Becoming Your Own Boss: How to Run an Import and Export Business

Does the import and export business interest you? Do you think you can make money by starting your own company? Before you make the decision to become your own boss, review these important tips about doing well in this business.

1. Contact your taxation division prior to sending in your documentation. You want to make sure that everything you have done is on the “up and up.” The taxation department can instruct you on what you need to do to file your documents and will provide you with the registration numbers you need. You may also need to set up a limited company also.

2. Depending on the country, embassies and consulates may give out information online about foreign goods. Simply go to embassy sites and look for information on the manufacturers. Search for embassies in the capital, but keep in mind that consulates are often found in a number of cities.

3. A trade barrier is known as an embargo. For instance, the United States and Cuba have an embargo. Never assume that you can send goods to and from a country. First, communicate with the government to determine whether any trade barriers exist. In addition, speak to the embassy to figure out whether you are restricted when it comes to the goods that you can ship.

4. Some countries require you to be licensed. Some do not. If your country has this requirement, take care of this well ahead of time so that you are ready when your business is ready. In most cases, you would only need a license to work with hazardous materials or pharmaceuticals. Still, always do your research so you are aware.

5. Establish a relationship with a customs broker so that you can get your paperwork taken care of correctly. It is possible to do this by yourself, but any mistakes will cause issues for your business.

6. There are certain words that you should understand that are related to the business that you are in. These are known as incoterms. If you want to study up, visit the website for The International Chamber of Commerce..

7. Exporting can be complicated, so it is best to look up how shipping and customs handling works ahead of time. If you are confused about something, do not be afraid to speak up. The more you learn, the better off you will be.

8. When it comes to trading with other countries, Letters of Credit are very important if you want to get paid. You get one of these from the bank, and it shows the company that you are buying from that they will get paid as soon as your order comes in.

You can make a lot of money through importing and exporting. However, it is not the easiest business to break into. Still, if you do your research, the entire process will not seem as daunting.

Sectors: Business Services
Countries: United Kingdom and United States
Topics: Getting Started
Export Action Plan