Getting Started
Every situation in exporting and importing is different. The rights, obligations and liabilities of any company or individuals participating in global trade vary widely according to many factors including the products or services being sold and the target market. Importing and Exporting is full of incredible opportunities for the small and mid-sized companies. But many of these companies are not involved in exporting because they believe it is to "too hard" or "too complicated" but today technology has made things simple.

One of the most important tools you can have is the personal computer. Your computer is the way you can keep track of your enterprise. You can monitor sales and expenses with accounting programs. You can predict future profits and calculate expenses easily and quickly with a spreadsheet. You can draft letters with your word processing program and develop sales material with a desktop publishing program. Your modem is the key that unlocks a host of resources.

Through the Internet, you can locate and develop important worldwide contacts. Just as importantly, you can reach experts in all areas of import-export and access libraries of information on tactics, tips, contacts, methods that have worked and not worked and just about every other aspect of exporting.

You can use your Internet connection to identify and contact suppliers. Your modem and computer also serve as a mailbox. You can talk instantly with potential contacts, information sources, other importers/exporters like yourself, buyers and overseas representatives. And it doesn't matter if the person you are talking to is in the next room or the next continent. Online communication is not only fast, it's cheap and brings the world to your doorstep. You can use your internet connection to scan libraries of information about your product, trading practices and download sample letters and agreements you may use to set up your first sale.

Research
Research, research and research. These are three most important words for the manufacturer or exporter. This means identifying the product and the country with the greatest trading potential. Take into account your own strengths in making this determination. If you're a candle holder supplier with contacts in the same industry, you may want to narrow your focus on the countries that imports from your country.

What are you looking for in your research? You want to determine which countries are buying what products. This isn't the time to break any new ground. If the US is buying India made home textiles, then it's likely that you can sell home textiles there too or at least textile-related accessories and equipments. What you won't know right away is whether or not the product you want to sell is competitive. You'll find that out when you approach the supplier in that country.

Read the business newspapers and watch the news. Be looking for political and economic changes around the world that could open your product to new markets. Review economic statistics. These are compiled by country and by product category. They can tell a potential exporter what kinds of shipments are going to which countries. Look at demographics for your selected nation. Check the population size, per capita income, and competition. Much of this information can be found in a good World Almanac or the encyclopaedia or on the internet.

Another resource available via computer is the Export Leads online B2B leads service. Here you will find up to thousands of new leads each year with new updates posted regularly. Consult with the experts including your banker, freight forwarder, exporting companies or agents, associations, and government officials. Attend seminars, workshops and anything that will broaden your understanding and knowledge of the exporting process, especially in your target country and product.

Approach the supplier
By now you've already determined a likely overseas market and the product to sell there. Since you've taken advantage of an edge you enjoy, you will have credibility with the suppliers you've targeted. Through a letter and follow-up phone call, set up a meeting with the supplier. With the facts and figures you've already researched, explain how you can increase their market if they buy products from you.

Having an agent or sales representative overseas gives the exporter or the supplier more control over the marketing effort in the target country but requires more personnel and financial resources. A distributor is a better choice if extensive inventory in the foreign country is necessary and if the company wants to delegate most of the service and credit matters. In general, the margin allowed for a percentage allowed for distributor will be higher than the commission percentage allowed for agents.