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Starting an Export Business

June 6, 2011 By Leave a Comment
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You’ve grown your small business over a few years and have been successful, making profits each year. Now you want to take your products to the export level of business. In order to do this, there are some steps that you’ll have to follow to make sure everything is as it should be.

  • Do research on the countries you plan to export to. Contact the embassies in those countries and ask for business directories, lists of manufacturers and anything else you think might help your business in the foreign environment.
  • Maintain a direct line of communication with the proper authorities in the United States so praparation for exporting will stay on track. Regular communication will ensure a quick start to exportation of your products.
  • Make sure you have the proper tax identification number. You get this from your own government.
  • Inquire about any exportation licenses you might need in order to keep your business operating. If you have products considered to be high risk products, you may need a special license, otherwise, most countries don’t require them in order to export.
  • Do your research and make sure there aren’t any trade restrictions or embargoes with the countries you’re planning to export to. Ask your own government/authorities, and be sure to talk with the embassies in the other countries. Always double check to be sure exportation will go off without any problems.
  • Be sure to obtain a letter of credit that will allow you to trade internationally. You can get this from your bank, and it’s a good idea because the bank will ensure delivery of your goods.
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Is Arbitrage Worth It?

May 9, 2011 By Leave a Comment
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When a company or an individual buys something at a low price only to sell it at a higher price, this is known as arbitrage. For most people, arbitrage might only mean buying prepackaged food items in bulk and later selling them for a tidy profit per unit. However, for large companies, this arbitrage can result in incredible profits, as the markups can become very high due to sweeping economies of scale.

Since free trade is the general rule for most of the world, governments rarely intervene when it comes to arbitraging resources. A company may procure a number of units of a product or other resource, and then sell these units at a markup somewhere else in the country or the world. The reason the company is able to make a profit on these items is because they assume a level of risk in transporation, and because they facilitate a great deal of convenience for the end consumers of the goods they transport.

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America’s Exports and Imports

March 9, 2011 By Leave a Comment

America is around the third largest exporter in the world and has been shipping over a trillion dollars in goods annually for years. Based on statistics from a couple years ago, America’s biggest exports clients were China, Japan, the United Kingdom, Germany, and our two closest neighbors: Canada and Mexico.

America’s top exports include: Civilian aircraft and aircraft parts, semiconductors, passenger cars, auto parts and accessories, medical and pharmaceutical preparations and equipment, industrial machinery, plastic materials, telecommunication equipment, computer accessories, and fuel oil.

America’s fastest growing exports include: Natural gas, chemical fertilizers, corn, rice, coal, soybeans, diary products and eggs, nonmonetary gold, wheat, barley, and oats.

America is also a hefty importer – buying over a trillion dollar worth of goods from the world every year. Many of our top sellers are those nations with which we do most of our exporting – China, Mexico, Canada, Japan, and Germany.

America’s top imports include: crude oil and other petroleum products, passenger cars, telecommunications and video equipment, computer accessories, medical and pharmaceutical preparations, and cotton apparel

America’s fastest-growing imports include: Crude oil, fertilizers and pesticides, coal and similar fuels, drilling and oilfield equipment, oilseeds and food oils, feedstuffs, steelmaking materials, non-metallic minerals, non-agricultural foods, and food additives

America buys and sells somewhere in the neighborhood of two to four trillion dollars worth of goods annually. Emerging markets like India and the continued economic growth of China will probably mean more business with America and more competition on the world market.

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Muni market improves

January 27, 2011 By Leave a Comment

The municipal market is known as one of the worst markets to invest in with the fear of local governments fall apart and constant decline, most investors choose not to waste their time on a market that is incredibly unstable. In recent weeks, however, the municipal market has seen a few decreases in the tax-free yield on the Bond Buyer index of 40 long-term muni bonds nationwide; falling yields mean an increase in bond prices. According to the numbers, yields fell to 5.85%; the third straight drop since it rose to a two-year high of 5.95%. For some investors, the high tax-free yields on muni issues were too much to resist; these investors found themselves entrusting money with the government once again.

Many investors were discouraged from putting money into the muni market when it sold off some of its bonds in November 2010, amd threatened bankruptcy when deficit-ridden states and municipalities were unable to maintain bonds. Heavy outflows of cash from municipal bond mutual funds heightened worries when managers were forced to sell bonds. Since then, investors have opted to stay away from the municipal market; until now, of course.

The current success of the municipal market will affect the economy in more than one way. First, investments in local governments and municipalities will increase revenue and services for struggling states and cities. Since states and cities cannot always depend on local businesses to generate enough revenue to cover all expenses, they are sometimes forced to cut services to the public that may or may not produce more funds. If cities and states had the assurance of investors supporting their endeavors, they may be able to keep more services when economic downturn occurs and businesses cannot produce enough funds.

Regardless of the amount of money that investors put into muni market, any amount will help stimulate the economy.

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Don’t bank on the bank

January 13, 2011 By Leave a Comment

The stock market is steadily improving and the job market is making a slow turnaround. Although foreclosure rates are still relatively high, the housing market is becoming a place to invest in once again. With all of the recent success of the stock, housing, and job markets, investors and consumers may consider the bank as an alternative when investing or attempting to save money. Well, don’t take the money from under the mattress just yet.

Although the job market is improving, the federal government is still unstable when deciding the fate of the millions of unemployed. Last November, the House of Representatives refused to agree to unemployment benefit extensions without the approval of Bush tax cut extensions. In fact, the House claimed to be unable to afford an unemployment extension, but soon changed their story when President Obama agreed to grant the Bush tax cuts for the wealthy along with unemployment benefits. The House appears to make decisions based on personal agendas and not on the needs of the people that they represent.

In addition to the House of Representatives being focused on personal agendas, the shrinking revenues of companies is negatively impacting the economy. Although consumers are putting money into the economy through everyday purchases, the amount earned is not enough to bring complete restoration to companies severely affected by the downturn. Some companies are still experiencing losses and are being forced to layoff employees. Shrinking revenues for companies cause them to look to the bank for loans. While banks tend to grant loans to corporations without the red tape that they put typical consumers through, if companies default on loans, banks have to account for the money in new fees or count the loan as a write-off and loss; either way the consumer or investor loses.

Individuals desiring to maintain their earned income should not invest everything into the bank.

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Is the Market headed for overload?

January 8, 2011 By Leave a Comment

The Dow Jones Industrial Average recently rose for the eighth consecutive week. While the average person would view such progress as a positive implication that the Market is improving, the Dow Jones rise has some financial professionals and analysts worrying about a market overload. According to these people, a quick rise in the Dow Jones could imply that the Market is overheating, placing all progress made up to this point in jeopardy. Does the recent rise in the Dow Jones Industrial Average point to an overheating market?

While professionals may say yes, the majority of the public says no. Although a sudden rise in the Dow Jones may signify the possibility of a bubble, a consistent rise does not say with certainty that the Market will run out of steam. In fact, the average person would view the rise as a sign of the economy slowly but surely turning around. When conducting business, it is almost always better to have a consistent pattern. While some consistent patterns such as decrease in sales or purchasing power are not good patterns to adopt, a rise in the Dow Jones is a positive action that should be embraced. Essentially, a rise in the Dow Jones Industrial Average says that the Dow and the Market as a whole is improving. Investors should not be afraid to purchase stocks because of a consistent rise in the Dow.

Although investors should feel free to put money into the Market, they should not liberally invest tens of thousands of dollars yet. While the economy appears to be making a turnaround, there is always the possibility of another crash. When investing, one should perform extensive research on the company and industry that they are planning to give their money to. If the company is already struggling, then individuals should look elsewhere to invest. In addition, an industry that has been severely affected by the economic downturn is a poor place to put money.

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Introductions Start With a Business Card

December 8, 2010 By Leave a Comment
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In Japanese business culture the exchange of business cards occurs before the meeting starts. This is a customary greeting treated with much respect. In America, the exchange often happens at the end of a meeting. Doesn’t it make more sense to open with the introductions? You could be the icebreaker by being the first to offer your business card. Speaking of icebreakers, the actual design of your business card can also be a perfect conversation starter. It all comes down to a question of choice: what kind of introduction do you want to make with your business card?

The most common form of business cards is one that has your name placed front and center with contact information in one of the lower corners. Clean, basic and to the point. It’s a very professional introduction and suits a particular type of industry. Other business cards can incorporate that same contact information along with a company logo. These logos say a lot about the brand identity of the company and are a proud item to display.

Beyond the corporate type of introduction you get with a professional-looking business card, you can introduce your artistic side with a card that has more flair. This would apply to folks involved in creative endeavors such as website design, graphic artists or writers. If you want to impress a potential client with your talents then your business card should provide a taste of that talent. This could come in the form of a striking image or graphic that succinctly symbolizes what you want to be remembered for.

You can also go high-tech with a business card. Perhaps create one with a 3-D hologram. Maybe one that has a specially encoded scanner square that can unlock additional information on a website when downloaded into a cell phone. Be remembered with your business card.

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How Stock Prices Work

November 19, 2010 By Leave a Comment
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Each day the stock market opens up on Wall Street to hundreds of traders on the floor and on the phone ready to commence with the days trades. Generally, the price that a stock opens with is the same price as when the stock closed the day prior. If there is a significant change in the company during the stock markets closing hours, then a specialist may adjust the opening price to reflect a major event. The specialists job is to make the price one that balances those buying the stock and selling the stock.

During the day when the market is traded, or market hours, the stocks are bought and sold constantly. If more people want a particular stock and there not enough sellers selling the stock, the price will go up. The flip side is if there are a lot of sellers ‘dumping’ the stock , and not enough buyers to buy it up, the stock price will drop. It is working within that delicate timing of stocks being bought and sold that make brokers money. Buying and selling stock is time oriented and many take unnecessary risks in hope for a bigger payout later.

After the stock market is closed, the stock prices at closing are calculated within a half hour. Many people will continue to trade after the market closes. When the market opens the next day, they will be able to continue buying what they need. When the stock opens the next day it will reflect the after hours trading that has been happening.

The prices of stocks in the market can change from minute by minute. Only by knowing the stock the purchase and staying on top of current events that can affect your stock will you make a profit. Know when to hold your money and when to sell it to make the most money.

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