Starting an import/export business?
Post 1 of 5
On any given day, millions of dollars worth of goods is traded on the global market. Some of those goods are exports, or products sent outside ones country by domestic manufacturers. Others are imports, or products manufactured abroad and brought into ones country to be purchased by consumers.
Sometimes the manufacturers and distributors of imported and exported goods have established a system to deal directly with one another. However, many manufacturers and distributors dont have the resources, desire, or know-how to do it on their own. Instead, they rely on the services of a middleman an importer/exporter to make contacts, arrange deals, and deliver the products.
Starting an import/export business may seem daunting if for no other reason than it necessitates operating in an unfamiliar business environment. But for a business with relatively few startup costs, the rewards of importing/exporting are definitely worth it. Importers/exporters typically earn big bucks 10% of every transaction. With a little organization and perseverance, there is nothing stopping you from turning a small start-up into a thriving import/export company.
To be fair, importing/exporting involves an endless litany of details. That being said, here is a simplified overview of what it takes to launch a successful import/export business.
1: Establish Contacts
Once you decide to enter the import/export field, your first task will be to make contacts with foreign manufacturers and distributors interested in trading with your country-based firms. Start by making a list of the people you know who live outside your country friends, family members, business acquaintances, etc. You might be surprised how many contacts you already have.
But even if you dont know anybody outside your country, you can still make contacts through foreign-based embassies in your country or your countrys embassies in foreign countries, and government sponsored programs designed to stimulate global trade.
2: Identify and Research the Market
Your next step will be to identify a target industry and market. Part of your decision will be based on the contacts you have made, but you will also have to do some research to stay abreast of trends and other factors that will determine the viability of a given market.
You should also investigate trade barriers, tariffs, and other restrictions that may affect your activity. Look for Government Export Portal on the internet that will point you toward the information you need.
3: Make the Deal
After you have identified and researched your target industry and market, you can begin the process of approaching your domestic and international contacts about their needs. Your job will be to play the role of matchmaker, matching manufacturers and distributors in your country with foreign partners and vice versa.
Once youve made the match, youll need to negotiate a deal that is satisfactory to both parties. The terms of the deal will need to be agreed upon in writing, taking into account issues such as price, quantity, delivery timeframe, shipping and letters of credit (secured payments)
4: Deliver the Goods
Many businesses employ the services of an importer/exporter simply because they dont want to deal with transporting their products internationally. That means youll need to learn how to cut through the red tape and oversee the products delivery in a timely manner. This will get easier as you grow increasingly familiar with the process and establish relationships with shipping companies.
Sometimes the manufacturers and distributors of imported and exported goods have established a system to deal directly with one another. However, many manufacturers and distributors dont have the resources, desire, or know-how to do it on their own. Instead, they rely on the services of a middleman an importer/exporter to make contacts, arrange deals, and deliver the products.
Starting an import/export business may seem daunting if for no other reason than it necessitates operating in an unfamiliar business environment. But for a business with relatively few startup costs, the rewards of importing/exporting are definitely worth it. Importers/exporters typically earn big bucks 10% of every transaction. With a little organization and perseverance, there is nothing stopping you from turning a small start-up into a thriving import/export company.
To be fair, importing/exporting involves an endless litany of details. That being said, here is a simplified overview of what it takes to launch a successful import/export business.
1: Establish Contacts
Once you decide to enter the import/export field, your first task will be to make contacts with foreign manufacturers and distributors interested in trading with your country-based firms. Start by making a list of the people you know who live outside your country friends, family members, business acquaintances, etc. You might be surprised how many contacts you already have.
But even if you dont know anybody outside your country, you can still make contacts through foreign-based embassies in your country or your countrys embassies in foreign countries, and government sponsored programs designed to stimulate global trade.
2: Identify and Research the Market
Your next step will be to identify a target industry and market. Part of your decision will be based on the contacts you have made, but you will also have to do some research to stay abreast of trends and other factors that will determine the viability of a given market.
You should also investigate trade barriers, tariffs, and other restrictions that may affect your activity. Look for Government Export Portal on the internet that will point you toward the information you need.
3: Make the Deal
After you have identified and researched your target industry and market, you can begin the process of approaching your domestic and international contacts about their needs. Your job will be to play the role of matchmaker, matching manufacturers and distributors in your country with foreign partners and vice versa.
Once youve made the match, youll need to negotiate a deal that is satisfactory to both parties. The terms of the deal will need to be agreed upon in writing, taking into account issues such as price, quantity, delivery timeframe, shipping and letters of credit (secured payments)
4: Deliver the Goods
Many businesses employ the services of an importer/exporter simply because they dont want to deal with transporting their products internationally. That means youll need to learn how to cut through the red tape and oversee the products delivery in a timely manner. This will get easier as you grow increasingly familiar with the process and establish relationships with shipping companies.
30 Nov 2006 10:15
Post 2 of 5
Good advise to think about, if thinking about an Import/Export business. One book I am reading is Building Import/Export Business by Kenneth D. Weiss ![[em19]](http://img.alibaba.com/images/eng/style/icon/emoticons_great.gif)
07 Jan 2007 13:39
Post 3 of 5
Do not copy and paste articles that you didn't write without sources. This is fair warning. I don't want any problems with copyright issues.
You copied and pasted the article from here:
http://www.gaebler.com/Import-Export-Business.htm
You copied and pasted the article from here:
http://www.gaebler.com/Import-Export-Business.htm
10 Jan 2007 11:06
Post 4 of 5
every advice is good, but every step is hard, are there big risk to do this type business?
17 Jan 2007 16:10
Post 5 of 5
Replying to [Tell me why]:THANKS for the info. Now you've aroused my interest in doing more research in export-import business... but i think if you cant have much links yet, i think we can try to establish A GOOD one through Alibaba. You can find lots of interested prospects here.... Good point.
18 Jan 2007 01:56
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