How to Start Your Import/Export Agency Business

Thursday, May 2, 2013

How to Start Your Import/Export Agency Business

Many goods that are bought and sold are obtained through imports and exports. "Entrepreneur" magazine notes that more than 90 percent of import/export agencies are small businesses. The import/export business is ideal for people who are organized, not afraid to make a sales pitch, and enjoy dealing with people from different cultures. If you want to start an import/export agency, you need to prepare a plan to ensure your venture's success.

Instructions

Step 1

Determine your target market. In an import/export agency, any manufacturer or supplier is a potential customer, as long as it is interested in buying or selling a product. Look at your business background and interests when deciding what niche you want to work with. For example, if you have work experience in the health-care industry, you might want your agency to import and export health-related products.

Step 2

Decide what type of import/export agency you want to run. There are several options you can choose from. Export managers locate buyers for existing manufacturing firms, while export-trading companies seek out companies that want to sell their goods overseas. You can also opt to import and export goods on your own, notes "Entrepreneur," and earn a salary or receive a commission or retainer.

Step 3

Purchase the equipment needed for your office. An import/export agency can be home based. You can start on a shoestring budget with a computer, fax machine and printer. If you are not starting an agency as a distributor, you will not need to purchase inventory when launching the business -- which can save you a lot in terms of start-up funds.

Step 4

Obtain a business license. You should contact the appropriate licensing agency in your city or state to determine what type of license you will need. In addition, you will need an import/export license, and the type of license you obtain will depend on what kind of goods you are importing. For example, if you import or export wildlife, you must apply for a license from the U.S. Fish & Wildlife service.

Tip

While certification is not a requirement for import/export agents, it can be helpful, especially if you do not have experience in the industry. Organizations such as Export Academy offer online courses that help you learn about international trade and earn the International Trade Specialist credential.

References (3)

Resources (1)

Export Academy

Photo Credits(4)

1 comment:

UnknownJune 19, 2013 at 4:29 PM
Thanks for great tips..!!! These tips really help us to expand our Import Export Business
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Easy Tips and Ideas to Start Business

Although anyone can start a business, many people fail because of a bad product or improper research. If you want to start your own business, you can improve your chances for success before you even begin. In order to make your business successful, start strong and make sure that your idea will hold out for the long haul.

Have a Good Product

Ensure that you plan to sell something useful. Although you may think that your product is important or special, that doesn't mean the general public will agree. Ask friends, family and strangers what they think of your product. If they don't seem that interested, ask them why. With their suggestions, you can either improve the product or scrap the idea completely. According to Brad Sugars of Entrepreneur magazine, most small businesses fail because they sold a product that didn't have an adequate market. This also applies to small businesses that provide a service. A lawn-care business might be useful for part of the year in a northern state, but it is in-demand year-round in the south. Consider whether people will actually want to use your service and get constructive advice from those not afraid to give their opinion.

Research Local Businesses

Research local companies before starting up your own business. This will not only give you an idea of the amount of competition you will have, but it will also help you price your product or service. If you're looking to start a wedding photography business, you may find during your research that the market is over-saturated in your area. If not over-saturated, you should contact each business and ask them for a price list. Alter your prices so you can stay competitive with the competition in town. Researching similar local businesses will also help you decide where to locate your business location. Try not to start up a store or office close to another business of your type. If your small business is located away from similar business types, this will cause locals to choose you over businesses that are farther away from where they live.

Get Professional Advice

You may know someone who has started their own successful business. Ask him for advice and listen to his stories of how he started his company. You may gain useful advice on the good and bad ways to start a business. Local entrepreneurs can also introduce you to local product providers or advertisers that you may not have met without their help. Accept any advice with open arms, especially if the advice is coming from someone successful in the area.

How to Calculate Business Start Up Costs

Starting a business in no easy endeavor. It takes a great deal of research, perseverance and hard work. While sweat equity will make your small business more successful, you will most likely need real capital to get the business started. Before you start raising capital and/or investing your own funds, the first thing you need to do is determine the total start-up costs.

Step 1

Determine your costs of sales. For most small businesses this means inventory, the cost of raw materials, manufacturing equipment, shipping, packaging, and warehousing. However, not all businesses sell products. In this case, the cost of sales is primarily the direct labor involved in making the sale. For example, to open a small shoe business entails purchasing enough inventory ($10,000) to stock the store.

Step 2

Determine professional fees. Planning your business structure, i.e., limited liability corporation or general partnership, means hiring an attorney. There may also be the need to pay an attorney for help with establishing trademarks, copyrights, and patents. In this scenario, that puts total professional fees at an estimated $20,000.

Step 3

Determine technology costs. Technology can greatly reduce the cost of labor for small business if used effectively. Most small businesses require computers, printers, cell phones, website development, Internet access, software applications, information security, data storage, and outsourced information technology (IT) consulting. If the cost of technology is $10,000 to start, add an additional $5,000 a year for maintenance (hint: maintenance is not included in start-up costs).

Step 4

Determine administrative costs. This varies with business types and may include items such as business insurance, office supplies, product packaging, parking, rent, express shipping, desks, chairs, fax machines, phones, or anything else necessary to operate the business daily. A good estimate for start-up administrative costs would be $5,000 for the first six months.

Step 5

Determine initial sales and marketing costs. Now that you have your product, you need to let folks know about it. Sales and marketing costs generally include marketing materials for presentations, printing stationery, business cards, advertising, trade show events, and public relations. These initial sales and marketing costs can add up to $3,000.

Step 6

Determine the wages and benefits needed to secure a staff. This includes employee salaries, benefits, workers compensation, and payroll taxes. Let's put the cost of wages and benefits estimated at $20,000 for the first three months of business.

Step 7

Add all costs associated with starting the business for a total. Be sure to only include business start-up costs that will be incurred in the first three to six months of operations. For this example, the calculation is: $10,000 + $20,000 + $10,000 + $5,000 + $3,000 + $20,000 = $68,000.

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Thursday, May 2, 2013