HOW TO START AND OPERATE YOUR OWN PROFITABLE 
IMPORT/EXPORT BUSINESS AT HOME 

What is a good way to build up a successful business from nothing 
and have fun doing it? The import/export business may be your 
answer. Not only does it require little financial investment to 
start, but it offers the prestige of working with clients from all 
over the world. 

You don't need previous experience in the field, but you should 
have a good head for organizing. Fulfilling a successful 
import/export business requires constant attention to little 
details. 

Do you know some local manufacturers looking for ways to increase 
their market for the goods they make? Or are you planning a trip 
abroad and want to make some contacts for setting up a business? 

If you have an ability to sell, and an air of diplomacy, the 
import/export business might be right for you. All you need is the 
desire and determination to make it work. 

As you progress in the business, many factors become obvious and 
easy to handle. For example, you'll need to find a person to handle 
shipments, called a freight forwarder. And you'll need to create 
solid contacts and strong relationships with reliable suppliers. 
But after a short time, you can be well on your way to making a 
sizeable income - with a very low overhead. 

Do you like the idea of running your own business? How would you 
like a tax deductible trip to foreign places a couple of times a 
year? The advantages of an import/export business are great. 

The biggest advantage is the money you'll make. Once you get the 
business underway, the commission for setting up sales is very 
profitable. And after you establish and maintain a number of 
exclusive accounts, you'll find the time you spend is highly 
rewarded with money. 

Take a look into the import/export business. Consider the risks, 
and consider the advantages. Talk to people in the business. Is it 
for you? 

HOW IT WORKS 

Of all the manufacturers in the United States, only a small 
percentage distribute goods outside of North America. The goods that 
do find foreign markets are exports. On the other hand, anything 
that is manufactured outside the country and brought in for sale, is 
imported. 

Although it seems obvious that all manufacturers would want a 
worldwide market, it is not easy for a company that is limited in 
its scope and abilities. That's where you come in. 

An import/export agent is a matchmaker. Manufacturers of domestic 
goods seek foreign distribution; foreign manufacturers want a United 
States market. You need to find them, make a solid connection, and 
establish a business relationship with these companies. 

The agent's commission is generally about ten percent. Now, think 
of ten percent of $500,000 or ten percent of a million. Although 
that may seem like a large order, it wouldn't be, if you're talking 
about machinery, raw materials, or computers. 

The market is unlimited and there are hundreds of manufacturers 
looking for foreign distribution. Sporting goods, clocks, electronic 
games, radios, housewares, garments, tools - anything can be readily 
imported or exported if there is a consumer demand and if you can 
get the products. 

The United States Government encourages exports. Indeed, it is 
those sales that keep our balance of payments with the vast amounts 
of goods that are imported. And you'll find government agencies 
helpful in establishing your business. 

THE BASICS 

You can start your import/export business at home with a telephone. 
You'll need a file system, business cards, and a machine to answer 
the phone calls. Once you get going, you'll want a cable address or 
a telex hook-up. 

And you'll need a classy letterhead. Until you establish personal 
contacts, it is your letterhead that represents you. Make it look 
professional, possibly embossed or two-color, or gold leafed. Have 
it printed on light-weight paper for airmail correspondence, but 
don't have airmail envelopes printed. You'll have a lot of domestic 
correspondence too. 

More than office equipment, you need the determination to make it 
work. It will be slow at first, and you'll need to plan your moves, 
make contacts and SELL YOURSELF. But once you make a few sales and 
sign several exclusive contracts worth money, you'll know your 
dedication was worthwhile. 

MAKING CONTACTS 

The most important step in setting up your business is finding the 
contacts. You may have relatives in a foreign country; you may have 
frequently visited and established business relationships in a 
country. Or, you might just have a feeling for what will sell where. 
A person who keeps well-informed in the business world can pick up 
and ride the crest of worldwide trends. 

Foreign consulates located in the United States have commercial 
attaches who want to establish outlets in the U.S., and they're a 
good place to start. Sometimes these consulates can help you find 
indices of their own import/ export enterprises. 

The United States embassies abroad are another place to find 
contacts for commercial distribution. They can help you find out 
about a com§pa§ny's solvency and reputation. 

Another way to establish contacts is through the Chambers of 
Commerce of every city you are aiming for. 

Start small - don't tackle the world. Where do you want to sell the 
American goods you might have in mind? Which countries have the 
merchandise you want to import? Find out about the countries, what 
they have to offer, and what is generally in demand. 

Then prepare a massive mail campaign. 

The easiest way to mail hundreds of letters is to use a typing 
service that has the equipment to produce the same letter with a 
different address each time. It's worth the money it will cost - 
you'd go crazy typing so many identical letters. 

To every possible contact, write a letter introducing your 
compa§ny, requesting the names and addresses of appropriate firms to 
contact. Ask to have the notice published in the monthly bulletin or 
posted in an appropriate place. 

From the names you get back, write another letter, again 
introducing yourself, and asking information about their company. 
You can use a questionnaire, which fill out and invites a response. 

What goods do they want to import? What products are now imported 
and how are they distributed? Does the company have a certain 
territory, does it have sales representatives, branches in oth§er 
cities? What are the basic details of operation - history, a ssets 
and liabilities, plans for growth. 

Request any information you need, to find out what they will buy 
and what they have to sell. If the company is a manufacturer, ask 
for samples or a catalog, the facts and figures of current foreign 
distribution, and the product demand in their own countr y. 

ANALYZE THE MARKET 

Keep informed. Read everything you can find about world trade. Look 
at trade publications, international newspapers, news magazines, and 
financial reports. Who is selling what to whom? Although the market 
for American-made airplanes is sewn up, there are thousands of 
medium to small sized manufacturers in every state of the union. 

You can get goods to sell, but you have to be sure to study where 
they are in demand and can get the price to make exportation viable. 
Your questionnaires will tell you what further and read the journals 
published by that country - and many are available in English. Do 
these publications confirm the desire for certain products? 

The American market for imported products fluctuates with the value 
of the dollar in comparison to the value of each other country's 
currency. And, importation prices reflect that directly. Can 
American consumers afford to pay the price of certain import ed 
goods? Or will they? 

Finding the right market is as important as the actual particulars 
of making deals and selling goods. What do you think will sell? If 
you do some careful studies and think about the trends, you'll be 
able to come up with hundreds of products to import an d export. 

The import/export business is actually smaller than you might 
think. There are only a few of these businesses - that's why there's 
plenty of room for more. 

WHERE TO FIND HELP 

Establish a good business relationship with a local bank that 
handles international business. Your personal banker will follow 
through on the actual foreign transactions, and will help keep your 
credit afloat. In fact, that is one of the best factors abo ut an 
import/ export business. Aside from office supplies and 
correspondence, or possible business trips, you need no personal 
cash outlay. All you need is good credit and a good reputation. 

Your banker is your credit manager and will give you valuable 
advice and references when you deal with both American and foreign 
manufacturers and distributors. 

The United States Government agencies are great places to find 
help. These agencies promote the import/export business, and publish 
many small booklets and pamphlets. They also distribute continually 
updated reports on foreign markets, commerce and finan cing. 

Read these sources of information and find out the particulars of 
exports, global surveys and ocean freight guidelines. Become 
familiar with the market share reports, current laws and 
regulations, and government promotional facilities. 

MAKING CONNECTIONS 

As you continue your correspondence with foreign companies, build 
up a good rapport with their representatives. Pin down a few 
companies - perhaps in the same country or similar territory - to 
their exact needs. What are the two or three products most in 
demand? 

Consider their methods of distribution. You may be able to work 
directly with a wholesaler of an overseas importing company. Your 
commission will be lower, but you won't need to handle as many 
particulars, and they will take care of distribution. 

Or, you may need to supply catalogs and samples, working with a 
network of small companies, or sales representatives from a larger 
conglomerate. 

The highest fees that you can collect are for raw materials taken 
from the source and delivered directly to a manufacturer. But you 
must be certain of a guaranteed quantity and the continued ability 
to deliver. 

If you are importing goods, you'll need to find U.S. distributors 
that can handle the quantity of goods at a high enough price for you 
to profit by. A single retail outlet or two is not enough to make 
your time worthwhile. Look into how buyers work and m ake contacts 
in the larger retail chains if you have retail merchandise. 

GETTING THE GOODS 

There are hundreds of American manufacturers with limited 
distribution looking for an overseas market. Exporting their goods 
is the place to start your business. 

You have many selling qualities for convincing the manufacturers to 
engage you as the sole export agent. You have foreign contacts and 
know the demand for specific goods. You will handle the sale, the 
paperwork, the money, all shipping, customs, and fore ign 
distribution. 

The manufacturers in return provide quotations, and you put your 
fees on top of that - you cost them nothing. 

The manufacturers have everything to gain - an increase in sales, a 
broader market, and more profit. And you have everything to gain - 
establishing your business, an a commission on the cost of the 
goods. That is the basis of a firm business connection a nd a 
mutually profitable arrangement. 

Contact local manufacturers first and then move into larger 
territories. You can make these contacts by phone, in person, or by 
personal introduction from contacts you may already have. Or, you 
can advertise in business publications and newspapers. 

Before you do get into a legal agreement, be sure to check the 
reputation of the company. How long has it been in business? Where 
are the products distributed domestically? What is the solvency and 
reliability of the company and its goods? When you make your sale, 
you'll want to be able to deliver. 

MAKING AN AGREEMENT 

Once you have agreed to represent the manufacturer as the export 
agent, you need to have a written and signed contract to bind this 
agreement. Your attorney should be the one to draw up this contract 
- later you can just use the same one, substituting na mes of other 
manufacturers. 

Basically, the contract is between the manufacturer and you as the 
export representative. You are granted exclusive rights to 
distribute goods to all countries except those they already 
distribute in. 

The manufacturer will pay you the specific commission quoted to the 
distributors on top of the price of goods. The company will also 
provide catalogs and samples for your use in distribution. 

You, the export representative, in turn will promise to do 
everything possible to make contacts and distribute the 
manufacturer's goods in foreign territories. 

The terms of the contract should then be stated: how many years the 
contract will be signed for, the terms of cancellation by either 
party voluntarily or because of no sales action over a certain 
period of time. 

THE SALE 

You've made your contacts with foreign distributors who will buy 
the merchandise. You have a signed contract with an American 
manufacturer that will deliver the goods. Perhaps one of the 
distributors now asks for a firm quotation on the price of a cert 
ain amount of goods. 

You go to the manufacturer and get a price quotation on the 
quantity of goods. It should be valid for a certain stated period. 
The manufacturer may agree to deliver the goods to the ship, 
handling the freight to that point, or you may need to make arrang 
ements from the factory. 

You add on the commission you want to the price of the goods. Then 
you add on all the extra costs of getting the merchandise from the 
factory to the warehouse of the distributor. 

If you've made an agreement with a foreign import/ export company, 
their representatives may take over the shipping, paying you the 
price of the goods and your commission. That's the easiest, but your 
commission will have to be reasonably lower. 

If your sale is to a company that will distribute the goods 
wholesale or retail from its premises, you have to arrange all the 
transportation. 

TERMS OF SHIPPING 

You will become more familiar with the terms of shipping used in 
quoting prices and delivering goods as you gain experience. Your 
responsibilities vary with the terms of the agreements and orders. 
Check with your freight forwarder to be clear about your 
responsibilities. 

A bill of lading is a receipt for goods shipped. It is signed by 
the agent of a ship or common carrier and assures the buyer that the 
goods were unloaded in the same condition as they were accepted. 
These are the documents you'll need to produce for your banker to 
release the letter of credit. 

FOB means free on board. The seller delivers the goods to a certain 
destination with no additional charges. The seller insures and takes 
the responsibility until that point. The buyer takes the 
responsibility and pays the charges after that. For example, FOB New 
York means the seller's price quotation includes full responsibility 
and shipping to New York. 

FAS means free alongside. The seller delivers the goods to the ship 
that will carry the merchandise. The buyer pays to load onto the 
ship and takes responsibility from there. FAS New York, for example, 
means that the seller will deliver and store the goo ds until they 
are ready for loading onto the ship. 

C & F means cost and freight. The seller pays the freight charges. 
The buyer insures the merchandise and takes full responsibility 
after the destination. 

CIF means cost, insurance and freight. The seller is responsible 
for the value and condition of the goods, and pays both insurance 
and freight charges to a certain point. The buyer is responsible 
from there. 

THE FREIGHT FORWARDER 

A freight forwarder is a person who takes care of the important 
steps of shipping the merchandise. This person quotes shipping 
rates, provides routing information, and books cargo space. 

Freight forwarders prepare documentation, contract shipping 
insurance, route cargo with the lowest customs charges, and arrange 
storage. They are valuable to you as an import/export agent, and 
they are important in handling the steps from factory to fina l 
destination. 

They can be found by looking in the yellow pages or by personal 
referrals. Find someone who can do a good job for you. You'll need 
someone who you can work with, since this may become a long-term 
business relationship 

You'll need the help of a freight forwarder when you make up the 
total price quotation to the distributor. Not only do you include 
the manufacturer's price and your commission - usually added 
together, but you need to include dock and cartage fees, the f 
orwarder's fees, ocean freight costs, marine insurance, duty 
charges, and any consular invoice fees, packing charges, or other 
hidden costs. 

Be especially careful when you prepare this quotation. It certainly 
isn't professional to come back to the distributor with a higher 
quote including fees you forgot. You might go over the price 
quotation with your freight forwarder to be sure nothing is 
overlooked. 

Usually the quotation is itemized into three main categories of 
cost of goods, which includes your commission; freight charges from 
destination to destination; and insurance fees. 

Give a date the quotation is valid to, which should be the same as 
the date given on your quotes. You may also include information 
about the products, including any new sales literature. 

A formal letter that accompanies the price quotation should push 
for the sale. You can inform the distributor of the shipping date as 
soon as the order is received and confirmed by a letter of credit. 
Send the letter and price quotation by registered mai l to be 
certain of its delivery. 

THE LETTER OF CREDIT 

A letter of credit eliminates financial risks for you, the 
manufacturer, and the distributor. When your distributor confirms 
the order, a letter of credit is drawn from that company's bank to a 
branch in the United States or to your bank. 

This letter of credit confirms that funds are available from the 
distributor to cover the same costs you quoted. An irrevocable 
letter of credit assures you the order will not be cancelled at any 
time. When that letter of credit is likewise confirmed by your bank 
to deliver the goods, the distributor is assured of delivery. Once 
the letter of credit is confirmed by the bank, the currency exchange 
is also confirmed, so you don't have to worry about the fluctuation 
in currency. 

Basically, the bank holds the money until all shipping documents 
are presented. The letter of credit states the terms and conditions 
to make it legal and negotiable into money, usually holding for 
proof of shipment of the goods. Your freight forwarder helps you 
attain all those documents. When you hand them to the banker, the 
letter of credit is turned into liquid assets for you to then pay 
the manufacturer and all other invoices from the transaction. 

Never work on promises. Not only do you take a gigantic risk, but 
you create bad risks for everyone you are involved with. A letter of 
credit is the only sure way to transfer these payments. 

DELIVERING THE GOODS 

There are many combinations of people and methods that you can use 
to deliver the goods that were ordered. When you produced a price 
quotation for the goods, you had to go through all the steps the 
merchandise will follow. Now, before you proceed, check again. 

Do you have a confirmed order signed by the authorized 
representatives of the distributing company? Has your banker 
approved the letter of credit from the company? 

Compare the amount of the letter of credit to the amount quoted for 
the goods. Be sure they match exactly. Or, if the distributor chose 
a certain quantity of several offers, check the prices again and 
confirm the quantity. 

Confirm the quotation and sale with the manufacturer, and do the 
same with the freight forwarder and any marine insurance agents you 
are working with. Then follow through. 

In order to assure the quality of merchandise, some manufacturers 
prefer to handle freight to the loading docks, which makes it easier 
for you. If you handle overland shipping, follow through to be sure 
the merchandise is picked up and arrives safely at its destination. 

Be informed of the date the goods are loaded onto the ship. The 
factory should have them freighted in time to avoid costly dock 
storage charges. 

Since all conditions of the sale must be met to comply with the 
terms of the letter of credit, you need all the signed documents. 
Have your freight forwarder or other contacts get authorized bills 
of lading for the merchandise each step of the way - from 
destination to destination. 

Once you have all the signed documents, present them to your 
banker. If all the terms are met, the funds will be released. Since 
your commission is part of the quoted price of the merchandise, 
you'll usually collect your fees from the manufacturer. 

When it is totally complete, you collect your money - and make a 
sizeable profit for simply making connections. Consider the 
commissions when you have dozens of orders coming and going. 

IMPORTING 

Take a look at the household items and equipment you have in your 
home. Made in West Germany; made in Japan; made in Korea. You may 
have clothing from India, shoes from Brazil, a leather wallet from 
Italy. Your car may be an import; your stereo equipment may be 
manufactured elsewhere. There are hundreds and hundreds of items 
manufactured all over the world, now being used by the American 
consumer. 

The market is huge. And there are many American firms looking for 
foreign-made merchandise to distribute. Some items are less 
expensive; some are better made; some are imported because they are 
made in a country now fashionable with the designers. 

What can you tap into? Maybe you have contacts in the United 
States, distributors looking for certain goods. And you've already 
made contacts in the foreign countries that produce these goods. 
Follow through and get yourself an exclusive distribution agr eement 
with those manufacturers. 

Importing requires the same diligence and follow-up as exporting 
does. You'll need a signed contract with the manufacturer to be the 
sole agent distributing to North America - or the world, depending. 

You'll also need to obtain firm price quotes from the manufacturer 
in the quantities your distributor requests. These quotes should be 
converted into the appropriate dollar figures representing the 
currency exchange. 

Investigate the reputation of the manufacturer and the reliability 
of the goods. If you import something like electronic components, 
check into the other distribution market the manufacturer has to 
assure the quality of merchandise. 

Your commission will come through from the foreign manufacturer. 
Have your bank investigate the solvency of that company and the 
reputation of living up to agreements. Since it's on foreign 
territory you'd have more trouble in any legal suits, even in li ght 
of the many international laws. 

Prepare the price quotation. It is easiest if you request terms of 
delivery to the port of that country. Your freight forwarder can 
help you move the merchandise from that port, overseas, and through 
domestic customs. 

Follow through with all the details of shipment. Be sure to include 
any insurance, dock fees, storage rates, and shipping overland. 
Overlook nothing so your price quotation to the American distributor 
is accurate. 

Itemize the quotation and give it to the American distributor. Upon 
receipt of an authorized order, double check prices and follow 
through on delivery. 

The letter of credit will go from the American distributor to the 
bank of the manufacturer. All terms and agreements regarding 
pric§es, freight and insurance will be defined. The manufacturer's 
representative will confirm receipt of the letter of credit, which 
will release the goods for shipment. 

Have your freight forwarder follow up on the shipment of goods. 
They may have to be freighted from the factory to the docks. 
Arrangements for shipping need to be carried out. Customs duties and 
unloading need to be followed through from the American port . Then, 
the goods may need to be freighted overland to the final 
destination. 

As soon as the goods have arrived at the proper assigned 
destination, papers have to be documented and presented to the bank 
that holds the letter of credit. Then, all carriers and agents need 
to be paid, and you collect your commission. 

PROMOTION 

After you have completed a few sales transactions to establish 
yourself, you'll need to promote your import/ export business to get 
more clients. The first transactions give you the experience to 
learn the ropes of the business, and to establish contacts and 
agents both here and abroad. 

Join organizations of commerce and foreign trade associations to 
develop more contacts and extend your territory. Talk to everybody 
you contact about importing and exporting, learning from their 
mistakes and successes. 

Advertise in the print media for distributors and for goods. 
Manufacturers don't know how to make the contacts for foreign 
distribution. Show them your credentials and pick them up on 
exclusive contracts. With a little experience, you can market almost 
a nything anywhere. 

EXPANDING THE BUSINESS 

The profit of the import/export business is in the quantity of the 
goods traded. The higher the cost of the merchandise, the higher the 
profit from your percentage. Since you need to go through all the 
steps for each transaction, having more sales on a c ontinual basis 
simply adds to profit. 

Send constant mailings to your original list of contacts and 
follow-up leads. You might develop a sales approach. As you develop 
more clients, you can convince the bigger companies of your 
reputation. 

Contact as many manufacturers and distributors as you can on both 
sides of the ocean. And solidify these contacts. You may be able to 
work out an arrangement with someone to work in a certain country 
for a commission. Or, you might want to take a business trip there 
to personally meet with the various companies. 

Get in-depth information on the products now selling. Why are 
certain products successful? Maybe you can get into the same market 
with a more competitive product. Investigate ways to sell more. Do 
the products need to be better made? Do they sell better at a 
reduced price? Know what sells and where to get it. 

MAKING IT WORK 

The import/export business is a high profit enterprise. Because of 
the low overhead, most of the money you make on commission is yours. 
But building a truly profitable business requires dedication and a 
good knowledge of the business. 

You need numerous contacts who know you, respect you, and can 
recommend your work. You need to have good agents both here and 
abroad to help you follow through on the delivery of the goods. You 
need a good working relationship with your own bank and possibly 
the others that letters of credit come into as branch transfers from 
foreign offices. 

Don't be hasty for orders. Investigate the manufacturers and 
distributors to be sure the products and sales methods are 
reputable. Check out the particulars of shipping and manufacturing 
from the foreign country. Each culture works in a specific manner. 
Get to know how to work with those people. 

The import/export business is not for everyone. But it is a 
personal operation that you can run yourself - you don't have to 
answer to anybody. The rewards of negotiating in a foreign country 
are excitement, a touch of the exotic, and the great profit 
potentials. When you make the proper contacts and follow through 
completely with reputable manufacturers, reliable shipping 
companies, and responsible distributors, you have it made. 

If you are ready to put in the time, sell yourself. Start making 
inquiries and contacts. Try it on for size. Does it feel good? Then 
MAKE IT SUCCEED. 

If you need specialized LEGAL advice or assistance on this subject, 
the services of a professional person is recommended.