When faced with the task of developing financial projections, a new-to-export or new-to-market business client will often view it as a paramount challenge. In addition, the initial investment and financial commitment required to enter a new market might be discouraging to the exporter, especially when means to develop a detailed and comprehensive financial plan are lacking, and a company is faced with too much uncertainty in the absence of a comprehensive financial planning tool. Development of international financial projections involves unique specifics and complexities associated with global markets. When developing an export business plan, the issues of costing (variable vs. full absorption), financial forecasting, and product pricing come into play. Projected sales, COGS, exporting costs, marketing costs, payment methods, and pricing will differ for international operations. In addition, one needs to consider the topics of break-even analysis, appropriate allocation of corporate/administrative overhead costs, and the interface between exchange rates and sales projections.
For more information contact Aldis Jakubovskis (314)241-1591.