How To Start Import - Export Business

The contents of this Startup Kit are excerpted from How to Start an Import/Export Business, an Entrepreneur Startup Guide. Visit SmallBizBooks.comfor more information.

Resources The American Association of Exporters and Importers
The Federation of International Trade Associations
International Chamber of Commerce
The International Federation of Customs Brokers Associations
International Organization for Standardization
International Small Business Consortium
World Trade Centers Association

Books
Entrepreneur's business startup guide Creating a Successful Business Plan
Entrepreneur's business startup guide Financing Your Small Business
Entrepreneur's business startup guide Successful Sales and Marketing
Importing Into the U.S.
Helpful Government Agencies

Bureau of Industry and Security
Business Information Service for the Newly Independent States (BISNIS)
Commercial Service, Canada
Commercial Service, Mexico
Country Commercial Guides
The Export Legal Assistance Network
Foreign Agricultural Service
International Trade Administration
Overseas Private Investment Corporation (OPIC)
Showcase Europe
Ex-Im Bank, Small-Business Programs
U.S. Census Bureau, Foreign Trade Division
U.S. Customs and Border Protection
U.S. Department of Commerce
U.S. Commercial Service (The Commercial Service)

Magazines and Publications
The Journal of Commerce
Tradeshow Week

From importing exotic fashions to exporting light fixtures, the international trade business will take you all over the world and into all product niches.
International trade is one of the hot industries of the new millennium. But it's not new. Think Marco Polo. Think the great caravans of the biblical age with their cargoes of silks and spices. Think even further back to prehistoric man trading shells and salt with distant tribes. Trade exists because one group or country has a supply of some commodity or merchandise that is in demand by another. And as the world becomes more and more technologically advanced, as we shift in subtle and not so subtle ways toward one-world modes of thought, international trade becomes more and more rewarding, both in terms of profit and personal satisfaction.

Importing is not just for those lone footloose adventurer types who survive by their wits and the skin of their teeth. It's big business these days--to the tune of an annual $1.2 trillion in goods, according to the U.S. Department of Commerce. Exporting is just as big. In one year alone, American companies exported $772 billion in merchandise to more than 150 foreign countries. Everything from beverages to commodes--and a staggering list of other products you might never imagine as global merchandise--are fair game for the savvy trader. And these products are bought, sold, represented and distributed somewhere in the world on a daily basis.

But the import/export field is not the sole purview of the conglomerate corporate trader, according to the U.S. Department of Commerce, the big guys make up only about 4 percent of all exporters. Which means that the other 96 percent of exporters--the lion's share are small outfits like yours wil be--when you're new, at least.
Why are imports such big business in the United States and around the world? There are lots of reasons, but the three main ones boil down to:

Availability: There are some things you just can't grow or make in your home country. Bananas in Alaska, for example, mahogany lumber in Maine, or Ball Park franks in France.
Cachet: A lot of things, like caviar and champagne, pack more cachet, more of an "image," if they're imported rather than home-grown. Think Scandinavian furniture, German beer, French perfume, Egyptian cotton. Even when you can make it at home, it all seems classier when it comes from distant shores.
Price: Some products are cheaper when brought in from out of the country. Korean toys, Taiwanese electronics and Mexican clothing, to rattle off a few, can often be manufactured or assembled in foreign factories for far less money than if they were made on the domestic front.
Aside from cachet items, countries typically export goods and services that they can produce inexpensively and import those that are produced more efficiently somewhere else. What makes one product less expensive for a nation to manufacture than another? Two factors: resources and technology. A country with extensive oil resources and the technology of a refinery, for example, will export oil but may need to import clothing.