The US is the land of opportunities where you can do anything. You can start a business and make it successful if you have passion. But if you like interacting and meeting new people, then start import export business in the US, it’s the best choice for you. Even if you don’t want to build your own business for import export, you can offer services to the business for finding buyers or suppliers.
With the passion, proper knowledge, and this guide, you can start import export business in the US and make it successful.
How to start import export business in the US
Read the article till the end, and you will know all the steps to start import export business in the US.
Types of import export business
If you manufacture a product, you can start import export business along with that by importing raw material or selling your product internationally. If you don’t manufacture a product, you can choose from the 3 basic types of import export business.
- Import export trader: Import export trader buys the product from a local or international manufacturer then resell that product around the world. Being an import export trader involves great risk, but with fewer middlemen, the profit ratio is high.
- Export trading company: An export trading company discovers what its overseas buyers want and then finds local companies that can export goods.
- Import export management company: The company helps manage all the details for the import or export from finding the buyer or supplier to shipping the product to the other country or importing the product.
Minimum investment for starting import export business
Minimum investment for starting import export business depends on the type of business you choose and the product. You can start the import export business with minimum cost. You need at least one phone and a reliable internet connection. You also want to invest in a business logo, business cards, and an attractive website. And hire someone for marketing.
After you have decided which type of import export business you want to start and have calculated the minimum investment, you need to focus on the market selection. Do proper research finding a profitable product and the market for a better return. Your target customer is the one you want to trade worldwide. Or you want to sell products to another country or buy products from international sources. If you can identify the need, you can target a group of companies as potential clients.
Consider the following while choosing the country for market selection.
- Do you have connections overseas?
- Do you speak a foreign language?
- Have you ever lived overseas?
- Types of goods you can offer.
- Demand of the product in a country you are considering.
You can register you import export business by filling out the SNAP R company registration form. After submitting your information, you will receive an email from the State Department with information about obtaining a CIN (Company Identification Number). Company registration number is used for tax purposes and registration with the US Department of Commerce.
Import export license
Normally the US Customs and Border Protection does not require a license to import goods into the United States or export US products. However, other government agencies or departments or local authorities may request this. Import or export license may be required for a specific product you need to check the import and export requirements from the authorities.
In your import export business, you will have to make and receive international payments, which means that you will trade between currencies and across borders. You can manage your business payments safely and easily with lower rates and higher exchange rates by comparing the services of a bank and money transfer companies.
Shipping the products
You require logistics to import or export the product. Contact the reputed freight forwarder that helps you transport the products safely and effectively. They will also help you manage the shipping documents, finding cargo space, and freight insurance for safety. You can find a freight forwarder from the business directories.
Risks and how to avoid them
You need to consider all the risks and find ways to avoid them. We will tell you some risks and how you can avoid them.
Your success depends on the fact that you can deliver products safely and efficiently. For example, if you are exporting products, you must ensure that they leave the local port and arrive at the right destination port on time. You should also consider anything else that might go wrong, for example, damage to the product during transit. By staying organized and working with a reputable carrier, you can easily send goods without any risk.
Customs regulations are not uniform worldwide. Instead, you will come across various rules when transporting goods. To avoid problems with the border regulations, you should hire experts in customs law and compliance with trade regulations.
Lack of market knowledge
It is a good idea to analyze the market carefully before entering the import export business, although it may not be enough. Hire an expert who understands the behavior and culture of your specific market. You should sell the products that are popular in countries you are not familiar with.
Import export business is the best choice for people who like to build relationships in other countries. But it also requires proper research, willingness to take the risk, and an organized mind that manages all the import export documentation and logistics. You can start import export business in the US following the guide and proper research regarding the product.