ENHANCED PLATFORM OF THE BUSINESS PLAN
A small business can be so consuming that it is difficult for an owner to stand back and realize what their business really needs and specifically what it needs to take it to the international level.
Upon deciding whether to enter the international market, there are suggested steps to follow in order to be successful. Aside from having a stellar product or service, it is imperative to have the following also in place.
1. Up to date graphics and business presence online and offline
2. SEO INSERT HYPERLINK analysis for international entry
3. An executable electronic customer database
4. A Market Entry Strategy- direct sell/use of a international representative
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By taking the time and finding the appropriate resources to invest in the various facets of the business, an entrepreneur can reap great return and an opportunity for growth. Some businesses may only informational websites that never really receive the finishing touches that would leave a strong impression; or maybe the site is need of facelift. To regain ROI, a primary part of the business plan should focus on bringing website graphics and technology up to date. Return on Investment (ROI) and the cost of advertising are areas where ROI should be outlined.
Some business owners view advertising as a business expense when it should really be considered an investment in your business, especially if you would like to benefit from repeat business. If you have a quality product or service, your customers should return again and again so you can afford to invest even more to attract new customers. As Elizabeth Kalmbac, a Media Buyer of Keely, Scott, and Madison explains, “Head above water doesn’t really do much when there are competitors who spend money on advertising. Don’t be afraid to call traditional media outlets. There is opening to local advertisers because there is space to fill.” She continues “As technology changes, media planning changes. There are now a million and one places to advertise, find out where your consumers are and establish relevance.”
Amy Minnick of Southern Jewelry News comments on innovative techniques of effective marketing outside of the box. She says, “Years ago, very few had a marketing budget or a marketing plan. But today most retailers realize the critical nature of keeping their name out there” She mentions how a jewelry designer in Chicago teamed up with an upscale steak house to create a specialty martini to pair with a jewelry pendant. Diners purchase the pairing off the menu. It’s a win-win, as the steak house now can claim it has the most expensive martini in town.
Many small businesses cut corners by trying to do everything in-house. As a result, the professional image can be compromised. For example, an unattractive website can actually detract from business if it lacks professionalism, if the content has grammatical errors, or if the site isn’t drawing traffic from search engines. A service business that doesn’t have a live person answering the phones at all times is definitely missing opportunities. Always make clear what your office hours are and then commit to having a live person answer the line during that time. Consumers are often fueled by instant gratification and if a prospective buyer ends up getting your voice mail, there’s a good chance they will move on and call a competitor.
Many small businesses cut corners by trying to do everything in-house. As a result, the professional image can be compromised. For example, an unattractive website can actually detract from business if it lacks professionalism, if the content has grammatical errors, or if the site isn’t drawing traffic from search engines. A service business that doesn’t have a live person answering the phones at all times is definitely missing opportunities. Always make clear what your office hours are and then commit to having a live person answer the line during that time. Consumers are often fueled by instant gratification and if a prospective buyer ends up getting your voice mail, there’s a good chance they will move on and call a competitor.
With the advent of online business, the business plan has become more challenging to detail just as the “target” customer has become harder to pinpoint. Especially from a designer’s perspective, the “target” customer may only be one person if it’s haute couture and perhaps a small handful if designs are replicated. Also, you may have a representative that will showcase your line. Your demographic may not be as narrow as you think if your representative exhibits your products across many trade shows and press and media outlets. These are important factors to keep in mind when and if you are trying to readjust the traditional business plan. A small business can be so consuming that it is difficult for an owner to stand back and realize what their business really needs and specifically what it needs to take it to the international level.
David Brown President of Retail Edge Academy says, “The biggest difference between a successful store owner and an unsuccessful one is the ability of the owner to concentrate on the important rather than the urgent. That is, as an owner, to maximize profit, one should focus on the larger picture of business planning, not the mundane tasks that you could have an assistant or intern help with.”
Nowadays, with more entrepreneurs entering the business place, the business plan needs to incorporate more of the creative examples that are occurring in the industry. Embellish your plan as much as possible or have an appendix with like minded stories that help your business strategy. One of my favorite business stories is Big Buddha, an inspirational success story of a handbag designer that started selling handbags from his dorm room. His story shows that with a passion to sell one’s brand, without any professional training or experience in the industry, anything is possible.
FINANCIAL PLANOne of the most important components of your business plan will require a clear sense of the financial part of of the business planning.
I can’t emphasize enough how powerful software is, and with the plethora of smart phones around these days, there is no excuse why you should not always know how to calculate your pricing and what your components cost you so that when you need to access your data, you know that it’s always accessible. Especially if going on buying trips overseas or on a buying trip for supplies, it will be an essential tool to access your business information within seconds. Microsoft Excel can create formulas to help you calculate your Gross Margins and your Net Income. (and if you are unfamiliar with how to use the software there are a lot of videos on Youtube that can help). You can easily create spreadsheets to house all of your data and the tabs within each spreadsheet will enable you to hold a tremendous amount of data which can all be easily accessed on smart phones. Investing in a three-hour class could potentially save you countless hours of wasted time—hours that could be used to generate revenues!
Finally, keep in mind the competitive forces that can affect you bottom line. Some may not be as measurable, but always figure in any additional city or state taxes, duties, and other items that can change your net income. Make sure you have your State Resale number, which exempts State Sales Tax. This can save between 8 and 9% on your cost of goods.
INTERNATIONAL BUSINESS TIPSWhen considering doing business with parties overseas, you should learn the basics of business development specific to that country. So, whether it is joint venture, partnership, or licensing, be aware of all of the things that will impact whether you set up business trading in another country. Excellent business development skills particular to the region you are looking to import/export to will be essential. That is, find out the different arrangements that can be made within each country with regards to your type of business whether it be in manufacturing or intellectual property. Of course it helps to know the language and to have local contacts, but don’t limit yourself to textbook learning, go and develop local contacts. There are subtle social customs of how business deals are made which can only be experienced first hand and I’d suggest reaching out to any contacts you have and arranging a phone meeting with someone has experience with the particular type of trade you’d like to engage in. Learning key vocabulary words and talking to an experienced trade specialist could have on your business. Also, local chambers of commerce and also national consulates are a great resource for trade issues. Always keep in mind the currency you will be buying or selling in, whether you want that to always be US dollars or not, which would be dependant the expected strength of your preferred currency at the time of payment. In some cases, you may not have a choice, and will be expected to be paid in the local currency, so just be mindful of the risks involved in this sort of arrangement.
Another key element for international business it to make sure your e-commerce platform is set up for international ordering. Suppose you have received really great press and international media, and all of a sudden you have a customer in France that wants to buy your products. Well, take the extra time upfront to make sure your shopping cart is set up for international shipping and the appropriate tax structure for international shipping. Now days most of this is automated and your webmaster should be able to set this up on the backend.
Another key element for international business it to make sure your e-commerce platform is set up for international ordering. Suppose you have received really great press and international media, and all of a sudden you have a customer in France that wants to buy your products. Well, take the extra time upfront to make sure your shopping cart is set up for international shipping and the appropriate tax structure for international shipping. Now days most of this is automated and your webmaster should be able to set this up on the backend.
If you are planning to sell overseas via a trade show or trunk show, one of the most important tenants in doing international business is that relationships are key. More so than in the United States, so remember to be multi-disciplined in this regard. Also, don’t let not knowing a foreign language deter you. Translators are easily available and highly recommended these days. And can be a great resource for many of the legalities that might arise. And finally, do understand how to get through the red tape of each country with your specific industry. You don’t want a lawsuit that can put the company out of business because you didn’t do your homework. Setting up bank accounts in foreign countries is quite easy now and with online banking becoming the norm, it’s very easy to keep track of such accounts and to create wire transfers.
Here’s a great guide to doing business in India:http://www.stylusinc.com/business/india/cultural_tip1.htm
Rani Khamesra is an online business expert with experience in international trade and buying experience within the luxury jewelry industry. She has worked at Harry Winston as a Planning Analyst and is currently focused on generating awareness within the DIY niche of the wholesale jewelry hardware business. Also, Rani is the President of the Professional Women’s Alliance of New York City. Please follow Rani on her blog http://www.houseofindia.com/store/myblog.php or contact her at rani@houseofindia.com
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