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  • Export businesses are responsible for helping businesses export their products to other companies and finding businesses that are willing to fill in the gap in demand for a particular niche. For instance, if a country has an increase in prosperity and needs more cars to meet the ever-growing demand for personal automobiles, an export business will find car manufacturers that are willing to provide these products.

    Trading Partners

    Figure out where your markets will be. The United States trades more with some countries than others. China, Canada, the United Kingdom, Mexico, Germany, and Japan are some of our most solid trading partners. However, there are several other countries with expanding economies that are also willing to buy U.S. goods. If you happen to have any particular knowledge about one country or another, for instance, if you have previously lived in a foreign country, that would be a sensible country in which to seek out markets.

    Types of Exporting

    Decide whether you want to be an export management company or an export trading company. Export management companies find businesses that want to export their products and then seek out markets for these products. Export trading companies reverse the process, finding markets that have a demand for a particular product and are seeking out vendors who are willing to provide that product.

    Finances

    As of 2009, an export business costs between $5,000 and $25,000 to start. At the very least, export businesses need money to cover a computer, modem, market research, trade leads, and travel expenses. A staff for an export business can be small, with one to five employees. From the profit end, export businesses must determine whether or not they want to earn a commission on everything they sell, a salary from companies they market for, or if they want to be direct vendors.

    Direct Vendor

    Direct vendors are the most hands-on of export companies and deal from either the import or export end. Direct vendors that export actually purchase products directly from the vendor, quote to the importer the cost of the final product, acquire a letter of credit from the bank, make the shipping arrangements, acquire shipping documents, and present those documents to the bank. Vendors that import receive the price of the product from the exporter, open a letter of credit from the bank, check to make sure that the product has been successfully transported, acquire appropriate documents from the exporter, guide the product through customs, and ensure that the product is delivered to the distributor.

    Source:

    How to Start an Import/Export Business

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