Is an Import Export Business For You?

Many people want to start a business of their own. To find a suitable business they search through business startup manuals. One day they read about how to start a restaurant, next how to start a cleaning business, after that they happen to come across an import export business.

They want to know what is a hot product to import and make a lot of money with. They go to the library, search on Google, talk to their friends and everyone has an idea.

They hear importing for the Third World is a way to go. They read about all these countries they vaguely before ever heard of not to mention have an idea where they are, much less a clue what importing from there would really entail.

They read they should import a product that is closely related with people’s daily life, and that it should be popular. But what is popular?

Jewelry is popular, women will always buy it, but there is a problem, they discover, there is too much jewelry already, too much competition. Jewelry is not it.

Their mind races on. They discuss importing outdoor equipment, anti-theft devices, how about furniture? But if they are honest with themselves they should realize they have no sense of style, their house is a mess and they have no eye for design.

They look around and see the world is full of business deals. They hear the cliché, Find a need and fill it! Indeed, one approach is realizing that a problem of one person offers an opportunity for another person to find a solution for that person’s problem. Easy said but difficult to find the right answer for.

Deciding what kind of business to start most people focus too much on the income potential of the business and typically pay little attention to what the daily operation of the business will entail, and whether they may actually enjoy that kind of business.

When deciding on what kind of business is for you, you should not start by focusing on the business itself, its nature and income potential but on what type of lifestyle you really want! Chances are you will discover your lifestyle business and start an import export business.

Thus you need to start with a vision of a life you see yourself living. But unfortunately most people do not clearly know what they want. They will say they want to make more money, buy a new car and pay off their bills. But in reality they will always have more bills and their life continues in the same rut.

Paint a clear vision of what you want your life to be, and you shall find the business to start.

Import Export Business – What to Avoid

It is pretty surprising how many people make the same mistakes over and over again in some business endeavors. Moreover, despite the fact that these mistakes have happened in the past to many other persons, some business neophytes still commit the same mistakes. It is therefore very important to know the most common mistakes that most businessmen commit and how to avoid them. In other words, if there are things that you should know and do in starting up a business, there are also some things that you should avoid.

In the import export business, there are many factors to consider. Aside from the fact that unlike other types of businesses which just deal with the selling of products, the import and export business buys products as well. Thus, the nature of buying and selling should both be studied critically in the import export business. For those who are just starting out in this type of business, as equally important with the things that you should do, are the things that you should avoid. Thus, in order to avoid the common mistakes that other businessmen have committed, it is important to note the things that should be avoided.

First and foremost, if it can be helped, avoid third party vendors. This may sound a bit harsh, but third party vendors usually have hidden fees that will not only make your products appear more expensive, but will hinder these products from being sold. This is so because third party vendors have the tendency to insert hidden fees for them to profit more. However, if it cannot be avoided, you can employ third party vendors that are credible and reliable. There are online sites that offer the third party vendor services. In browsing through these sites though, you should be very cautious and discerning.

Second is talk directly to the producers for imported products. Beware of agents who represent importers because these will just add to the cost of the products. As much as possible, in importing products, make sure that you deal with the producers, or main suppliers of the product. This would not only eliminate unnecessary third party fees, but will also make transactions clearer and faster.

The third thing to avoid is delay in deliveries. In the import export business, time is one of the most important factors to consider. In importing products, the delivery process starts as soon as you buy the product and bring it to your warehouse or store. The time spent for these operations should be considered critically in order to avoid delays and extra expenses on the handling of these products. In the same manner, in exporting products to other countries, the delivery process starts as soon as you send the products to the receiving party. The delivery process is only concluded when the receiving party receives the products. Thus, any delay in the delivery process would mean extra handling expenses.

Issues to Consider on Import-Export Business

No country, not even the superpowers can be totally independent and self-sustaining. Every country needs products, raw materials or supplies from other countries. They either use the products directly or produce other products from these raw materials which they eventually can sell to other countries. Every country is involved in import export transactions by buying what it needs and selling what it manufactures.

With the formation of the World Trade Organization or WTO, import export trading has become more professional, fair, free and smooth. Member countries get the privilege of reduced tariff, lesser trade barriers, import quotas and restrictive policies. These are privileges which they in turn can pass on to businessmen who would like to engage in a profitable import export business. Even with new advancement in technology, businessmen still need to take into consideration several factors and issues that would determine whether the business would succeed or fail.

It is highly important to allocate resources of time, effort and money to formulate a marketing plan and come up with marketing strategies in order to bring in buyers for an import export business. Marketing strategies that are properly planned and executed are crucial for a business to be successful. Some people prescribe to the theory that “if you build it, they will come” but this never really works. The purpose of marketing is just simply making people aware of the products in order for them to patronize or buy it. It is improbable for somebody to buy a product that he has never heard of, no matter how good it may be.

Marketing is not selling. It is advertising, promoting, introducing and promoting and products and enticing people to buy them. It means coming up with a corporate identity, promotional materials or specials to make buyers aware of why the products sold by the import export business is different and warrants a purchase.

Finding the right supplier with the right products is crucial for a successful import export company. The product should be able to fill a need, whether it is for cheaper product or for product alternatives. It would be difficult to compete with a local product that offers the same features, benefits and price.

Having the right logistics would mean that the products arrive on time at your site when you expect it to or at the buyer’s site when he expects it to. This is extremely important for perishables and seasonal products. Timing and the right logistics support should both be present for the products to reach you when you want it to. There are several options for logistic services and it is best to choose one that has a reputation for reliability and comes highly recommended. If fast delivery is required, there are shipping options that have short transit times but are more expensive though.

Even with the international trade regulating bodes, an import export business that has transactions with other countries will always be subject to rules of the government that it is either importing from or exporting to. In order to ensure that there are no restrictions or sanctions, it is best to comply with these government regulations which may differ per country.

Succeeding in the import export business requires a thorough knowledge so it is highly advisable to get import export business training courses or an import export coach that could guide you. It may be initially expensive but in the long run, it would save you from making mistakes that are more costly.