Adequate research is imperative to starting and setting up an export/import business. Vital information about the expenditure and the procedures involved can be gained from thorough online research. Any import/export business can be set up as a sole proprietorship, partnerships or a corporation. Every country has its own set of laws on this. A business license is one of the foremost requirements and you need to check with the local government agencies about licensing and tax requirements before you venture out.
There may be restrictions imposed on certain import/export activities for particular products/ services in different countries. Hence, viability of any business activity should be examined. A businessman in this field should also know how to make and receive payment in foreign currencies, and how to protect his business from variations in exchange rates. A thorough knowledge of forex transactions and the risks involved is essential.
Market research is vital to setting up any business. The location where the business is to be set up should be studied. The tastes of the local consumers should be understood. It is even better if you can test the product or service directly in the local market. In addition, reports about the country or region can be looked up on the Internet or requested for from the authorities
The main elements in an export/import business are the product, the seller in one country, and a buyer in another country. A buyer can be found from the export assistance programs offered by your country, trade organizations specializing in foreign trade or other contacts and friends. Legal agreements regarding payment and infrastructure have to be clearly written out (Kim, M., 2009).
Furniture export in Lithuania
Lithuania is a country that has emerged successfully from the global economic crisis through its export business. This is quite a remarkable achievement and quite contrary to what was expected when the economy hit bottom. The furniture industry in Lithuania has contributed largely to its success. The Swedish company Ikea gave a large number of orders to Lithuanian furniture makers that propelled the export industry to success.
Lithuania’s furniture export business certainly carries an interesting edge to it. The reasons are summarized below.
- The industry fought off the crisis and found its place among foreign markets.
- The furniture industry was one of the main export businesses that were instrumental in reviving growth.
- The industry has become the most sought after by many companies.
- Some of the foreign-based furniture makers did not have to deal with recession.
Kim, M., 2009. McDonough School of Business at Georgetown University (2009).
Import Export Coach, 2012. Getting Started in Your Import Export Business [online] Available at: http://www.importexportcoach.com/import-export-reports/187-import-export-getting-started.html [Accessed 15 April 2013]
Made in Lithuania, 2011. Export Records [online] Available at: http://www.madeinlithuania.lt/Export-straipsnis313-Export_Records [ Accessed 13 April 2012]
Visual.ly, 2012. Lithuania has conquered crisis [online] Available at: http://visual.ly/lithuania-has-conquered-crisis [Accessed 13 April 2013]