Exporting and Trading info

THE BUSINESS PLAN Teresa Brown had already thought through the hard international marketing questions suggested in chapter 3. She knew her product and knew where to buy it. As a result of her work experience, she also knew how to market the product in the United States. But what she hadn't done was put those thoughts on paper. In the beginning, you might have only a notion of your plan tucked away in your head. As the business grows, it will be necessary to formalize your plan and stick to it. Putting out brushfires in order to maintain marginal survival is hardly a wise use of anyone's time. The underlying concept of a business plan is to write out your thoughts. By raising, then systematically answering basic operational questions, you force self-criticism. Once on paper, others can read it, and you can invite their opinions. Don't let your ego get in your way. Ask for constructive criticism from the most experienced people you can find. Often it is better to ask str...

THE MECHANICS OF START-UP Start-up Capital In the initial stages of starting your own import/export business, the funds needed to support expenses most likely will come from your own pocket. It is possible to begin an import/export business with as little as $1000 a year. When your personal financial outlook will not sustain those costs (expenses of start-up), you must look for outside financial assistance. Unfortunately, banks are seldom the source of startup capital. Why? Banks do not take risks. They generally expect a track record and collateral. Catch 22? Where can you go for financing? Most often, the source is relatives and/or friends, people who know you and believe in you. Even they might want a description of your intended business, often in the form of a business plan. So, from the beginning, you should develop a written plan for your business. You might want to skip to the second part of this chapter immediately to learn how to write that plan. You can return to this s...