Importing plays a major part not only in the global economy, but in the economies of just about every country on the planet. It’s something that can come in for criticism from politicians, and is often blamed for a variety of ills, but the truth is that unless a country is entirely self-sufficient – and literally no country is – exporting is something that is going to happen.
It’s a line of business that can offer a pretty reliable financial future for a company, too – if you’re adept at recognizing areas in the market where there is a need for quality items and ingredients from elsewhere in the world, then an import/export future might be the way forward for you. As long, that is, as you are aware of the upside and the downside of operating this kind of business.
PRO: There is profit to be made from looking far and wide
Importing from abroad works for those who do it, for one reason above all others; the going rate for a certain item in its native country is almost certain to be much lower than people would pay for it in an economy such as America’s. So if you shop around for quality electronics or furniture overseas, you can potentially turn a major profit by selling them at a higher price to customers who are still getting a much better deal than they might elsewhere.
CON: There is some red tape to consider
If you import or export goods, you need to be prepared for the fact that there are potential delays attached to the process – and typically, the more expensive they are and the higher volume you import, the more delays there will be. Be prepared to ask around for input from experts who know how to import from China if you want to import affordable consumer electronics. Check the same process for a bloc such as the EU if you’re going to import medicines, and so on.
PRO: You can offer the very best products
In this world, there are some combinations that just go together: French cheese, for example, or Belgian chocolate. There are others that do not, although let’s not get bogged down in what exactly they are. Suffice it to say that some places offer the perfect conditions to grow or produce a product, while there may not be anywhere in your home country that offers the same conditions. By knowing your market domestically, and having local knowledge on the ground in the supply country, you can offer the best products by importing.
CON: You’re at the mercy of policy
While there may be excellent profit margins to be had from importing products, it is worth being aware that international trade is subject to changes in the law, which can happen sharply. It may be the case that, to stimulate local jobs or productivity, tariffs are placed on the very kind of goods that you import. It doesn’t hurt to be aware of the possibility of this happening, or what you might do if you wake up to the news that it has happened.
Getting involved in importing is certainly a worthwhile way to start a business that is relevant and can thrive. As long as you embrace the pros and are ready for the cons, it’s a more than viable option.
