Feb 03, 2020 - 12:40 AM
Thanks for your question. Allow me to answer it to the best of my knowledge.
Getting started: Select Your Business Name and logo:
The business name is an identity, this is the foremost thing people will hear about you, make it professional yet catchy to grab the attention of your customer, supported by a brand logo which will be your brand identity. Pick a product to Import and Export:
Try catering to people's requirements. Decide on something you know it will sell or you like it. Key factors to keep in mind while selecting products:
- The product should be manufactured or sourced with consistent standard quality, comparable to your competitors. ISO or equivalent certification helps in selling the product in the international market.
- If possible, avoid products that are the monopoly of one or a few suppliers. If you are the manufacturer - make sure sufficient capacity is available in-house or you have the wherewithal to outsource it at short notice. Timely supply is a key success factor in the export business
- The price of the exported product should not fluctuate very often - threatening profitability to the export business.
- Strictly check the government policies related to the export of a particular product. Though there are very few restrictions in export - it is better to check the regulatory status of your selected product.
- Carefully study the various government incentive schemes and tax exemption like duty drawback and DEPB.
- Import regulation in overseas markets, especially tariff and non-tariff barriers. Though a major non-tariff barrier (textile quota) has been abolished - there are still other tariff and non-tariff barriers. If your product attracts a higher duty in the target country - demand obviously falls.
- Registration/Special provision for your products in importing country. This is especially applicable for processed food and beverages, drugs and chemicals.
- Seasonal vagaries of selected products as some products sell in summer, while others in winter. The festive season is also important to factor, for example, certain products are more sellable only during Christmas.
- Keep in mind special packaging and labeling requirements of perishable products like processed food and dairy products.
- Special measures are required for the transportation of certain products, which may be bulky or fragile or hazardous or perishable.
The first register for service taxes or GST. It is required to obtain a PAN card for the business issued by the Income Tax Department, open a current account with any commercial bank, get the Import Export Code (IEC) by applying online at the DGFT website. After IEC one needs to obtain a Registration cum Membership Certificate (RCMC) which is granted by the concerned Export Promotion Councils to get authorization to import and export. Find Right Market:
You can take the help of the Chamber of Commerce or The World Bank’s "Ease of Doing Business" and globalEDGE’s "Market Potential Index." Find Supplier or Manufactures:
You can use go4WorldBusiness.com to find worldwide suppliers and manufacturers of the decided products. You need to find them, make a solid connection, and establish a business relationship with these companies. The market is unlimited and there are hundreds of manufacturers looking for foreign distribution. Sporting goods, clocks, electronic games, radios, housewares, garments, tools - anything can be readily imported or exported if there is a consumer demand and if you can get the products.
You can start your import/export business at home with a telephone. You'll need a file system, business cards, and a machine to answer the phone calls. Once you get going, you'll want a web site address or a fax number. Without a website or blog, you can't have a networked import/export business. You can use go4worldbusiness.com's platform, as registering here creates a microsite for you which you can use without paying extra for web development.
Try to involve your contacts through email campaigns. Be careful when you are using emails. Do not send mass emails using mass mailer as it will cause you to be blacklisted, because you may be classified as spamming. Send only one email at a time to all your contacts. To every possible contact, write a letter introducing your company, requesting the names and addresses of appropriate firms to contact. Ask to have the notice published in the monthly bulletin or posted in an appropriate place.
From the names you get back, write another letter, again introducing yourself, and asking for information about their company. You can use a questionnaire, which fills out and invites a response. What goods do they want to import? What products are now imported and how are they distributed? Does the company have a certain territory, does it have sales representatives, branches in other cities? What are the basic details of operation - history, assets and liabilities, plans for growth? Request any information you need, to find out what they will buy and what they have to sell. If the company is a manufacturer, ask for samples or a catalog, the facts and figures of current foreign distribution, and the product demand in their own country. Use go4WorldBuisness.com to find buyers of the product. You can send quotations to the buyers and connect with them.
Be aware of market trends:
Keep informed. Read everything you can find about world trade. Look at trade publications, international newspapers, news magazines, 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.
You can get goods to sell, but you have to be sure to study where they are in demand and can get the price to make exportation viable. Your questionnaires will tell you what further and read the journals published by that country - and many are available in English. Do these publications confirm the desire for certain products?
The import/export business is actually smaller than you might think. There are only a few of these businesses - that's why there's plenty of room for more.
Relationship with Banks:
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. Your banker is your credit manager and will give you valuable advice and references when you deal with both American and foreign manufacturers and distributors.
Finding buyers of the product:
Once you have agreed upon the terms with a supplier or buyer, now you need to sign a contract to bind the agreement. Take the help of your attorney to do the same.
Focus on logistics. Hire a global freight forwarder who serves as an all-around transport agent for moving cargo, typically from a factory door to another warehouse. Their service saves you a lot of time, effort and anxiety for a very reasonable fee. Based on information you provide, they take care of all shipping arrangements, which includes but is not limited to handling documentation, arranging insurance, if requested, and determining necessary licenses, permits, quotas, tariffs and restrictions (country regulations), which can be one of the most complicated aspects of importing/exporting for a newbie international trader.
The freight forwarder: go4worldbusiness.com established in 1997, is a platform that provides manufacturers, buyers, suppliers, and traders to establish contact, e-meet, and trade. We can take pride in providing genuine and verified lead along with other features like Global Chat forum, DealMakr, personal relationship manager and many more. I'd say try our platform become a premium member and if you don't like it you can claim 60 days money-back guarantee. Learn more about EXIM business, here. I hope I answered your question.
A freight forwarder is a person who takes care of the important steps of shipping the merchandise. This person quotes shipping rates, provides routing information, and book cargo space. Freight forwarders prepare documentation, contract shipping insurance, route cargo with the lowest customs charges, and arrange storage. They are valuable to you as an import/export agent, and they are important in handling the steps from the factory to the final destination. You'll need the help of a freight forwarder when you make up the total price quotation to the distributor. Not only do you include the manufacturer's price and commission - usually added together, but you need to include dock and cartage fees, the forwarder's fees, ocean freight costs, marine insurance, duty charges, and any consular invoice fees, packing charges, or other hidden costs. Be especially careful when you prepare this quotation. Usually, the quotation is itemized into three main categories of cost of goods, which include commission; freight charges from destination to destination; and insurance fees. A formal letter that accompanies the price quotation should push for the sale. You can inform the distributor of the shipping date as soon as the order is received and confirmed by a letter of credit. Send the letter and price quotation by registered mail to be certain of its delivery.
The Letter of credit:
A letter of credit eliminates financial risks for you, the manufacturer, and the distributor. When your distributor confirms the order, a letter of credit is drawn from that company's bank to a branch in the United States or to your bank. This letter of credit confirms that funds are available from the distributor to cover the same costs you quoted. An irrevocable letter of credit assures you the order will not be canceled at any time. When that letter of credit is likewise confirmed by your bank to deliver the goods, the distributor is assured of delivery. Once the letter of credit is confirmed by the bank, the currency exchange is also confirmed, so you don't have to worry about the fluctuation in currency.
Basically, the bank holds the money until all shipping documents are presented. The letter of credit states the terms and conditions to make it legal and negotiable into money, usually holding for proof of shipment of the goods. Your freight forwarder helps you attain all those documents. When you hand them to the banker, the letter of credit is turned into liquid assets for you to then pay the manufacturer and all other invoices from the transaction.
Grow your business with go4WorldBusiness.com:
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