Global trade is something that has been going on for hundreds of years. In the 21st century, we live in a more interconnected world than ever before. This means that business opportunities are more globalised, giving people the option to sell to the entire world. If you have a product that is in demand, there is every chance that you can sell it to a bigger marketplace by getting involved in the world of importing and exporting.
It may seem like importing and exporting is solely for big businesses, but the truth is that around 96% of US exporters are small or medium sized companies. There are certain products which cannot be bought in certain countries, so if you can fill a gap in the market, you could well be onto a winner.
If you are thinking about starting in the import/export business, here are a few things that you will need to consider first.
The right qualities
Getting involved in this area of business isn’t for everybody. You need to be highly organised and prepared to target your market methodically. This will involve mapping out the countries or regions that you want to target, as well as having a clear expansion plan in mind. You will also need to be an adept salesperson, comfortable with making sales pitches and selling the positive qualities of your product.
Ambition is also a quality you should possess in bucketloads. Coupled with this, you will need to have a huge amount of drive and determination to succeed. Running a company is hard enough on its own without adding having to learn how other countries do business into the mix. It helps if you have had some sort of experience in the past, or can at least consult with someone who is an expert in the field. As well as this, it helps to know something about the customs and cultures of the country you are looking to do business in. Speaking the language (or at least having some knowledge of it) is a major advantage as well.
Target market
Running any type of business involves you clearly defining your target market. Think about who your potential customers will be and the regions in which they are likely to live. Do plenty of market research to establish that there is a clear demand for your product. Establish how you are going to differentiate your business from your competitors. The more research you do, the better prepared you will be. If you already have experience in this field on a domestic level, you will be much better prepared when it comes to getting involved in import/export.
Starting out
Most import/export businesses start from very humble beginnings. The internet has provided so many opportunities for business, and this is likely to be where you focus the majority of your attention. Establishing a website is likely to be one of your first priorities, showcasing clearly your range of products and giving customers the opportunity to purchase through the site, as well as providing a platform for communication. The potential for growth really depends on how much you focus on the import/export side of the business.
When it comes to your pricing structure, you need to make sure you factor in your time into the costings, as well as the cost of the raw materials themselves. You also need to make sure that you have a price point that is competitive.
Operations
You need to clearly define how you will run your day-to-day operations. Finding buyers is obviously a core area of any import/export business, as is documentation and financing. The logistics involved in the transportation and shipping itself is also an important area of business. More details about different types of carriers can be found at http://www.nautisnp.com/bulk-carriers. Operations management is a key area of your business and planning out your responsibilities should be at the forefront of your mind. If you want to simplify everything as much as possible, your main tasks will be getting merchandise, selling it, transporting it and getting paid. It all sounds so simple!
On the road
Many people decide to get involved in importing and exporting because of the world of possibilities it quite literally opens up for them. Many traders are not just sat at home behind a desk, but rather get out there to get involved in the actual buying and selling in foreign lands. For many people, this is one of the main draws of actually getting involved in this business in the first place. Days often vary greatly and rigid planning is an important part of importing and exporting.
Marketing
A lot of generating the actual business itself is through marketing. Many businesses channel a great deal of their marketing spend towards online marketing as it is the best way to get messages out to the world. However, sometimes the traditional methods like direct mail and telemarketing still reap big rewards. In some countries, business practices have not moved on as rapidly as others. As well as this, speaking to people over the phone is a good way to build up an initial relationship.
To start of with, you may be selling your product solely to individuals. Your approach will vary greatly if you move on to selling large quantities of goods to other stores and organisations. You will need to have evidence of why your product will be a big seller and the best ways they can get it flying off the shelves.
Global customer service
As with any business, your involvement with the client shouldn’t end the moment the sale is made. You need to make sure that you thank them for their business and present a list of other items that they may want to buy. Forming relationships is one of the core elements of achieving success in the field of importing and exporting.
In conclusion, starting an import/export business doesn’t have to be as complicated as you may think, but it does involve a great deal of planning, dedication and entrepreneurial spirit.
