Exploring the Import / Export Business

To learn how to start your own export import business it is important that you get background information on the import export business and that you make a business plan that summarizes exactly what you want to do.

The knowledge that you might have accumulated through education, running your business or other means will certainly help you in foreign trade.

Large companies sell only 4 percent of all exports.  As a top import/export agent, you can net a healthy six-figure income by matching buyers and sellers from around the globe, right from your own home. 

There’s a big market waiting for you out there! In one year alone, American companies exported $349 billion in merchandise to 226 foreign countries. 

Everyone is talking about China these days and the trade deficits with America

Starting an Export (maybe importing) business from Beijing depends on what you’re are exporting and importing.  Based on certain things you are importing/exporting you may ONLY be able to setup a Chinese company, and so you had better find a Chinese partner/spouse/friend to do this for you and take 100% responsibility.  I understand that particularly for export there are substantial opportunities.

Starting and managing an import-export business requires:

Careful planning with solid foundation to reach the company's goal;

Commitment and sacrifice to overcome obstacles;

Knowledge of basic management skills and including government regulations; Establishing a good relationship with buyers and suppliers. 

There is no question that operating an import/export business is inevitably more complicated and risky than operating business in the domestic markets.  Nevertheless, experiences gained in the domestic business could help jump start an import-export operation and it can be a logical expansion of the company's domestic business activities.

More companies around the world are gaining international experiences and are increasingly becoming successful and profitable through import-export trade.  What all these successful companies have in common is a well thought-out import-export business plan.  Your import-export business plan should tell where, why, when and how your company will reach its goal.  Remember, your export import business plan has to be written.  Knowledge of import-export mechanics is an important consideration.  Whether you do it in-house or outsource different services the following are some of the key knowledge areas that your company should have a good understanding of to help it succeed in the import-export business. 

It is very unfortunate that many small businesses consider import-export when their business slows in the domestic markets, or when they have access production capacity to sell to cover their domestic losses.  The same companies, when domestic demands for their product increases, often forget their import-export business.

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. 

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) Many businesses employ the services of an importer/exporter simply because they don’t want to deal with transporting their products internationally.  Deliver the goods!  This is good advice to think about, if thinking about an import /export business.

However, cross-border trading will create a division between the companies that actively import and export using the Internet and those that don't.  If you are already involved in international trade or planning to either import / export products, Internet could be your primary source of gathering data, researching prospective market, finding clients and, may be even, for doing your entire import / export business online. 

First, let’s look into the export side of the international trade.  Well-documented and clearly written export marketing plan will work as your road map to success.  Although, in any given time you may find numerous products that qualify as exportable one, your chance for success will increase substantially if your chosen product met the following criteria:. 

If you don’t have a product to export yet, and you are serious about export oriented business, consider checking out your local trade shows to seek out an exportable product.  To identify an export market you have to spend some time on gathering necessary information.  You will need export statistics of your country to see which markets are presently buying products similar to yours. 

Apart from checking the statistics from you own country, you also should verify export statistics from several other countries that manufacture and export similar products.  Market research is imperative in order to identify export potential of a product in a targeted country. 

One should also find an export trading house to use for your business. The advantage, if you find right export trading house, is the experience and knowledge the company may have.  Good Luck with your import / export business venture!