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Move over Khoshoggi - A look at the World of an import/export Agent First published in May 1997 Today everyone knows how important exports are to a country's economic success. The words 'Balance of Trade' are heard on television and read in the newspapers daily and yet few people really understand what these words mean. Governments, through their various Boards of Trade Treasury Departments, attempt to regulate the flow of incoming goods while at the same time increase exports by stimulating production. If they are successful at this, prices drop and our goods become more competitive on the world market. Import and export agents are necessary as they play a vital role in bringing together both overseas manufacturers wanting to sell in the UK and UK manufacturers with markets overseas. Clearly it is possible to earn a very substantial living acting for either party and modern communication facilities makes this an ideal home based business. Faxes, phones, and, of course, the Internet have opened the doors to opportunity to this lucrative field. Getting Started My advice is keep your main job initially. Import/export business can be run part time and you will find it much easier to concentrate if you can pay your day to day bills. As with any new business it takes a while to make contacts and when dealing with manufacturers in far flung places this may take longer than usual. The Way It Works Manufacturers need to sell the products they make to survive and whether they produce marmalade, pencils or cars; they usually appoint an agent to handle their marketing for them. Clearly a manufacturer of cars in Japan in unlikely to appoint an unknown person working from home to market their vehicles in the UK, however they invariably do appoint someone whether this is a UK subsidiary of their own company or an established UK marketing outfit with the contacts and resources to take advantage of the business to be had in the Target Country. A small manufacturer of honey based in Bordeaux or Munich is far more likely to need your services as he is unlikely to have an export department or the resources to set up one and by using a self-employed agent based in the UK he avoids heavy setting up costs and has someone on tap who speaks the language and knows his way around. My advice is to set up a Limited Company. When dealing with unknown people it is advisable to protect yourself in this way. First thing you need is a professional name for your new business and the produce stationery of International standard. Remember the people you write to in Los Angeles, New York and Delhi aren't going to know that you operate from a semi in Reading or Worcester, they only know what they see and that is almost always a letter or a fax. Go to your library and find a copy of "Kompass" Guide for the country you want to target. Every manufacturer will be there. Pick, say, 50 of various types to give yourself a better chance of success. Avoid the giant corporations at this stage - although it is possible to win a big client this might be a bit soon and they will most certainly want you to prove your track record and financial standing. Write to all of them, tell them that you are a professional agency based in the UK and that you are looking for more products to add to your existing portfolio and would be very pleased to act on their behalf. Ask for samples to be sent for consideration, be polite, professional, but not subservient in your approach - they don't know you've never done it before and have just come in from picking the kids up. You might surprise yourself with the response you get. Whatever you do make sure all your letters are typed, never hand written. Always write in English, it’s the language of International trade and it is common for, say an Indian businessman based in Delhi to fax or phone a German and for the whole conversation to take place in English. So even if you are faxing China, write it in English. A Word on Advertising Newspapers such as the Time, The European and the Financial Times all carry adverts from time to time from importers but beware when replying. You need to deal direct with the manufacturer if you are going to be successful. Try to avoid becoming part of a daisy chain of dreamers. There are various ways you can ascertain this. If, for instance, you are contacted by an agent who says that he acts for a buyer in the Far East and they want to buy 10 x containers of chicken as for proof of mandate and funds. If the agent cannot supply this to your complete satisfaction don't waste any time on the project - it will almost certainly lead nowhere. Wishful thinking won't pay the bills or make you rich. Knowing the technical jargon is very important and some words might not be familiar to everyone. For instance, FOB means Free onboard. This is where the price of the goods includes loading onto the ship whose destination will have been stated in a commercial contract. This is important because you may be asked for a quote FOB and it is vital you know what it means. Ex Quay means the buyer pays the charges after delivery to the quay. Another term you will frequently come across is the "Bill of Exchange - 90 Days". This is a Bill of Exchange which is payable ninety days after acceptance or ninety days after sight - whichever is marked on the Bill itself. Get to know all the relevant terms as soon as possible. I have listed a few more on this page. If you are seriously looking for a lucrative and interesting home based business this may be for you. The capital required is minimal and getting started is relatively easy. The only equipment you need is a phone, fax and an area to work from. Import and export can be exciting, interesting and varied. One minute you will be talking to a colleague in Canada and the next taking a call from a manufacturer in the Far East. For further information your local library will have some excellent books on the subject. Just ask at the commercial section. Commonly Used Terms B.S.S - British Standard Specification |
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