Import Export Business – Factors That Affect It

No matter how stable the economy of a nation is, no nation is practically self sufficient. Even the most powerful countries need many raw materials from other countries in order to produce products that are needed by other countries as well. Everything is actually evolving in trading; and that is acquiring what it lacks, and selling what it produces. In other words, no nation can be totally independent from the rest of the world, most especially in providing for its production needs.

Nowadays, international trading has become more convenient, easier, and safer. Moreover, a lot of hard-to-comply government trading rules have been revised and improved for a smoother trading flow. These have encouraged many people then to engage in the import export business.

Like any other businesses, the trading business has also a lot of important considerations. Although, trading opportunities have widened with advent of technology, traders, importers, and exporters still have to be conscious of the factors that will affect the outcome of the business. Here are some of the important factors that affect the import export business.

Marketing. A lot of businessmen may not be aware of the great impact of marketing on businesses. This is probably why not many businesses invest on marketing that much. Unfortunately for these people, they have actually missed out on the most important factor in any business- and that is marketing. The logic of marketing is just very simple and basic. If you want people to patronize your products and services; you must make them aware of these products and services. After all, how could someone possibly buy something that he has not heard of? Marketing is indeed a crucial aspect in businesses, most especially in the import export business. In starting up an import export business therefore, you should acknowledge the importance of marketing and invest time, effort, and money for the facilitation of marketing strategies.

Logistics. In the import export business, the delivery of products is one of the utmost important considerations, most especially if the products imported or exported are perishable. Definitely, with these types of products, time is very important. There are many logistics services that you can choose from. Naturally, for faster delivery of goods, the service charge is more expensive than the slower delivery services. Thus, it is important to consider the logistics requirements of your products in order to predict the costs that you will have to incur in the business.

Government Rules. Whether you like it or not, an import export business will always be dictated by the various rules imposed by the government with which you are doing trading with. With this reality, to avoid trading restrictions, it is very important to strictly comply with government rules at all times. If you are therefore doing trading business with many countries, you will have to consider the fact that these rules may vary from country to country.

Starting a New Import-Export Business

Times are bad, and everyone seem to be complaining about the economic downturn. But now is not the time to complain. All savvy business owners know that now is the best time to adopt a proactive approach. Maybe you can consider starting a new business. After all, purchases tend to be cheaper these days. Perhaps you can stumble upon some unbelievably good deals on the Internet.

But the Internet is a huge place. So where do you start? Here are some suggestions.

Step 1: Visit a trade lead directory.

If you are going to start a business online, might as well think big and go International. The Internet is a great way to connect with suppliers and customers from all over the world. Start by visiting a trade directory. You will see for yourself the wide range of products that are available. But don’t do any buying yet. Proceed to the next step.

Step 2: Market research.

This is an essential step. If you skip this step, you are just risking your money unnecessarily. Make sure that there is a profit to be made before jumping on the wagon and placing a wholesale order. Otherwise, you may find yourself stuck with all that inventory, with no visible ways of getting rid of them. Poor research always lead to poor business decisions.

If you want to save a little time, you can always purchase a research report. For instance, if you are not sure if leather furniture will sell well in your country, you can buy a relevant report so that you can examine the numbers. Is there a rising demand for the products? Who are these people? Who are your competitors? You need to know the answers to these questions before making the leap.

Step 3: Have a marketing plan.

Knowing that there is market demand is one thing. But knowing how to reach out to your target customers is a totally different thing. Ask yourself how you are going to market those products to the customers. Will you do so online? Are there networks you can tap into? Again, this requires more research. But having a practical marketing plan is half the battle won.

Step 4: Actually doing it.

Don’t let fear stop you if you have done your homework and you are confident that you have a good chance of success. Proceed to request for quotations. Choose your suppliers carefully. Don’t just base your decision on price. You want a relatively hassle free shipment. If you choose the wrong supplier, you end up being the recipient of sub quality products.

Step 5: Manage your cash flow.

Your import/export business depends on how you manage your cash flow. Don’t be greedy and place orders that will affect your cash flow adversely. Always leave room for error if you are unsure.

A good approach to adopt when you are just starting out is to place an order for a variety of products, each in a small quantity. With the products bundled together, you still get to enjoy wholesale prices. Once you determine which are the better selling products, just focus more on those products.

Starting an Import – Export Business

If you are the kind of person that enjoy travelling, meet people of other countries and been recognised internationally, been your own boss then starting your own import – export business is for you.
Just recently I discovered that not just tangible goods can be import or export also you can export or import Services in other words your knowledge which can change the way that you are focusing your professional carrier. I decided to divide this article into two parts.

Let`s start with the first part.

Tangible products exportation: One of the most important thing that you have to do is know your product, find what market requires your product and if you are competitive on it by studying your competition. Not less important in this process is to ask yourself which is the best way to send your product to your client.

The terms in which the negotiation will be developed are different if the importer imports a good quantity of goods constantly or once in a while. In the first one the importer will prefer to choose how the goods will be send because has deal whit the product and with the cargo company and he can get a better price which is not the case if he just does it once in a while in that situation the best is to see who gets the best cargo price.

To finish this part I will like to recommend been very aware of all customs regulations otherwise you will on delay which in international business have monetary consequences like contract cancellation, good damages, etc.

Second Part

Service Exportation: the service exportation is not a well know activity because governments don`t have regulations that allow them bring together information and have some statistics.

Examples of services that people export are an e-book or software that is selling on internet. In countries like the United States is becoming a big industry where people is gaining a lot of money and in which countries like India have a big opportunity.

In the recent years India has become one of the most important countries in software development as a matter of fact a lot of software development companies are outsourcing with Indian companies we can say the same thing for Pakistan who is becoming a leader in web design offering people all over the word getting a web page design without been Pakistan.

Another kind of service that is exportable is the Transfer of consumers to their country to the export country two good examples of this are when universities that are recognize for their academic programs have students from other countries and Hospitals or Doctors that are recognize for their specialization in treat certain disease.

The above mentioned bring to the export country two important things. First to develop a good educational level and motivation to innovate in that particular field, second is that these students and patients spend money while they are in the country helping the economy.

Finally the last example of services that can be exported are Temporary transfer of persons to one country to another to render a service. Telecommunications companies, engineers and doctors or anyone can export this kind of service for instance when Doctor travel two or three times per month to operate in a different country or engineer that are require to ensemble a machine or an expert in certain field that is hire for one company to help them. This brings to the export and import country benefits.

In conclusion countries should worry to develop a mechanism to help them to control and increase nor just the export of tangible products but also the export of services that develop educational system and that give good money to the economy.