Starting an import export business is one of the flourishing ideas to work in the 21st century as a step to achieve your profit goals which are higher to do well in the international market, selling the same product in the domestic market may lead to getting a limited amount of profit margin. But taking the initiative to make a foothold in the international market also requires a thorough product knowledge in the target market as well. Be it import or export; you should require a certain or a minimum amount of Import Export Capital.
The first and foremost question that requires special attention and precise answer are, “how much money is needed to start an import export business in India?”
The answer is it depends. The question is similar to how much does to costs to buy a home or a car.
There is a big myth that starting the Import-Export Service requires a high amount of capital. This is not true in all the cases, can also be started with a minimum or zero investment. Here you will come to know how to start the same in the capital that will not burden your pocket and will lessen the risks involved in doing so.
Now, if you have already made a plan to get involved in exporting the goods to other countries or to import the goods from the foreign countries at a relatively lower price and to sell it at a higher margin, than before starting the exchange of goods, there are certain things which you need to keep in mind.
1. Make a Firm Decision
The very first thing you need is the determination to start a business and prepare yourself to enter the foreign market. Planning and forecasting are very important to get success in any business and deciding, who your customers will be? Which freight and customs agent to contact? Which country to target for your export business? How to start import export business in India? Or is your target country allow you to sell the given products or permit you to enter into their market? These questions will help you to focus on the market for a hassle-free sale in the Export Business. Again I would like to clarify that it requires minimum investment for import export business, so you don’t have to worry at all related to investment.
2. Knowledge is the Key to Getting Entry in the International Market
Acquiring product knowledge is the best way to understand the market requirement and knowing your capacity to sell the product in a given market without much difficulty. You should invest your time in finding the right customer to supply the material to earn good profit margins. Negotiate with your clients to get the best deal of all time and skills will come with an in-depth study of your client needs about a particular product.
3. Money Needed for Registering the Import Export Business
If you have a firm or a company in your name, then there are a few documents that are required to get your import export license ready in a few days or weeks. Getting an IE Code or and import-export code, obtaining the RCMC (registration cum membership certificate) from the export promotion council are the two most important things to do before starting the Import-Export Service. These will cost you a few thousand rupees only.
After getting the registration done, contact the right freight forwarder and customs clearing agent, which will help the easy transportation of materials from one country to another country.
These processes of setting up import export business in India involve around Rs. 65,000 to Rs. 70, 000 as an initial investment.
4. Can Anyone Do an Import Export Business with a Minimum or a Zero Investment?
Now, the main questions which come to everyone’s mind are the possibility of how to start an import business in India? Is it possible to start an export business in India with a minimum or zero investment? If yes, then how to start an export-import business in India?
You don’t always need to be a big manufacturer or a trader to invest the money in the foreign market as it looks lucrative to everyone, but there is also a high chance of getting into the risks involved in it. So, working as a Sourcing Agent or a middleman is not a bad idea to get money through the manufacturer by helping them to get international buyers and get your money through them.
Secondly, start with a small supply. Let’s say from $1000 only to understand the market easily. Thus, a small Import Export Capital is an easy way to be on a safer side initially. As your business grows, you can invest more and more to export the material and earn more through import export business profit margins in India than what you get by selling the same product in the local markets.
5. Study the Target Market Well
Exporting is not that easy as we think. Greater product knowledge and market requirement are an easy way to penetrate the foreign market. Many countries have products in high demand, but they don’t have the products in abundance to satisfy their people’s need easily, and for doing so, they import these products from where it is found in abundance. Try to export the same after getting to know the market needs and demands to get an entry into these countries easily.
For instance, let’s consider the import and export business in India; the country is one of the major producers of vegetables, cotton, fruits, organic chemicals, and machinery, leather products, organic mushrooms, to name a few. Research on these products and start supplying the same to the place where it is required to get a good value of a particular product.
6. Making Contact with the Buyers
To get success in the Import-Export Service, it is essential to keep a healthy relationship with the foreign buyers and suppliers for easy material and cash flow or to get more credits on a particular product.
There are several business contact directories available on the internet today where you can easily find how to start an export business in India and other essential details of manufacturers, suppliers, traders on the platforms like Alibaba.com, IndiaMart.com, AliExpress.com, Amazon, and others. These are some of the world-renowned, secure, and highly trusted platforms to supply goods in the international market.
7. Making Use of the Internet
Social media platforms such as Instagram, Facebook, Twitter, or WeChat are a great way to enhance product marketing by personally contacting many peoples around the world. Make use of these platforms to easily join the pages which allow you to share the same product requirement with the target market and increase the chances of getting your Import Export Service to flourish with a minimum Import-Export Capital.