How to Start an Export Business in Bangladesh
Starting an Export Business in Bangladesh
An import and export business in Bangladesh will take you all over the world and into all product niches from importing exotic fashions to exporting light fixtures. And although it’s one of the hot industries of the new millennium, it’s not a new one. Not only are the great caravans of the biblical age but Marco Polo also the examples of ancient import expert businesses.
So, because one group or country has a supply of some commodity or merchandise that is in demand by another, trade exists. Also, the international trade becomes more and more rewarding as the world becomes more and more technologically advanced. It’s true for the export sector of Bangladesh as well. This is because there are several types of goods to export to different countries of the world.
Why Start an Export Business in Bangladesh
If you’re regularly read the news then you know that Bangladesh is earning huge foreign currencies through export in RMG, Pharmaceuticals, Ceramics, Leather & Leather goods, Jute & Jute goods, Handicrafts, and agro product sectors currently. It’s one of the most profitable business ideas that can make you financially fulfilled in the long run. Although the business comes with very profit, it’s surprising that it doesn’t need to invest a high amount of capital. So, it’s not much tough to start the business.
Also, this article will answer your most important questions if you’re wondering about how to start an export business in Bangladesh. Moreover, you can create such a business from the comfort of your home, which is the best part of the business. That’s why the business is suitable for the Bangladeshi people instead of seeking jobs.
Steps to Start an Export Business in Bangladesh
You don’t need much regarding resources if you want to export business in Bangladesh. In order to start the business, you need a computer connected to the internet and a good English level. When it comes to international trading English is the most used language.
And if you don’t speak it at an intermediate level at least you might have a hard time. However, there are translation programs to use in your favor if your English is not so good. Apart from these, there are much more essential steps to start an export business. Because starting a business is not enough, it’s vital to run it for a long time, say years. Well, let’s know the steps that will help you survive your business for years.
Related: Problems of Export Trade in Bangladesh
First Step: Business Plan
As it’s an overview of how your business will operate and make money, you need to write a business plan. It comes with the decisions about the size of your business. Also, whether it will be home-based with you as the sole employee or if you will need to lease or purchase, you need to decide it.
Moreover, it shows how you’ll arrange your investment capital for your business. But, you’ll be able to mark them up much more if you’re producing the products yourself and exporting them. And before pricing your own goods, just make sure to check your competitors’ prices. What a business plan comes with is below:
- Descriptions of the products that will be sold
- Your target markets
- A marketing plan
- Industry analysis
- Competitor analysis
- Earnings projections
Second Step: Products Selection
Analyze the type of products that you can trade before paying attention to something else. You might have plenty of options to explore if you’re planning to trade with African countries. Also, when you’ll analyze the type, you’ll find many are many new products to introduce to the world markets. You’ll have to decide if you can trade that product or not, according to your possibilities when you identified the products that are in demand in a particular market.
Moreover, you’ll be able to move on to the next step and start developing your business if all the research goes well. Besides, don’t forget that you’re considering your long-term activity when you choose your product. Plus, you might also discover many import-export business ideas to develop your business when you research for products.
Third Step: Shipment Method
You’ll have to focus on the details after you have all your paperwork in order and you know what products you want to trade. Although the method of shipment might not be a constant one for all your trades, you should be informed about all the options before making a decision. If some goods are imported or exported better by sea, some others are safer by air.
Also, there are different export regulations for each country. You need to have a set of paperwork and certificates as well as to ship different goods to a certain country. It’s important to work as a team because the import-export business is a partnership between the importer and the exporter. This can easily become a problem if you neglect the shipment method. So, before you open your business to be prepared, you have to establish your options.
Fourth Step: Essential Paperwork
You’ll need to take care of some important documents before you start activating as an importer or as an exporter. And you’ll need an import-export trade license to have a functional business at the first of all. So, you should ask about specific regulations to start international trading after you register your company with the authorities in your country of residence. For example, let’s see what the paperwork to do while starting an export business in Bangladesh:
- Commercial invoice
- Packing List
- Certificate of Origin
- Certificate of Analysis
- Bill of Lading
- Bill of Exchange
Fifth Step: Country Selection
The next step is to select a country when you know which product you want to export. For example, you can export pharmaceutical products to Singapore, Malaysia. But, you should consider Bangladesh’s trade relationship with that country and vice versa while selecting a country. This point also should be a part of your business plan.
Sixth Step: Supplier selection
At this stage, things get practical with consequences. Because it directly affects you pricing and product quality along with other things, it’s wise to be careful when selecting a supplier. For example, if a supplier already exports to Bangladesh, you may approach them then it’s better to go through an existing source.