Four important things to consider before starting an import business
Originally published 12 Feb 2020 on Medium.com
If you're thinking of starting an import business, here are some handy tips to help you succeed.
1. Choosing a reliable overseas supplier
Choosing a supplier can be the make or break of your business. You want someone you can trust that will provide you with consistent service and A-class products, but you also want a supplier that's flexible and understanding.
It does help if you prioritise getting the right price and quality while making sure that the supplier can meet your standards and delivery dates consistently.
Make sure that cost savings don't come with unacceptable compromises on the quality of service you'll receive.
2. Compliance rules and regulations
No matter which country you’re trading in, not complying with its relevant standards and regulations is out of the question.
To avoid your goods getting confiscated at customs, it is crucial to have a thorough understanding of the laws for the countries you intend to deal with.
But don't worry as most of the information is readily available online.
3. Building Contacts
Good contacts are a must if you want to be successful in any business. By developing a comprehensive list of reliable contacts, you can find new business opportunities and gain valuable knowledge and insights into your industry as a newbie.
Try to acquire contacts with professionals in the industry – buyers, suppliers, manufacturers, traders, wholesalers, distributors, shipping agents, customs clearing agents, etc.
4. Dealing with exchange rate fluctuations
Over the last three years, many import businesses have taken significant losses to their bottom line and profits simply because of the substantial fluctuations in the market due to Brexit and other market uncertainties.
Remember, if you're an importer, your business depends on you getting your supplies from abroad, therefore paying in foreign currency is a fundamental part of your business.
Find yourself a currency platform that can help cut costs massively and save time with faster settlements. Also, consider purchasing forward cover to protect yourself from currency fluctuations.
If you’re thinking of exchanging currency or want to compare prices, click here to see what rates we’re buying and selling at.