How do I Start an Export Company That Exports Only American Products?
If you want to export American-made goods, there is an abundance of support available, ranging from training and information, to credit products that meet a variety of short-term and long-term financing needs. However, before you invest any capital or other resources, make sure you have a solid understanding, not only of the marketability of your products, but also of the rules and regulations to which you will be subject, as well as the business and social customs that are practiced in the country you intend to target.
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Instructions
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Research export basics. As an exporter, you are subject to a variety of laws and regulations that apply not only to the shipment of goods from the United States, but also to their receipt in the destination country. Additionally, you might be able to derive a number of benefits -- for example, the elimination of tariffs and quotas -- if you intend to export to one or more of the 17 countries with which the U.S. has a free trade agreement. The website of the International Trade Administration provides information and training that can help you get started (see Resource section).
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Conduct market research. Before you invest money and time to start an export company, you should evaluate the marketability of your product in the target country. The U.S. Commercial Service maintains an online library with industry and country reports that can help you with this research (see Resource section). Include in your research information concerning business and social practices in the destination country to better ensure your understanding of what constitutes acceptable -- and unacceptable -- behavior there.
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Identify potential product manufacturers. The U.S. Small Business Administration's (SBA) Dynamic Small Business Search is a database of domestic small businesses you can search by nature of business -- for example, "manufacturing" -- as well as by state and other criteria (see Resource section). Additionally, you can conduct an Internet search for "manufacturer directory" to access Web addresses for a variety of free online directories, as well as links to directories for sale.
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Write a business plan. Use the research and other information you have gathered to prepare a comprehensive business plan that addresses all relevant aspects of your business, including product pricing, marketing and operations. Also include financial projections for the first three years that not only take into account general business expenses like salaries and overhead, but also expenses that are applicable to exporters, like tariffs and foreign travel.
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Explore financing options, if needed. Several U.S. government agencies offer credit programs to help new and established companies finance the costs associated with exporting products. For example, the SBA offers the Export Working Capital and Export Express Loan programs (see Reference section), while the Export-Import Bank of the United States provides loan guarantees and direct loans, as well as ancillary products like export credit insurance (see Reference section). Many private lenders, like commercial banks, also provide credit products that might meet your export financing needs.
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Legally organize your company, if applicable. Some business structures require that you file legal paperwork to form a business entity. Examples include corporations and limited liability companies (LLCs). In most -- but not all -- cases, the Secretary of State of the state your business will operate in oversees business formations. Conduct an Internet search to learn the Web address of the applicable business authority in your state.
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Tips & Warnings
Competition is greater in some export markets than in others. Consider targeting a smaller or emerging market where there might be less competition (see Resource section).
The rules and regulations that govern exporting -- including those that apply in the destination country -- can be complex and subject to change. Consider retaining outside expertise, such as the services available from customs brokers, freight forwarders and similar professionals.
References
Resources
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