IMPORT EXPORT BUSINESS PLAN SAMPLE
A huge part of global commerce involves import and export of products between countries. This presents tremendous opportunities for entrepreneurs willing to partake in it.
This import export business plan comes to your aid by helping you with the planning process of setting up a thriving business.
We consider the various aspects of this business considered to be crucial to its realization.
Here is a sample business plan for starting an importation / exportation company.
- First Things First
To succeed in any business endeavor, you need to first consider the most basic requirements for setting up your import export business. In this case, it involves registering your business. This involves several things such as writing your plan, choice of a business name, access to sufficient capital, as well as applying for licenses and permits depending on the type of product you want to export or import.
To ensure a smooth process, you will need to find out what is required by your state’s business registration department. This step is very crucial to how much success you achieve. A well laid foundation will ensure you overcome challenges that have become all too common for many import export businesses.
- Choosing a Product
When choosing a product you want to export or import, you don’t only go for products that resonate with you but those with high demand. Businesses thrive on demand and supply, hence your area of focus should include quality products, turnover, and an appropriate price structure for your goods or products. Also when making your decision, you also need to understand the dynamics of the industry.
A feasibility study is important in the planning process. Most import and export businesses deal with a tremendous amount of logistics. Hence, you will need to know the entire process involved in shipping a product into or out of your country as well as applicable laws of both originating and destination countries.
- Entering into the Right Partnerships
Whether you are an importer or exporter, you will need to work with product suppliers as well as finding reliable demand sources. These are vital to the success of your import export business. This aspect of your plan ensures you don’t need to encounter difficulties when delivering or taking delivery of export or import products respectively. You should know that quite a lot of work is required in making this possible.
While it is true that a significant amount of work is required, it is a usually rewarding process. This is mainly due to the fruitful relationships fostered which improve over time.
- Know your Customers
Before starting an import or export business, you need to have clearly figured out your target market. There is never a short supply of demand for a variety of products. Hence when choosing a product to export, it should be such that the demand for it is high. Exporting a product to Brazil for instance will require knowing those products in high demand and asking yourself if you can meet such demand.
There is huge potential here because the global community has increasingly become interdependent. No country can be said to be self-sufficient hence an opportunity for entrepreneurs to get involved by finding ways to provide vital services to people.
- Logistics is Crucial!
The import and export industry is one that involves a tremendous amount of logistics. This needs to be fully understood during the planning stages of your business.
In most situations, players in this industry work with professionals such as freight forwarders. These and other professionals have an in depth understanding of how the industry works and will help you establish a seamless process that ensures the prompt delivery of your products.This is one key area you don’t want to go wrong especially if you are dealing with perishable goods like fruit and vegetable export.
- Startup Costs
Startup costs are an import aspect of import export businesses you should consider. This is more so due to its capital intensive nature. Depending on your scale of operations, your startup cost may range from $6,000 to $30,000 as a small scale import export business. Small scale import businesses have been mentioned here because this is the starting point for most companies.
Most of the big import export businesses today started out small. As a matter of fact, many started out as home based before expanding into major companies. At this stage, some of the most basic things you will need include space or storage for your inventory, an office space (you can convert a room in your home for this), and office equipment such as a printer, a computer, an internet connection, as well as a functional website among others.
- Income Potential
Your import export business plan should include an income potential section. This is an area that cannot be overlooked. As an importer/exporter, your revenue potential is largely determined by the amount of work you decide to put in. This can be done either on a part-time or full-time basis depending on your schedule.
Small-scale importers/exporters earn an average of $75,000.
You should be able to conduct an assessment of what is required as well as your targeted or projected income. By including this in your plan, you would be able to work towards that goal with a greater chance of achieving it.
An import-export business plan should contain lots of details that are vital to the achievement of all your goals and targets. An advantage of having this in place is that it clarifies your goals as well as enables you to set definite, measured targets.
No matter how good or how much work has been put into writing a plan, it is never useful as long as its contents aren’t fully implemented. Success starts by following through with every intended action.