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Are you considering starting a business in an international country?

It can be a challenging task, but with the right planning and strategy, you can make it happen.

Before you dive into company incorporation, let’s explain the top 5 must-haves for an international business plan. These components will help you identify potential pitfalls and prepare for success in the global marketplace.

A clear and concise executive summary

Developing an executive summary is essential for setting the tone towards the new business. And helps outline the key objectives.

The executive summary should concisely explain the purpose of the business plan, the industry in which it operates, the management team, its competitive advantages, and the financing requirements. When creating an executive summary, planning should consider future growth, potential tax implications, and any particular legal requirements or challenges that may be encountered.

It should also provide a succinct explanation of the overall financial position of the business plan. By summarising the details of the plan into a short overview, potential investors and other stakeholders will be able to quickly understand the viability of the business. The executive summary should create an impression that the business plan is well-researched and thoughtfully planned out.

 

Market analysis

Market analysis is a critical component of any business plan, particularly when incorporating a business in a foreign country. It involves researching the potential customer base and understanding the competition in the marketplace. This helps to identify opportunities and assess risks associated with entering that particular market.

When included in a business plan, market analysis can provide invaluable insight into the size, scope, and nature of the customer base and the current state of competition. It also provides information on factors such as pricing, consumer trends, and regulations related to taxation. By performing a thorough market analysis, potential investors can gain confidence that they are investing in a business with a realistic chance of success in its chosen market.

Additionally, market analysis can help to highlight areas where the business may face specific challenges due to tax or regulatory policies in the chosen country. Through an understanding of such policies, businesses can make informed decisions about how best to position themselves for success.

 

Company description

When creating a company description, it is important to include the purpose of the business, its legal structure, the management team, and the location. The company description should be an advertisement for the business and should describe why potential customers or clients would benefit from engaging with your company.

Additionally, it is essential to explain how the company will function in terms of taxation – what taxes will be paid, to whom, and how often. Tax compliance is of the utmost importance when doing business in a new international country. It is key to make sure all regulations are followed properly. A well-defined company description can help set the stage for a successful business venture.

 

Products and services

By detailing the products and services offered by the business, potential investors can get a better understanding of what the business offers and how it will generate revenue. Furthermore, having a clear description of the products and services offered by the business can help to differentiate it from its competitors. This can help to build their confidence in the business, as well as provide them with an insight into what areas of the market the business is targeting.

A business plan should also detail the cost associated with producing and selling the products and services offered by the business. This will allow potential investors to assess whether or not they believe the prices associated with these products and services are realistic. And whether or not they believe the business will be able to generate sufficient profits to remain viable in the long term.

Overall, providing a comprehensive overview of the products and services that a new business intends to offer is essential for providing potential investors with a clear understanding of the business’s core offering.

 

Financial projections

Financial projections are an important part of the business plan as they provide a clear picture of where the business is headed and help you identify any areas of potential financial risk or opportunity.

To create an accurate financial projection, you should look at both past and future performance. This includes analysing current and historical financial information. Such as income statements, balance sheets, and cash flow statements. You should also look at industry trends and market projections to get an understanding of how your company will fare in its new international location.

It is important to remember that financial projections are only estimates and not guarantees. Therefore, it is important to be on the side of caution when creating your financial projection. Try to create a clear picture as to where the business could succeed, rather than just relying on an estimation.

 

How RHJ Accountants can help

RHJ Accountants can help you incorporate a business in the UK, Portugal, Malta, UAE and most recently Cyprus. With our experienced international team, we are here to support your new business venture with strategic business planning services.

Our team can provide the expertise and advice needed to ensure your business succeeds, so why not arrange a free consultation with us today?

If you’re not yet ready to develop a new business and are just in the learning stages. Make sure to read our regular blog articles. They offer helpful advice and information about establishing a business abroad and highlight the potential pitfalls to be aware of.

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