Among the various high profitable businesses, an Export business is a high yielding venture which could be started by anyone with ease in India. The process of getting a product exported from one country to foreign country is sophisticated and the entire framework of the export is administered by the Indian Government.
On the contrary, the government of India has offered numerous incentive schemes and bonus for the exporters to motivate in their exporting business. In this blog we will deliberate on the various factors of what impacts the exports business, what runs it and how the buyers are found in the foreign market.
On the other hand how to choose a profitable product which could be exported from India to other countries. This post will help you how to start export business without money.
The products could be exported from numerous ports such as Kolkata port, Trivendapuram port, Gonda port, and Mumbai port etc. Indian government has erected specific sea ports in every city that is close to the sea. This also includes some ICD (Inland Container Depot) better known as Dry ports. These can be explained as the ports that are in the city but out of the sea.
Few of the cities which are having an Inland Container Depot are Ghaziabad, Bangalore, Indore, Pune, Aurangabad, etc. Export business without investment is not a myth, but something that is possible.
Advantages of an Export Business
Exporting any product to foreign product is highly profitable that is because the price of any specific product in other countries may vary from the country of origin of the product. For instance the Basmati rice in India costs price X and the price of the same product in way different in Saudi Arabia, USA, UK, etc.
One of the biggest advantages is one can get for a specific product in foreign countries. So go ahead and start your export business in India without investment. Mentioned below are a handful of the advantages in exporting business.
1. Anybody could start a business who has enrolled their company with a current bank account and a PAN.
2. The procedure of starting an exporting business is really easy to follow and simple.
3. Least risk is involved in the exporting business if the steps have been followed correctly.
4. The probabilities of the market potential is quite high in more than 200 nations and the product price may vary from any country.
5. Attractive export incentives are provided by Indian government.
A few doubts in the exports business
Q1. Is learning English language for starting an export business mandatory?
Answer: Learning English is not necessary but knowing little English is always beneficial in any line of work, whether export or any other product. Knowing how to read mail and doing mail conversation, how to do a mail conversation is enough. There are tons of exporters in India who don’t know English very well and are making a high profit and living a good life though.
Q2. What to do when the buyer after receiving the products refuse to make payment?
Answer: Majority of the products that are exported from India are done only when the payments are done well in advance. Just in case the buyer wishes to pay up 25% of entire amount in advance and then you need to follow the procedure which has been designed smartly by the Indian government.
An entity named Export Credit Guarantee Corporation (ECGC). So which means if you have exported the goods with the coordination of this enterprise then the ECGC will be answerable and responsible for making the balance amount in any case where the buyer has declined to make the payment of balance?
Q3. Is there a huge amount needed as investment for staring an export business in India?
Well the answer to this question is NO. Exports is a business that could be started with least or no investment at all in India. However one needs to follow certain steps which will help in starting the export business with low investment.
For getting an IEC code you will have to pay up Rs 250/- and for the export firm formation you will have to invest about Rs 15000/-. The business could be started with least investment if the product which you have decided to export is not manufactured by you. Selling already manufactured products means there is no need of investing a high amount.
For Starting Export Business, follow the steps
1) Get a firm registered first.
2) The company name should have the term “exports”
3) You should have a bank account which deals in foreign exchange such as ICICI, HDFC etc.
4) Get an IEC which stands for Import Export Code
5) Bank account should be attached with the IEC code.
6) Get your business a website
7) Choose a product you wish to export
8) Look for buyers in the foreign market.
The main thing about an export business is to look for the potential buyers in the foreign market. So there is nothing to worry about when you are tackling the question how to start import and export business without investment.