People get baffled when it comes to entering in export and import business.
Many-a-times they drop the plan as they are not able to find answers to certain questions like what documents are required, what legal guidelines are to be taken, and much more.
The information available in this regard is not enough and people need to hunt for experts in the field. However, traffic tail, through this blog wishes to deliver the required information on it. We are going to cover different aspects like benefits and other relevant information.
Within this guide, we will be covering different aspects associated with this business. This blog is encapsulated with benefits, a step-wise guide to import and export business.
We expect to answer all the questions related to the import and export business. It serves as a complete guide to the right markets, business model, documentation, and many more.
Benefits of Import Export Business
There are several benefits associated with starting an export and import business. One of the most lovable benefits of export and import business is the launch of new and unique products.
Different countries produce different products, that may or may not be available in other countries. This business facilitates the movement of products across the countries. It allows us to enjoy quality products at a lower price.
Entrepreneurs involved in this business, never choose to compromise with the quality of products as a result, high-quality products are brought to the market.
You are going to earn handsome profits through this business. This increases the area of operation as a result, your sales potential enhances.
Now, if you too want to enjoy these benefits, follow this 10-step guide and become an entrepreneur-
Step 1- Select Business Entity
You need to decide the structure of your business before getting registered. It depends on you which structure you want to choose for your export-import business.
• Sole proprietorship– Are you ready to bear the loss alone? Are you able to handle the business alone? Are you lured to enjoying profits alone?
If an answer to these questions is “yes“, then you should go for a sole proprietorship.
• Partnership– In this structure, two or more people will be held liable for making decisions, bearing loss, and earning profits. The ratio of share is decided before the beginning of operations and is duly registered.
• Company– If you want to treat your business as a separate entity, then you should aim towards building a company. A company can make contracts, pay taxes, sue, and get sued on its name.
You must be acquainted with every aspect of each of the structures.
You can choose the best structure by yourself or you can consult the experts. The choice of the structure depends largely on the finances you can arrange.
Step 2- Get a PAN Card
Undeniably, the import and export business requires a lot of documents. One of the most important documents required for this business is a PAN card.
You and your business must have a PAN card for identity proof. The procedure for applying for a PAN card for a business is similar to that for a personal PAN. This is required to register your business.
Step 3- Get registered and Open a current account
Now you have selected the type of structure, you can get it registered. Get your business registered with the required authority and move further.
The next step is to open a current account. A bank account that is used by businesses is known as a current account. You would require a bank account to make transactions with your customers and other businesses. The documents required to open a bank account vary based on the type of business entity.
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Step 4- IEC Code- A necessity!
If you are planning to start an export and import business you must have an IEC code. To obtain the IEC code, you need to fill a form and apply it to the Director-General of Foreign Trade with other relevant documents.
Step 5- Choose the Product
Selecting the right product is overwhelming. You need to consider numerous factors like a market trend, duties, market regulations, and many more.
Product is the king.
Along with your personal choice, you should analyze the market to choose the right product.
Step 6- Obtain Registration Cum Membership Certificate
Several export promotion councils provide the facility of registering this certificate with them. It is necessary to obtain this certificate if you are looking to start an import and export business.
These councils work towards the promotion of different export products and services.
Registration with these types of councils provides the entrepreneurs with an opportunity to get access to events and assistance to grow their business. It doesn’t take more than a week to get the registration done. The best part is, it is valid all over India.
Step 7- Selecting the right export market
Choosing the right market is essential. A market is a place where you sell your products. You need to be cautious while choosing the right market for you.
Several factors should be kept in mind while choosing the market for your product. Those factors include demand for the product, trade barriers, profitability, political environment, etc.
Step 8- Finding Buyers for your product
Now you have chosen the market and the product, the next step is to look for buyers. The question arises, How? It is not feasible to knock on the door of every house to hunt for the buyers. You can go for online methods to look for buyers.
You can also find buyers by registering on buyer-seller platforms, participating in exhibitions, trade fairs, and many more.
You can seek help from Export promotion councils as well.
Step 9- Assess your Finances
It is impractical and implausible to even think of starting a business without finance. You would require enough arrangements for finance to start and nurture your business. It is a laborious task and you need to be cautious while assessing and arranging finance for your business.
First of all, you need to figure out how much amount is required for your export financing business. Then hunt for the sources from where you are planning to get finances if you don’t have personal arrangements.
You can go for-
• Loans from Export-import bank
• the loan from a nationalized bank, foreign bank, regional rural banks, etc.
Step 10- Get set! GO!
If you have passed all these stages, your business is ready to operate. Now you have stepped into the world of export-import, start fetching for shipment orders, exploring market opportunities.
Seek necessary help from required sources and do not leave any stone unturned to make your business a big success.
How Digital Marketing is Beneficial?
Now your business is all set to operate, but how can you manage to operate your business without marketing?
The next step is marketing. You can resort to traditional and digital methods of marketing. Traditional methods cost more than digital methods and somehow, are considered less effective when it comes to promoting an export-import business.
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So, here is how digital marketing can be proven useful for your import-export business.
• Building a website is a must. The very first step is to build a professional website for your export-import business. Using the right tools of digital marketing can help you in finding new customers, finding competitors, analyzing their current situation so that you can plan your strategies. It also helps you in finding your vendors.
• It can also help you in finding the right and relevant content for your website. Your website should comply with the theme of your business. The choice of colors, graphics, and content should be in accordance.
• An informative website can add a lot. Don’t forget to update the latest information on your website. It should narrate the story of your business.
• Digital marketing can help you in enhancing the reach as well as developing a fondness for your brand. Developing an SEO-friendly website can help in this matter.
• Having social media presence can also help you in connecting directly with customers, businesses, and other associated parties.
Digitalize your export-import business and enjoy these benefits. You must have lured to the advantages of digitalizing your export-import business.
So, don’t wait anymore to get connected with the traffic tail, one of the best digital marketing agencies to promote your export-import business. We provide high-quality services at an affordable price.
Did you know?
- India’s containerized exports grown by 1%.
- Pakistan is planning to import cotton from India
- India’s plastic exports rise in Jan-Feb 2021
- Rice export rates ease in India as supply got risen
- India’s merchandise export expected to grow at 4.9% in Q4Y21
- Keep a vigil eye on foreign exchange rates
- Consider the impact of financing your business on profitability
- Consider trusted and reliable sources for dealings
- Consider your repayment ability before applying for finance.
You must have got enough information related to different aspects of the export-import business.
So, if you are planning to enter this market, tighten your belts as you are going to face heavy competition. But making the right choices and contemplating the issues before making the final decision can smoothen your journey.
Don’t stop the hunt for the right opportunities to promote your business. Grow your business with us. We can assist in nurturing your business effectively.
Frequently Asked Questions
Ques. 1- Is the export-import business profitable?
Ans. Yes, export-import business is highly profitable, if done correctly. It reduces the cost and aids in enhancing the profit.
Ques. 2- Which export business is highly chosen?
Ans. The list of highly-chosen export-import business include-
• Beauty products
• Chemical products
• Machinery and many more.
Ques. 3- How much does it cost to start an export-import business?
Ans. The estimated amount to start an export-import business is Rs. 65000- Rs. 70000.
Ques. 4- How much does it cost for an import license?
Ans. Apply online for IEC with DGFT and pay Rs. 250 through electronic money transfer to obtain the license.
Ques. 5- Which documents are required for import customs clearance in India?
Ans. Here is the list of documents-
• Bill of Entry
• Commercial Invoice
• Bill of Lading
• Import License
• Insurance certificate
• Purchase order
• Industrial license, if any
• The technical write-up for a specific good.