A common misconception is that in order to export and import, you must have a large capital. But it may be interesting to know that almost all of the US export market is made up of small business exporters, and international consumer markets such as China’s growing middle class have provided more opportunities for smaller businesses to Enter the export game with little capital.

Minimum initial capital for export

Definitely, a minimum initial capital is needed to start any business. Most of the successful entrepreneurs and of course billionaires have started their work with little capital. But the question is, how can you have a profitable export with low capital or even a successful export without initial capital? The answer is very simple:

By attracting capital and investors.

Scientific research and studies conducted on the high economic growth rate in Southeast Asian countries indicate that the economic growth of these countries is due to attention to two factors:
Attracting foreign investors
In fact, the direct entry of a foreign investor reduces the risks and risks caused by high prices due to import tariffs, termination of contracts, barriers to foreign trade and the entry of competitors. For example, Malaysia is one of these countries that has been able to experience rapid economic growth by attracting foreign investments; So that during the years 1971 to 2013, its annual real GDP was about 6. 3% growth and its annual income from 3. 80 dollars to 10. 03 dollars has arrived.

Export development in two formats

Industrialization for export (EOI) is a policy that is used in competitive markets and opens the doors of domestic markets to foreign competitors and creates a space and context for exporting goods with a competitive advantage. Of course, this policy is debatable for new products and emerging ideas and should be used carefully.

Export-led industrialization (ELI) is also a policy that is adopted in developing countries in such a way that they produce and export goods using government subsidies to gain a small share of the market in other countries. The strategy used in this policy is that in exchange for the liquidity obtained from exports, the destination country will play a role as a supplier of required goods at a lower cost.

It is true that attracting capital for export is not an easy task and is one of the biggest challenges in your path, but it is not impossible. So far, you have realized that you can export with a small amount of capital, but we must remember that the small amount of capital means that you should proceed with more care and research, and then start exporting and importing when you are sure. In fact, by doing this, the possibility of risk and mistakes will be minimized and you will increase the security of your business. Definitely, an export consultancy can help you in this direction and introduce you to potential investment.

But now that the initial capital attraction path has been determined, a question that may have occupied your mind is how to find a suitable country for export and how to communicate and negotiate with foreign customers?

But before we discuss this topic, it is better to get acquainted with the types of export products.