What should an E2 Visa Business Plan Contain?

A professionally written business plan is an important part for an E2 visa application. The business plan should show how the business is not marginal, meaning the business will not be not just solely for earning a living but will allow the investor and his or her family to thrive financially while in the United States. In addition, the business plan should show the immigration officer that the applicant has invested or is in the process of investing a substantial amount that will give the business a strong chance of success and that the applicant is in a position to develop and direct the enterprise.

Executive Summary An E-2 visa business plan should start with an executive summary that briefly states what the business is, how much it was invested in it, how will the business succeed and what will be the benefit for the United States in terms of jobs created and taxes generated by the business.

Business Description Like other immigration business plans, an E-2 visa business plan needs to have a description of the business and its operations. However, for an E2 business plan it is important to describe the business’s location, including what is the available square footage, will it be sufficient to allow for the hiring of additional employees. Also, the location description should include whether the business’s location is purchased by the business or leased. If leased the business plan should include the main terms of the lease such as duration, deposit amount and monthly lease payment. If the E-2 company purchased the property for its location, the business plan should include the purchase price and mortgage terms such as monthly payment, down payment, and duration, if applicable. Regarding location the business plan should also state the purpose for which the premises will be used. For example, administrative office, warehouse, or a manufacturing facility. Further, the business description section of an E-2 visa busines plan has to include the description of goods or services the business is selling, how will its operations be organized and the experience and credentials of its senior management.

Investment Summary This is an important part of any E2 visa business plan. This section should state from whose account the money was transferred to the business, mention any funds spent from the investor’s personal account on behalf of the business and most importantly correctly state both the total amount invested and the total amount already spent. The dollar amount already spent should be broken by major category such as professional fees, equipment, and premises.

Industry and Market Analysis Should include a description of the industry, its size, the main players, what drives profitability, the industry outlook and current trends. The industry analysis aims to show that there is a market for the E2 company’s goods and/or services. That analysis of major market typically includes what are the main type of buyers, what determines their purchasing behavior and what are the prospects for their future purchasing prospects. Further the industry and market analysis should include a section dedicated to the geographic-based aspects of the E2 company’s target market. Some businesses such as restaurants might focus their efforts to selling to the public in their immediate vicinity. That would mean the market analysis should include a section on the local economy of the city, town and/or county where the business is located and an analysis on the competitors that operate in the area. Other types of businesses might market their products nationally and/or internationally and might be less sensitive to the sate of the local economy or have competition that is located in their immediate area. Here the job of a professional would be to understand the nature of the E2 business and prepare an industry and marketing analysis that correctly shows the economic environment in which that business will operate.

Competitive Advantages and Marketing Strategy After proving that there is viable market for the E2 company’s goods and/or services, an E-2 business plan must show that the enterprise has a realistic plan to develop and prosper. Any successful business has features that distinguish it from its rivals and makes its products more desirable that those of its competition. Those features are called competitive advantages. A highly qualified staff, a new technology, a unique marketing strategy or a prime location can all be considered competitive advantages. Here the E2 business plan preparer must be careful not to misstate facts or overhype such as presenting otherwise conventional marketing strategies as unique. Any business that is likely to be successful must have a plan of how to get ahead of the competition. Simply putting generic competitive advantages in the business plan might signal the immigration officer that the E2 applicant either has no interest in the business succeeding or does not have the ability to develop that business. A detailed description of the marketing strategy is also very important. No business can be profitable if it cannot sell and market its products. A well-written E-2 business plan includes a description of what marketing channels will be utilized, how the product will be presented, what third party advertising will be used and what is the budget to achieve the marketing objectives.

Key Management and Personnel Plan This section should describe the duties of the positions that the E2 company currently has and all positions that are expected to be opened in the future. It should also contain a description of the positions of key management personnel, including the E2 investor, as well as their professional and education credential and professional employment history. Further, the personnel should have a schedule of each position, when it will be filled, at what salary level, and what the total payroll of the company will be. This section is used to establish that the applicant is in a position to develop and direct the enterprise and to show how the E2 business will benefit the United States in terms of generating new employment and payroll tax.

Financial Projections Should be realistic and detailed. The aim is to show how the E2 business will be profitable and not a marginal one solely for earning a living. The first part of the projections is to create a sales forecast that includes the units of product sold, prices and total revenue per year. While immigration officers understand that the sales forecast is only a projection and there is a great degree of uncertainty, they do expect to see a certain level of realism. The financial projections should also include a pro-forma profit and loss statement, a pro-forma balance sheet and a calculation of the taxes the company is expected to generate for the United States. The financial projections must also establish how the investment is sufficient for the development of the business and the new enterprise would not be dependent of alternative sources of capital such as bank loans and private equity financing.

If you are looking for an immigration business plan for an E-2 investor visa contact us, Key Reef Financial, your dedicated business plan professional and business consultant in Miami, Florida.