Free Import Export Company Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
- All plans are updated for 2013!
1.0 Executive Summary
The purpose of this business plan is to raise $125,000 for the development of an import and export company while showcasing the expected financials and operations over the next three years. The Import Export Company, Inc. (“the Company”) is a New York based corporation that will acquire inventories of in demand domestic products with the intent to distribute them to wholesalers overseas. The business will also import in demand products for distribution to wholesalers within the Domestic US market. The Company was founded by John Doe.
1.1 Products and Services
The primary operations of the business will be the acquisition of in demand goods with the intent to export them to overseas countries. With the US dollar at an all time valuation low, export businesses have thrived as overseas suppliers can purchase substantial inventories at relatively low prices. The business’ secondary revenue stream will come from the importation of in demand foreign products with the intent to distribute them to wholesalers within the United States. As the strength of the dollar improves, Mr. Doe will expand this segment of the business. The third section of the business plan will further describe the services offered by the Import Export Company.
1.2 The Financing
Mr. Doe is seeking to raise $125,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.
1.3 Mission Statement
Management’s mission is to develop the Import Export Company into a profitable enterprise by sourcing in demand products both domestically and internationally for sale and distribution to major wholesalers and retailers.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the import/export industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to aggressively develop a network of wholesalers and major retailers that will purchase inventories of exported and imported goods both domestically and overseas.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Import Export Company, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Import Export Company requires $125,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Import Export Company, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Import Export Company. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Products and Services
Below is a description of the importing and exporting operations of the Company.
3.1 Exportation of In Demand Products
As discussed in the executive summary, Management has identified an outstanding opportunity to acquire inventories of in demand products produced domestically with the intent to distribute them overseas to wholesalers and major retailers. As the value of the US dollar is now at an all time low, many foreign buyers are seizing opportunities to purchase US goods as the purchasing power parity in relation to their currency is very strong. Mr. Doe intends to travel to Europe and Asia to find what American products are in demand among consumers. He will then source US based manufacturers and distributors that will provide him with wholesale/distributor level pricing so that he can acquire bulk inventories.
3.2 Importation of In Demand Products
At the moment, the secondary product line of the business will be the importation of in demand goods among American consumers with the intent to resell and distribute these products to other wholesalers and retailers. As the US dollar strengthens, this segment of the business will increase as the Company will be able to more affordably purchase foreign produced goods for importation and distribution into the Untied States.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the import/export industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2010, at which point the economy will begin a prolonged recovery period. Inflation is somewhat of a concern for the Company. As the inflation rate decreases, the purchasing power parity of the American dollar decreases in relation to other currencies. This may pose a risk to the Company should rampant inflation, much like the inflation experienced in the late 1970s, occur again. This event would significant weaken the Company’s ability to borrow funds, but it could also severely impact the gross margins of the business. After the business begins to generate in excess of $3,000,000 per year in revenues, the business may solicit a currency based investment bank to hedge against inflationary risks. This risk has been faced by many companies over the last five years as the value of the Euro/Yuan/Yen has appreciated significantly in its relation to the American dollar.
4.2 Industry Analysis
Each year more than $3 trillion dollars of products (and now services with the advent of the internet) are traded with foreign countries. Currently, with the dollar at an all time low, net exports are beginning to exceed imports as foreign buyers are recognizing tremendous bargains for American goods simply due to the condition of the US Dollar. Based on information from the US Economic Census and the Bureau of Labor Statistics, there are more than 2 million businesses that are actively engaged in the importation or exportation of goods and services. Approximately 10% of these companies operate in a general importing and exporting capacity while the remaining businesses typically have a specific product focus. During the next two years, Management expects that imports will become more in demand as the dollar strengths as a result of natural growth in the US economy and a return to more stable economy.
4.3 Customer Profile
As the Company intends to purchase a number of in demand products, both domestically and internationally, it is difficult to determine the end users of the Company’s product lines. However, Management has developed a demographic profile for the types of wholesalers and retailers of which Mr. Doe intends to develop strategic partnerships.
4.4 Competitive Analysis
As there are literally two million businesses engaged in imports/exports industry, it is very difficult to determine the competition that the business will continue to face as it progresses through operations. However, one of the ways that the Import Export Company intends to maintain competitive operations is to operate a very lean operating infrastructure, which can ensure that costs savings are passed onto wholesalers, distributors, and retailers both domestically and abroad.
5.0 Marketing Plan
The Import Export Company intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Import Export Company.
5.1 Marketing Objectives
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
• Establish relationships with wholesalers, retailers, and distributors domestically and internationally.
5.2 Marketing Strategies
The Company will engage a number of traditional and experimental sales and marketing strategies in order to have a high inventory turnover. The Import Export Company’s advertising campaigns will be completed through Internet, print and media campaigns, word of mouth referral, and public relations. At the onset of operations, the Company will develop a number of relationships with domestic and internationally based trade brokers that will allow the business to immediately begin divesting inventories of products. As Mr. Doe has had extensive experience and contacts within the industry, he will draw on these existing relationships to build a network of brokers that source products on behalf of the Import Export Company. The Management of the Import Export Company also intends to use an online based marketing campaign to develop its sales. Primarily, the Company will use search engine optimization techniques that will increase the Company’s visibility when selected key words regarding the importation and exportation of products are used among major search engines. The Company’s website will be an expansive online platform that showcases the Import Export Company’s operations, the product lines that it carries, how to become a trading partner with the business, and policies regarding trade and carrying terms.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• The Import Export Company will have an annual revenue growth rate of 16% per year.
• The Owner will acquire $125,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
The Import Export Company’s revenues are sensitive to several changes in the general economy. Primarily, the risks associated with the Company’s operations revolve around the varying fluctuations of currency. However, as the business will operate as both an importer and exporter of products, the risks associated with a weak dollar vs. a strong dollar should cancel each other out.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis