Business planning

By the time you have reached this factsheet you should have developed your export strategy and should have a plan of action.

You will be aware from running your business in your domestic market that there is a difference between costing and pricing. It is only rarely that businesses can add up all the costs, then add a margin, and call that the price.

As with many other aspects of business, the key to success in international trade and investment is careful preparation and planning.

Preparing forecasts will help you to assess your likely sales income, costs, external financing needs and profitability. Financial forecasts are essential if you need to raise money from a third party, such as a bank.

International trade is the exchange of goods or services for money between countries; foreign direct investment is investment by a business in another country for the purpose of trade, which could be domestic or international. However, there are many ways in which you can ‘internationalise’ your business.

This note is intended primarily for businesses that are seeking external finance. A business plan for use internally will tend to be more of a checklist of actions but a plan for a funder needs to explain the business in enough detail to reassure them that they will eventually get back their investment and make a return. A business plan can be prepared for the whole organisation or for a division or even just for a single service.

This note has been prepared to assist you to think about the risks that you might face when engaging in international trade or investment. Whilst some of the risks may apply more broadly, this fact sheet does not attempt to cover all aspects of business risk.