What is an export business?
Trading internationally such that manufacturing a product in one country and selling it to the consumers of another country is an export business. Exporting and Importing makes up the international trade.
The term 'exporting' basically refers to shipping goods made in one country and selling it to international buyers. The person who is the seller of the such products and services is referred to the 'exporter'. Exports are the resources, which are sold to foreign countries for sale.
The overseas based buyer of the exports is referred as the 'importer'. 'Importing' means buying goods/services from abroad for sale in one's country. Such products are named as 'imports'.
India is #18 exporter in the world with an amount of $284B. Moreover, top exporting countries in India are namely, United States, UAE, China, Hong Kong, etc.
What qualifications are necessary to start an export business?
1. Minimum Investment : 50,000 Rupees
(Investments can change according to the type of business you will do.)
2. Establish an Organization with a catchy name and logo.
3. Open an authorized bank account for dealing with foreign exchanges.
4. Obtain an IEC [Import-Export code]
5. Registration cum membership certificate [RCMC] Exporters should obtain RCMC to obtain profit and international links across the global. It holds entry fees and annual membership charges too.
6. Don't forget to get a PAN card!
7. Look over different products and select the best one for you which also includes your budget amount. Ex : Diamond exports can be quite expensive, whereas clothing can be cheap with low prices.
8. Choose the right export market (countries where the export might be most suitable and profit-oriented.) Petroleum and Cars are common exports in most of the countries.
If you are expecting for a small exporting business, then this is the one for you. Clothing is one of the best exports in India, which is less investment and high margins.
Apart from this, India's major exports also include :
1. Petroleum products
2. Vegetable exports
3. Beauty products
4. Seafood Exports
5. Machinery export business
6. Iron and Steel
7. Fabrics
8. Biologicals
9. Organic Chemicals
10. Cars and Motor Vehicles
However, exporting is expensive and risky. The main disadvantage. Unless you're vigilant, you can lose the focus on your markets and customers. You must be conscious about the :
1. Who is your importer/customer.
2. The quantity and value of your exports
3. Export destination
4. The mode of transport and goods.
Anyways, you don't need to worry a lot for starting an export business in this digital era.
Everything can be done in remote relationships.
The less the investment, the less the profit you get but it can have less risks compared to large exporting businesses. Precious stones, gems, jewelry, homeopathy medicines, cereal exports, Pharmaceutical Products, and another creative startup can also be moneymaking and successful.
Export businesses can also be very lucrative.
