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Starting up your export business: five tips

Starting up your export business: five tips

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If you are thinking about exporting items abroad, you might need to get professional business and legal advice on which form of incorporation you choose, and how to save money on shipping and fees. However, once you have incorporated, or set up your business, your main focus should be on appearing professional, expert, and approachable. There are different steps to complete to have a fully functional export operation and start realizing profits. Find five tips on how to get started below.

Get Your Stationary

To appear legitimate and reliable, you will need to have the appropriate stationary. If you are exporting, get your marketing and sales materials, invoices, and Bill of Lading forms customized and ready to go when you are starting your business. Your suppliers and buyers want to know who they are dealing with, where you are based, and how they can contact you if there are any issues that need your attention.  

Vet Your Suppliers

Before you can become a successful wholesale export agent, you need to eliminate suppliers that are unreliable or have a bad reputation. Always sit down in person or have a Skype interview with them. Likewise, you need to make sure that your customers will not disappear after you have delivered the items. Ask for upfront payment in the first few months, to avoid losing money. Your suppliers might give you 30 to 60 days to pay your bills, but you will need to put your negotiation skills in good use.

Get Payment Arrangements

It is important that you know the corporate law in the country you are exporting to, or you might end up chasing after your money for a long time. Talk to an international business expert, and check the legislation in your home country to see which government protection regulations are in place in your state. Before you start exporting, sit down with a specialist accountant to get their advice on payment arrangements.

Complete a Cost Prediction

To make your logistics operation run smoothly, you will need to calculate the cost of shipping for each order, and make sure that you reduce storage fees. Security is another issue that needs addressing. Talk to shipment security firms to see which services they offer. Incorporate all costs in your pricing, so you don’t end up losing money. Cost predictions are important for wholesale and export companies, as they help them control expenditures.

Set Targets

Once you have your export operation up and running, you will need to create quarterly and yearly targets. To make your business achieve higher profit margins, you will need to gradually increase your volumes, so you get discounts from contractors and suppliers. The larger your operation grows, however, the greater your need for cash flow solutions will be. Make sure that you maintain your company’s liquidity, by creating productivity targets.

For many people setting up an export business is a dream venture. It is, however, a complicated one, and you need to make sure you are prepared for legislative change and logistic issues. Get in touch with an expert to find out more about your options and the legal requirements of running such an operation.


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