Steps 1 :-
Establishing an Organisation
- To start the export business, we need to register an organisation like PROPRIETORSHIP/ PARTNERSHIP FIRM/ COMPANY.
- After registering an organisation we have to open Current Account with a bank authorized to deal in Foreign Exchange.
- After getting cheque book/ bank certificate by bank, apply for Import Export Code from DGFT, and get Import Export Code at spot only. Import Export applying fees is 500/- only
*Point to be ask at the time for opening current account by banker
When we visit bank for opening current account we have to ask some charges which we can compare and choose the best bank for us
- EXPORT BILLS FOR COLLECTION CHARGES
- EXPORT LETTER OF CREDIT (L.C.) ADVISING & AMENDMENTS CHARGES
- TRANSFER OF L.C. CHARGES
- CONFIRMATION OF EXPORT L.C.
- CONVERSERATION CHARGES FROM USD TO INR
*Note these charges are not fixed, we can negotiate by bank. If the bank is proposing charges, kindly ask them the same proposal on email/written proposal.
Step 2 :-
Selection of Product
All items are freely exportable except few items appearing in prohibited/ restricted lists.
Product selection is based on you, because you should know about your product. An exporter should be an expert in product knowledge.
Product Selection is not a piece of cake, you need to understand your interest.
Step 3 :-
Selection of Market for Exports
An overseas market should be selected after research covering market size, competition, quality requirements, payment terms etc. Exporters can also evaluate the markets based on the export benefits available for few countries under the FTP. Export promotion agencies, Indian Missions abroad, colleagues, friends, and relatives might be helpful in gathering information.
Always remember to choose only limited markets & focus on those markets only.
Steps 4:-
Finding buyer
Top best ways to find buyer for export
- Focus on B2B listing
- SEO (search engine optimizer)
- Directory (like yellowpages)
- Digital marketing
- Trade Exhibition
- Use your contacts (like friend, relative etc. which are abroad)
- Direct Travelling
- FIEO for direct meet with buyer
- Email marketing and follow back
- Website should be must for an exporter
Steps 5 :-
Pricing/Costing
Product pricing is crucial in getting buyers’ attention and promoting sales in view of international competition. The price should be worked out taking into consideration all expenses from sampling to realization of export proceeds on the basis of terms of sale i.e. Free on Board (FOB), Cost, Insurance & Freight (CIF), Cost & Freight(C&F), etc. Goal of establishing export costing should be to sell maximum quantity at competitive price with maximum profit margin. Preparing an export costing sheet for every export product is advisable.
