Points to Ponder before entering International trade.

Many entrepreneurs making their first steps into international business tend to assume that its nothing short of a get-rich-scheme, who become riled when told that profits from exports are mostly at par with those of the domestic market. That it takes a lengthy commitment in time and resources to prepare for trading overseas ; first to conduct a thorough market research, study the local regulations, finding the right clients or suppliers and only in the last stage concluding a deal.

Thus, whenever anyone approaches us with regards to business development with Russia, I make it a point to list out a number of crucial points and ask them if they up for it ? They incidentally apply to everyone planning a foray into international trade.

Clarity: First be clear about what you are wanting do and how serious are you about the new project. Are you just testing the waters, fishing for high profits, or seriously ready to establish a new branch of business ?

Commitment: Whether you are ready to commit your time, money and resources in first exploring and then setting up a solid foundation for the overseas business venture? If you think B2B sites like Alibaba are your ticket to instant international business, be prepared for some rude awakenings.

Resources: Before the first deal is signed or consignment dispatched, considerable monetary resources have to spent in first paving the way, by way of travel expenses, professional fees, certifications etc. Doctors and Lawyers don't work for a box of sweets and lofty promises, neither do professionals in the field of foreign trade.

Honesty: Transparency in pricing, product quality and desired supply or purchase terms. We monitor the domestic and international prices index and know quickly when a client is not honest. The potential importer is usually equally well informed.

Patience: Business Development or sourcing is a tedious time consuming affair involving stages like meetings, negotiations, and background checks. Constant daily phone calls demanding updates don't expedite the process.

Credibility: Keeping goals realistic helps go a long way. Talking about buying or supplying hundred containers when only able to afford one or two, causes serious credibility issues.

Expect sky-high profits: Foreign trade is just another trading avenue in with its own demand and supply based self-balancing profit levels and risks just like in a regular domestic business and not a get-rich-quick scheme.

Quote exorbitantly: Most Importers have a good idea what a products is worth, so quoting absurd prices is a guaranteed way for being shown the door.

Changing terms midway: Haggling in the name of negotiation may be the norm in some markets, but changing terms and specifications mid-way is frowned upon everywhere.

Expect rock-bottom prices: Offers with unrealistic low prices are a sure-shot indicator that something is amiss and many businessmen have suffered serious loses thanks to blind greed.

Standards: Most countries have their own sets of quality standards and certifications. So acquiring local clearances and certifications is a must in most of the cases, which is both a time and resource consuming exercise, unless the importer agrees to do so on your behalf. Most don't, at least in the beginning!

Unreasonable demands: Businesses everywhere are usually somewhat flexible in accommodating an overseas partners requests as long as they are reasonable, but taking “customer is the king” to literally usually results in broken deals.

Making Comparisons: If one already has import-export relation with another country, its pointless drawing comparisons or harping about it to a potential partner in a third country. If things are so good, cheap and easy in US, Germany or elsewhere, why bother coming here?

Being paranoid: If stories of Mafia, Aeroflot's services or a deal gone sour in Ukraine as narrated by a friend's wife's all-knowing uncle give you sleepless nights about your proposed venture in Russia, my suggestion is you deal with places where you would feel more comfortable. The same applies if your phantoms are Afro-Americans or Racist Aussie thugs!!