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import export business

10 Tips to start an import export business with minimum investment

Table of content:

  1. Introduction 
  2. Investment
  3. Export and Import
  • Import
  • Export
  1. Export and Import business
  2. Starting an Import Export Business
  3. 10 Tips to start an Export and Import business with minimum investment

Introduction

Investment is something that everyone practises. Even the act of putting a rupee in your piggy bank and saving it when you were young. Then investing this money to buy that cool lego set or those shiny new sneakers you wanted. This is investing explained in simpler terms. 

But, when you talk about investing in the corporate world, it gets a tad bit more complex. The jargons used changes as do the ways of investing. There are newer ways of investing that come up every single day. Some of these are genuine and some of them are not. There are some with high risk and some are very secure with minimum risk. Some places offer you such returns on investments, which if happened in real life would make you a millionaire in a month. Only for those companies to fail miserably and with all the money lost. Or for the companies to be fraud.

 If you have ever seen Hera Pheri (an Indian movie), you must have come across the scene where Akshay Kumar was lured into the 25 din mein paisa double scam (in 25 days the money will be doubled). In the greed for quick and easy money he ends up investing about 1 crore all of which he ends up losing as it was a scam.

Investment

However, not all investments are scams. There are many legal and safe ways of investing money. Many people think that saving and investment are the same. But, there is a difference. In the earlier example, you had saved up money to invest in a toy you like. But in the corporate sense, investing money means investing your money in something for it to grow. Nowadays not only companies but even individuals have started investing. 

There are many ways for an individual to invest as well. One can invest in cryptocurrency, buy stocks of a company, bonds, mutual funds etc.

Investments for individuals

For a brief summary of some investment types: Cryptocurrency is a digital currency. It is a  very high risk and volatile market. The fluctuations in the price can happen every minute. So, you will either end up gaining or losing a lot of money. 

Buying stocks of a company means you become a fractional owner of the company you purchase a share of. So, if the market goes up your investment grows and if the market falls/crashes the investment return will be very less. One ideally buys the stock of the company when they feel like the market is going to go up. When this happens, it brings a hike in the value of the company assets as well. 

Bonds are utilized by the government or the companies to raise the money. This is done by borrowing money from the investors. In return for borrowing the money, the bond issuer makes a commitment to pay the investment back over time with interest.

Mutual funds is a company. This company will take money from various investors and collect it. Then they will invest this money in stocks, short-term debts and bonds. This combination of the investment made by the mutual funds is known as its portfolio.

Export and Import

Import

Importing refers to importing or purchasing certain products from foreign places and bringing them to your country. It is very important because it helps the economy as well as helps the country to get access to the products by making it available in their country. Other reasons include manufacturing goods in other countries is cheaper in price, sold at lower prices due to being produced in other countries. India imports oil the most. Aside from oil, India also imports pearls and other precious stones, electronics, heavy machinery, plastics, organic chemicals and many more things. For more information on this topic you can visit our page P.L Global Impex Pte. Ltd to find more details and guidance on this topic.

Export

Exporting refers to a country selling goods, products or services to another foreign country. For example, the top exporter for coffee is Brazil, Vietnam, Indonesia, Honduras, Columbia, Mexico and India. And the top exporter for cars and automobile parts is none other than Japan because the consumers trust in the quality and safety of the products.

The most exported material from India is Refined petroleum. Aside from this, India also exports Diamonds, Rice, Pharmaceuticals, cereals, iron and steel.

Export and Import business

Trade has existed since prehistoric times. Then the men used to trade the shells and salts with distant tribes. But starting an import and export business is difficult and is best suited for those people who are ready to be in the business for the long run. This business involves exporting and importing everything from beverages to commodities. It even includes products which you might never think of as a global merchandise. It is purchased, sold and distributed every single day in the world. This can be a lot of work and also overwhelming. So, why not hire experts to make this easy for you. We at  P.L Global Impex Pte. Ltd  follow  values that  are Simple, Attainable and Realistic. For our services you can reach out to P.L Global Impex and set your business up for success.

There are different types of import and export businesses. Let’s look at them.

Export Management Company (EMC)

Export management company or an EMC is what handles the export operations for a domestic company which wants/will sell products to foreign countries but don’t know how to even begin. The EMC will have it all covered starting from hiring the dealers to invoicing the customers. They also handle all the advertisements and the promotions and marketing. 

Export Trading Company (ETC)

Export trading company or an ETC works on the other side of trading. Its main function is identifying what the foreign purchasers would like to buy and then will search for any local sources that are willing to export. 

The Import Export Merchant

An Import Export Merchant is kind of a free agent. They are also international entrepreneurs. They don’t necessarily have specialization in one of the industries or any products and don’t have a cited client base.

Starting an Import Export Business

International trade is a very complex web of import export business which handles the distribution and sale. International trade also overlooks the delivery of goods from one nation to another nation. When starting an import export business it can be tough. But a few tactics can help ease the process.  But it can be quite a heavy investment to start an import export business. Is there any way we can start the business with a smaller or minimum investment? Yes, there is. You can find pocket-friendly but amazing services on our P.L Global Impex Pte Ltd website. Additionally, we will give you 10 tactics you can use to start an Export and Import business with minimum investment

10 Tips to start and Export and Import business with minimum investment

Taking the decision to start the business

For starting an import export business the first very important decision to make is in which country are you planning to start the business. This has to be decided with keeping the minimum investment factor in mind. You can make a list of the various factors that you need to make a decision on with regards to starting this business. To attain success in any business, planning is definitely an essential step. You also need to decide on the product because it has to be in accordance with the investment you are willing to make. 

Gaining knowledge on the fundamentals of this business

“Half knowledge is worse than ignorance” is a pretty famous quote and for a good reason.  Imagine attempting a physics exam which you have to pass, but studying only half of the syllabus. You may or may not pass the exam, but could have achieved so much more had you taken out time to learn more. Similarly, starting a business is no joke. So, if you make a decision to start your business make sure you know your basics. A tree with strong roots has the power to laugh at the storm. Make sure you know all about the product you are going to be marketing and understand the marketing requirements.

Ready your equipments

Starting a business does require you to have a few basic tools and equipment. We live in a very digitalized world. WIthout a laptop or desktop computer your business wouldn’t be able to survive the digitized ways of the world. Along with the laptop or desktop you also need high speed internet. There’s 5g available in the market which would be the best option. Aside from this, stationery and any other tool you may need while working must be kept ready. These are the bare necessities and must be taken care of.

Target your product according to the decided market

It is very important to know whether the product you wish to sell is wanted in the market you decide on. For example, India is the biggest exporter of refined petroleum. So, if you are looking to deal with this, India may be a good choice. Or if you want to deal in coffee beans then Brazil. Cars and other related parts manufactured in Japan are the best. You also need to check the legal requirements and the rules and regulations to ensure a smooth process.

Start a current account

In whichever bank you prefer, open a current bank account. This is because business entities use current accounts. Your new business venture will need an account through which you can conduct and complete transactions with your vendors and customers. There are certain documents which are required for opening a bank account which vary depending on which country you live. 

Promote your business plan

Digitalization has made the process of promotions easier than before. But in order to ensure a successful promotion you need to have a very detailed business plan. Spend more time on researching and developing a perfect business plan. Then you can promote this through various online platforms and can even promote it offline. 

Making contacts and developing relations

Making contacts is a very powerful tool. Some contacts can be very beneficial. But only making contacts is not enough. One also needs to follow up and make genuine relations. There are many who exchange fake pleasantries just to benefit from the contact. Try to be one of those few who are genuinely trying to build healthy relations with the buyers.

Obtaining a License and other necessary documents

Though not a costly procedure, it is very important to properly obtain a license. Do make sure to follow a proper procedure for getting a license. Failing to do so or overlooking a loophole may result in heavy penalties (which are costly). Also, another necessary document is a PAN card. If you don’t have it already, be sure to make one.

RCMC and IEC code

RCMC is your Registration Cum Membership Certificate. If your location of business is in India you will need a RCMC certificate. This registration with the councils will ensure that the exporters are given access to assistance and events which will help them expand their business. It is also necessary for qualifying for certain benefits which fall under India’s Foreign Trade Policy. IEC code is a requirement for anybody starting an import export business. You will need to submit supporting documents along with the IEC code application form. Director General of Foreign Trade is whom this form is filed with.

Increasing the capital

A minimum investment business means that your business comes with low risk, a basic network, minor marketing, moderate or unexpected revenue. If you are looking to increase your capital you may look for help from banks or from any investors you have.  You may also take help from family, friends or relatives to raise your capital.

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