Why can't many people do foreign trade business? How to do foreign trade business?

In recent years, many people have made money by doing foreign trade business, because the country is now supporting import and export trade and taking good care of many small businesses. However, the competition in foreign trade business is very fierce. Today we will see how we can make foreign trade business a success.

Why can’t many people do foreign trade business?

1. No ideas

I have a client who started a business in foreign trade for several years. His business is booming and he often gives lectures everywhere. One day, a boss heard that there was someone who was very good at making the same product as theirs and doing very well in the international market. He came to listen to the lecture. Unexpectedly, he found out that this person was his employee five years ago. This boss's factory used to have more than 1,000 people, but now it has declined to more than 150 people, and the annual sales are only more than 20 million. However, my friend, who was his former employee, has an annual sales of over 100 million.

2. Having ideas but no action

One day I was chatting with a customer who makes screws. They make custom screws. After a deep chat, I found that he spent millions to buy machines, and the products he made were really good, but the domestic sales were very bad. It happened that I knew several other companies that do foreign trade in screws. I chatted with him, and he said he knew them. When he opened his factory many years ago, they just started trading. But now, those who do trading don’t do domestic business anymore, they only do foreign trade, but he still insists on doing domestic business! He told me, hey, I planned to do foreign trade as early as 5 years ago...

3. Lack of confidence in yourself and not persisting!

One of my clients asked me one day in 2015 that he wanted to do foreign trade, was it okay? I answered that of course it was okay, foreign trade was the trend of the future, and he did it. In the first year of cooperation, he only received two small orders. In the second year, he continued to renew the contract, and only made a few million a year. He spent more than two years from not knowing English to finally succeed. Now he doesn’t accept domestic orders at all; others asked him how he did it without knowing English, and he said, it doesn’t matter, I can translate it slowly with software!

How to do foreign trade business?

1) First of all, you need to position your products well. At the same time, you need to have a stable supply chain and foreign customer connections, which can help a foreign trade company get on the right track quickly and save a lot of initial capital and energy investment. At the same time, it is recommended not to put all your eggs in one basket. You should have several backup suppliers. Once you find that the existing suppliers are not ideal, you can change them at any time, so that you will not be too passive.

2) Have a certain amount of capital reserve: As the saying goes: Everything is difficult at the beginning, so be prepared for 6-12 months without orders. During this period, daily expenses incurred, such as office rent, employee wages, customer platform investment and business turnover, are all expenses.

3) Rich product knowledge, sensitive to the market and product prices: understand cost control, know what to sell, can skillfully introduce product advantages and selling points to customers, and can quote prices on the spot. This is a must for a qualified foreign trade soho.

4) Customer development, quotation, ordering, payment method, stock preparation, packaging, customs clearance, loading, transportation insurance, bill of lading, and exchange settlement.

This is the end of this issue on foreign trade business. If you want to get more knowledge about foreign trade business, please pay attention and we will continue to answer your questions~