A Road Map for Building a Business in Emerging Markets. Part 1.

1. Starting a Business in Emerging Markets: From Idea
to Business Plan
May 5, 2011 By Aviad Meitar
A Road Map for Building a Business in Emerging Markets- Part I
The first phase for anyone looking to start a business is to take the idea which is at the
core of the business proposition and develop it into a business plan. This is essential not
only in order to get the attention of potential investors, but also as an important planning
tool that forces the entrepreneur-to-be to methodically plan the execution of the new
venture. While this phase is an important element in starting any business, it is probably
even more important in starting a business in emerging markets.
Here are the five basic steps for moving from start-up concept to business plan:
1. Defining the idea
2. The initial due diligence
3. Data gathering and analysis
4. Reaching the conclusion
5. Putting together the business plan

2. 1. Defining the idea: It is important to clearly express the business concept and examine
what makes it a compelling business proposition. The definition should explain the main
business purpose and why there is a need for such proposition.
2. The initial due diligence: When planning to start a business in an emerging market,
there is obviously a need to learn about that particular market. This process starts even
before the first visit to that market and should include a discussion with anyone who has
relevant knowledge about it. In planning the first visit, the entrepreneur needs to evaluate
whom to take along and what to cover during the visit.
3. Data gathering and analysis: There are a number of critical areas that the
entrepreneur needs to develop an understanding of during this process: the political
situation, legal framework, macro-economic indicators, relevant industry segmentation
and existence of potential partners.
4. Reaching the conclusion: Upon completion of due diligence and analysis, one needs
to arrive at a conclusion whether to pursue the business proposition. If the conclusion is
positive, there is a need to fine-tune the proposition and define the investment needed.
5. Putting together the business plan: This is the final step in the process. It should
include a business strategy, analysis of the investment required, realistic financial
projections (5 years in most cases) and outlining of the business risks involved. The
document should be a product of what one truly believes in, since it will be reviewed
periodically by people associated with the project and the actual performance will be
measured against it.
This is obviously only a short synopsis of the process leading from a new-venture idea to
a business plan. Each step involves a number of additional elements and may take
significant time to complete.
You can learn more about the process I engaged in in setting up the Pepsi business in
Romania by visiting my web site at www.aviadmeitar.com.

3. To find out more about the Pepsi venture in Romania read my book: “An
Unimaginable Journey”
For more tips and insights on entrepreneurship and business management, or to
share your journey, visit me at www.AviadMeitar.com
Follow me on Twitter @aviadmeitar and Facebook : An unimaginable Journey