How to start Export Business in India – A beginner’s guide
Export strategy should be simple, practice and flexible export plan for sustainable and profitable export business in India. Main reason for export business in India is to earn foreign exchange. Foreign exchange would provide good profits for exporter and it would be useful for economic development of the country. We felt this is one of the best business ideas for moderate investment.
How to start export Business in India?
Understanding aspects of products to be exported is crucial for success of export business in India. Below are the some of the points to be considered before starting export business in India.
1) Products to be exported: Know which products you are planning to export. What is the design of the product?
2) Know your competitors: Who are your competitors in the country where you want to export, what are the distribution channels etc.
3) Potential countries to export: A product cannot be of same demand across the world. Select potential countries where there is good demand for your products. You need to choose such countries for export.
4) Manufacture or only distribution: You should decide whether the products you want to export would be manufactured by you or whether you would just export other company products. If you are going to manufacture your own products, you need to have tie-up with vendors or manufacturers of raw materials to supply materials.
5) Set-up your manufacturing unit: If you intend to manufacture your products and export, you should make arrangements to install a manufacturing plant, hire labors and start the production. Though this is a tedious process, you can get more profits when you manufacture and export it.
6) What are your distribution channels: Analyse distribution channels to distribute your products through export. It could be through flight, air transport or train transport etc.
7) Insure your products: Once you are ready to export your products, secure your products by taking insurance. You may spend some money on insurance, but it would help you for risk coverage.
8) Know the payment terms: You should upfront know when your customer would make payment for your exported products. You should also know the additional charges you may need to incur in getting your money.
9) Plan your export business: You should have clear plan about what you want to achieve through your export business. It includes starting from manufacturing a product to exporting a product and collecting the money. The plan should clearly tell how much money you would make out. A perfect plan would help you in planning your finances.
Important points to be considered for products you want to export
- Avoid monopoly products
- You should know legal provisions in the country where you want to export your products.
- Avoid seasonal products.
- Know how the products are labeled and packed.
- Know local tax implications at exported country.
- You should take specific measures for heavy and dangerous products to be exported.
In the age of globalization and liberalization, export business would be a lucrative business in India. Govt of India supporting several traders through incentive schemes to promote export business in India.
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Team – Allbusinessideas.com