When you are planning to invest in a foreign country, you will need more than just the capital and a business idea to go ahead with it. There are several factors which should be thought out clearly before you can even proceed. In a country like Vietnam, you need to consider things like the market, the finance, management team, and many more factors. All these analyses are compiled into one report known as the business plan in Vietnam. This business plan will be like your proposal to the Vietnamese local companies if you are engaging in a joint venture. Or it could be like a report for your shareholders to see if they agree with your business proposition. However you want to perceive it, a business plan is vital before starting a new business.
Depending on the type of business and your own requirements, a business plan can vary from person to person. However, there are certain things which should always be included in any business plan. Listed below are the pointers everyone should include in their business plan, especially for businesses in Vietnam.
Cover Page– I cannot stress enough how important a cover page is. Yes, it may seem silly but a cover page should contain all your contact details. Remember, this business plan will be going out to the people in Vietnam and your potential investors too. You need to make sure they can easily reach you for any sort of queries and thus having a cover page with your numbers and email ids are crucial.
Executive Summary– This is the part which can essentially make the minds of your potential investors and the authorities of Vietnam if they want to allow your business idea to flourish or not. The executive summary shall contain the overall summary of your entire business plan. Business plans can be lengthy and sometimes irritating to read for certain people. They just want to read the overall concept of the plan and that is where the executive summary comes in. If you can shortly explain what your business ideas are and how you are going to implement it and mention the target market and other important factors, then the investors will probably take an interest in your plans. And once they do, they will go through the entire report.
Opportunity– Every economy presents itself with an opportunity. Those smart enough to utilize it end up capturing the market and those who are too slow to re-act end up at the end of the line. In Vietnam, there are several opportunities, such as a consistent growth in their GDP. Your business plan should have a section that discusses the potential opportunities that may arise while working in Vietnam. Explain to them how you and your business are fully equipped to exploit these opportunities and in return generate revenue and profits for you investors.
Market Situation– The market for every product and services are not the same. Similarly, the market in Vietnam can greatly vary from the market of your hometown. This is why you need to provide a market situation in your business plan. As a developing nation, the market in Vietnam can be in the early stages of development. This is where your business idea should be clear how you plan on improving the market and how you can seize the market share before there are more competitors.
Management Team– A lot of people fail to include the management team details in their business plans. In Vietnam, there are specific requirements for running a business. Based on the type of business you are running or starting, the requirements can change. So your business plans should mention what kind of business it is that you are planning to start and how your company is going to be. Whether it will be a private limited company, a partnership business, a joint venture or other forms of business, it should be made clear. Based on that your management team should be built. In Vietnam, you need to have at least one director in a private limited company. All these questions should be cleared so that your investors and shareholders will have a clear concept about the whole thing.
Marketing and Sales– A key to running a business successfully depends on how well you are going to be marketing your products and services and how well the sales team do their job. That’s why this part should answer the following questions;
- Who are your primary consumers?
- How many of them are your potential consumers?
- What are the chances of the number growing or declining?
- Is your target audience open to foreign products or services or are they strictly confined to domestic companies only?
- What sort of promotional activities will be done?
- Who is going to be responsible for leading the marketing team as well as the sales team?
These are some of the most basic but important questions that one would want to know before starting a business. If you can answer all these in relation to Vietnam and the Vietnamese market then you should have a strong chance of getting your investors on board.
Financial Plan– Arguably the most important factor, the financial plan should mention all the detailed information regarding how much capital is needed to start the business. How you plan on repaying your investors and from where will the company generate revenue and so on. You need to put extra effort in this section because this is basically what the investors will be looking at.