How to Start an Exporting Business

Exporting is a procedure in which an organisation or a nation sell their products to
foreign countries in order to gain revenue and maintain the balance of economy. This
concept has various benefits which are mentioned as follows:
• Organisations can gain huge market share in international market by exporting
the goods and services.
• Businesses can also earn increased sales revenue and profit by exporting in
countries which has high value of currency.
• Organisations can also compensate for the seasonal demands which they face
while only operating in domestic market.
Apart from above benefits, there are various limitations to export as well which are
mentioned as follows:
• Businesses and the nation has to face financial risk as the economic condition
of the country in which products and services exported is not certain.
• Licensing documentation is also a limitation of the process of exporting which
restricts the company from entering into internal market.
• Small companies have to fulfil various governmental requirements before
exporting their products which involves high cost and time.
INTRODUCTION
Trading overseas is a procedure of exporting and importing the services and goods in
international business environment. The main aim of this brochure guide is to build an
understanding about the ways by which an exporting business can be started. This
brochure guide includes pros and cons of importing and exporting along with their
comparison with merchandise. Methods of taping international markets are also analysed
in their brochure along with their pros and cons.
Advantages and disadvantages of importing and exporting and how to secure a deal
Importing is a procedure of procuring products and services from foreign economy to the
local economy. This concept helps an economy in maintaining the balance of trade and
brining new and exciting products to the economy. There are various advantages to this
procedure which involves:
• Products can be procured at low costs and can sold at higher prices by attaining
high margin of profit.
• Small businesses can procure raw materials and labour at lower costs and can
initiate production which will result in low cost of manufacturing.
• There are various countries which provide the facility of tax concession which
can be used by the small businesses by which they can procure high quality of goods at
lower rates and lower taxation.
• Government of developed countries such as United Kingdom even provides
supports to small companies in order to establish their business by importing goods.
Along with above merits, various demerits to this procedure of import also exists which
are:
• When organisations tend to import goods and services from other nations then the
problem of unemployment increases as the labour of local country will not have
opportunity to produce the goods which are imported.
• Businesses have to pay heavy GST and other forms of taxes on the imported
goods which decrease their profit margin.
How to Start an Exporting Business