Starting import export business could be fun. If you know some basics of how to start import export business in Pakistan, then you should definitely do it because it is the highly profitable business. You can start with any size of investment capital as there is a wide range of products in the foreign market.
The import export business is very simple it involves buying and selling of both international and domestic products for a profit. But before you start import export business let me tell you some common mistakes that lead to failure.
8 Common Mistakes to Avoid in Import Export Business
If done properly import export business is very profitable, and if you ignore even common details, you could lead your business to failure. Following are the common mistakes to avoid in import export business.
- Usage of capital
- Not considering exchange rates
- Keeping detailed records of transactions
- Search new opportunities
- Doing everything yourself
- Not considering other methods of payment
- Protect your goods
- Underestimating the product
Usage of Capital
If you do not have the capital to invest, you can waste your time. When you are starting a business, your capital is very important. Using your capital properly increases your possibility of success. Try to invest the necessary investments in the resources available to you. No capital means no business. Do not overspend on things, try to negotiate and start with a small investment and always have a backup capital for your business.
Not Considering Exchange Rates
Always keep an eye on exchange rates. If you start your import export business without considering exchange rates, you will lose money. Note the exchange rates and try to be prepared for it. Sometimes it is good to work with the local currency of the country. So, always keep an eye on exchange rates as it goes up and down daily.
Keeping Records of Transactions
Keeping detailed Records of your transactions is very important for your business plan. There are many programs that allow you to record and track transactions. If you neglect this thing, you risk losing control of your finances. When entering your transactions, be sure to add dates such as time, spent or obtained quantity, and client’s information. You can write down everything that matters to you to keep a safe record of your business.
Search New Opportunities
Always keep an eye for new opportunities and have the courage to try new things. If you don’t adopt new things in your business, you may lose your market. As the time goes, things change and so does the market trends.
Doing Everything Yourself
You might be good at multi-tasking but it will increase your burden, and you might miss something that will affect your business. If you do everything yourself, you could end up making many mistakes and forgetting important things. Try to work as a team, everyone should feel valuable for success. This will give more motivation to the team. Businesses always prosper with the combine hard work of the team.
Not Considering Other Methods of Payment
Payment methods are critical and require different attention. Do not limit the possibility of payment in any way as this will result in loss of customers. You can transfer money online in several ways. You can use online banking to complete transactions. If your customers struggle too hard with your payment method, you can lose them. To make your import export business successful always consider different methods of payment.
Protect your Goods
If you send goods overseas, unpredicted things can happen. Your product may be damaged or stolen during transport. If you do not spend money on insurance companies of premium class, you run the risk. And your customers will not be happy if they don’t get the products in perfect condition. You might end up with a lot of unsatisfied customers.
Underestimating the Product
In order to beat your competitor, you lower the price of your product and end up losing clients or sale. But if you sell your goods too cheaply, your customers may not trust their quality. Finding the right price can be difficult if you do not have a marketing team. Don’t lose hope, if you do the proper research, you can find out on what price you can sell your product. So never underestimate your product and try to market it properly.
You can run a successful import export business by avoiding the above mentioned mistakes.