It is not going to be sufficient to just start an import-export business. You want to be successful at it. You want to establish yourself as a formidable competitor from the start. The import-export industry is highly complicated and competitive as it is. The only way to survive and thrive in it is to take this competition head-on and take every new day as a new challenge.
Let’s educate you about a few very important things to keep in mind while you make your way into this business for the first time:
5 Tips To Help You Start An Import Export Business
1. Understand The Basics Of Import And Export
This will be your first step towards establishing a successful business in the international trade market. You will have to cover a few very critical basics such as:
- Registering your business and its headquarters with a domain name and getting the appropriate licenses to legally operate internationally.
- Coming up with a business plan that can help you establish your brand as an international entity.
- Understanding the rules and regulations of every market that you wish to enter whether it is the European Union or the far eastern countries.
- Doing proper research on label requirements in addition to insurance coverage and startup costs as well
- Collecting enough capital upfront to start a business that can absorb the initial expenses easily
According to an independent study, you are going to need somewhere around $7 million to start a decent import-export business and to be able to make $1 million in a year.
2. International Standards Of Your Product
This is also a very essential requirement that you must understand. It is also quite critical to the success of your business. If you are entering a particular industry, you cannot imagine a substandard product making you successful. You must be passionate about what you are selling and should also be aware of the quality that holds strong in the international market.
Once you are certain about the category of product you want to launch and it has cleared the various quality testing phases, it is time to identify the market that you want to target. Remember, at this point in time there is no room for testing your ideas. You just have to launch your product where you know for sure it is going to have the maximum amount of traction with your users.
3. Managing Your Logistics Chain Efficiently
This is one of the most important aspects that you will have to take care of when you enter the import-export business. Because you are going to be dealing with international vendors, logistics partners, and global rules and regulations, it will become very essential for you to uphold a certain standard of operations as well. It will become very important for you to choose professional customs brokerage services in the long run.
Creating a product in one place and selling it across international borders is one of the most complicated things to do. The only way to make the entire process successful is to couple the services of a customs brokerage agent with that of a local freight forwarder company in addition to the most easily accessible warehouse and storage facilities as well. It is going to pan out very well for you especially if you have entered completely uncharted territory for the first time. It will help you establish your brand as a prominent entity in the international trade market.
4. Look For The Right Suppliers
Let’s say that you have identified the market you want to target and you are certain about the product you want to launch. In many cases, the business entity would find that sourcing local suppliers and handing over the responsibility of the manufacturing process to a local factory or mill proves to be more affordable.
All you have to do is employ your traditional quality control apparatus to make sure that the overall standardisation and sophistication of the product are intact and identical to the original idea.
5. Pricing Your Product Correctly
The final tip is that you decide upon the margin of markup that you want to aim for. Experts suggest going for something between 10% and 15% initially. As you penetrate deeper into the market, you can gradually increase your price and profit margin as well.
Always focus more on acquiring the right information about how the international markets function. Invest your resources in creating a network of business partners. Succeeding in the international or import-export market is not going to be that difficult once you have your basics right.