How to Start an International Trade Consulting Business

Part 1 - How to start an International Trade Consulting business - Background

Every country has something that another country wants. The United States has specialized business software. Saudi Arabia has natural resources such as oil. Japan specializes in electronic equipment and automobiles. 

An international trade consultant, also known as a foreign business consultant, helps organizations navigate complex international trade regulations. They help clients make overseas contacts, oversee the exchange of goods and services, and represent their customers in negotiations. In short, it was the work of a trade consultant that made it possible for you to drive the Toyota you commute in each day.

Our guide is in 3 parts:

• Part 1 - How to start an International Trade Consulting 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 International Trade Consulting Business?

Startup costs for launching a new international trade consulting business range from $10,000 to $50,000. The following should be considered when writing the start-up budget portion of your business plan:

• Location — Save money by operating your new consulting firm out of a home office.

• Computer(s)

• High-speed internet

• Business management software

• Website and marketing materials

• Insurance and licenses
  Professional advice — Consult with an attorney and accountant to ensure your business is set up for success.

What are the ongoing expenses for an International Trade Consulting Business?

Fortunately, the ongoing expenses for this type of business venture are fairly minimal. The following should be considered when writing the ongoing expenses portion of your business plan:

• Rent and utilities — Once your business grows and you take on new employees, you may find it is necessary to lease an office space. Studies indicate that up to 4% of your business’s revenue should go towards rent and utilities.

• Equipment — Every employee will need access to business tools, such as computers and software, to ensure their job is done properly. This equipment must be adequately maintained, repaired, and replaced when necessary.

• Marketing — While it will likely cost up to 2% of your business’s revenue, an effective, targeted marketing strategy is necessary to achieve long-term growth.

• Insurance and licenses — Work with trained professionals on a regular basis to ensure your business is adequately covered.

• Wages — Industry leaders report over half their business’s annual earnings go towards their payroll budget.

Who is the target market?

As an international trade consultant, your marketing efforts will focus on gaining new clients who are looking to import and/or export their goods and/or services. As mentioned, however, your network should expand well beyond current and potential clients. Importers, exporters, manufacturers, distributors, sellers, buyers, and other market participants should all be targeted when developing a strategy to expand your business.

How does an International Trade Consulting Business make money?

International trade businesses trade their specialized knowledge and experience for a consulting fee. Some work under a commission-based fee structure, receiving a commission each time a trade/transaction is completed. Other businesses may work on retainer, receiving an advance against future commissions, typically on a monthly or quarterly basis. Still, others work for either a flat fee or an hourly rate, depending upon the services they provide.

How much can you charge customers?

Regardless of the industry they serve, the average consultant charges between $100 and $150 per hour. Your fees, more than likely, will vary depending upon the scope of each job. When determining how much you will charge, consider the client’s consulting needs, time spent on the account, resources required, and overhead costs.

How much profit can an International Trade Consulting Business make?

The import/export business has the potential to bring in profits well over six figures. Your business’s annual profit will be directly tied to your knowledge, experience, network, and commitment to long-term growth.

How can you make your business more profitable?

The most effective way to launch a scalable and profitable business is to expand your services. Use you and your staff’s business knowledge to offer additional services such as strategic management, human resources, or financial consulting. This strategy not only helps expand your network it will help solidify yourself as a leader in your chosen industry.

Day-to-Day and Growth

What happens during a typical day at an International Trade Consulting Business?

As an international trade consultant, your days will be dedicated to ensuring everything is in place for your clients’ imports/exports. You will examine the unique details of their compliance program, identify any gaps, assist in closing those gaps, and train their workforce to ensure compliance is met moving forward. You will use data to analyze and forecast both current and future exposure as well as identify any potential risks. The information you’ve uncovered will then be used to ensure your client’s business operates seamlessly, with a plan-of-action in place to tackle any unexpected changes in international trade rules. Lastly, when not working with current clients or gaining new ones, you will need to work regularly to help influence and shape new policies that have your clients’ best interests in mind.

What are some skills and experiences that will help you build a successful International Trade Consulting Business?

Due to the intricacies of international trade law, you and your team must have extensive knowledge and experience in economics and finance. Those rising to the top of their field generally have, at a minimum, a bachelor’s degree in Business Administration, International Business, or Economics.

While education in this field is beneficial, there are several other skills needed to achieve long-term success. You must possess strong leadership skills, be organized, and have the ability to work under pressure. You should enjoy traveling and be fluent in multiple languages so that you can communicate with clients from varying backgrounds and cultures.

What is the growth potential for an International Trade Consulting Business?

Due to the complicated laws that govern international trade, this industry has seen its highs and lows. However, the digital economy has helped level out these fluctuations, leaving significant opportunity for growth and profits.

What are some insider tips for jump starting an International Trade Consulting Business?

In the international trade industry, your overseas connections will prove to be your most powerful business tool. If you don’t currently know anyone overseas, that’s okay. Start by scouring the internet, connecting with international executives through LinkedIn and related business networking organizations. Once you have built a few solid relationships, those connections can be turned into secondary contacts. The most critical piece of advice offered by industry leaders — always maintain a high level of cultural sensitivity. You will be working with businessmen and women worldwide; therefore, it’s important to keep in mind that your country’s way of doing things isn’t necessarily the right way.

How and when to build a team

As a new business owner, you may choose to handle all business duties yourself until the company gets off the ground and starts running. As you start to realize significant growth, however, it may be necessary to add a few employees. You may hire someone to perform administrative duties, or you may choose to hire consultants to handle other areas of international trade that aren’t in your wheelhouse. 

Regardless of what shoes your new hires must fill, each individual should be properly vetted and trained with a clear understanding of what will be expected of them.

Part 2 - Is an International Trade Consulting business the right fit for you?

Part 3 - Action plan to launch your International Trade Consulting business in 90 days