Question:
I am going to order your program next month, but I was wonder, if the economy is such a crappy mess, is Import/Export Business hard to get into?
Answer:
Thanks for the opportunity to answer your question. It is one that
I thought I had answered this question in one of my blog posts but
upon reviewing it this morning it does not appear that I have done so.
I will try to keep my answer from getting political, but it is difficult
not to reference some of the reasons our economy is in the mess
it is in.
First, let me address your basic question. Is the Import Export
business hard to get into?
The quick answer to your question is Yes, it is a hard business
to succeed in whether the economy is good or bad.
In fact, it is hard to succeed at any business at any time and
the economy does play a role in how difficult it will be and
right now, it is much, much more difficult to succeed in ANY
business.
The fact that this business, or any business, is difficult to
succeed at is a fact the "hype" masters of the Internet and
opportunity magazines seem to ignore. It can best be summed
up in a Chinese proverb I just posted last night in our
Import Export business blog - the proverb is this -
“Fish see the bait, but not the hook. Men see the profit, but not the peril.”
International trade or trade between businesses in different
countries has been going on since the beginning of mankind.
There have always been obstacles placed in front of them and
these obstacles can be in the form of mountains, rivers, oceans,
thieves, and the biggest thief and obstacle of all, governments.
Governments create obstacles whether through the manipulation
of their economies or supposed protection of the industries
within their borders from less expensive goods coming in and
threatening the status quo.
Governments try to regulate things that most often will work
their way through, if the government would just let their hands
off of it in the first place.
We human beings have a tendency to believe that the persons
making up our governments have a better understanding of how
business should be run than the people who are actually working
in that business, yet most government employees and elected
officials have "never" run a profitable business.
And the people who make up our governments are just as
subject to greed and envy as all human beings and in some
instances I believe they are more subject to it.
Sorry, I am getting off on a rant here but in regards to starting
your business, you must decide if the Import Export business
is really what you want to do. It is not a hyped up business
"opportunity", it is a serious business and what our course
offers is "training" on how to start that type of business.
If you are serious about starting an import export business,
then do not wait around for the economy to turn, get started
learning what you need to know to succeed now. Then when
the economy finally does turn around, you will be that much
ahead of everyone else who sat on their hands waiting for
an imagined government solution.
One of the biggest obstacles to international trade, right
now, is financing or letters of credit.
Banks no longer trust each other, both within the USA and
from one country to another and this means you or a
manufacturer you work with as an agent or broker is going
to have a much more difficult time getting a buyer to get
a letter of credit and secondly have the manufacturer's
bank accept that letter of credit (loc).
The course will discuss financing options and where you
or the manufacturer can go to get financing if that is the
only method by which a buyer can make a purchase.
There are other alternatives to financing depending upon
the amount of the purchase. Credit cards often have a
line of credit large enough for a buyer to make the purchase
if an loc is not an accepted solution. Direct bank wire
transfers are still another option.
If a buyer really has a market for the product(s) you are
helping a manufacturer sell, the buyer will find a way of
paying for them.
So the bottom line, in answer to your original question,
is YES it is more difficult today than just a few months ago
but if you are serious about your interest in this business,
then begin learning the "how to" now and you will be in
a much better position to capitalize on the turnaround
once it comes.
If you make the decision to get started now, do not wait
for a turnaround, begin looking at markets that are still
moving goods. Food is a commodity that will always
be needed and the USA still leads the world in food
production.
In finishing this LONG answer to a SHORT question,
let me cite how difficult trade can be and then begin to
think about how much easier a path you have than
the following example.
Over the past weekend there was an episode of the
show "Globetrotter" on one of the PBS stations. I
missed the first part of it but saw enough to impress
me on how easy our lives and businesses have it
in comparison to other people in the world.
The 'globetrotter' on this episode was a young lady who
(when I picked up the show) was walking across a barren
desert in an African country (I think it was part of the
Sahara).
She had joined a trader's caravan from a desert oasis
where they grow fruits and vegetables. The people and
their camels were walking across the desert as these people
have done for thousands of years to take their goods to
a city where they would trade their goods for "salt".
The salt is required for both the people and their animals
due to the intense desert heat.
Most of the people in the caravan were walking and the
narrator stated how they would cover 50-60 miles a day!
I think they said it was a 17 day round trip and the city
where they traded their goods for salt was about 600 miles
from their oasis.
Once they got to the city, they made their trades and
loaded 4 very heavy pillars of salt on the camels and
began their journey back to their oasis.
This is what these people have been doing for thousands
of years and in my humble opinion, nothing that is currently
facing us in regards to the economy even comes close to
the hardships these 'traders' face on a continual basis.
So, yes, it will be more difficult to succeed in the import
export business today than just 6 months ago, but if this
is the business you wish to pursue, then you need to make
the decision that once you learn the "how to" that nothing
is going to stop you which brings up another proverb or
old saying I once heard many years ago.
"Let the dogs bark but the caravan moves on"
You can liken that to the first caravan that ever made that
long, hot and fateful journey across the Sahara. There
were probably more people telling them it would fail than
succeed but in the end, the caravan left those barking dogs
behind and moved on.
Hope this helps you make a more informed decision.
*** There was a brief follow up to the above answer that I
remembered a few days later that I had intended to include,
that additional answer is as follows:
Just wanted to follow up with you since there was one other
comment I wanted to include in the previous reply shown below.
It basically involves how in today's lousy economic environment
and a general distrust of investing your money with any
institution, the very best thing you can invest in is yourself.
Once you gain knowledge about a new subject, the investment
will last for a life time. No one can ever take it away from you
and the growth of that investment is solely dependent upon
you and the actions you take, not an investment advisor,
banker, etc..
So if there is any ONE place I would recommend for someone
to invest right now or for that matter, any time, is in educating
yourself.
For further information about Import Export or other International
business resources, visit the International Business Help Center
and be sure to take your time looking around the 285 web pages
that make up this premier web site.
Ron Coble
Coble International Business Services