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International trade is a growing trend, with American small businesses controlling over 95% of the $2.5 trillion in goods sold annually. Starting an import-export business requires an initial investment of at least $5,000, but has a low startup cost compared to other companies. It is important to research government approvals and consult with local trade organizations and embassies to get started.
Import export activities, also known as international trade, are one of the hottest business trends of this decade. American companies sell more than $2.5 trillion in goods a year, of which small businesses control more than 95 percent. As the owner of an import-export business, you can work as a distributor focusing on the export and import of goods and services that cannot be obtained domestically (for example, Russian caviar and French perfumes) or those that are cheaper if imported from other countries (e.g. Chinese electronics). Additionally, you can also open an Export Management Company (EMC), where you can help an existing company market its products in a foreign country by arranging the shipment and storage of the goods for them without actually making the sale. CEMs may specialize in one industry or work with different types of import export manufacturers. It is also possible to act as a broker for a company, working on a commission basis on actual sales. This is a great choice for products that are guaranteed to sell due to high demand or an established brand.
While virtually all countries can offer opportunities for import trade, Canada, Mexico, Japan and China have topped the trade rankings over the past two decades. In recent years, the countries of the former Soviet Union and South America have become major players, but there is still a lot to learn about trading these new markets.
Opening an import export business requires an initial investment of at least $5,000, depending not only on the type of commodity you are setting to market, but also whether you plan to work from home or rent an office, hire employees , etc. Compared to other companies, however, import and export companies have a very low startup cost. While most products can be exported without the need for licenses, some specialty products or high-risk items, such as firearms or pharmaceuticals, may require special government approvals. If so, the costs could be significantly higher.
To get started, it might make sense to consult your local Board of Trade (or Chamber of Commerce in smaller towns) or call Consulates and Embassies to find out if they have any import export programs. Many embassies even have a special department to promote the export of their wares to other countries and are more than happy to help potential traders.
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