How to start export business, and make profit from it?

Starting your own export business is an excellent idea. If you are thinking of diversifying your market, to create balance or want to expand business globally, you are going in right direction. It is equally rewarding career option for Export start-up and become merchant exporter. Exporting from India is most rewarding business – be it government incentive for export, Safe payment terms in export transection or good price for good quality. You can start export with minimum investment and grow with our credit risk.

I entered International business in 2004 and developed business for various companies. Many of my client started with Zero experience, they are now doing Rs. 10 to 100 Cr.

About starting export business:

While you search on internet you get thousands of pages, video giving you information about Export procedure & Export documentation required etc. Where you will know you need to Get Import Export Code, Register with Export Promotion Council for RCMC certificate, open AD code, make a website etc. All this will register you as exporter. IEC code will not  Start Export business, and make sales. Hindi there is saying “Murgi pahle ya Anda”. I don’t know that, but I definitely tell you, What to do 1^st to Start export business from any part of world.

Caution : Do not Register IEC code & RCMC until you read this :

I will try to explain Step-by-Step Procedure to Start Export business. Which mean you how to make money from export business. I was confused too when I started export. I had lot of question

Where to get list of product exported from India

How to find buyer for exports?

How to find international buyers?

How to start exports import business?

How much investment required for export business?

Don’t worry I would try to answer all one by one.

So I will not discuss here Export Document required to start exports from India and Procedure to start exports. I will discuss this separately, because here we Make Business Simple.

I will also share some Tips to start export business. I have learned this hard way, by making lot of survey while I started and yes also by making mistakes.

Tips to start export business:

1. Before you completely read till the end, Do not waste any time and money; in Formation New Export Import company or trying to find How to open IEC code, Checking if you need RCMC for exports, How to increase Export through Export promotion council etc. .

2. First step to start export business quickly is to decide – 

What Product to Export from India?

For those who already have Product :

Ok, some people are lucky, that you already have product. You have worked hard for years and established a company and product for Indian market. So you want to export product Made in India. Still you can expand your product basket and add related product.

For those who want to Select product for export from India

You are equally fortunate, you have opportunity to decide the best suited product to export from India. As an Export Consultant, I am asked these questions frequently : Which is Best product to export from India. Their is long list of product exported from India like Spice exports, Export of Agriculture products, Export of Indian Namkeen, Export of leather footwear & leather products, Machinery export from India, Tiles & Sanitary exports etc. I will try to share List of product exported from India. You can chose any product that suite you and please let me know if I have missed any products. I love to learn from all of you readers.

You will have question How do I find export products from India I have thus created criteria for product selection for export from India which I have share in the end.

Steps by Step Guide for Product selection for export from India :

Needless to say the Export product should be of best quality. I will share one funny thing, In my state Gujarat, on the packing of good quality peanuts (Mumfali) which is sold on street, they write “E x p o r t   Q u a l i t y” , just to tell customer it is best quality peanuts.

My definition of best quality is simple – Product that match or exceed the specification, that foreign buyer/export buyer has asked and you have agreed. And it work trouble free. In short a Value for money.

The export buyer should get value, if they are happy after Importing product from India, if foreign buyer get benefit by using or Re-selling your exported product, they will comeback with repeat orders.

CAUTION : It is very difficult to Return the goods back to India.

When it come to choose product for export from India, I get a common question : Will I get Buyer for export product I choose? Should I do Market analysis for export product? What is demand of Indian product in International market? I have discussed all this topic in Export market survey. First, let me answer the question How do I find export products from India?

Product selection for export from India:

You do not have product or decided yet take a print of List of product exported from India.

1. Is the product selected tried and tested in India.

If you have product which no one has ever used you can still export, but there is a risk. Risk of failure when actually put to use; that too in foreign country. If the product for exports is already used in India; you will know the quality of product, complaint received from Indian customer. You can improve the quality before Exporting product from India.

Example : For Agriculture product exports – similar product are mostly used in India. However, pesticide and chemical residual allowed in most country are lower than India. So Testing of Agri product before export is very important.

For Machiery exports you need to check if similar machine are used in India. If they are successful in India, then they could be suitable for export also.

Frozen food or packed Indian spices exports would need longer shelf life as compared to that sold in India.

CAUTION : Product ready for India, Don't mean it is ready for International market.

2. Making a product for world standard.

One size dose not fit all. Even if product works well in Indian market, Astatic/ looks, quality, safety specification of exporting country can be different. Eg.

• Strict rules of low Pesticide in Agri product.

• Low Chile content, of India namkeen exported.

• Different Electric voltage, safety protection of electrical equipment.

• Packing method, labelling for Frozen food exports.

Let me share you one real incident : When a leading Jeans brand entered Middle east market with US/UK design. All most all Jean were rejected. The reason was, body frame of Middle east is different than US/UK. The product was not ready for market.

You can send me email if you want to  study in detail - How to make product for Exports.

3. How to Identify product for exports from India :

If you are not manufacturing product of your own, then How to Identify product for exports? Being an Export advisor and Export consultant, I get this question many time from my new clients. Product for Merchant exporter or Export Trading is easy to select. I have helped many clients, to identify product for exports; and thankfully they are successfully exporting since few years. I hope following Criteria for product selection for export would help you too.

Criteria for product selection for export from India

Please ask yourself following question it will help you to select product.I have explained logic for each question while you read till end.

1. What is my Educational Qualification & background.

2. What is my past experience?

3. Which manufacturers or products are available in my area or state?

4. Do I understand the products from above made list?

5. Can I influence & control product quality, delivery, price?

6. Can I trust the supplier?

7. Will I love to sell this product? What is my passion?

TIP : If you analyse with above question and find product, you will never go wrong.

What is required Qualification & Background for Export business :

Fortunately, government has not specified Educational qualification for exporting any product. You can start export business without even knowing english. I have thus added Google Translate on this site so you can read in Hindi or other regional language. Qualification or background will help you understand product you want to export. For e.g.

• Farmers family can understand agri product better. While other would have to learn, the trick of trade.
• Technical Person can explain feature of machine better.

Your past experience will also help identify product for export:

Work experience also give you good opportunity to find product for exports. Some of case study will help you understand.

• Person working in accounts department; he know various suppliers of raw material and can find a trust worthy supplier.
• A farmers son working in chemical factory has the background of Agriculture and he also has experience of chemicals. He then has multiple option of choosing from Agriculture product exports, Chemical Exports, Agrochemical exports, Pesticide exports, Seeds exports, process food exports etc.

Which manufacturers or products are available in my area or state:

India is large country. Every state has speciality and is famous for unique products. You will have better access and control over product made near you. While in export business you will have to visit Export product supplier many times; to Check quality of export product, Pre-qualification of export supplier, Pre-Dispatch inspection of Quality and Quantity of export goods etc. You will save lot time and money; for travel and supervision, logistic cost etc. if you find supplier near-by.

Suppose you Exporter from Gujarat and want to start Jute exports made in West Bengal. It is possible to start Jute exports, but normally exporter from West Bengal will be more competitive. ( Their could be exceptions).

Do you understand product to be exported:

It is very important  to understand product, even if you do business in India. Understanding export product is far more important. Remember, Foreign buyer importing from India, may have more experience than you. Foreign buyer may not only import from India, but he could buyer Importing from China, Importing from Europe or USA. So Foreign buyer importing from India, will test your knowledge about product. If they trust you they will trust your product.

Caution : Do not chose product that you do not understand.

Trusted Supplier & control over quality, quantity and price :

By now you would have shortlisted few product, that you understand and are in your reach. Now it is time to check if you have Support from supplier of product to be exported. It is very important that you choose reliable supplier, whom you can trust. It is similar as your buyer, trust you. For getting export business you will spend lot of time and money. If your supplier do not support you, you will be in big trouble and may end up loosing money. I will discuss  separately, on Criteria for choosing export supplier. e.g.

• Suppose you receive Export order and supplier increase the price.
• Supplier reject order because he has booking from other party or season in India.
• Supplier give sample of good quality and when order is received give inferior quality material.

So, it is important to follow Criteria for choosing export supplier, who is reliable, trustworthy and support you for export business.

Do you love selling the product? Are you passionate about it ?

Starting export business is like starting a new business venture. Are you starting export business because you like the product and are excited to go Global or Starting export business because, you do not have choice. Business is low in Indian market, you are tired of long credit in Indian market. Many come to me – The son in unemployed and have to marry so Starting Export Import company he can show – Boy is doing export business. Then, you will cheat your self and other.

TIP : Start Export business if you like the product, Love to travel and make friend in different country and make lot of money.

If you do not have any of this – you will be wasting time.

Conclusion :

• Select Product for exports only, if you understand.
• If you understand, you will love what you are doing.
• Shortlist 2 or 3 different product from different segment.
• If you are Trader, select product that has quality suitable for export.
• If you are manufacturer, improve product to export standards.
• Source product for export or Raw material for export product, from reliable supplier.

If you still can not find a product let us know may be I can help you.

You are ready for next step : Export product market survey.

Step by Step Procedure for Market analysis of Product, which country to export, Identify target market will be discussed here. You will find Make Business simple.

As I said every product has customer & market. Once you select product for export business, We just have to do Export Product market analysis. Our Guide to Lead generation for Export, How to Find Export buyer in Dubai, Find Export buyer in Europe, Find Export buyer in USA, Importer in Africa will help you make Export Data. Once you have Export Data with this export Data, we will guide you How start Export marketing. How to get Export order. How to get export payment, Letter of Credit etc.