Establishing a winning export import trade process does not happen by accident. You need to foster your business on everyday basis with information about market study and scheduling, promotion, bookkeeping and accounting, finding your target audience, how to scrutinize the market competition and much more.

There are normally four kinds of persons who are keen in learning How to Set up an Import Export Business - they are:

1. Holder of medium to small size manufacturing firms.
2. Individual who wants to establish an export import business from their home.
3. Person who desire to improve their foreign business career.
4. Dreamers who are searching for “get rich fast method”.

While all of us are dreamers to some extent, if your dream is to find a share of the millions being made in global trade today…and day by day without making those type of promises, you will not get your answer in this article.

Now for those of you who think yourself part of the 1st three groups, you have to possess certain qualities to be successful in foreign trade. By doing so, you will find out how you and your business can have your share in this growing industry called global trade.

Essential Qualities for Foreign Traders

• You have to be patient because it will ‘probably’ take 3-6 months or further before you get your first dollar.
• You have to be determined because global businesses, whether they are importer, manufacturers or buyers, are not coming up for ‘you’ to get in touch with them.
• You must have some sort of sales capability to convince an importer or manufacturer why they should deal with you.
• You must have a practical capability to ‘clearly’ converse with persons on the telephone.
• You have to be eager to work extended hours, be constantly frustrated and understand this is not going to make you get wealthy fast.
• You have to be enthusiastic to invest some of your earnings back into your business.

International businesses have to face risks and challenges at many fronts. Some are similar to the risks and challenges a domestic business confronts and some are unique. Even the challenges that are similar by definition differ in nature. For example both types of businesses have to face financial challenges, but an international business will be facing many factors related to global financial markets that don’t affect domestic businesses as much. They are more of a challenge in nature than risks and most of them can be handled through proper planning. Keep reading to understand these challenges better.

The challenge of international planning & strategy:
The first challenge for an international enterprise is to make a global strategy and then implement it. The managers and those at decision-making positions often find it difficult to change their thought pattern, which is not used to work in global paradigm. There are many international businesses but just some of them have truly adopted a proper global strategy. Though the situation is improving with more and more trained graduates and professionals taking on the management roles. Nevertheless, international business management requires extra ordinary management, foreseeing and leadership skills.

Financial and economic challenges:
It starts from arranging the funds to start international business and includes everything such as fluctuation in exchange rate, global economic crisis (or some economic crises in the host country), shift in oil prices, global inflation or tariff barriers imposed by the host government, also the export related policies of your own government.

International Politics:
Political know-how is a must for everybody but it becomes all so important when operating at international level. If some policies were suitable for your business, a change in ruling party can bring drastic changes in those policies. Political chaos will bring down the economy and with that your business. To prevent your business from such negative impacts, you need to make sound political judgments.

Environment, natural disasters and warfare:
Many multinational businesses have to face serious opposition by some environment friendly organizations. Citizens are more concerned about air and water pollution these days as it is becoming a serious threat to their health. Some natural disaster like floods and earthquake, or some kind of civil war breaking out in the host country is also in the list of possible challenges. A new challenge that an international business has to bear now days in some specific countries is the threat of terrorism.

Use this Exporter-Importer Business Transaction Checklist to discover possible violations of the Export Administration Regulations and 10+2 Importer Security Filing Regulations.

Here is a list of Red Flag Indicators:

• The exporter, importer or its address is similar to one of the parties found on the Commerce Department and U.S. Customs and Border Protection lists of Blocked, Denied, Entity and Debarred Persons.

• The exporter, importer or purchasing agent is reluctant to offer information about the end-use of the item or it’s country of origin.

• The product’s capabilities do not fit the exporter’s or importer’s line of business, such as an order for sophisticated computers for a small restaurant.

• The item ordered is incompatible with the technical level of the country to which it is being shipped to or from, such as semiconductor manufacturing equipment being shipped to or from a country that has no electronics industry.

• The exporter or importer is willing to pay cash or accept cash for a very expensive item when the terms of sale would normally call for financing.

• The exporter or importer has little or no business background.

• The exporter or importer is unfamiliar with the product’s performance or characteristics.

• Routine installation, training, or maintenance services are declined.

• Delivery and shipping dates are vague, or deliveries are planned for out of the way destinations.

• A freight forwarding firm or third party is listed as the product’s exporter or seller on the shipping or commercial invoice.

• The shipping route is abnormal for the product.

• Packaging is inconsistent with the stated method of shipment.

• When questioned, the exporter or importer is evasive.

If you have reason to believe an exporter or importer is doing an illegal violation, you may report it to the Department of Commerce by calling its 24 hour hot line number: 1 (800) 424-2980.