The import-export industry has given a fortune to many people in the world. It has turned out to be one of the latest industries of the millennium. And now, it is attracting more and more entrepreneurs to get into this area as it is also the easiest and cheapest way to enter the global trade market. Moreover, it is less risky compared to the other methods of initiating business internationally.
There are many businesses around the world and the question that would come up in your mind is why would you opt for the import-export business when you have enough resources and knowledge to invest in any industry. It is because the economy of your country crashed and many businesses are shutting down but the growth of the import-export industry is rapidly increasing.
However, to establish a successful import-export trade business you need to have certain prior preparations which will help you to grow in this area. You need to study well and gather proper knowledge before entering into this vast industry as the growth of your business depends mainly on your dedication and hard work.
The growth parameters of the import-export industry
There are certain growth parameters that you must consider to establish a successful import-export business.
Selecting the correct product
The product that you choose to start your business is the major factor that would be responsible for the growth of your business. It is the key to your import-export business startup. While choosing the product for your business, you need to remember a few things such as the state of the international market, the latest trends in the import-export business, profitable areas, and more. A perfect product is usually selected only after conducting an in-depth analysis of the market. There are several product opportunities to look into so always explore them thoroughly before selecting the final product to start your business.
Analyzing the market is the second most important parameter involved in the growth of an import-export business. Market analysis is the proper logical research which is done to identify the various factors of the economy for the product with which you are willing to start your business. It helps you to get an insight into the potential clients that you will be targeting for sales and your competition in the industry. By conducting a market analysis, you will get a brief idea about the market size and the purchasing potential of your targeted clients.
Custom House Agent Parameters
A custom house agent is considered to be the backbone of your import-export business. It is because this is the major factor without which you cannot import or export any product out of the country. In our country, a custom house agent commonly known as CHA is licensed to act as an agent for the transaction of all the import-export goods at particular customs stations. If you are planning to begin a startup of an import-export business then it is mandatory to hire a custom house agent (CHA) who will provide you with proper guidance for hassle-free import and export of your products.
Logistics and Transportation
Another important parameter of the import-export industry is logistics and transportation. If there are no logistics and transportation, your products will forever remain in the manufacturing units. Logistics is the term described as freight management and it deals with the handling, sorting, packing, and supply of goods. On the other hand, transportation is the movement of products from one place to another. Some finished products need to be transported at a particular temperature and facilities so that the freshness of such goods remains uncompromised. It is something that matters the most in the successful export and import of products.
Hiring a good import-export agency
Your import-export business can work out the best way if you connect with a well-known and reliable import-export agency. Every entrepreneur does not feel it is important to hire a good export agency but you can be a step ahead in your business if you do so. Now this question would arise in your mind how to find the best import-export agency for your business? There are some key factors that you should keep in mind while choosing an agency for your import-export business.
- While choosing an agency for your import-export startup, always check its experience in this field and how long they have been working.
- Check out the reviews and comments of their existing clients to get a better idea about the agency.
- You can also check out their social media handles in order to figure out their activeness in various fields related to the industry.
- Always visit their office and talk to them before deciding on investing in that particular import-export agency.
If you are planning to start an import-export business then you need to keep all its growth parameters in mind. You should also gather knowledge about various schemes offered by DGFT of the Indian government that also includes the Advance Authorisation Scheme which helps import-export entrepreneurs to import raw materials and other inputs duty-free.