused on international business can be an excellent way of gaining them.

By enrolling in the online course Global Business , for example, you can gain a foundation in the macroeconomic, governmental, and political developments that influence global business. You can also gain an understanding of the impact that interest rates, trade, inflation, and investment can have on business ventures while learning frameworks you can use to think strategically about international business.

Are you interested in breaking into an international market? Sharpen your knowledge with our four-week Global Busines course, and explore our other online business in society courses . Not sure which is right for you? Download our free course flowchart .

About the Author

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12 Key Elements of a Business Plan (Top Components Explained)

Starting and running a successful business requires proper planning and execution of effective business tactics and strategies .

You need to prepare many essential business documents when starting a business for maximum success; the business plan is one such document.

When creating a business, you want to achieve business objectives and financial goals like productivity, profitability, and business growth. You need an effective business plan to help you get to your desired business destination.

Even if you are already running a business, the proper understanding and review of the key elements of a business plan help you navigate potential crises and obstacles.

This article will teach you why the business document is at the core of any successful business and its key elements you can not avoid.

Let’s get started.

Why Are Business Plans Important?

Business plans are practical steps or guidelines that usually outline what companies need to do to reach their goals. They are essential documents for any business wanting to grow and thrive in a highly-competitive business environment .

1. Proves Your Business Viability

A business plan gives companies an idea of how viable they are and what actions they need to take to grow and reach their financial targets. With a well-written and clearly defined business plan, your business is better positioned to meet its goals.

2. Guides You Throughout the Business Cycle

A business plan is not just important at the start of a business. As a business owner, you must draw up a business plan to remain relevant throughout the business cycle .

During the starting phase of your business, a business plan helps bring your ideas into reality. A solid business plan can secure funding from lenders and investors.

After successfully setting up your business, the next phase is management. Your business plan still has a role to play in this phase, as it assists in communicating your business vision to employees and external partners.

Essentially, your business plan needs to be flexible enough to adapt to changes in the needs of your business.

3. Helps You Make Better Business Decisions

As a business owner, you are involved in an endless decision-making cycle. Your business plan helps you find answers to your most crucial business decisions.

A robust business plan helps you settle your major business components before you launch your product, such as your marketing and sales strategy and competitive advantage.

4. Eliminates Big Mistakes

Many small businesses fail within their first five years for several reasons: lack of financing, stiff competition, low market need, inadequate teams, and inefficient pricing strategy.

Creating an effective plan helps you eliminate these big mistakes that lead to businesses' decline. Every business plan element is crucial for helping you avoid potential mistakes before they happen.

5. Secures Financing and Attracts Top Talents

Having an effective plan increases your chances of securing business loans. One of the essential requirements many lenders ask for to grant your loan request is your business plan.

A business plan helps investors feel confident that your business can attract a significant return on investments ( ROI ).

You can attract and retain top-quality talents with a clear business plan. It inspires your employees and keeps them aligned to achieve your strategic business goals.

Key Elements of Business Plan

Starting and running a successful business requires well-laid actions and supporting documents that better position a company to achieve its business goals and maximize success.

A business plan is a written document with relevant information detailing business objectives and how it intends to achieve its goals.

With an effective business plan, investors, lenders, and potential partners understand your organizational structure and goals, usually around profitability, productivity, and growth.

Every successful business plan is made up of key components that help solidify the efficacy of the business plan in delivering on what it was created to do.

Here are some of the components of an effective business plan.

1. Executive Summary

One of the key elements of a business plan is the executive summary. Write the executive summary as part of the concluding topics in the business plan. Creating an executive summary with all the facts and information available is easier.

In the overall business plan document, the executive summary should be at the forefront of the business plan. It helps set the tone for readers on what to expect from the business plan.

A well-written executive summary includes all vital information about the organization's operations, making it easy for a reader to understand.

The key points that need to be acted upon are highlighted in the executive summary. They should be well spelled out to make decisions easy for the management team.

A good and compelling executive summary points out a company's mission statement and a brief description of its products and services.

An executive summary summarizes a business's expected value proposition to distinct customer segments. It highlights the other key elements to be discussed during the rest of the business plan.

Including your prior experiences as an entrepreneur is a good idea in drawing up an executive summary for your business. A brief but detailed explanation of why you decided to start the business in the first place is essential.

Adding your company's mission statement in your executive summary cannot be overemphasized. It creates a culture that defines how employees and all individuals associated with your company abide when carrying out its related processes and operations.

Your executive summary should be brief and detailed to catch readers' attention and encourage them to learn more about your company.

Components of an Executive Summary

Here are some of the information that makes up an executive summary:

• The name and location of your company
• Products and services offered by your company
• Mission and vision statements
• Success factors of your business plan

2. Business Description

Your business description needs to be exciting and captivating as it is the formal introduction a reader gets about your company.

What your company aims to provide, its products and services, goals and objectives, target audience , and potential customers it plans to serve need to be highlighted in your business description.

A company description helps point out notable qualities that make your company stand out from other businesses in the industry. It details its unique strengths and the competitive advantages that give it an edge to succeed over its direct and indirect competitors.

Spell out how your business aims to deliver on the particular needs and wants of identified customers in your company description, as well as the particular industry and target market of the particular focus of the company.

Include trends and significant competitors within your particular industry in your company description. Your business description should contain what sets your company apart from other businesses and provides it with the needed competitive advantage.

In essence, if there is any area in your business plan where you need to brag about your business, your company description provides that unique opportunity as readers look to get a high-level overview.

Components of a Business Description

Your business description needs to contain these categories of information.

• Business location
• The legal structure of your business
• Summary of your business’s short and long-term goals

3. Market Analysis

The market analysis section should be solely based on analytical research as it details trends particular to the market you want to penetrate.

Graphs, spreadsheets, and histograms are handy data and statistical tools you need to utilize in your market analysis. They make it easy to understand the relationship between your current ideas and the future goals you have for the business.

All details about the target customers you plan to sell products or services should be in the market analysis section. It helps readers with a helpful overview of the market.

In your market analysis, you provide the needed data and statistics about industry and market share, the identified strengths in your company description, and compare them against other businesses in the same industry.

The market analysis section aims to define your target audience and estimate how your product or service would fare with these identified audiences.

Market analysis helps visualize a target market by researching and identifying the primary target audience of your company and detailing steps and plans based on your audience location.

Obtaining this information through market research is essential as it helps shape how your business achieves its short-term and long-term goals.

Market Analysis Factors

Here are some of the factors to be included in your market analysis.

• The geographical location of your target market
• Needs of your target market and how your products and services can meet those needs
• Demographics of your target audience

Components of the Market Analysis Section

Here is some of the information to be included in your market analysis.

• Industry description and statistics
• Demographics and profile of target customers
• Marketing data for your products and services
• Detailed evaluation of your competitors

4. Marketing Plan

A marketing plan defines how your business aims to reach its target customers, generate sales leads, and, ultimately, make sales.

Promotion is at the center of any successful marketing plan. It is a series of steps to pitch a product or service to a larger audience to generate engagement. Note that the marketing strategy for a business should not be stagnant and must evolve depending on its outcome.

Include the budgetary requirement for successfully implementing your marketing plan in this section to make it easy for readers to measure your marketing plan's impact in terms of numbers.

The information to include in your marketing plan includes marketing and promotion strategies, pricing plans and strategies , and sales proposals. You need to include how you intend to get customers to return and make repeat purchases in your business plan.

5. Sales Strategy

Sales strategy defines how you intend to get your product or service to your target customers and works hand in hand with your business marketing strategy.

Your sales strategy approach should not be complex. Break it down into simple and understandable steps to promote your product or service to target customers.

Apart from the steps to promote your product or service, define the budget you need to implement your sales strategies and the number of sales reps needed to help the business assist in direct sales.

Your sales strategy should be specific on what you need and how you intend to deliver on your sales targets, where numbers are reflected to make it easier for readers to understand and relate better.

6. Competitive Analysis

Providing transparent and honest information, even with direct and indirect competitors, defines a good business plan. Provide the reader with a clear picture of your rank against major competitors.

Identifying your competitors' weaknesses and strengths is useful in drawing up a market analysis. It is one information investors look out for when assessing business plans.

The competitive analysis section clearly defines the notable differences between your company and your competitors as measured against their strengths and weaknesses.

This section should define the following:

• Your competitors' identified advantages in the market
• How do you plan to set up your company to challenge your competitors’ advantage and gain grounds from them?
• The standout qualities that distinguish you from other companies
• Potential bottlenecks you have identified that have plagued competitors in the same industry and how you intend to overcome these bottlenecks

In your business plan, you need to prove your industry knowledge to anyone who reads your business plan. The competitive analysis section is designed for that purpose.

7. Management and Organization

Management and organization are key components of a business plan. They define its structure and how it is positioned to run.

Whether you intend to run a sole proprietorship, general or limited partnership, or corporation, the legal structure of your business needs to be clearly defined in your business plan.

Use an organizational chart that illustrates the hierarchy of operations of your company and spells out separate departments and their roles and functions in this business plan section.

The management and organization section includes profiles of advisors, board of directors, and executive team members and their roles and responsibilities in guaranteeing the company's success.

Apparent factors that influence your company's corporate culture, such as human resources requirements and legal structure, should be well defined in the management and organization section.

Defining the business's chain of command if you are not a sole proprietor is necessary. It leaves room for little or no confusion about who is in charge or responsible during business operations.

This section provides relevant information on how the management team intends to help employees maximize their strengths and address their identified weaknesses to help all quarters improve for the business's success.

8. Products and Services

This business plan section describes what a company has to offer regarding products and services to the maximum benefit and satisfaction of its target market.

Boldly spell out pending patents or copyright products and intellectual property in this section alongside costs, expected sales revenue, research and development, and competitors' advantage as an overview.

At this stage of your business plan, the reader needs to know what your business plans to produce and sell and the benefits these products offer in meeting customers' needs.

The supply network of your business product, production costs, and how you intend to sell the products are crucial components of the products and services section.

Investors are always keen on this information to help them reach a balanced assessment of if investing in your business is risky or offer benefits to them.

You need to create a link in this section on how your products or services are designed to meet the market's needs and how you intend to keep those customers and carve out a market share for your company.

Repeat purchases are the backing that a successful business relies on and measure how much customers are into what your company is offering.

This section is more like an expansion of the executive summary section. You need to analyze each product or service under the business.

9. Operating Plan

An operations plan describes how you plan to carry out your business operations and processes.

The operating plan for your business should include:

• Information about how your company plans to carry out its operations.
• The base location from which your company intends to operate.
• The number of employees to be utilized and other information about your company's operations.
• Key business processes.

This section should highlight how your organization is set up to run. You can also introduce your company's management team in this section, alongside their skills, roles, and responsibilities in the company.

The best way to introduce the company team is by drawing up an organizational chart that effectively maps out an organization's rank and chain of command.

What should be spelled out to readers when they come across this business plan section is how the business plans to operate day-in and day-out successfully.

10. Financial Projections and Assumptions

Bringing your great business ideas into reality is why business plans are important. They help create a sustainable and viable business.

The financial section of your business plan offers significant value. A business uses a financial plan to solve all its financial concerns, which usually involves startup costs, labor expenses, financial projections, and funding and investor pitches.

All key assumptions about the business finances need to be listed alongside the business financial projection, and changes to be made on the assumptions side until it balances with the projection for the business.

The financial plan should also include how the business plans to generate income and the capital expenditure budgets that tend to eat into the budget to arrive at an accurate cash flow projection for the business.

Base your financial goals and expectations on extensive market research backed with relevant financial statements for the relevant period.

Examples of financial statements you can include in the financial projections and assumptions section of your business plan include:

• Projected income statements
• Cash flow statements
• Balance sheets
• Income statements

Revealing the financial goals and potentials of the business is what the financial projection and assumption section of your business plan is all about. It needs to be purely based on facts that can be measurable and attainable.

11. Request For Funding

The request for funding section focuses on the amount of money needed to set up your business and underlying plans for raising the money required. This section includes plans for utilizing the funds for your business's operational and manufacturing processes.

When seeking funding, a reasonable timeline is required alongside it. If the need arises for additional funding to complete other business-related projects, you are not left scampering and desperate for funds.

If you do not have the funds to start up your business, then you should devote a whole section of your business plan to explaining the amount of money you need and how you plan to utilize every penny of the funds. You need to explain it in detail for a future funding request.

When an investor picks up your business plan to analyze it, with all your plans for the funds well spelled out, they are motivated to invest as they have gotten a backing guarantee from your funding request section.

Include timelines and plans for how you intend to repay the loans received in your funding request section. This addition keeps investors assured that they could recoup their investment in the business.

12. Exhibits and Appendices

Exhibits and appendices comprise the final section of your business plan and contain all supporting documents for other sections of the business plan.

Some of the documents that comprise the exhibits and appendices section includes:

• Legal documents
• Licenses and permits
• Credit histories
• Customer lists

The choice of what additional document to include in your business plan to support your statements depends mainly on the intended audience of your business plan. Hence, it is better to play it safe and not leave anything out when drawing up the appendix and exhibit section.

Supporting documentation is particularly helpful when you need funding or support for your business. This section provides investors with a clearer understanding of the research that backs the claims made in your business plan.

There are key points to include in the appendix and exhibits section of your business plan.

• The management team and other stakeholders resume
• Marketing research
• Permits and relevant legal documents
• Financial documents

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Martin luenendonk.

Martin loves entrepreneurship and has helped dozens of entrepreneurs by validating the business idea, finding scalable customer acquisition channels, and building a data-driven organization. During his time working in investment banking, tech startups, and industry-leading companies he gained extensive knowledge in using different software tools to optimize business processes.

This insights and his love for researching SaaS products enables him to provide in-depth, fact-based software reviews to enable software buyers make better decisions.

IT Services

How to build a scalable IT budget

How much business could your business do without IT?

These days, “none” is far and away the most common answer.

Yet many organizations struggle with how to approach spending and budgeting related to IT. Information technology may be the backbone of a business, but it usually isn’t front and center in strategic discussions and high-level decision-making. And whatever spending is happening, the budgeting process underneath it often doesn’t scale well.

We know that IT budgets are growing: 57% of CIOs expected their IT budgets to increase last year. An effective IT budget is about more than just spending more money. It’s about spending that money wisely — and determining how much money should be spent on IT in the first place.

How often should an IT budget be evaluated?  

Many organizations with established IT budgeting procedures evaluate that budget yearly. 

Why yearly? Because the process can be lengthy, involving numerous stakeholders and significant amounts of documentation. And the larger your organization, the more complex this business process gets. It’s not uncommon for the evaluation process to take months, so it’s impractical to shorten the budget lifecycle.

For IT services firms supporting clients in the IT budget evaluation and creation process, a yearly cycle can prevent overburdening your team and allow you to stagger clients throughout the calendar year.

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Who should be involved in the process?   

Keeping the right stakeholders involved in the IT budgeting process helps ensure that the budget is holistic (covering everything necessary), realistic (within the company’s overall financial means), and well-managed (administered and allocated responsibly).

The personnel involved should include any of the following, where they exist:

Chief information officer (CIO)

Chief financial officer (CFO)

IT managers, IT directors, IT department heads

IT project managers and project leads

Representatives from major divisions/departments

If the organization has a project management office (PMO), that group should also play a role.

It’s worth noting that entities outside the CIO and IT domains play an increasing role in IT budgeting as the process gets democratized across lines of business. Teodora Siman, an IDC research manager , elaborates:

“We’re seeing more influence come from outside of IT, where the CIO orchestrates technology across the business, and [technology decisions] are a collaborative conversation with business leaders who are focused on outcomes and customer-centricity.”

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• Key items to include in an IT budget

Organizations differ in where certain expenses fall in the budget, but most IT budgets should include at least these five areas:

Physical employee equipment: IT money is used to purchase laptops, desktops, printers, phones, networking equipment, servers, and other hardware.

Staff salaries: Employees within the IT department or division are typically paid out of the IT budget

Cybersecurity, backup, and disaster recovery (DR): Preventive expenditures here help to hedge against disasters, natural or otherwise.

Infrastructure and maintenance: Money is allocated to repair and upgrade devices and infrastructure and to pay for ongoing IT infrastructure operational costs (internet access, cloud services, software licenses, etc.).

IT project management: IT project management costs that are not accounted for in your overall project management budget should appear here.

How to plan a budget that serves the future of the organization  

Planning an IT budget can be relatively simple for a startup or small professional services firm, a massive months-long process at an enterprise level, or anywhere in between.

Whatever the size and scope of your IT budget planning, we’ve boiled the process down to six key elements. Below, we’ll provide clear, concise planning tips to help you create an IT budget to propel your organization forward.

Assess the current landscape (internal and external)

One key strategy for planning is considering the context around your IT budget. Is business booming? Is your industry more broadly in flux? Are you growing (and if so, how quickly)? Or is this a year where it’s clear the purse strings need to tighten?

And what about the technology landscape? We aren’t necessarily seeing quantum leaps in computing power at the individual user or device level. But consider the capabilities of AI and machine learning to churn through data or for generative AI to enhance workflows and extend human capacity.

Any successful IT budget needs to be grounded in these realities. They inform how much is likely to be available and what sorts of changes that budget needs to accommodate.

Integrate business objectives and cross-department goals

Next, remember that your IT budget isn’t an island or a destination. It’s a way to achieve goals and objectives. So make sure your budget doesn’t live in a silo. Instead, it should be built atop existing business objectives and priorities. 

Including business objectives and cross-departmental goals in budget planning ensures that your IT division is growing with, not against, the broader organization. By building your IT budget around the business’s core objectives, you can avoid unnecessary spending on IT projects that don’t further the mission.

This improves the organization’s financial health, affects employee morale and effectiveness, and can even advance market competitiveness. 

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Set clear guidelines for expense categories

One principle is consistent for any kind of budgeting: the more clarity, the better.

It’d be preposterous to lump your entire IT budget into a single line item: you need to know where the money’s going more specifically than that. But true clarity requires more than a few vague expense categories. You’ll need to get as specific as possible and set clear guidelines with team members on what expenses go where.

With clearer and more numerous expense categories, it will be easier to understand IT spend after the fact, helping you create progressively more accurate IT budgets year after year.

Consider flexible purchase options

IT costs can be inconsistent and spiky: it’s easy enough to plan for an upgrade cycle on PCs for your workforce, but the cost of replacing a server is a different beast. Big technology investments are sometimes needed, and the larger your organization scales, the more unwieldy these IT expenditures can become.

So, as you plan your IT budget, consider flexible purchasing options for your IT investments, including fair market value leases, consumption-based billing, and installment payment agreements.

This is one reason so many organizations are turning to the cloud: procuring your computing and software needs from a cloud provider tends to flatten out these spikes. Managed IT service providers can provide a similar cost-leveling function, and in the right situations, this business model can deliver notable cost savings alongside better IT support and the broad expertise needed to meet diverse IT needs.

Use KPIs to monitor effectiveness

Next, make sure to track the effectiveness of your IT budget processes by tracking the right metrics. Key performance indicators (KPIs) can help here, but the trick is finding the KPIs that deliver the right information in the right way.

For example, IT project team efficiency , on-time project completion percentage, average hardware age, software utilization rate, and a few dozen other measures could all be helpful — but not all are helpful all the time. 

Which KPIs are right for monitoring budget effectiveness depends on what your business is trying to achieve. Cost savings, increased efficiency, greater accuracy, and better customer responsiveness are all fantastic priorities, but they may compete against one another in some ways. 

So first, you must establish which priorities take precedence. Only then can you select the KPIs to help you measure progress on those priorities. 

Educate stakeholders about IT spending

Last, make sure you continually educate stakeholders in the IT budget about how spending works in IT. You’ll be working with people across a spectrum of specialties and skill sets, and not everyone will be a financial or IT expert. 

It’s up to you to invest in these stakeholders. By teaching them about the mechanisms for IT spending (such as those flexible purchase options), your budgetary goals, and the tools you’ll use to measure success, you’ll garner better support and get more useful feedback.

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For a successful overall IT strategy, businesses and IT leaders must prioritize the IT initiatives that best fit a company’s business goals and strategic needs — while staying within appropriate levels of IT spending.

Because while digital transformation is key to continued growth, it’s neither easy nor inexpensive.

For most professional services firms, managing IT projects and budgets well requires understanding and adhering to the business’s strategic plan and creating a technology roadmap that supports the overall business strategy. It also demands the ability to plan, visualize, strategize, organize, and ultimately execute projects well.

Teamwork.com is project management software that’s perfect for IT project management — including IT budgeting projects.

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TABLE OF CONTENTS

• How often should an IT budget be evaluated?
• Who should be involved in the process?
• How to plan a budget that serves the future of the organization

Ben is a Senior Content Marketing Specialist at Teamwork.com. Having held content roles at agencies and SaaS companies for the past 8 years, Ben loves writing about the latest tech trends and work hacks in the agency space.

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Fleet services newsletter, may 2024, wex card’s expire on 5/31 – time to pick-up your new card .

WEX fuel credit card swaps have been slow so far, we still have a lot of new cards to give out. If you have not yet picked up your new card please make a plan to do so. All you need to do is bring your old card to our office and we will swap it out. The current cards expire at the end of May. Cards can be exchanged Monday through Friday from 7:00 AM to 6:00 PM.

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Who is Considered a Pedestrian in Iowa?

Current law in Iowa defines a pedestrian as a person specifically on foot and does not include people in wheelchairs, riding scooters/skateboarding, or cyclists. Lobbyists and advocacy groups like, AARP Iowa, and the University of Iowa Injury Prevention Research Center pushed to make the language of the law more inclusive. Late last week Governor Kim Reynolds signed a new law that changes the meaning of a pedestrian. The new definition adds some language and now includes “ a person using a pedestrian conveyance”   in addition to a pedestrian on   foot. A pedestrian conveyance is any human-powered device a pedestrian may use to move or move another person. It also includes electric motored devices as long as they produce less than 750 watts. The bill goes into effect on July 1st.  Check out the full article from CBS .

Driving in a Tornado – How to Stay Safe

Never try to outrun a tornado. According to AccuWeather, tornados can travel very quickly and do not follow road patterns. If you are driving and a tornado develops it is best to try to find shelter in a sturdy building. When there is no shelter nearby, experts recommend staying in your car, secured using your seat belt, putting your head down below the window, and covering your head with your hands or a blanket if you have one. If you can safely get to a low-lying area such as a ditch or ravine, basically lower than the roadway, then exit the car and lie down in the area and cover your head with your hands or use a protective covering like a blanket or tarp. Also avoid taking shelter under an overpass. The winds are higher in these openings and flying debris can still get to you. Check out the full article on tornado safety . 

Real ID – New Deadline to be Enforced

There is a new deadline for Real ID, it is now May 7, 2025. Just a little less than a year away. If you fly commercially or need access to federal facilities you will need a REAL ID or another federally approved ID like a passport. Take a look at the Iowa DOT’s info page . Please note, it can take up to 30 days to receive your REAL ID in the mail so plan ahead.

Fleet Services Severe Weather Protocol

When severe weather pops up and the sirens go off, we lock our doors and evacuate to the CAMBUS Maintenance Facility until we get the all-clear. If you have a reservation scheduled to pick up during a severe weather event, please call our office ahead of time. Our phones will be forwarded to a manager’s cell phone, and they will give you instructions to get your vehicle. We will also leave a sign on our door, so you know where we are.

Honest Mikes Used Cars

Vehicle sale season is on-going and we have a nice variety of vehicles at auction now and coming soon. Check out our GovDeals auction page to view what we currently have listed.

Fleet Factoid

According to Consumer Affairs, Louisiana is the state with the most incidents of road rage. To come up with their ranking, CA analyzed data on aggressive driving, rates of speeding/careless driving, tickets, accidents, fatalities, and traffic incidents involving gun violence, and assigned each state a “Road Rage” score. Iowa was ranked 39 th and New Hampshire was 50 th , having the nicest drivers. Check out the full article from Consumer Affairs . 

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Sony and Apollo’s Plan for Paramount: Break It Up

CBS and other well-known properties would be sold if Sony and Apollo were able to buy Paramount. But the new owners would keep the movie studio.

By Benjamin Mullin and Lauren Hirsch

Shari Redstone helped build Paramount Global into a media empire, but if Sony Pictures Entertainment and the private-equity giant Apollo Global Management succeed in acquiring it, they plan to break it all up, according to three people familiar with the matter.

The plan would include auctioning off CBS, cable channels like MTV and the Paramount Plus streaming service, said the people, who asked not to be identified sharing private details. Paramount Pictures — home to blockbusters like “The Godfather,” “Top Gun” and the “Mission: Impossible” franchise — would be combined with Sony’s business.

Sony and Apollo, which made a nonbinding expression of interest in acquiring Paramount for $26 billion last week, are also likely to keep Paramount’s library of films and TV shows and the rights to well-known characters, including the Teenage Mutant Ninja Turtles and SpongeBob SquarePants. They have not yet outlined this plan to Paramount or its advisers.

A breakup of Paramount would represent a major changing of the guard in the entertainment industry. CBS and Paramount have been controlled by the Redstone family for decades, since the media mogul Sumner Redstone assembled the conglomerate in a series of audacious deals. His daughter, Ms. Redstone, championed a 2019 deal to reunite it, and she remains Paramount’s controlling shareholder.

Sony and Apollo are now engaging with Paramount’s financial advisers on next steps in their proposal, the people said. The two companies have not yet signed formal nondisclosure agreements or begun due diligence reviews, a process that could take weeks.

Though it’s still early, the two bidders have already begun to envision how a deal for Paramount could unfold. The two would likely operate the company as a joint venture controlled by Sony, with a minority stake owned by Apollo, the people said. Sony would look to combine the marketing and distribution functions of the Paramount movie studio with its own operations, and divest the rest of the properties.

Over time, Apollo could sell its stake in the joint venture back to Sony or to another buyer. It’s not yet clear just how large a stake Apollo would hold in the business, though the company plans to invest billions in the deal, one person said.

A breakup of Paramount is not a preferred outcome for Ms. Redstone, who would prefer the company to pass on to another buyer intact, a person familiar with her thinking said. But it wouldn’t necessarily be a dealbreaker if the offer was compelling, the person said.

There are other suitors. Skydance, a media company founded by the tech scion David Ellison, has been in discussions with Paramount for months about a potential deal. Exclusive negotiations between Skydance and Paramount lapsed last week, shortly after Sony and Apollo put in their expression of interest. But Skydance remains interested.

Sony and Paramount have different approaches to the entertainment business, and a deal would probably result in a U-turn for Paramount. Unlike Paramount, which streams its content on Paramount+, Sony licenses its movies and TV shows to companies like Netflix and Disney. Sony would probably not change that approach in a deal with Paramount and would most likely look to combine Paramount+ with a rival service, such as Comcast’s Peacock or Warner Bros. Discovery’s Max.

Sony has long pursued Paramount’s movie studio. Several years ago, Sony executives reached out to Paramount to see if the company would be willing to sell Paramount Pictures or merge it into a joint venture, but Paramount signaled it was interested only in a deal for the whole company. So when Apollo made a bid for all of Paramount this year, Sony decided to team up.

Any deal by Sony would face regulatory hurdles. Regulations restrict foreign owners from holding licenses for U.S. broadcast stations, which could prevent Sony — which is owned by the Japanese-based Sony Group — from owning CBS-affiliated TV stations. But they could divest the stations immediately, or have Apollo apply for the license. They are also considering other options for the stations.

The deal would also most likely require clearance from the Committee on Foreign Investment in the United States, the panel in Washington that scrutinizes acquisitions by foreign owners.

Sony and Apollo believe that when they decide to sell the Paramount assets , there could be many logical buyers, the three sources said. Warner Bros. Discovery, which does not own a broadcast network, could be a suitor for CBS. TV station groups like Nexstar and Tegna could be logical buyers for CBS’s owned and operated TV stations.

The hardest asset to sell would most likely be Paramount’s cable networks, like MTV and Nickelodeon, but those could be sold to a TV programmer looking for greater scale in negotiations with cable companies like Charter and Comcast.

Benjamin Mullin reports on the major companies behind news and entertainment. Contact Ben securely on Signal at +1 530-961-3223 or email at [email protected] . More about Benjamin Mullin

Lauren Hirsch joined The Times from CNBC in 2020, covering deals and the biggest stories on Wall Street. More about Lauren Hirsch