A Newbie Importer/Exporter is always filled with a bucket full of responsibilities & duties undoubtedly. Let’s Start with the most starting question before starting the export import business ‘Capital’. “If people like you, they’ll listen to you, but if they trust you, they’ll do business with you.” No one wants Nightmares in their life. Right? So starting an Export Import Business with huge Capital is risky tea to drink. You can only go with this option if you have a strong backup. At the end of the day, the exporter or importer must be ready to face the losses, whether it’s happening or not. Hence, investment for export import business plays a major part.
How much Investment is Needed to Start a Export Import Business
You don’t always need a huge capital or investment to start an international business. All you need is dedication towards your work and creative idea to sell your product. An export import business in India can be start in around investing 50,000- 1lacs. Go slow while you start a business. In less investment you will get less profit but there will be less risk. Boost your business slowly. Once you feel like business is going good, start investing more money but in small portions. First make trustworthy relations with your buyer or seller. If you have stocked up you money and want to invest more in one go. You will earn more returns in this but also have high risk.
Is Import Export Business Profitable in India?
Export import business is one of the profitable business in India. It is considered as one of the lucrative business because of the high demand for goods and services in international market. To make your business more profitable you should have good knowledge of your business, make trustworthy relations, make strong connections.
EXW (Ex Works):
Ex Works in which the seller makes the product available at a particular location & the buyer pays the transportation costs. After getting the goods, they are responsible for every next process. Talking about the export import in India, EXW is something that traders hardly choose for. Also, the risk involved in this incoterm, so buyers rarely chooses it.
FCA (Free Carrier):
The Seller obligations include goods, commercial communication, documentations, exporting packaging, export licenses, custom formalities, pre carriage to terminal, delivery to name placed, cost of pre shipment inspection & proof of delivery. After that it’s all buyer’s responsibility. Like EXV, FCA too is not much popular between International Traders in India.
FAS (Free Alongside Ship):
FAS is only applicable for ocean or inland transport. Sellers just have to pay till the freight is on the vessel, after that it is all on buyer’s shoulders. Free Alongside is also a budget friendly incoterm for starting investment for export business.
FOB (Free On Board):
A popular Incoterm finally used by many Indian exporters & importers. A trending incoterm! FOB too applies for ocean or inland waterway transport. Here, the seller pays all costs up to the main carriage then it is the buyer’s responsibility. So Count this one in your bag of ‘investment for export import business’
Basics Guidance for the Start of Business-
Let’s now assume you are starting your export import journey with minimum capital and play safe. Everyone wants a good flow of business, but at the end of the day it takes your constant genuine efforts and hard work. In Export Import Business, there is nothing Like shortcut. You ought to first learn & then rock the industry though your product respectively. Having a sound knowledge of your work and the product is most important.
No Specific Amount-
To be very clear, there is nothing like fixed. It all depends upon the product you export or import. If Your product is Costly then after deducting many costs, the final capital may remain high. So, we cannot just say the exact minimum capital but definitely as mentioned above the clarity is what counts the most. Digital Exim does not believe in just talking. We make future International businessmen. Export Import Business is not every one’s cup of tea, it requires courage, passion, focus & the foremost thing ‘Training’. We are the pioneers in the export import industry for 33+ years. We provide you online classes and personal consultancy. The Whole Team Makes Your Export Import Journey reliable & easy through ultimate trade assistance. Digital Exim has a wide Network in the Export Import Industry. Join our export import business training today only & fulfil your dreams of becoming the No.1 International Businessman. Do visit our website!
