Starting an import export business or any business for that matter is exciting and can be hugely rewarding. If you’re looking to start an import/export business, there are a ton of considerations you need to make, and it’s important you’re aware of the work, costs and risks it takes. Here is our step-by-step guide to setting up an Import/Export Business:
Step 1) Products
First things first you’ll want to think about what products you’ll either import and sell or what products you want to produce for export. When it comes to selecting and sourcing products, the best advice would be to start with an industry that you are familiar with. This will help you find the best products for the lowest price.
Step 2) Where to Buy
It’s extremely important to know where to buy your products from, and building relationships with your potential supplier can be great for business. You must know how to choose the correct supplier with the right terms and pricing for your product. Of course, you’ve probably heard of Internet suppliers like Alibaba, Aliexpress and other such companies, which many traders rely on and can be an easy and great option, but it’s important you don’t limit your search.
Step 3) Samples
Testing out samples is the only true way to know if your import/export matches the quality you’re looking for. Some are easy to obtain from a supplier such as clothing, toys and watches whereas others are bulky, such as construction and heavy equipment. Make contact with companies and see what they can offer you and at what prices, and go from there.
Step 4) Finding Buyers
After you’ve found your products, you’ll need to converse over pricing, quantity, and samples. When approaching buyers, you’ll have to negotiate the sale’s terms, including the retail price, wholesale pricing, minimum order, delivery time, exclusivity, and so on. Finding buyers for your products is obviously key to any import export business, and some ways to find buyers are testing the market with eBay, Amazon, Etsy, google searching for wholesalers of your product and finding and researching in Facebook Groups.
Step 5) Legalities/Tax
The legalities are a huge part of Import/Export. Before you start trading, it is essential you have your terms and conditions in place as a buyer and a seller. All of the nitty-gritty details on taxes, VAT and legalities would be too long to include in this article, but we have a range of other guides on VAT on imports/exports, and hidden costs you can check out here: (LINK TO ARTICLES) Everything you export or import must adhere to customs regulations, so it’s crucial you’re in the know.
Step 6) Limited Company vs Self Employed
Now you should consider how you will set your company up. The main two options for this are either setting up as self-employed or as a Limited Company. It may be useful to consult an accountant to explain your current situation to and they can advise you which option is right for you, and in terms of financials, what records to keep.
Step 7) Review your plan
You’ll need a website, suppliers, buyers, legalities in place, and a goal you’ll be working towards. By solidifying your plan, you’ll hopefully feel secure and confident in your decision.
Step 8) Website
Consider how you’ll sell your products after you’ve sourced your products and created your product range. Building a website can be done yourself or you can hire a website builder to do the heavy work for you, but it certainly doesn’t have to cost a fortune! There are plenty of website building services online such as Wix, Squarespace & GoDaddy, that make it as easy as possible for your website journey to begin.