You are Here
Search
New to Exports and Imports (Long story, please read and advice)
by Underdog LLC, Window Shopper
- Created: July 6, 2012, 1:54 pm
Hello,
I'm in the process of starting an Import&Export type of business but I’m
encountering some trouble as I started contacting different US manufacturers.
My basic idea was to export a few products to South America and resell them
mainly to small retailers but also to end consumers (industrial and
individuals)however when I contacted the US manufacturers, They didn’t seem
to really want to do business with me since they believe that I'm going to
become direct competition to them. This makes no sense, since they have
neither presence nor anyone know anything about their products in South
America. I told them that i would like some kind of exclusivity contract in
order to capture all of their sales coming from a specific country but they
said that will be considered as competition to their firm and they wouldn’t
want to do that .
There are two issues that got me worrying.
1. If I introduce those products to this new market and everything goes well,
then I know for a fact that other large/experienced local (foreign) firms
will start contacting the US manufacturer directly and placing orders
thorough them rather than through my company. I think that it's only fair for
me to take all the orders coming from that specific country since my company
is taking the initiative and spending resources in order to create a market
for those products.
2. The manufacturer has a subcontractor/3rd party company handling all of
their international sales which makes me believe that they pretty much only
deal with foreign companies importing their products.
The manufacturer suggested for me to start my own company in the foreign
country and become an importer of American products rather than being and
exporter/middle man. I'm not sure if this will be a good idea since I won't
be able to oversee the operations on a daily basis and more than anything, I
don't know much about taxation, rules and regulations governing companies in
that specific country.
Can anyone give me some advice on how to proceed and get my business started?
Should I incorporate here in the US or should I do as the manufacturer
suggested and incorporate in the foreign country I want to do business in?
I'm still in the process of doing a lot of research on the foreign market and
developing a business plan based on Michael Porter's 5 force's model combined
with a SWOT analysis. I feel like I'm doing too much reading and taking to
little action in order to capitalize on my ideas.
SBA Community

grobe8 | Window Shopper | 7/7/2012 - 4:20 pm
as a middleman. I understand that there is a lot of potential for this type
of business as American products are in high demand overseas. Maybe you can
start brokering deals between Suppliers & Buyers just to gain experience and
then proceed from there
Underdog LLC | Window Shopper | 7/7/2012 - 6:13 pm
that you have to sign with either party in order to secure your commission or
salary? I was looking into doing that first but it seems like a broker
license is required. Could you guide me to a website or book where I can get
more info on how a broker gets paid or anything related to it?
Thanks
lingling00153 | Window Shopper | 7/6/2012 - 6:18 pm
lingling00153@yahoo.com and we can talk more about this.
Underdog LLC | Window Shopper | 7/7/2012 - 6:50 pm
Join The Discussion
You must be logged in to join the discussion. If you already have an SBA Community account, Log In to join the discussion.
New users, Register for a new account and join the conversation today!