Are You Fit for an Import-Export Business?

The backbone of any nation is her import-export business. Since no country in the world produces all the commodities it needs, every country tries to produce commodities in which it has a comparative advantage. The country further exchanges these products with other commodities created by other countries. But it’s a different ball game for an individual trying out the waters of the import and export business. Becoming a great and highly influential and successful importer and exporter is not rocket science or something out of this world. Proper study and preparation is the key difference here. To ascertain your fitness for an import-export business, below are some salient areas to cover to maximize your full business potential.

Target Market

You could import plastic chairs, or bananas, anything. But for every business, you need consumers for your products and services. Armed with the idea of what import-export business entails, there is need to plan and target your market in order to discover potential clients, their geographic areas, and what services or products you could offer to gain their loyalty and respect.

This is a very important stage of any business. Even if you’ve got multi-millions stacked in an account somewhere for the business, once you get this wrong, our business might suffer. So, a proper market research can help boost your company and better prepare you for the task ahead.

Who Are Your Customers?

Determining our target market, knowing who your customers are is the next step. Among notable companies could be heavy construction companies that deal in telecommunication or heavy construction equipment. This does not translate to spending long hours at the gate of corporations waiting to stalk them as they exit their cars. The only essential being that they want to sell their merchandise or buy someone else’s.

What’s My Niche?

Humans are a very diverse species and so is their needs and wants. Right now, you must have narrowed the list of products you’ll target, you need to find a unique angle or tone that will set your business above and apart from the competition. You could start out as an export management company or as an export trading company. The company could further work directly with the manufacturer or his executive distributor and will search for overseas buyers-for-sale.

Startup Costs

Every business startups require money, a whole lot of money. But for an import-export business, the cost range from less than $5,000 to more than $25,000. It could be started on a small scale from home. This eliminates the cost of leasing office space and won’t need employees.

However, you’ll need basic necessities like a computer, printer, fax machine etc. it doesn’t matter how you start. What you need is a carefully built relationship with suppliers, this singular asset is all it takes to get your business up and running. But note that you must purchase an inventory if you’re starting as a distributor.

On a final note, when determining prices, don’t undercharge your client to the extent that you can’t cover your costs and make a profit. And don’t overcharge in order to reduce competitiveness. Both methods would fail woefully.