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| stopthejobsearch |
Stopthejobsearch is bringing to you what you need to know about starting Agricultural exportation business without leaving the shores of your country and without huge start-up capital.
Despite the odds in the economy, agricultural industries will continue to blossom because food is necessary for life, this provides solutions to many countries.
There are several agricultural products that are hot in the world market. Cassava pellets, flour, chips, ginger, sesame seed, bitter kola, kola nuts, groundnut, garlic onions, chilly pepper, anabero pepper, palm oil, cashew seed/nuts, locally made vegetable oil, corn oil, millet, fresh pepper, gallstone(hot cake), plantain, etc. There are numerous products you can export internationally. The beauty of this business is that you can start exportation business even in small quantity. Exportation is divided into two: Small and large scale.
The table below explains the difference between large and small scale exportation business.
LARGE SCALE | SMALL SCALE |
A business name | Exporters name can serve as a business name |
Packaged in 200kg bags, jute bags and containers | Packaged in 50kg, 100kg bags |
Transportation is by sea | Transportation is by courier or air freight |
Container needed | Container not needed |
HARD PRODUCTS AND EXPORT PROCESSES
Products like dolomite, granite and other minerals are still needed abroad, these minerals are everywhere in the Northern part of Edo state and the Northern parts of Nigeria. You can get these minerals at a very cheap rate and make good profit from one consignment. Agriculture and solid minerals exportation is a good business anybody with knowlegde of the business can venture into and make money from. The business requires special knowledge, e.g. how to price your product for export, how to use the modern system on exportation to get your money from your local bank. This is possible because the surest way to get any money on the deals is to use bank-to-bank transaction.
Other aspect of this great business is to know the terms on exportation, such as:
FOB – Free On Board (+ the named port of origin)
CFR – Cost And Freight (+ the named port of destination)
CIF – Cost, Insurance and Freight (+ the named port of destination)
CPT – Carriage Paid To (+ the named place of destination).
CIP – Carriage and Insurance Paid to (+the named place of destination)
DAF – Delivery At Frontier (+the named point at frontier).
E.T.C.
These importation/exportation terms are very important when dealing with clients in exportation business. They are called International Commercial Terms (INCOTERMS),which is a universally recognized set of definitions of international trade terms; developed by International Chamber of Commerce(ICC) in Paris, France. It defines trade contract responsibilities and liabilities between buyer and seller. Once the buyer and seller have agreed on commercial term like FOB, they can transact on FOB without discussing who will be responsible for the freight, cargo insurance, and other costs and risks.
The INCOTERMS was first published in 1936 (INCOTERMS 1936). The complete definition of each term is available from the current publication – INCOTERMS 2000. The publication is available at your local chamber of commerce affiliated with ICC.
HOW TO HANDLE INSURANCE
There are situations that FOB will be the best while in other situations CIF can be the best, these are the little knowledge that one needs to have in order to make great profit from this great business. The beauty aspect of this business is that the exportation terms and conditions are easily understandable.
STEP BY STEP PROCEDURE ON HOW TO EXPORT ANY PRODUCT
a. Seller (prospective exporter) incorporates company and subsequently
registers business with the Nigerian Export Promotion Council
(NEPC). Or whatever you call it in your own country.
b. Seller approaches bank and opens a cooperate domiciliary account
(USD/EURO/POUNDS) with which the company can repatriate
export payments (payments).
c. Seller gathers information as it concerns the source for the
procurement of the commodity intended for export. Seller should try
as much as possible to gather as per the export market requirement
of the commodity for export. Seller must ensure that product is
available in large quantity such that it would meet the minimum
order that could be requested by buyer (foreign importer). At this
stage the services of an export consultant/ facilitator/ manager would
be both invaluable and indispensable because of the pitfalls it would
save the new exporter from falling into.
d. Seller embarks on a massive search for the buyer of the commodity in
question. The search could be done online or offline.
You can start your online search from these sites below or search google.
Note: stopthejobsearch is not affiliated to any of the sites above. You still need to do your due diligence.
e. Buyer and seller conclude an export contract with a secured and
confirmed method of payment.
f. Seller may investigate buyer’s genuineness
g. Seller approaches bank and opens NXP for the transaction.
h. Seller approaches a reliable freight forwarder who advices on the
best shipping line, routes and any other documentation that may
be relevant for that transaction.
i. Seller consolidates with credible suppliers of the commodity
intended for export to ensure timely delivery of commodity for
export.
j. Upon arrival of goods, freight forwarder arranges for transport
and containerization of goods.
k. Loaded container is dropped at the shipping terminal for
subsequent shipment.
l. Upon sailing of carrier vessel, shipping line issues seller with debit
note. Seller obtains bill of lading from shipping line after payment
of charges as indicated in the debit note.
m. Seller deposits shipping documents with the receiving/ collecting
bank that subsequently sends them to buyer’s bank for remitting
of export proceeds.
n. Upon receipt of payment, seller prepares for another export
transaction.
Success is made!!!
In starting small, you do not need most of the steps above; because it is simpler to start small.
But, becareful of fraudsters and don’t be a fraudster. Keep to your words and promises. Supply what you said would supply, the correct quantity and quality.
For a quick start on this business, you may wish to contact stopthejobsearch for an export manual (about 60-page ebook) prepared solely for this. In this book, the processes are outlined, with more information on INCOTERMS and export documents.
If you do not have passion for this business don’t demand for the ebook because it is not going to be free this time. It is only passion that drives one to success.
Have a glorious year!!!
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