How to Start Import Export Business from Home
Import-Export or international trade is booming as the world is more welcoming than ever before. India is arising as a trade centre point everywhere in the world. There has been tremendous growth in Import Export market in recent years. Due to this growth and global accessibility more and more entrepreneurs and businesses are starting this venture. However, before getting into this business any importer or exporter must understand all the pros and cons involved in this business.
One point that often scares many entrepreneurs before getting into the import-export business is the investment required. This business can easily accommodate anyone without considering the investment size. One must see the capacity and earning he might get through this business. It is better to start your business with a min. investment and along the way you can raise the capital.
Import Export Business model works fairly like this, and require an unassuming measure of cash.
- Discover items that you need to export or import. Discover the products, perhaps get a few samples from suppliers/manufacturer.
- Next, discover clients. In the event that you are living abroad from the suppliers, it is simple. You simply need samples and walk into client's places. On the off chance that you are in the manufacturing country, you need to hit up the Internet to discover clients.
- The client pays half upfront when they order the product and half when the item is delivered to them. Similarly, you also pay half to the manufacturer ahead of time and half when they delivered.
All those who wish to start an import-export business from home and less investment can follow these steps.
- Settle on the decision
The first step to start an import-export business is to take a firm decision to start international trade. To succeed in international trade business, proper planning and forecasting are necessary. Selection of product will be the major aspect and the investment with which you want to start this business.
- Gain market knowledge
The best way to understand the market requirement is to spend more time in understanding the knowledge of the product you want to export or import. Apart from this, the challenging part is finding genuine sellers/buyers.
- Gather all the documents and tools
The first step you must do is to register for a company, you can go for a sole proprietorship or partnership firm then, open a current account, register for an IEC code, get required legal documentation apart from this basic thing such as laptop/pc, internet before you start working from home.
- Choose your market and select the target product
Before even getting into international trade a trader must be clear with the selection of target market and goods. You need to inspect the feasibility of the product, demand in a particular country, rules and regulation (if any), legal conditions etc. should be considered. Detailed research and planning are necessary for the success of any business.
- Develop a network in the market
Getting buyers/ sellers for your product from foreign countries is what will make your business successful and profitable. So making contacts and developing good relationships is very essential in this business. Start by finding a buyer and find a supplier. Give him a good price and grab a small order
- Find Custom House Agent
Shipping and Customs clearance of the Goods and Indian Customs EDI System.
Starting a low capital import-export business minimizes the risk. The major risk you will face in doing import-export business will be payment risk. You can make use of ECGC to cover the risk of non-payment. In addition to that, you can cover risk by taking insurance.