How to Sell Overseas

It is very difficult to start a business. There are always going to be some problems that you do not expect to encounter, but these small problems are often the icing in the cake. Once the problems have been taken care of, everything should be smooth sailing, right? Not quite.

Even if your start was impeccable, no business would run without a problem here and there. Some problems would be as simple as paperwork, or just minor emergencies with inventory. Sometimes it can be even more complicated. One of the biggest problems a business owner may encounter is running out of customers to sell to. Stagnation is also a problem for every business.

Running out of customers can be a problem because every business needs customers to make money. If a business does not make money, it does not have legs to stand on. For some, they could try to sell more of their products to the same customer but how many more can you sell of the same product. Other entrepreneurs would even try to sell new products to their customers but this could sometimes backfire and turn off your loyal customers.

Exporting products is a good way to increase exposure and expand a business, but you need to know how to sell it first.

Selling overseas is not as easy as it may seem because you are dealing with a new and unfamiliar market. Every market has their own quirks on how they want businesses to sell stuff to them. What may be effective in your region may seem rude or clingy overseas and vice versa.

To figure these seemingly mundane differences, you can hire a consultant to teach you the difference between selling in your country and overseas but that could prove to be expensive. A cheaper alternative would be to observe other stores in action. Look at how the sales staff talks to the customer and the demeanor that they exude. Is it confident and strong or is it submissive and servicing?

Selling a product is important but what product can you sell when it doesn't arrive at the store. Some entrepreneurs choose to build their products where they sell it. It makes sense because you can minimize shipping costs and price your product based on local resources.

There are some products, however, that can only be made in one specific area. When that happens you are left with no option but build your product in one location and ship it to its point of sale.

Aside from getting the product to the consumer, the other half of the transaction is important, too. And, that other half is making sure that the money gets to you.

Nowadays, there are so many ways you can have money transferred to you. If you are selling through a local store overseas, you can have the money deposited and the sale transaction slips faxed every day. For this kind of option, you must have someone you trust on the other side.

If you are selling online, there are a myriad of electronic ways to get payment. You can open an escrow broker to hold on to the good, only to be released when the payment has been received. This can eat up the profits however, hence only applicable to high ticket items. You can also receive payment via credit card or PayPal.

These are just some of the things you need to know regarding overseas selling. To learn more contact your local importation and exportation broker.

Get To Know All About Setting Up A Business In Dubai

Many of my friends, family, feel that this is a confusing topic. I'm sure you too have one or 2 questions or you would not be going through this discussion.

My concept is to provide a bird's eye view of the present economic scenario of Dubai that leads to the questions WHAT, WHY, and HOW; this is due to the fact that by asking the questions WHAT and WHY, the big question of HOW will be answered.

By the time you're done reading this I hope to have addressed your query of "how to set up a business in Dubai". I would feel happy if 1 or 2 points which you did not know before is adopted by you regarding starting an organization in Dubai.

This observation commences with the reason behind the desirability quotient of individuals to start doing business in Dubai. There is not one single reason for this but rather a mixture of many.

Freehold Zones

Foreigners are allowed to make investments in property in freehold zones, due to the fact that these areas are designated by the Dubai government (typically you are not permitted to own property in Dubai).

These are also areas where businesses aren't taxed on corporate income. Payroll taxes also do not apply.

The economic miracle of Dubai has been built on free trade and relaxed tariff laws, and the designation of freehold zones have encouraged MNCs to set up a presence in Dubai.

The rules and regulations for the small businesses are no different from the other businesses.

In my estimation, the foremost advantage the freehold zone concept provides you is the exemption from having a local business partner who has the ownership of no less than 51% of your business (keep reading below).

Labor Arbitrage

As of early 2008, there aren't any minimum wage laws in Dubai. Labor is really cost effective in Dubai since workers from nearby nations such as India, Sri Lanka and Pakistan usually head to Dubai to seek work and a better life-style for their families. These workers do not get paid much. The arrival of these persons is facilitated, more often than not, by the recruiting branch of the numerous corporations in Dubai.

Excellent Geographical Location

Due to the distinctive geographical location of Dubai on the Arabian peninsula, the port city of Dubai attracted a lot of merchants, entrepreneurs, and daily wage laborers establishing Dubai as a hub of finance and commerce. The petroleum sector is responsible for less than 7% of the annual GDP of Dubai. Rather, its central geographical location near water has made it a premier destination for trade.

In order to conduct business, several merchants from the continents of Europe and Asia arrive and convene at the numerous ports in Dubai. Foreign merchants find trading in Dubai even more attractive due to the relaxed trade and tariff laws of the emirate of Dubai. All the people involved in this emerge victorious.

Due to these benefits Dubai is a really good place to start a business for many entrepreneurs and even international companies. Being a multi-national, you want your corporation to be near your vendors and customers. If everyone is establishing a presence in Dubai, it becomes difficult for you not to. You may just lose your position in the industry you play in.

You want to be close to people and businesses which you frequently deal with. You want to be at the forefront so that you're always ready to wholeheartedly welcome any opportunity which knocks the door.

And perhaps the most underestimated reason is that local businesses and individuals prefer to work with companies that are established locally. Building personal relationships is really important in such cultures, and that involves the sense of sight and touch. You should be there for that to happen!

Business Licenses

Any person requires an operating license for the business activity done by their company in order to own a business concern in Dubai. The three general types of business licenses you could apply for are as follows:

* Professional License - for organizations engaging in professional services

* Commercial License - for corporations engaging in import/export trading

* Industrial License - for companies looking to establish manufacturing operations

The economic department of Dubai, an institution founded for the lone objective of managing, governing and monitoring economic activity, offers these business licenses. The general application process is similar for each; however each license application has its own nuances.

For instance, the department may require that you obtain a guarantee from a local bank in Dubai, if your company is involved in trading or certain services. For any kind of business to be established in Dubai, the Chamber of Commerce should recognize it and provide registration. Similarly, there are several other significant things to understand to be able to successfully set up a business in Dubai.

The 7 types of business entities you can form in Dubai:

* Public Company (Traded in the Stock Exchange)

* Private Company (Not required to disclose publicly)

* Joint Venture Company (JV)

* Limited liability Company (LLC)

* General Partnership

* Partnership-en-commendams

* Share Partnership Company

LLC has always been my personal favorite. I have multiple LLC registered at the time I'm writing this discussion. I find them to be the most flexible. At the same time I get the liability protection from separation of business from personal assets.

My suggestion is that even you select to go for an LLC. You will not be alone if you decide to found a limited liability company in Dubai. Many successful companies in Dubai which have been in existence for a while are LLCs. It's the number one choice of business entity.

If you're used to the western business laws, there are a few crucial things you must know regarding an LLC in Dubai. A minimum of two individual shareholders are required for your LLC. You can have as many as 50 (somewhat similar to an S Corporation in the United States).

In order to establish an LLC, there is even a minimum capitalization requirement. As of 2008 this number is about 300,000 Dirham or just around $80,000 USD. You can have this in either cash or capital assets.

The Dubai Information Site is a website on Dubai City put together from a practical and first-hand perspective. The site covers information about Business in Dubai, sightseeing, jobs, sports, flights, hotels, weather, visa information, tourism, holidays, history and more. Dubai-Information-Site.com is your guide to fresh, practical and first-hand information about Dubai City.

Article Source: http://EzineArticles.com/?expert=Kish_S

DGFT India - Important Functions Of The Board

Director General of Foreign Trade or DGFT is the governing board that provides a set of guidelines and framework for importers and exporters trading in India. Framing rules and policies and implementing the formulated rules for regulating the flow of Foreign Trade is the major task of this board. Following are some of the major functions that are of great relevance for traders:

Notifications and Circulars

DGFT India issues Notifications, Public Notices, Circular and Notices, which are of prime importance for import export traders. These notifications are actually the announcements made by the board for introducing changes made in the existing policies. It is the first and foremost concern of every trader to know about the interim trade policies that are very crucial for the business. For example - suppose an exporter has been exporting Leather Garments to Nigeria. One of the latest Notifications issued by DGFT reads that all export import activities commencing to or from Nigeria are banned. The Leather Garments exporter must cease all his deals with the country as soon as the announcement is made. Therefore, the traders must keep a tab on all the latest announcements of this board to save huge losses.

IEC or Importers Exporters Code Number

IEC Code issued by DGFT India is the prime requirement for starting an import export business. In other words, it is the permit given by this board to any bonafide person/ company for starting a venture of import export trade. This code is like an identification ID issued to every importer exporter of the country. Without ICE code, nobody can pursue a foreign trade transaction in India.

EXIM Policy

Export Import Trade Policy of EXIM Policy is the set of guidelines formulated by the board for free flow of foreign trade. These guidelines have been implemented to improve the intensity of Import Export trading. Prime objectives of the EXIM Policy includes Special Focus on Initiatives, General Provisions Regarding Import and Export, Promotional Measures, Duty Exemption / Remission Schemes, Export Promotion Capital Goods Scheme, Export Oriented Units (EOUs), Special Economic Zones, Free Trade and Warehousing Zones, and Deemed Exports. The board issues several policy updates that are important for the traders so that they can plan profitable and successful trading strategies.

DEPB Rates

DEPB Rates are the Export Incentives granted by Indian Government, for saving Customs Duty when Importing several Goods. The objective of this incentive is to neutralize the customs duty applicable on import content of the export product. This incentive is usually granted to the exporter under several circumstances mentioned under DEPB General Instructions. The specified DEPB rates and General Instructions are also set, and updated by DGFT India.

All these functions of DGFT are of great importance for every trader. Therefore, foreign traders are always on the lookout for the latest announcement made by DGFT Delhi and other zonal headquarters. DGFT Delhi located at IP Bhawan New Delhi, issues several announcements in an year. These announcements can also be obtained form the website of Infodrive India, a leading online import export database company.

International ACH

The Automated Clearing House (ACH) is an electronic funds transfer network that enables financial institutions, who participate in the ACH Network, and their customers to send electronic payments. The ACH originated in the United States and, today, there is one single clearing system for the entire nation. This clearing system allows every bank and financial institution to be connected to each other so that transactions and payments can be made quickly and inexpensively.

Not all countries have an ACH-like system and those that do use banking and payment formats that differ from what is used in the U.S. Recently, an International ACH Network was put in place to help businesses around the world connect with each other without overspending on oversea transactions. Before the International ACH was created, all international payments originating in the U.S. were sent to businesses in other countries as wire transfers or checks. Most of the time, businesses needed a foreign bank account to deal with foreign businesses. However, with an International ACH system, financial institutions in the U.S. can send ACH transactions without having to have a foreign bank account.

The biggest benefit of an International ACH Network is that any company who does business internationally will be able to save a ton of money on making transactions. Money is normally wasted on wire transfer fees and waiting for checks to be delivered. Companies who conduct foreign business may need to make International ACH transactions to customers, suppliers, employees and shareholders. The ability to make these transactions electronically are why an International ACH system makes conducting business with foreign entity's much easier and cost-effective.

Some other benefits of an ACH Network that extends overseas are:

1. Can improve the negotiation of terms with vendors and customers.
2. Can provide better cash flow options for businesses.
3. Can remove the many specific formats that must be used in order to deal with specific countries.
4. Can combine payment categories into a single payment file.

While there are many benefits of the international system that has been put in place, some areas still need to be worked out. Currently, there is no standard International ACH format. To deal with this, some domestic banks require a company to program a bank-specific format on their systems, while others accept a proprietary format from the company's ERP system.

Also, the file transmission requirements tend to vary for each country. The typical file transmissions currently in place in the International ACH system are: Secure File Transport (conducted over the internet), direct transmission (conducted over the internet or modem dial-up), treasury workstation, or through a banking system. Some countries cannot relay, through the electronic network, the necessary information that let's domestic businesses know the invoices were paid. So, in order to relay the information, alternative methods, such as mail, e-mail and fax are used. International ACH tracking is also available to offset any event in which a payment is not received.

The International ACH system is, currently, not a perfect system. It will take some time to develop. However, eventually and probably in a quicker amount of time than can be expected, the International ACH Network will become as prevalent and proficient as is the ACH Network in the United States. When that happens, the entire world will be financially connected and the history of the human race will forever be altered.

New Energy Industry - A Big Winner in China's 5 Year Plan

China has just announced its next 5 year plan (its 12th) and one of the industries that will be a clear winner of the policies is New Energy. Now that the country has become the world's biggest producer and consumer of power, it's become a political imperative to develop clean and renewable sources of energy.

The plan is still in draft form so there is room for change but the headline figure is that by 2015 the country will develop 235 million Kilowatts of clean energy production. All renewable sectors have been singled out for specific developments in the plan too.

Hydropower

It may not be a favourite of environmentalists and the country may pay a high ecological price later on down the road, but there's no denying that hydropower is the most effective renewable energy source available today. 120 million Kilowatts is expected to be found from 3 major new hydro-electric projects on the Jinsha, Yalong and Dadu rivers.

Wind Farms

There will be a total of 8 new major wind projects, 6 on land and 2 to be built offshore in coastal areas. These projects are expected to enable another 70 million Kilowatts of power.

Solar

Solar is still an emerging technology and with typically poor returns compared to the energy collected and difficulty in storing that power for long-term use it's not surprising that it's the smallest part of the plan at the moment. In the future we'd expect a major increase in solar as it becomes more efficient and storage technologies improve. For the moment 5 million Kilowatts is expected to be produced by new solar farms in Tibet, Yunnan, Inner Mongolia, Gansu, Qinghai, Ningshia, and XinXiang.

It's not all good news though; there will still be a ramp up in gas and oil consumption and the plan also allows for nearly 150,000 kilometres of pipelines mainly to Asian republic states from the old Soviet Union to allow more efficient transportation and delivery.

With China already emerging as the world's biggest investor in New Energy it's not surprising that there is strong political will to begin implementing some of the world's largest investments in practical projects. For investors in the country this is a major opportunity to field these technologies and prove their effectiveness while gaining return on those investments to further research and development in the area. The best of the New Energy companies are looking at a very prosperous 5 years indeed.