Startup cost
$5k–$25k
TRUiC Business Ideas
How to Start an Import & Export Business
Decision Snapshot
Import And Export
Idea Score
53
Profit margin
3%
Break-even
9 mo–24 mo
Time to launch
12 wk–36 wk
Demand trend
Rising
5-yr failure rate
—
Capital intensity
Medium
Time commitment
Full time
Part 1 - How to start an Import & Export business - Background
An import and export business matches domestic and foreign buyers and sellers, ensuring all local regulatory requirements are abided by. Dating back to the biblical ages, this trade ensures that products are distributed from countries that have a rich supply of a commodity that other countries lack. Imported/exported goods include anything from beverages and household goods, to everything in between.
Our guide is in 3 parts:
- Part 1 - How to start an Import And Export business - Background
- Part 2 - Our planner tool to see if this idea is the right fit for you
- Part 3 - Action plan to get started
What are the costs involved in opening an import & export business?
Fortunately, carving out your niche in the global marketplace requires very little start-up capital. The business can be run from a home office. Successful entrepreneurs report starting out with zero capital, while others indicate they incurred costs as low as $5,000 to $25,000. Your basic necessities are: telephone, Internet, a logo, and a website.
If your strategy is to start out as a distributor, you will need to include additional monies in your budget to cover inventory costs.
What are the ongoing expenses for an import & export business?
In addition to low start-up costs, most business owners in the global marketplace experience little to no overhead costs. You will face the standard costs that come with running any business, such as Internet, phone, and website maintenance costs. You will also need to budget for logistics costs, such as transportation of goods. These costs vary, depending upon the item specifics, where it is going, and where it is being transported from.
Who is the target market?
Your target market will vary, depending upon the product being delivered. As a result, market research should be an integral part of your daily routine. Diligence and preparation will ensure you properly identify potential customers, what geographic areas will play a part in your business, and what products offer the highest profit potential.
How does an import & export business make money?
An import & export business receives a commission for each import and export they facilitate.
How much can you charge customers?
Your prices will vary from product to product. There are two factors that will play a part in what you decide to charge: volume and profit on that volume. The goal is to find the sweet spot – mark the product up where you are satisfied with your profit, without exceeding the price consumers are willing to pay for said product. Most importers/exporters have found that sweet spot at 10-15% over their cost.
How much profit can an import & export business make?
The average profit for an individual managing this type of business is $75,000, with many earning upwards of $200,000. There are a number of entrepreneurs who have built multimillion-dollar businesses, employing a staff of 5-10 people.
How can you make your business more profitable?
In this industry, the more involved you are, the more profits you will earn. Some entrepreneurs focus solely on importing, while others focus on exporting. To take full advantage of these opportunities, conduct thorough research and position yourself in the niches that need the most attention.
Day-to-Day and Growth
What happens during a typical day at an import & export business?
While some entrepreneurs are happy with just importing/exporting one product, many choose to move on and work with several trades. This is a great way to expand your business and reputation. It does, however, take hard work and understanding your market. Market research will be an integral part of your day, as your business’ success relies on your ability to identify the best products, as well as the best potential foreign market for each product or service. The U.S. Census Bureau Foreign Trade and the Department of Commerce International Trade Administration’s Data and Analysis are both great resources for this research.
Your research doesn’t stop there, however. Once you’ve identified your goods and/or services, you will need to learn everything there is to know about that product. Which manufacturer makes the best? Are there improvements that could be made? Who will your supplier be?
The most important component to your business is the contacts you make and the relationships you are able to foster. Your research should help you in identifying upcoming trends. Once you’ve determined that, it’s time to get to work making the connections that will help you deliver those products to countries in need. There are a number of resources to assist you in making those connections. Commercial attachments for foreign consulates are often a great place to start, as their primary purpose is to establish outlets in the United States. The U.S. embassies in foreign countries are also a great resource, as are the Chambers of Commerce for your target cities.
A typical day in the life of an importer/exporter includes the following:
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Reviewing agent fulfillment, initiating any necessary changes.
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Reviewing all email inquiries, answering any questions that may come up.
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Reading news sources to determine if any changes and/or movement has occurred in your industry. Making decisions based on this movement.
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Analyzing movement and issues to determine your strategy moving forward. Devising a plan for new business opportunities.
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Attending networking events. This will often include travel and/or phone conversations with partners overseas.
While there are a number of items you will need to address each day, part of the appeal to many in this industry is that no two days are alike.
What are some skills and experiences that will help you build a successful import & export business?
Managing a successful import/export business requires attention to detail and strong interpersonal skills. The bulk of your day will be spent selling, marketing, and building business relationships, so it’s important that you fully understand the market. Your ability to root out and build relationships based on market needs is what will set your business apart from the rest. The Institute of International Commerce offers a training course that will help you understand the intricacies of trading in the global marketplace.
What is the growth potential for an import & export business?
According to the U.S. Department of Commerce, the global trade industry offers significant opportunity, both now and moving forward. $1.2 trillion in goods are imported annually, while $772 billion in goods are exported from the United States each year. 95% of this trade is represented by the small importer/exporter, leaving a significant amount of room for those interested in entering the industry.
What are some insider tips for jump starting an import & export business?
Successful import & export business owners caution against trying to take on too much at first. Identify a product or two that is in high demand and start there. This will give you a feel for the market, best practices, and help you determine the most effective methods for ensuring maximum profit margins. Large email campaigns will be a significant part of your business strategy. Do not send these emails as mass emails. Those using this strategy are often identified as spammers and are blacklisted from the market entirely.
How and when to build a team
Most import/export business owners are able to manage everything themselves, eliminating the need for employees. It is recommended, however, that you consult with an attorney or financial advisor to ensure all business is conducted by the books, yielding as much profit as possible. If marketing is not your strong suit, it is also recommended that you consider hiring a marketing team that is well-versed in the import/export industry. Most importantly, entrepreneurs realizing the most significant success consider each business connection an extension of their team, treating them as such.
Part 2 - Is an Import & Export business the right fit for you?
Business Evaluation & Strategy Tool
We'll walk you through the four pillars every business needs: Points of Leverage, Marketing Strategy, Financial Model, and Personal Compatibility. At the end you'll see a personalized report and your action plan below will be tailored to your answers.
Step 1 of 4 — Points of Leverage
Every viable business has natural advantages. Below are common leverage points across four categories. Pick the ones that apply to your Import And Export business. We've pre-suggested a few based on your idea — review and adjust.
Step 2 of 4 — Marketing Strategy
Without a way to connect with customers, even great businesses fail. Pick the channels you plan to use to reach your customers.
Step 3 of 4 — Financial Model
Enter your monthly baseline costs — the minimum overhead to keep the business running. Then we'll calculate how many sales per month you need to break even.
Step 4 of 4 — Personal Compatibility
A business that doesn't fit your life will fail no matter how good the numbers look. Tell us how this business fits you.
Your Import And Export Evaluation Report
Complete the four pillars and your personalized summary will appear here.
Points of Leverage
Marketing Strategy
Financial Model
Personal Compatibility
Part 3 - Action plan to launch your Import & Export business in 90 days
Nine concrete steps to take you from idea to open business, grouped into 30-day phases. Complete the planner above and we'll highlight what's most important for your situation.
First 30 days — Foundation
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Form your legal entity
An LLC keeps your personal assets separate from business debts and lawsuits — the most common reason small business owners choose this structure. Sole proprietorships and partnerships do not provide this protection.
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Get an EIN and register for taxes
Apply for your free Employer Identification Number through the IRS, then register for any state or local taxes that apply to your business (sales tax, franchise tax).
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Open a business bank account and credit card
A dedicated business account is required to maintain personal asset protection. Mixing personal and business finances ('piercing the corporate veil') can void your LLC's liability shield.
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Set up business accounting
Recording expenses and income from day one makes tax filing easier and lets you see when the business is actually profitable. Use software (QuickBooks, Wave) or a part-time bookkeeper.
Days 30–60 — Compliance & Risk
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Get permits and licenses
State and local requirements vary widely. Brick-and-mortar businesses typically need a Certificate of Occupancy; service businesses may need specific professional licensing; food businesses need health permits.
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Get business insurance
General Liability Insurance is the most common starting point. If you'll have employees, most states require Workers' Compensation. Specific industries need additional coverage (product liability, professional liability, etc.).
Days 60–90 — Launch
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Define your brand
Your brand is how customers perceive and remember you. A clear name, logo, and visual identity make every later marketing decision easier and protect you legally as you grow.
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Create your business website
Every legitimate business needs a website. Social media pages are not a substitute — you don't own the platform. Modern website builders mean you can launch a clean site in a weekend without a developer.
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Set up your business phone system
A dedicated business number keeps your personal life private, makes the business look legitimate, and lets you route calls professionally. Cloud phone services start under $20/month.