Your 6-Step Guide to Starting an Import Export Business

Summary

In this informative video, Eric Goldschein from Fundera outlines the essentials of starting an import/export business. He emphasizes the enduring value of international trade and provides a six-step guide: from covering business basics and identifying products and markets to sourcing suppliers, pricing, customer identification, and finalizing logistics. Goldschein highlights the importance of market research, regulatory compliance, and building relationships with distributors. The process, while complex, offers the exciting opportunity to engage in global commerce. He encourages viewers to seek support and resources to thrive in this dynamic industry.

Takeaways

• 🌍 Import/export businesses are always in demand, regardless of global economic conditions.
• 📦 There are various types of import/export businesses, including Export Management Companies (EMC) and Export Trading Companies (ETC).
• 📝 Register your business, acquire necessary licenses, and develop a comprehensive business plan as your first step.
• 🔍 Identify the products you want to import or export and conduct thorough market research to understand demand.
• 🔗 Establish connections with suppliers through platforms like Alibaba or Global Sources to source your products.
• 💰 Pricing your product requires understanding your costs, market demand, and potential profit margins.
• 📞 Effective customer identification involves outreach through cold-calling, networking, and digital marketing.
• 🚚 Finalizing logistics is crucial; consider using a global freight forwarder to manage shipping and compliance.
• 🤝 Joining import/export associations and finding mentors can provide valuable support and guidance.
• 🔑 Starting an import/export business demands careful planning and execution, but the rewards can be significant.

Q & A

What is the significance of the import/export market?

The import/export market is significant as it represents an industry worth hundreds of billions of dollars, facilitating global trade and providing access to a variety of goods across different markets.

What types of businesses can you start in the import/export sector?

You can start various types of businesses, including an Export Management Company (EMC), an Export Trading Company (ETC), or become an import/export merchant.

What is the role of an Export Management Company (EMC)?

An EMC exports goods for a domestic business that wants to sell in different markets, handling aspects like advertising, marketing, and shipping.

What steps should you take to start an import/export business?

You should cover business basics, identify your product and market, source suppliers, price your product, identify customers, and finalize logistics.

Why is it important to have a business plan for an import/export business?

A business plan is essential as it outlines your operational strategies, market regulations, and the financial requirements needed to launch and sustain your business.

How can you conduct market research for your import/export business?

You can conduct market research using resources like GlobalEDGE’s Market Potential Index, government websites, and industry reports from the Census Bureau.

What factors should be considered when pricing your product?

You should consider overhead costs, product availability, market demand, and competitive pricing to ensure profitability.

How can you find potential customers for your import/export business?

Potential customers can be found through digital marketing, cold-calling, networking with local contacts, and reaching out to trade consulates or embassies.

What is the importance of logistics in an import/export business?

Logistics is crucial as it involves managing the supply chain, shipping arrangements, and compliance with international trade regulations to ensure timely and efficient product delivery.

What resources are available for new entrepreneurs in the import/export sector?

New entrepreneurs can benefit from joining import/export associations, finding mentors, and accessing resources from local and federal government agencies.