Export business in today’s world has become a viable option to generate foreign currency. In addition to economy, it is important for business to grow and thrive too. When your business needs an export platform, you may wonder how I start this kind of business in India. Should I do it overseas or can I start one here in my country? Well if you are looking for the answer to these questions then there is no better place than online. In the below article I will explain you How to start export in 10 steps in India.
What is exporting?
Exporting is a procedure of selling goods and services produced by an enterprise to customers which are located in foreign countries. With this definition we can say that: The product of an export oriented company has to be exported outside the country. If your product isn’t going anywhere out of the country it’s not meant for export. There are so many people in this world who start their business without any knowledge just by seeing others; such people always fail in business. To do business, it is very important to have knowledge and interest in that business.
So let’s now look at the export, how to start. So if you ask me, I can explain you the export in this simple 10 steps, the step zero. Take a decision and start everything. Start from a decision. That’s a state zero.
Level one is getting knowledge. If you have decided that yes, I want to get into import business, then you should get complete knowledge of that system. Otherwise, you’ll face challenges to getting a proper knowledge of the system.
Then you need a company because you want to trade something, so you need licenses for that. You will have to establish a company, so we’ll understand what kind of companies we can form. It could be any form of company like private limited, sole proprietorship etc. For more details you can contact any agency or visit Indian government website https://www.mca.gov.in/content/mca/global/en/home.html
You can get import input, license. IEC means what? Importer exporter code. That is the only one license for export or import of any products of any industry in India. The government has made it very simple. Only one license for export also and its lifetime. You just have to apply for this license once, like you apply for GST. That’s it, and then you can do this business after these licenses.
For more details visit: https://www.dgft.gov.in/CP/
Then you have to identify your product. You may have already some product, but if you don’t have, don’t worry. You can do the market analysis.
What is India doing on export business? What all products we are exporting, which country? And then you can identify, okay, out of this product, I think I can get this three, four products. I have access to these three, four products. I have some relative; I have some friend that this product is available in my district, in my state. I have some access to this industry. I have knowledge of this industry. Then you can select some products based on that. So point numbers four and five is like, selecting a product and analyzing a market, analyzing numbers of that product.
Okay? If you identify one product, then you have to analyze if it is exported from India, okay? If yes, then to which all countries that are going, it is being exported, okay? It is exported. Then how much quantity is exported? How much dollar is coming to India? Again, that. All this information you can get, and that’s how you should start, and you should take decision about your business based on this number, right? Visit https://commerce.gov.in/trade-statistics/ for data.
If you identify product, if you target one country, then you have to identify who is buying that product already. We are not going to create a new customer. We don’t have that capacity. We don’t have that fund, so we have to already; we have to identify who’s already buying that product. All that data you can get, Federation can help you on that. Register with various agencies like https://www.go4worldbusiness.com/
COMMUNICATE WITH BUYRES
Once you get the buyer data, then we have to communicate with the buyer in import, export language, payment terms, documentation, delivery terms, terms, packaging, timelines, credit, letter of credit, all these. So that’s where that point number one comes into picture. You should have knowledge of this system then only you can communicate with your buyer. Once you communicate your with your buyer, you can negotiate with your buyer and convince him. Then he will think about giving you order parallel when you are sure that, okay, this order is going to happen.
You should do the port registration. There are many big ports from where we are exporting, so you need to register your company. At that port once. You just need to tell that authority about your company. I have all these licenses, and now I want to export from this port. So please give me the permission, register my company and they will register it.
Partly you’re negotiating with your customer. He will give you purchase order if you’re lucky. If you’re a good businessman, he can give you advance. Also, don’t look at others, don’t look at other superior what they’re saying. Believe that you are capable and my first customer I got from Facebook and he paid me a hundred percent advance. That’s my experience, my capability. I don’t know about others.
So you have to believe in yourself. Everyone is different. Everyone is unique. Everyone, everyone’s capability is unique. So your experiences will also be different than others. So we should learn from others experiences, but we should not blindly follow them. So let’s say you will get a purchase order and let’s assume that you got some 30% advance, and then you are good. Then you will go to the market, you’ll procure the material, and you’ll start preparing for the shipment.
Shipment is what sending your goods from your factory, your warehouse to customer’s warehouse. So goods will move from your factory to the port, from our Indian port to that country’s port, and from that country port buyer’s warehouse, that export shipment. And this is our export will happen.
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