ImportExport Archives - GUJRAT INDIA

Profitable Import/Export Agency Business At Home (With Nothing Down, Low Or No Start-Up Cost)

What is a good way to build up a successful business from nothing and have fun doing it? The import/export business may be your answer. Not only does it require little financial investment to start, but also it offers the prestige of working with clients from all over the world.

You don’t need previous experience in the field, but you should have a good head for organizing. Fulfilling a successful import/export business requires constant attention to little details.

Do you know some local manufacturers looking for ways to increase their market for the goods they make? Or are you planning a trip abroad and want to make some contacts for setting up a business?

If you have ability to sell, and an air of diplomacy, the import/export business might be right for you. All you need is the desire and determination to make it work.

The biggest advantage is the money you’ll make. Once you get the business underway, the commission for setting up sales is very profitable. And after you establish and maintain a number of exclusive accounts, you’ll find the time you spend is highly rewarded with money.

HOW IT WORKS

Of all the manufacturers in the Nigeria, only a small percentage distribute goods outside of West Africa. The goods that do find foreign markets are exports. On the other hand, anything that is manufactured outside the country and brought in for sale is imported.

Although it seems obvious that all manufacturers would want a worldwide market, it is not easy for a company that is limited in its scope and abilities. That’s where you come in.

The market is unlimited and there are hundreds of manufacturers looking for foreign distribution. Processed Foods, Shoes, wares, garments, tools -anything can be readily imported or exported if there is a consumer demand and if you can get the products.

THE BASICS

You can start your import/export business at home with a telephone and an internet connection. You’ll need a file system, business cards, and a Computer to browse the internet. Once you get going, you’ll want a Post office Box to receive samples.

ANALYZE THE MARKET

Keep informed. Read everything you can find about world trade. Look at trade publications, international newspapers, newsmagazines, and financial reports. Who is selling what to whom? Although the market for American-made airplanes is sewn up, there are thousands of medium to small sized manufacturers in every state of the union.

WHERE TO FIND HELP

Establish a good business relationship with a local bank that handles international business. Your personal banker will follow through on the actual foreign transactions, and will help keep your credit afloat. In fact, that is one of the best factors about an import/ export business. Aside from office supplies and correspondence, or possible business trips, you need no personal cash outlay. All you need is good credit and a good reputation.

GETTING THE GOODS

There are hundreds of foreign manufacturers with limited distribution looking for an overseas market. Importing their goods is the place to start your business.

You have many selling qualities for convincing the manufacturers to engage you as the sole export agent. You have local contacts and know the demand for specific goods. You will handle the sale, the paperwork, the money, all shipping, customs, and foreign distribution.

TERMS OF SHIPPING

You will become more familiar with the terms of shipping used in quoting prices and delivering goods as you gain experience. Your responsibilities vary with the terms of the agreements and orders. Check with your freight forwarder to be clear about your responsibilities.

PROMOTION

After you have completed a few sales transactions to establish yourself, you’ll need to promote your import/ export business to get more clients. The first transactions give you the experience to learn the ropes of the business, and to establish contacts and agents both here and abroad.

EXPANDING THE BUSINESS

The profit of the import/export business is in the quantity of the goods traded. The higher the cost of the merchandise, the higher the profit from your percentage. Since you need to go through all the steps for each transaction, having more sales on a continual basis simply adds to profit.

If you are ready to put in the time, sell yourself. Start making inquiries and contacts. Try it on for size. Does it feel good? Then MAKE IT SUCCEED.

A Dozen Tips for Starting an Import/Export Business

Thinking of starting an import/export business? Jennifer Henzel, a Certified Import/Export Trade Professional offers these tips for getting started:

1. Many countries have set up offices (Consulates or Embassies) in foreign countries to promote the exporting of their goods. The Consulates will supply you with industry directories and more. Embassies are located in a nation’s capital and Consulates in different cities. In many cases, the Embassy web site will contain directories and manufacturer lists, as well as an email link that you can use for sourcing

2. To import goods, communicate with that country’s Consulate situated in your own country. If you are uncertain what products the other country wants, you can obtain catalogues and lists of manufacturers.

3. Contact your country’s taxation department to ask about registration numbers or other procedures that you must follow. For example, if you are Canadian, you will require a Registration Number, issued by Canada Customs and Taxation Agency (CATA). When you inform CCTA of your plans to import or export, they issue an extension to your business number. This number is used on all related documents.

4. Find out about licensing requirements, if any. Many countries do not have licensing requirements for most products. However, if you are importing or exporting high-risk products (pharmaceuticals, liquor, chemicals, arms, certain food items and certain articles of apparel), you might need a license. “I strongly recommend that people start out with low risk items that can be easily traded and have fewer barriers like giftware and consumer items,” said Henzel. “Certain industries, like dairy, are guarded by lobby groups in some countries. You will be faced with quotas and restrictions.”

5. Embargoes are trade barriers set up against other countries. Many countries have embargoes against Cuba, for example. First, contact your own government to determine whether there are restrictions or embargoes against the country you are considering. Next, contact that country’s Consulate or Embassy to see if there are restrictions against goods from your country.

6. Participate in the local Boards of Trades (or Chambers of Commerce if there is no local Board of Trade). In addition to networking, you have access to research libraries and other resources that will offer good trade information.

7. Use customs brokers. “Small businesses attempting their own paperwork can run into delays at borders. If you make a mistake, you can be fined,” said Henzel. “A custom broker’s service is well worth the fee you pay.”

8. When exporting, understand that there is no one solution to shipping and customs handling that will work in every situation. Every deal is different. Each company and each set of products will require a different set of services, or a combination of services. Engaging the services of a freight forwarder is one possibility. Freight forwarders arrange shipping and customs for goods going to other countries. “You have to shop for these services and do your research,” Henzel explained. “Ask a lot of questions. It’s no different than buying a piece of furniture. You shop around first.”

9. Be familiar with Incoterms, as posted to the International Chamber of Commerce Web Site (http://www.iccwbo.org/index_incoterms.asp). Incoterms are standard trade definitions that dictate the shipping and payment responsibilities of each party. The two companies involved negotiate Incoterms for each deal. The best known Incoterms include EXW (Ex works), FOB (Free on Board), CIF (Cost, Insurance and Freight), DDU (Delivered Duty Unpaid), and CPT (Carriage Paid To). “You negotiate according to the Incoterms,” Henzel said. “You decide who pays for shipping, who pays for insurance, etc.”

10. Consult your bank for information about Letters of Credit, the most common form of payment when trading internationally. With a Letter of Credit, you minimize your risk because the banks assure that the goods are delivered before the money is exchanged. As an importer, a Letter of Credit reduces the risk of having to pay in advance for goods, or of paying for goods that are inconsistent with the product description in the Letter. As an exporter, you have the buyer’s bank’s assurance that you will receive payment provided you ship the goods as specified within an agreed-upon time.

11. Participate in Trade Missions. Consult your Board of Trade or local Chamber of Commerce to discover what is available.

12. Finally, look to the Web for information about international trade. Many web sites offer an array of information that you can access for no charge, including Henzel’s site (www.importexportcoach.com).

What is Import-Export Business?

Import-export are important areas of business. When a person or a company buys goods like groceries, farm produce, textiles, machine parts or even crude oil from its own country and dispatches them to other countries for sale at a higher price, it is called export. When goods and raw material are brought from other countries to sell in one’s own country keeping a profit margin, it is called import.

Both kinds of trade depend on the internal productions of a country whose surplus is sold in the foreign market. A share of the profit coming from the sale of a country’s products also goes to the national treasury of the country. So both import export are important for a nation’s economy.

International relations too have a great impact on import export. If a country is not on good terms with another which is a prospective buyer of the former’s products, there evidently can be no business. After the 9/11 carnage the US had put embargo on trade with some Islamic nations that had been allegedly involved in planning the terror.

Import export data in this system of international trade show there is also competition among all importers. So the quality of the products is never compromised. If the quality of the item for export is poor it turns suicidal for the exporting country’s economy as it may permanently lose its market by damaging its reputation in the international trade circuit. Import export shows India’s jute usually has a tough competition with Bangladeshi jute, which is usually superior in quality to the former. Previously, there had been cases of the sale of inferior quality Indian jute in the international market. Consequently, India’s sale of jute suffered a drought for several years.

When starting an import export business it is most important to first collect statistics and buyers suppliers data to help you decide the product and the country you will be dealing with. The first step is an in depth research in all areas of business and customs shipment data will be of great help. Identifying the market and the product are the two most basic decisions to be made at the beginning. Research and planning with the available customs data confirms a successful business venture internationally or domestically.