Trading Firm: Wholesale Distribution and Import/Export Business
Trading is a very basic form of business. Trading, as it is popularly known, is the business of matching buyers and sellers. International trade is still one of the hot industries of the new millennium. The world is transforming into a one-world global community with advancements in technology and fewer trade barriers. This has made international trading opportunities more accessible and rewarding.
Good news is that trading business these days is not the sole purview of giant corporate traders; they make up only about 4 percent of all import/exporter business. This means that the other 96 percent of trading businesses is done by small-to-mid size enterprises.
Proposed Small Business Venture: Trading Firm
The proposed trading firm will run both wholesale distribution and import/export business. Wholesale distribution will need a higher capital outlay, however if we concentrate on low-cost goods and items with strong demand, it is still a viable small business.
Import/Export Business will need considerably less inventory. Having a good website, building up a strong client base and creating a large dealer network will be the mission as an international trading firm.
The unique status of Gogme Learning Alfa as a business entity owned and managed by thousands of entrepreneurs from all over the world may have some unexpected advantages as a trading firm. Co-owners can spot good products that are in high demand in their countries and get the trading firm to assist in the importing or exporting of products. During this process, some co-owners will have the chance to start their own import/export business.
Secondly, having a team of co-owners from all over world can be a great factor in winning distributorship of great products or service. Most suppliers and manufacturers award the distributorship of their products based on the strength of management team, cash flow, efficiency of distribution, etc.
Entrepreneurial Learning Opportunities
Building up a good network and relationship with manufacturers, dealers and suppliers are essential as a trading firm. Co-owners will learn the procedures and obstacles of building up such a network through blogs and twitters. Detailed reports of trusted suppliers from China, Vietnam and other countries will be shared with co-owners.
Franchises and Business Opportunities
Depending on collective decisions made by co-owners, the original intention of Gogme Learning Alfa is not to create a large corporation dealing on one industry but a business entity that creates a wide array of sustainable small businesses. This will allow Gogme LA to venture into a wide variety of businesses and continue to provide co-owners with entrepreneurial learning. If the trading firm grows too big, individual co-owners will have problem buying over the business. The trading firm will remain a small business that can be easily franchised or takeover by co-owners. Franchise opportunities will be rewarded to co-owners once the trading firm becomes sustainable and profitable. The advantage of winning the franchise is that the franchisee will have the support of entrepreneurs in the online community and the parent entity.
Your Feedback needed
Share your thoughts and ideas with on the proposed trading firm with the community.
Trading Firm : Wholesale...
I can agree with Lance, but need a workable business model because we will encounter many variables such as :
1.Trust. It's the key success factor in business dealings because in todays environment elements of greed has often prevailed over responsibility.
2. Mission. Currently big businesses are capable to satisfy customers' wants like quality, prices, and convenience. Unless the mission is to be a better alternative it will be tough to compete.
3. Continuity. Ascertain a way the trading firm can get continuous supply of a particular product from a particular supplier even if the supplier suddenly gone six feet under. Disruption of supplies is a no no for a trading firm.
Regulations, red-tape and taxes
While this idea does have a lot of merrit, I am very cautious about it. I have worked in the import/export business for several years and can say that it is really complicated. Just the red-tape requirements can be daunting of not frightening. Once you get passed those, you have the miriad of tax classification and payment problems. Add to that the fact that this community will be presenting an ever-growing number of products, many of which don`t exist in the country of orrigin, can cause a serious problem.
I live in Brazil and must admit that we have a very complicated import/export legislation. Our tax code is also very complicated. Multiply that by 200 or so countries and you are in real trouble.
While this idea is very good, because it harnesses the power of the Internet and its multinational essence, I have some serious doubts.
Now that the US is cracking down even more on imports/exports this might be a business idea worth reconsidering...
I personally think this is a
I personally think this is a great idea. As we all live in different countries and different continents, we have local experts on the current products in the market.
Hot products can be locate faster and easier, thus helping us as a whole in bringing the product inside our own country. We even can buy in bulk, and distributing it to different countries later on.
I know where the concerns come from but for countries which regulations are tight, we might need to work around or scrap the idea of exporting that particular goods to that country. Not all countries impose high tax and strict legislation.
I would love to have a hot product in US to be in my market right now. It's worth the risk... and worse comes to worst, you still can sell back to US clients in this K-economy.
But I'm not thinking even of that. Some countries might have hand made art craft that rarely can be found in anywhere in this world. So, we can actually help develop the socio economy of the people there, helping them to sell in other countries.
This unique product might turn out even better than cheap products from China.
Old and has nothing.
Hm..
I agree, trust is one of the most important issue that we can't just consider it lightly. We need to develop a screening method and yet still be friendly to honest young aspiring entrepreneurs.
Great Idea!
I think the import/export idea is a great one to help negotiate trends in our respective countries and import and export products to suit them is a very good idea!!
Trade Firm
I'm loving it.
I think Lance's idea of globally mass ownership is brilliant. It really boost the factor of client's trust, which is essential. Not to mention the size and scope of the firm's networks, sure is a plus point.
this is one idea we can work on
This is Massive for interational trade
Thia is an idea that will give respective member a sence of belonging and mutual committement which will give rise to massive networking in international trade and total service delivery of products through importation & exportation, but there is going to be need for proper inspection on every necesary area.