Looking for a full guide on how to start an export business in India without investment? Then here you will find a complete and easy-to-understand guide for starting an export business in India.
First, let me tell you about the requirements for a business of this kind. You need to register the business, you will require transportation, products to export, etc. All these things need capital.
Now tell me, is it possible to start an export business without investment in India?
No, it is not. Those you are looking for business ideas that need no capital will be the online business opportunities like blogging using free platforms (in case you have already some resources like Laptop, Internet connection, etc.), reselling, and other business ideas.
But the export business in India requires some investment for various purposes like registration, market analysis, product transportation, etc. So, you can’t start it without capital.
Steps for Starting an Export Business in India
In the free-market era, the Indian government strongly encourages local businessmen to go international. There are many government policies to support small and medium-sized enterprises and facilitate large-scale international trade enterprises.
Economically, the government’s goal is to make the trade balance or the balance of exports and international trade positive.
Here are the steps on how you can start an export business in India:
Choose Promising Products
For traders, the first step is to choose the product to export. Learn and analyze the products in detail starting from raw materials, storage areas, and how to use them.
Select products that do not have an expiration date or a long expiration date and can be used by many people.
Alternatively, you can also choose products that use the reservation method in the sales process to customers. You can also find out the list of requests for goods from abroad.
Determine Destination Country
The second way is to determine the destination country for international trade. Understand the personality and culture of the people of the destination country so you can analyze whether the people of that country are a good fit for your product.
Get information about the destination country, as well as information about sales of competitors’ products (if any).
You don’t have to spend time and money to go to the country because you can find this information on the Internet.
Register Business Website in Export Business Forum
With today’s technological advances, information about the products you sell must be on the website, because almost all potential consumers can find information about products on the internet.
The purpose of registering a business website or product on an international business portal is to make it easier for potential customers (importers) to find your products.
Create an attractive online catalog by entering information about the product (such as description, price, and contact).
You can also promote your products on well-known commercial platforms like Amazon or Alibaba
Popular platforms like Amazon and Alibaba have high visitor traffic, so your products will be seen by more potential customers.
Complete the Required Documents
Another important thing is that you have to complete international trade documents. Of course, if you don’t have complete documentation, your product can’t be sold overseas.
Complete international trade documents also help with the management process when your products enter the destination country. International trade documents including invoices, packing lists, and landing orders.
Use the Facilities Provided By the Government
The Indian government provides various commercial facilities to support local companies in selling their products overseas.
Use Social Media to Promote Your Business
Social media marketing is a great way to introduce your product to potential customers in other countries. In addition to the relatively low cost, the use of social media as a marketing strategy is also very effective.
Why is that?
Because social media is currently used by almost all parts of the world. Therefore, through social media, you can reach potential customers quickly and easily.
Participate In International Trade Products Exhibition
You should also attend international trade product exhibitions to introduce your products to visitors who are mostly potential buyers from other countries.
By participating in exhibitions, your product brand awareness will increase. Other benefits include gaining knowledge, expanding business networks, and obtaining effective information about international trade regulations.
Use Online Accounting Software to Manage Corporate Finance
Another tip that is no less important is that novice international trading companies should use online accounting software to manage company finances.
By using online accounting software, financial reports can be made quickly and easily, so that business owners can focus more on developing their international trading business.
Is It Possible To Start Export Business In India With Low Capital?
You can start a business opportunity with low capital also, one of which is by applying how to become a beginner exporter. Many local products can be exported to other countries, for example, the spice export business.
This is a lucrative business, especially for entrepreneurs who live near ports and areas where many cargo ships dock.
To start an export business in India, you need to plan carefully to ensure the business runs normally.
Advantages of Export Business in India
Here are some benefits of export business in India:
Develop Product Market
This export activity can encourage various industries around the world so that it can encourage them to continue to innovate. Making new and more efficient products is certainly very necessary because the current level of competition is very high.
By continuing to innovate, we can also create new target market segments. So that your products can reach more people.
The profit you will get is likely to be much greater when selling products abroad. Because every country has different economic conditions and currencies.
The economic and currency differences have a significant impact. You can sell goods at a higher price because they can still be affordable by your consumers in other countries.
Expanding Market Reach
As we mentioned earlier, exporting will make your product range even wider. By reaching more countries, your chances of getting a profit are certainly even greater.
Not only can you reach a wider market, but you can also innovate to create new products. So that later you will get a new target market as well. But of course, the product made must be in accordance with the characteristics of the market you are targeting.
Increase Production Scale
As your product range becomes even wider, you will of course have to produce more of it. So your production scale will be bigger.
One of the most effective ways to increase the scale of production is to increase the supply of materials. So you can keep the cost of production to a minimum.
Avoiding Local Competition
Having a lot of competitors can of course affect your business. You certainly don’t want to have to slash prices with other manufacturers?
Meanwhile, your competitors will continue to grow over time. Will you be able to keep up with them for long enough?
One way to avoid local competition is by selling products to other countries. The competition will still exist even if you sell it to another country, it’s just that it probably won’t be as intense as in the local market.
Establish Cooperation between Countries
Carrying out export activities is the same as cooperating with other countries. If the cooperation between the two countries can be well established, maybe one day both of them will release a new program.
The program will of course benefit the two countries involved. The program can take the form of knowledge exchange, business opportunities, and so on.
Overcoming a Country’s Deficiencies
Export-import activities can also cover the shortage that occurs in a country. This is of course very much needed by developing countries which usually do not have adequate resources.
For example, in other countries that lack natural resources, you can export abroad to cover the shortage. You can sell products or goods that are useful to cover shortages in the country.
Avoiding Product Monopoly
The lack of resources and target market in the export business can also minimize the risk of monopoly. Your product will reach a wider target market.
Meanwhile, we can also get products of varied quality if we buy imported products. So this also prevents the occurrence of monopoly which is of course very detrimental.
Exports and imports will of course have a positive impact on the two countries involved. The purpose of exports and imports is nothing but profit and can cover each other’s shortcomings that occur in a country.