Things To Know Before Starting An Import Or Export Business

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International trade is one of the most lucrative and dynamic industries of the new millennium. International trade exists because one nation has an abundant supply of a commodity or merchandise that another doesnt. And you might be wondering how your business can capitalize on this demand. However, starting your own import company is not an easy decision. There are so many factors you need to weigh out before doing so and as a potential business owner, you need to be aware of all the threats and opportunities posed by the industry before starting your newest enterprise. And here are several points you need to consider before you start your own business:

The product

You need to start your business with a product or service that will sell. While it might not sell everywhere, it should be marketable somewhere. Through market research you will be able to track trends in the industry, or even potential trends and the pick the most ideal market for your product. You should focus on what your strengths are and the best assets you possess when defining your importing business’s concentration. You should also conduct research on the competitors youd encounter in your international market and what you can do to stand out. When designing the product, cultural differences should be taken into account. For example, your brand name or logo might translate differently in a different culture or tongue.

The cost

Regardless of the kind of business you run, you wouldnt want to wait till the end of your calendar year to figure out where you stand in terms of profit and loss. Therefore, its always smart to prepare a monthly financial statement that includes income statements, balance sheets, and cash flow statements. Even if youre not making a lot of sales, or any at all, you will still be spending money and its important that you keep track of them. Import or export businesses comprise of additional costs that are not a part of traditional businesses, this includes, taxes, transport and storage costs involved with importing and exporting goods. However, you can enlist the services of certain agencies to make the process of importing and exporting goods easier. Air freight clearance services are agencies that will ease the process of customs clearance and allow you to collect your goods without any hassle.

The risks

While importing or exporting goods is a lucrative business idea, there are various risks associated with international trade than buying locally. For example, the distance between you and your supplier could be large making it harder for you to check on the quality of the goods and thus you might incur loses if the goods are damaged or of lower quality. And if the delivery distance is large, it will make the delivery time longer, subsequently making returning said goods even harder. Because of this, you might end up in a position where you have to accept inferior or damaged goods.