CHAPTER 2
Basic Plan Elements and Variations It is a bad plan that admits of no modification. – PUBLIUS
THE
SYRUS
O F A N I N T E R N A T I O N A L B U S I N E S S P L A N is a challenging task, primarily because a plan typically needs to serve a variety of purposes. While nearly every plan will include a number of basic elements, the actual content will depend on such factors as what business you are planning, how you intend to use the plan and who will be asked to review and evaluate the plan. In fact, it is quite common to prepare a single plan and then subsequently alter the contents to the extent needed for a specific purpose. A business plan is mainly developed for two reasons: (1) to clarify your own vision, and (2) to sell your company to potential investors, bankers and partners. Write your international business plan with both goals in mind and cover all the issues necessary to accomplish your objectives.
PREPARATION
Contents and Characteristics of a Useful Business Plan Although there are no formal requirements when selecting the contents of an international business plan, you can follow established guidelines of successful businesses to ensure that you have collected all essential information and considered all relevant issues. Although a business plan can be organized in a variety of ways, and there are no hard and fast rules, there are some guidelines that can be followed. ELEMENTS OF A BUSINESS PLAN
The following structure is suggested as a starting point: ■ ■ ■ ■ ■ ■ ■
Introduction or Executive Summary Business Product or Service Marketing Management Financials Supplemental Materials Each of the above elements is covered separately in detail beginning at Chapter 6.
EMPHASIS AND STRUCTURE
The purpose of the plan will dictate the emphasis and structure of its contents. For example, if the plan is prepared for circulation to investors who might not be familiar with the company, an Introduction and general background description of the business of the company will be relevant. Similarly, when a plan being used
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