How 2 start an import export business?

Advice: How do I start an Import/Export business at 19?

• I come from Latin America and after being in the USA for my first year of my college (Penn State) I have come across a lot of stuff that we are missing back home. I developed the idea of an import/distribution business because you are basically just flipping stuff for double their value, this is my assumption as I have no prior knowledge on the topic. I have always had the entrepreneurial drive of starting something on my own but sometimes feel adults won't take me seriously in this line of business due to my age (19), older people tend to rule this market where I'm from. What advice may I get as a young adult trying to be taken seriously and wanting to do business with older people, and banks for funding as well? Will I have to have a USA branch of my business as well? because I'm not sure I can set up a business here as a foreigner How do I get in touch with Corporate America to get wholesale prices on their products (batteries, craft brews, spirits, clothes, etc.)? What are some imports you recommend I get into first? Basic goods that might be an easy sell. Any input is greatly appreciated.

• Answer:

  I have some experience with operating an export/import business and can answer some of your questions. The first thing you should do is research tariffs for your home country. While it may seem like "you are basically just flipping stuff for double their value", it may not be the case once you take into account tariffs and shipping costs. Also, you may be referring to the retailer markup, as an importer you will be selling to retailers (unless you plan on having your own retail operations) so your margin will need to leave room for them to make a profit. As an importer you will be exposed to a fair deal of risk, primarily inventory (especially when dealing with food items with short expiration dates). Risk can be minimized by taking orders and having customers pay you ahead of time, but that's obviously an ideal scenario. If you're just starting out, you'll find it extremely difficult to get customers to part with their money prior to seeing the products (until trust is developed). To get volume discounts + minimize your shipping costs, as well as cancelled orders from clients, you'll often find yourself sitting on excess goods which you may have trouble selling. Initially you may not be able to afford a warehouse, and running this type of business out of your home can be extremely inconvenient. You do not need to have your business registered in the USA, since you can purchase directly from the distributors/wholesalers and have the products shipped to South America. Depending on what it is that you're importing you will need an import license - and these can be costly (I would inquire with your local government to see what type of licenses you may need). Now keep in mind that there may be various restrictions for certain type of products. One example is an exclusive import agreement that some brands may have with local/regional importers in your area. In such cases you will only be able to purchase those products from those exclusive importers (which defeats the whole point of what you're trying to do). Companies that produce goods typically deal directly with wholesalers/distributors, who then sell their products to retailers. You can find out the the contacts by going to the brands directly, they'll be able to provide you with a list. This is a difficult and very costly business to operate, despite its fairly simple business model. You'll have to build and maintain relationships with many customers in your local area. The logistics can be tough, especially if you have to deal with corrupt customs personnel in a third world country. Also, there is no lack of competition in most countries, so large companies with massive warehouses will be able to get large volume discounts, leading to low prices that you may not be able to compete against. Start small by securing deals with local retailers and keep costs low by working out of your home and using your own vehicle for delivery. This will allow you to get your feet wet and hopefully built up some cash for future expansion.