HOW TO START AN IMPORT-EXPORT BUSINESS - The Art of Being an Entrepreneur with Just a Laptop

Many people want to start a business of their own and keep reading about “how to...” in many different directions so to find a suitable idea, but only very few end up thinking about an import export business.

Since ancient times trading across countries and continents has given active business minded individuals the opportunity to make huge profits by importing or exporting goods that are simply not normally available in one country but manufactured in others for various reasons. Even when goods are available by local manufacturers it can be the case that the same can be lots cheaper if made in another country and imported. Hundreds or even thousands examples can be made here, but for the sake of clarity we can think of champagne that is only made in France in a specific region called “Champagne”. Non one else can use this name in the world and anyone who wants this “orginal” sparkling wine product has no other option than importing it from there. Period. Another case can clearly be identied with China as a manufacturing country for a huge variety of products that are definitely cheaper when made there instead of the USA or Europe.

Therefore if you are still deciding which kind of business to start, except that for sure you want to do it through a laptop, you should not start by focusing on the business itself, its nature and income potential but also on what type of lifestyle you really want! If you also like to have the opportunity to travel and see the world and meet new people while at the same time doing business, well, then you should consider setting up an import-export business that you can operate from your home, and without the need of investing any of your capital at all for the purchase of goods. There are many ways you can do this if you simply follow some proven business systems that have been used since ages by many successful traders worldwide. You can even buy and sell a ship load of petrol without you having to put any money upfront if you know how to do it! Too good to be true? Well, it really is like this. The fact is that only very few people know of these kinds of legal business technics used in import-export and certainly they are not keen to tell everyone how they profit from doing business internationally. On the other hand, if everyone knew how to do this we would all do the same, want we?

Most people think that the logical way to getting involved in an import-export business is to buy products overseas with their money and import and resell them in their own country to whoever they choose to do business with. Nothing wrong here, except for the fact that we don't want to do it with our own money, but using other people's money!  

As already written above, there are various ways that this can be done and these are described below:

This is the the easiest way to get started into the business. Let's say you are familiar with one country and know that there are manufacturers of certain type of products that would be delighted to sell their products to foregn buyers, but that lack the knowledge or time to find customers overseas by themselves. This is where you get into the business by proposing yourself as their agent (perhaps not as an exclusive agent at the beginning) and through the means of a written agreement with them, to find buyers in your country willing to import their products. Of course the manufacturer should supply you with relevant business information, samples and literature of the products involved so that you can conduct your business in a speedy and professional way. Once you have found an importer interested in purchasing the proposed goods you help them to connect with each other and once the deal has been finalised and the goods paid for the manufacturer / exporter pays you a commission which was agreed beforehand between you two. The same applies if you have a buyer in your country potentially interested in importing the products you propose but don't know exactly who the manufactures are and where exactly they are located. In this case you can make a written contract with the buyer who will pay you a commission based on the total amount of the purchase (including future purchases)  that will be done through your intermediation as an agent. These are clear examples of how it is possible to operate as an import-export agent but without using you capital.

Being a sourcing agent is basically working together with importers based either in your country or even abroad who need your knowledge in finding the right deals for them from manufacturers and suppliers you might know in your country or overseas. This involves much more responsabilities than simply operating as a commission agent because you will be the one responsible for a lot of factors and not only just by finding the manufacturer /supplier. You will take care that everything is correct regarding the quality control of products, sizes, colours, timing of production, on time shipments, documentation, etc. You would get paid by the importer on commission basis, plus expenses, as much probably this kind of business will require visiting the supplier more than once. If everything works fine and the importer is happy with your services you will possibly be kept on a retainer to be available next time.

This is where the most experienced people in the trade excel on using other people's money to put buyers and sellers together. Let's say an exporter in Brazil has a shipment of coffee or sugar ready for export (at extremely good prices due to over production) and is looking for buyers overseas. You spot the business opportunity and contact potential importers in Europe, USA or Asia whom you know might be interested in such commodities and one of them agrees to buy the whole shipment. Once you have agreed the price between the seller and the buyer you request the buyer to open a “Transferable Confirmed Irrevocable L/C Letter of Credit” from their bank in your favour and you in turn transfer the same in favour of the Brazilian exporter. Let's say the buyer opens an L/C in your favour for $50,000 you then transfer the same to the seller for $40,000 and instruct the exporter to ship directly to the buyer's address wherever they are located in the world. The beauty of this is that except for organising the deal and the required documentation through your bank and your chosen shipping & custom agents, you do not actually touch or neither see the goods at all, while at the same time you are guaranteed that the exporter cannot cash your money promised in the L/C unless they ship the goods first, and the importer cannot come into possession of the goods unless they have opened an L/C beforehand through their bank in your favour (which in turn you have re-transferred less your profit to the seller). Huge profits can be made in the worldwide import-export trading if you know how to do it properly, and without the need for you to have a university degree or any capital at all except having a laptop and an internet connection! May be working from your veranda while enjoying your life in a sunny holiday destination.