An export business can be a lucrative enterprise. Export businesses face various challenges that domestic enterprise does not. For instance, the export business must obtain financing, pass customs, and arrange for delivery of goods in a new country. It is important to research the global markets and to identify resources that can help the business compete. These resources can help export businesses to identify prospective buyers and provide many important services.
Before starting an export business, it is essential to determine buyer demand for products in global markets. Refer to the U.S. Department of Commerce USA Trade Online site for additional information regarding trading statistics. Information is necessary to build an accurate export business plan. Export assistance is necessary for most exporter businesses.
The export business must have financing to pay for shipping and cost of goods sold. Banks are unlikely to accept export orders as collateral. The export business does not receive payment until goods are accepted for delivery in the foreign country.
The Small Business Administration’s Export Help Centers throughout the United States can help export business owners to identify financing options. The SBA’s program offers businesses with credit lines up to $250,000.
Not all export businesses are prepared to handle and manage the constant flow of details necessary to run the business. An export management company is a good option if the business owner wants to outsource the many details of running an export business to another firm. The export trading resource will identify foreign buyers for the business’ goods. An import-export merchant manages customs, foreign nations, and clients.
Exporting goods to the foreign country are just the first step. Distributors may be necessary in getting goods sold in a foreign country. An export management company can also help the export business to distribute goods to buyers. A bilingual distributor or a management company with these services can be beneficial to the export business.
An export business cannot simply take payments from customers in a foreign land. The business must arrange a letter of credit from a banker that specifies delivery conditions, products to be delivered, and money due. The exporter must produce shipping documents that demonstrate the fulfillment of the letter of credit in order to get paid.
An export business can be a profitable venture. Some exporters begin with a small amount of startup capital. The right export office resources make all the difference.