Since the beginning, people had been engaged in the business of exporting. In truth, a lot that has happened in history involves, in one way or another, the export business – from discovering new lands to fighting wars to establishing business relations worldwide. These days, people are finding out that being in the export business brings them excitement, adventure and financial rewards no different from what people from ancient times had experienced.
You don’t need to have a multinational company to engage in the export business, most companies in this business is are small and operated by single proprietors.
Choosing which type of business you would like to export would be the initial step in setting up your export business. There are three major type of export businesses: Export Trading, Export Merchants, and Export Management Companies. When the business you intend to operate is focused on finding out and procuring the goods that markets abroad want to buy, then that kind of business is called Export Trading. Once you have located the goods, it will be up to your company to export these goods to the buying company.
Obtaining goods and reselling them in the international market is the business of Export Merchants. This kind of export business may handle different type of goods and deal with more than one particular market. Export Merchants don’t receive commissions or percentages on the good they export, they resell the products directly themselves.
This third type of business, the Export Management Company, manages the exporting needs of other companies. Envision a company who would like to penetrate the international market but has no experience in doing so. That’s what they employ the Export Management Company for to take care of all things related to the exporting of their product. Basically, the original business employ them and pay them through salary or percentages of successful transactions.
When dealing with international business and foreign trade, it is necessary for you to be acquainted with the particular laws that would affect your business; this includes not just your state laws but federal and international laws as well. Your local small business administration would be a great starting point to gather know how on the export business.