Read the thought-provoking article and answer the given questions. Be prepared to talk about these issues with classmates and the professor in class.
Check online import and export business start-up resources and tools
Trading goods and services allows businesses around the world to compete on a global basis with their competitors.In the past, it was very costly to acquire the commercial intelligence needed to play in the global market place.Now, equipped with the internet we can access valuable market information and find foreign buyers and local suppliers, anywhere, anytime.
Second Step
Start by learning a little more about import and export
International trade training makes good business sense. Attend training programs offered by universities or take on line courses. They can open you doors to:
- Succeed in new global markets
- Strengthen your industry knowledge
- Advance your international trade career
- Increase your credibility and visibility
- Gain world-recognized credentials
- Expand and diversify your skill base
- Network with a vast group of qualified international trade professionals
Third Step
Legal aspects
Once you are convinced of the vast opportunities that the field of import export offers, you need to register your business with the government.
The use of professional services is essential to the success of a small business, whether you are buying an existing business or franchise, starting from scratch on your own, or expanding a business you presently operate. Professionals can provide the knowledge and expertise in the areas that you are limited, and they can round out your management team to ensure your business operates efficiently. One of the professionals you will want to consult with as an entrepreneur is a lawyer.
Selection of a business structure
Whether you plan to operate a home-based business or are involved in a large commercial operation, you will need to decide on which type of business structure best suits your needs.
Your options will range from sole proprietorships, partnerships, limited or incorporated companies, to co-operatives. A lawyer can help you choose the correct form of business structure, based on factors such as the number of people involved, the type of business, tax issues, liability concerns, and financial requirements of the firm. An accountant should also be consulted regarding the tax implications of the form of business structure chosen.
Fourth Step
Setting up an office
Most businesses initially start out from leased premises rather than incurring the major capital investment of buying or constructing a new building. However, leases still constitute one of your largest expenses, and usually represent a long-term commitment. As such, your signed lease agreement is a very important legal document. Leases can vary from a simple one-page agreement to a lengthy complex document; depending on the space you are renting (e.g. mall space vs. separate building). The other choice you have is to run your business as a home-based operation.
Fifth Step
Get international trade information
Usually government offices and non-government organizations (Ngo’s) provide excellent international trade information and resources for starting, operating, and growing your business. For further information, also check out the import export links found on the internet.
Manage your business from start to finish
- Careful planning is fundamental to success
- Successfully managing a business requires specific management skills in addition to knowledge of key business practices
- Make sure you build a knowledge-based information system that allows you to be well organized
- Write your business plan, which is a guide to starting and running your business. This plan will encourage loans, promote growth, and provide a map for you to follow
- Set up a bookkeeping system to keep good records about the business financial position and the business daily income and expenses, which can help you to make good decisions and comply with government regulations
- Use benchmarking tools to improve your business performance by identifying problems, finding their solutions while furthering opportunities
Sixth Step
Funding Sources and Loan Programs
Explore your financing options.
To obtain funding or apply for a government program you will need a Business Plan. Developing a strategic Marketing or Business Plan is the key to succeeding in any business. Research and planning are especially important for global ventures. It allows you to identify your opportunities and risks.
There are two type of financing available to business: equity and debt. Simply stated, equity is the money that you put into your business. Debt is what you borrow from others to invest in your business.
(Please note that there is a hybrid type of financing known as "mezzanine financing" which is somewhere between equity and debt. For instance, the investors lend with the right to convert their loans into shares of the company when the company eventually goes public, or after some definite period of time has elapsed. However, this typically only applies to larger firms who intend to go public at some future point.).
Sources of funding
Personal: credit cards, personal lines of credit and overdraft facilities, all of which can be used by the owner to finance his business. In effect, the funds so used become loans from the owner to the business
Suppliers and clients: Negotiate terms with your regular suppliers so that you can expand your sources of funds. Ask for a good faith deposit to cover part of the fees that you will earn related to a contract, and progress payments on the work completed, instead of waiting for completion of the contract to collect your fees. You could ask for equalized billings especially in cases of long-term clients who use services occasionally or at cyclical peaks.
Friends, Relatives and Business Acquaintances: Since they know your character and your business knowledge, they may be prepared to advance you funds.
Government Loan and Grants: Governments have loan, guarantee, or grant programs for any or all of the following: creation of jobs or technology; exporting; training; venture capital, start-ups, innovation and increasing capacity
Operating line of credit: The financial institution agrees to make available a specified amount, where the amount borrowed can fluctuate regularly within the limit depending on the company's cash flow.
Term Loans: the financial institution agrees to make available a specified amount for the financing of long-term fixed assets.
Equipment financing: Computer equipment, office equipment and automobiles could be financed either by buying or leasing these assets from the finance subsidiaries of the companies who manufacture the equipment or from third party finance/leasing companies.
Answer to the following questions
Should I go into business? 
Preliminary question analysis
- Are you a good loser?
- Do you enjoy working on projects that will take 5-10 years to successfully achieve?
- Have you ever participated in the setting up of entities such as cooperatives, community organizations, fund-raising projects, etc.?
- Do you like being in charge of other people?
- Do you take risks just for the thrill of it?
- Do you believe in organizing your tasks before getting started?
- Do you like to take care of details?
- Do you blame others when something goes wrong?
- Do you enjoy competition?
- Are you likely to work long hours to reach a goal?
- Can you accept failure without admitting defeat?
- Can you take advice from others?
- Do you have a savings account and other assets?
- Are you good at managing your time?
- Do you take advantage of on line resources?
- Are you taking international trade classes?
- Are you willing to reinvest your salary/business profits to help your business grow?
- Are you committed to make things work?
- Why do you want to start your own business?
- When are you starting your own business?
Note: A "yes" response to questions would indicate that you have what it takes for succeeding in business.
Competency Profile Questions
- What can I do if I start an international trade home-based business?
- Since English is the international trade communication language, what results am I willing to get in order to master this language?
- How can I build a knowledge-based information system?
- What opportunities and risks do I have when setting up an international trade business?
Should you need to verify your "starting business vocabulary", please check the glossary on this page:
http://www.sba.gov/smallbusinessplanner/plan/getready/serv_sbplanner_gready_glossory.html
