A business plan is an essential roadmap to success. It is always better to have a plan in every thing we do especially in comes to business making. Having a plan in terms of doing business really helps a lot. The plan will help you tell what you plan to do and how you plan to do it. As what Richard C. Cushing always says.
“Always plan ahead. It wasn’t raining when Noah built the ark.”
A business plan is inherently strategic. With this, you will be able to determine your goals and objectives. This also outlines your financing needs. It also shows how long your business plan should be in order to achieve your goals and objectives.
Why Import Export Business?
Importing provides an incredible advantage once you’ve known the ins and outs of this business. One thing for sure is the money. If you buy low and sell the product at a high price, you would directly see your profit there.
Do you know some local manufacturers looking for ways to increase their market for the goods they make? Doing a successful import/export business requires constant attention to little details. If you have an ability to sell, the import/export business is right for you. All you need is the desire and determination to make it work. You’ll also need to create solid contacts and strong relationships with reliable suppliers. But after a short time, you can be well on your way to making a sizeable income – with a very low overhead.
Know Your Market
You have to narrow down the list of products you want to import/export with specially when this would be your first time in doing so. Having a good target market and know your customers gives you a greater opportunity to get more profit. You have to know who your customers would be. This will help you know your market. You’ll feel comfortable with the jargon and procedures so your sales pitch–and your initial sales–will go smoother and easier. This way, you may already have contacts in the field that can either become your first clients or steer you to colleagues in that area. Finding the right market is as important as the actual particulars of making deals and selling goods. What do you think will sell? If you do some careful studies and think about the trends, you’ll be able to come up with hundreds of products to import and export.
Check Import Rejection Laws and Trade Barriers
Before you do anything, make sure to check first the import rejection laws and trade barriers. Countries have these rules for chosen goods and products to insure safety and quality control. Trade barriers are measures that governments and public authorities introduce to make imported goods and services less competitive than locally produced goods and services. For instance there are foreign nations that restrict export of religious ornaments, rare or protected goods. A good example is a certain products such as furs and ivory are banned or are governed by export restrictions. Each country has their respective import and export laws and regulations and it is better to know these things before starting. You can read everything you can find about world trade. Look at trade publications, international newspapers, news magazines, and financial reports.
Business Set Up
Once you’ve learned the ins and out of the business your into, it is best to start with your business setup. You can actually start your import and export business at home with a telephone. You have to know the details on how your business operates. If you’re doing import and export business, you have to know these basics.
The Export – you’ve got a buyer for your products.
- Generate the invoice – give the importer a quote on your merchandise
- Receive the letter of credit from your bank.
- Fulfill terms of the letter of credit: Have the merchandise manufactured if necessary; make shipping and insurance arrangements; pack the merchandise; and have the merchandise transported.
- Collect shipping documents.
- Present shipping documents to your bank.
The Import – You have the products you want to buy and then resell.
- Receive the invoice from the exporter. You can negotiate if necessary
- Open a letter of credit at your bank.
- Verify that the merchandise has been shipped.
- Receive documents from the exporter.
- See merchandise through customs.
- Collect your merchandise.
If you have a bigger budget to finance your business, it’s a good way to get business assistance and training. This will help you learn a good location for your business and determine legal structure and register your business name along with your licenses, permits and local taxes. Formalizing your business also requires understanding the employer responsibilities.
Make Contacts and Build Relationship
Finding contacts is one of the factors in setting up your business. You may have relatives from other foreign countries. This will help your with your import and export business. Another thing is if you have frequently visited and have established a business relationship in a specific country. Or you have already a place you’ve feel to that your product will sell pretty well.
Chambers of Commerce for every city is another way to establish contacts. Meet and greet with the producer or distributor of the products you will be selling. Try to establish whether the company you are dealing with has export experience, and request references.
Hiring a Customs Broker
A customs broker is a professional that help you pull the information together and help you clear the goods customs. Customs broker helps your prepare all the documentations needed for importing goods and merchandises. Today, custom brokers are offering a growing range of specialized services in order to help importers. They help importers develop new product lines, explore new markets. They also help you evaluate the impact of global change and cut costs.
Once you’ve learned the ins and outs of import and export business, you’ll be able to achieve your goals and that includes a great profit you’ll be receiving.