Now, after you have a profitable product(s) selected for your future business, it’s time to establish the real company and all acquire other relevant things.
You can choose the name for your export-import company and register the company. Also, you need to organize and apply following for your business:
It’s often easier to hire someone to do the registration and license applications for you, same with the website and design. After this step, you are officially ready for starting an import-export business.
Research your target market(s)
After you have been selected product(s) for your export business, it’s time to also make sure the right target markets for you. It’s good to use the google to find information about your country greatest export markets. Find out which vegetables are to exported, their price range, the competition etc. This will help you in getting the right buyer as well.
Start looking for the customers ( buyers)
There are online ways and offline ways for finding and identifying the sincere buyers. The best option is to combine both. With online methods, you can find the raw-contacts and start first communication with the potential buyers.
For online methods, I suggest following:
For offline methods
After you have found the contacts of the potential buyers, then it’s time to find the most sincere ones out. The best way is to finally meet a business partner in real life is possible. If signing contracts at the first time, it’s always reasonable to meet face-to-face.
After you have found sincere buyers, then you should make sure the exact requirements for the products what you are going to export. Also, you need to make sure exporting terms, needed certifications, packing details and delivery requirements. And most importantly, what would the target price what your customers are looking.
Choose your suppliers (if you need)
Hopefully, you have found sincere buyers and made sure all the requirements for the product(s). You need to know delivery terms and target prices, packing, requested documents.
Your next step for starting an import-export business is to source the best possible supplier for you.
You can use the same methods, like for finding the buyers, but you can also use your connections. It is necessary to introduce the terms and requirements for your country suppliers and ask the quotation from them. Also, you need to be sure, that the product what they offer are same, what your buyer is looking for.
It is wise to ask several quotations from different suppliers and then compare the offers. You should not only compare the prices, but also the delivery terms, payment terms etc.
It’s important, you are convinced, that your supplier is supplying exactly the same thing, what your buyer is looking for. Finally, you should be able to choose what supplier is best for you.
Get freight forwarder and custom broker or better yet join online end to end services
Regardless what form you choose, you can find yourself a freight forwarder and custom broker or online platforms like Freightos and Tradesns. With online services you have complete control and transparent view of your transactions. Even you don’t need their service, it’s good that you have them ready. You may need them if you have custom or delivery related questions.
Since its vegetable, your product will need a reefer(refrigerated) container with a specific temperature. Consult your agents and find out the process completely.
Since digitisation, online platforms have made it easier to get access to all kinds of such services.
10. Sign contracts and execute
After you decided, how you are going to work, then based on that, you should sign the deal.
As a direct exporter, start with signing the foreign buyer and wait for the advance payment. After payment, you buy products from your local supplier. Organize all the docs and take product ready to the port. Wait for the balance payment against the BL and ship the products with required docs to the buyer.
After necessary communication with your overseas buyer on terms of payment and terms of delivery, you arrange to issue proforma invoice, in turn you receive export order followed by purchase order from your overseas buyer. The terms of payment for your export contract could be advance payment, Documents against Acceptance DA, Documents against Payments DAP, or under Letter of Credit LC. If you as overseas seller require to cover credit risk against your overseas buyer, you can approach concerned authorities to cover insurance.
In India, ECGC is the authorized agency who covers such credit risks for Indian exporters. Being an exporter, you will have an idea about other risks involved in export. The terms of delivery could be EX-Works, FOB, CFR, CIF, DAP, DDP or any other Inco terms. If you would like to arrange finance against export, you can approach your bank for pre-shipment or post shipment finance against export orders obtained by you.
Remember, if you are working as an agent, then your commission agreement is very important. Be ready to pay for the lawyers to help you with this.
Give customer support
After the initial deal is done, then be ready to also support your customer, in case he has some further questions. Maybe he needs some extra docs for his import custom. You should be helpful for him, this will make the next deal most probably taking place.
Many fresh exporters make the mistake, to not pay enough attention to the already existing clients. But bear in mind, that it’s always easier to sell to the already existing clients that finding new ones and sell to them.
It’s smart to pay attention to the customer support.
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