Import and Export Start Up Business Tips

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 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 the 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.

As you progress in the business, many factors become obvious and easy to handle. For example, you'll need to find a person to handle shipments, called a freight forwarder. And you'll 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.

Do you like the idea of running your own business? How would you like a tax deductible trip to foreign places a couple times a year? The advantage of an import/export business are great. 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.

Take a look into the import/export business. Consider the risks, and consider the advantages. Talk to people in the business. Is it for you?

HOW IT WORKS

Of all the manufacturers in the United States, only a small percentage distribute goods outside of North America. 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.

An import/export agent is a matchmaker. Manufacturers of domestic goods seek foreign distribution; foreign manufacturers want a United States market. You need to find them, make a solid connection, and establish a business relationship with these companies.

The agent's commission is generally about ten percent. Now, think of ten percent of $500,000 or ten percent of a million. Although that may seem like a large order, it wouldn't be, if you're talking about machinery, raw materials, or computers.

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.

The United States Government encourages exports. Indeed, it is those sales that keep our balance of payments with the vast amounts of goods are imported.. And you'll find government agencies helpful in establishing your business.

THE BASICS

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 cable address or a telex hook-up.

And you'll need a classy letterhead. Until you establish personal contacts, it is your letterhead that represents you. Make it look professional, possibly embossed or two-color, or gold leafed. Have it printed on light-weight paper for airmail correspondence, but don't have airmail envelopes printed. You'll have a lot of domestic correspondence too.

More than office equipment, you need the determination to make it work. It will be slow at first, and you'll need to plan your moves, make contacts and SELL YOURSELF. But once you make a few sales and sign several exclusive contracts worth money, you'll know your dedication was worthwhile.

MAKING CONTACTS

The most important step in setting up your business is finding the contacts. You may have relatives in a foreign country;; you may have frequently visited and established business relationships in a country. Or, you might just have a feeling for what will sell where. A person who keeps well-informed in the business world can pick up and ride the crest of worldwide trends.

Foreign consulates located in the United States have commercial attaches who want to establish outlets in the U.S., and they're a good place to start.. Sometimes these consulates can help find indices of their own import/export enterprises. The Unites States embassies abroad are another place to find contacts for commercial distribution. They can help you find out about a company's solvency and reputation.

Another way to establish contacts is through the Chambers of Commerce of every city you are aiming for.

Start small-don't tackle the world.. Where do you want to sell American goods you might have in mind? Which countries have the merchandise you want to import? Find out about the countries, what they have to offer, what is generally in demand.

Then prepare a massive mail campaign The easiest way to mail hundreds of letters is to use a typing service that has the equipment to produce the same letter with a different address each time.. It's worth the money it will cost; you'd go crazy typing so many identical letters. To every possible contact, write a letter introducing your company, requesting the names and address of appropriate firms to contact. Ask to have the notice published in the monthly bulletin or posted in an appropriate place. From the names to get back, write another letter, again introducing yourself, and asking information about their company.

You can use a questionaire, which is easy to fill 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.

ANALYZE THE MARKET

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, buy you have to be sure to study where they are in demand and can get the price to make exportation viable. Your questionaires will tell you what foreign importers want. Take it a step further and read the journals published by that country; many of them are available in English. Do these publication confirm the desire for certain products?

The American market for imported products fluctuates with the value of the dollar in comparison to the value of each other country's currency. And, importation prices reflect that directly. Can American consumers afford to pay the price of certain imported goods? Or will they?

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.

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.

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 you keep your credit afloat, In fact, this is one of the best factors about an import/export business. Aside from office suppliers and correspondence, or possible business trips, you need a no personal cash outlay. All you need is a good credit and 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.

The United States Government agencies are great places to find help... These agencies promote the import/export business, and publish many small booklets and pamphlets. They also distribute continually updated reports on foreign markets, commerce and financing.

Read these source of information and find out the particulars of exports, global surveys and ocean freight guidelines. Become familiar with the market share reports, current laws and regulations, and government promotional facilities.

MAKING CONNECTIONS

As you continue your correspondence with foreign companies, build up a good rapport with their representative.. Pin down a few companies- perhaps in the same country or similar territory--to their exact needs. What are the two or three products most in demand?

Consider their methods of distribution. You may be able to work directly with a wholesaler of an overseas importing company. Your commission will be lower, but you won't need to handle as many particulars , and they will take care of distribution.

Or, you may need to supply catalogs and samples, working with a network of small companies or sales representatives from a larger conglomerate.

The highest fees that you can collect are for raw materials taken from the source and delivered directly to a manufacturer. But you must be certain of a guaranteed quantity and the continued ability to deliver.

If you are importing goods, you'll need to find U.S. distributors that can handle the quantity of goods at a high enough price for you to profit by. A single retail outlet or two is not enough to make your time worthwhile. Look into how buyers work and make contacts in the larger retail chains if you have retail merchandise.

GETTING THE GOODS

There are hundreds of American manufacturers with limited distribution looking for an overseas market. Exporting 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 foreign contacts and know the demand for specific goods.. You will handle the sale,, the paperwork, the money, all shipping, customs, and foreign distribution.

The manufacturers in return provide firm price quotations, and you put your fees on top of that; you cost the manufacturer nothing. The manufacturer have everything to gain--an increase in sales, a broader market, and more profit. And you have everything to gain--establishing your business, and a commission on the cost of the goods. That is the basis of firm business connections and a mutually profitable arrangement.

Contact local manufacturers first and then move into larger territories. You can make these contacts by phone, in person,, or by personal introduction from contacts you may already have.. Or, you can advertise in business publications and newspapers. Before yo do get into a legal agreement, be sure to check the reputation of the company. How long has it been in business? Where are the products distributed domestically? What is the solvency and reliability of the company and its goods? When you make your sale, you'll want to be able to deliver.

MAKING AN AGREEMENT

ONce you have agreed to represent the manufacturer as the export agent, you need to have a written and signed contract to bind this agreement. Your attorney should be the one to draw up this contract; later you can just use the same one, substituting names of other manufacturers.

Basically, the contract is between the manufacturer and you as the export representative. You are granted exclusive rights to distribute goods to all countries except those they already distribute in. The manufacturer will pay you the specific commission quoted to the distribution on top of the price of goods. The company will also provide catalogs and samples for your use in distribution.

You, the export representative, in turn will promise to do everything possible to make contacts and distribute manufacturer's goods in foreign territories.. The terms of the contract should then be stated: how many years the contract will be signed for, the terms of cancellation by either party voluntarily or because of no sales action over a certain period of time.

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