Market research section for an import export business plan

[zardad]

I want to start an import and export company. I started the business plan but I have been stuck at a particular section namely the market research section.:( The first thing I am not sure about is whether the market research should focus specifically on one product or whether we should just focus on importing and exporting in general between the two specific countries. The second thing I am unsure about is if I should try to do the market analysis myself or if I should somehow get the funds to employ a market research company. These companies fees are very high and as a start up we have to ask ourselves if spending so much money is really necessary, at the same time me and my partner have zero marketing background. We want to import a spread that people can use for cooking or just to eat on their bread. That would be the initial product but we do have other products that we want to import and export too, but only later once we have established our business like for a year or so. It will be relatively small scale at first. What do financial institutions actually look for in your market research? And lastly if anybody has any tips on how to get some very cheap market research done I would appreciate it.:confused:

[Harold Mansfield]

I want to start an import and export company. I started the business plan but I have been stuck at a particular section namely the market research section.:( The first thing I am not sure about is whether the market research should focus specifically on one product or whether we should just focus on importing and exporting in general between the two specific countries.

Focus on your industry and niche market. For instance instead of just general food items, focus on the market for specific ethnic foods similar to what you're importing. You should have information about the industry in general, but your niche of it is what's most important.

If you're carving out a new niche, then comparisons of other niche's, and/or other products from that country, region of the world, or similar foods.

Don't just focus on numbers and create arbitrary expectations of "If we can just get 10% of that market, we'll make this much money". That's fantasy. Investors want to see HOW you will achieve those numbers. Not if's based on other people's numbers. Use those numbers to create goals. But goals need plans.



The second thing I am unsure about is if I should try to do the market analysis myself or if I should somehow get the funds to employ a market research company. These companies fees are very high and as a start up we have to ask ourselves if spending so much money is really necessary, at the same time me and my partner have zero marketing background. We want to import a spread that people can use for cooking or just to eat on their bread. That would be the initial product but we do have other products that we want to import and export too, but only later once we have established our business like for a year or so. It will be relatively small scale at first.

If you don't have the money, then there is no other option than to do it yourself. You can find a lot online, on .gov and state trade and economic sites, industry organizations, and at local colleges and universities.


What do financial institutions actually look for in your market research? And lastly if anybody has any tips on how to get some very cheap market research done I would appreciate it.:confused:

Financial institutions look for collateral, credit history, your personal history with them, and what you've done on your own. For instance, if you've bootstrapped your operation and now need money to expand or fill a huge order, you may have a better shot at getting short term or expansion loan than if you just walk in the door with no money, no resources, no collateral, and nothing but a business plan.

Banks don't loan money to regular people just because they think they have a good idea. Banks need leverage and to know they'll make their money back. They don't want to go into your business. They have the money to do that themselves. Their business is making money by lending money and providing other financial services.

Unfortunately your word, excitement, and some numbers on paper about what other people are doing is most times not good enough.

So if you really believe in your idea and yourself, you need start thinking in terms of a plan "B". Something a little more probable that assumes you will have to do it all yourself. Some plans or ideas of how you will bootstrap. Maybe start small, with a few orders and resell and grow from there. Maybe tap family and friends to invest. Maybe partner with someone. There's all kinds of ways if you really want it.

[steve imke]

Why are you writing a business plan anyway? If it is because you think that is what you need to get a loan it will not be your answer. Business Plans are for businesses that require a significant upfront investment. I don't get that from your post.

[zardad]

"Why are you writing a business plan anyway? If it is because you think that is what you need to get a loan it will not be your answer. Business Plans are for businesses that require a significant upfront investment. I don't get that from your post."

Yes, I was actually hoping to it would help me get a loan at the bank. I understand now and know what I need to do. Thank you too.

[zardad]

Focus on your industry and niche market. For instance instead of just general food items, focus on the market for specific ethnic foods similar to what you're importing. You should have information about the industry in general, but your niche of it is what's most important.

If you're carving out a new niche, then comparisons of other niche's, and/or other products from that country, region of the world, or similar foods.

Don't just focus on numbers and create arbitrary expectations of "If we can just get 10% of that market, we'll make this much money". That's fantasy. Investors want to see HOW you will achieve those numbers. Not if's based on other people's numbers. Use those numbers to create goals. But goals need plans.




If you don't have the money, then there is no other option than to do it yourself. You can find a lot online, on .gov and state trade and economic sites, industry organizations, and at local colleges and universities.



Financial institutions look for collateral, credit history, your personal history with them, and what you've done on your own. For instance, if you've bootstrapped your operation and now need money to expand or fill a huge order, you may have a better shot at getting short term or expansion loan than if you just walk in the door with no money, no resources, no collateral, and nothing but a business plan.

Banks don't loan money to regular people just because they think they have a good idea. Banks need leverage and to know they'll make their money back. They don't want to go into your business. They have the money to do that themselves. Their business is making money by lending money and providing other financial services.

Unfortunately your word, excitement, and some numbers on paper about what other people are doing is most times not good enough.

So if you really believe in your idea and yourself, you need start thinking in terms of a plan "B". Something a little more probable that assumes you will have to do it all yourself. Some plans or ideas of how you will bootstrap. Maybe start small, with a few orders and resell and grow from there. Maybe tap family and friends to invest. Maybe partner with someone. There's all kinds of ways if you really want it.

I think I really needed to hear this from somebody...Could be the best advice I have received in a while. I was under the impression I could get a loan at the bank if I had a super idea with a fantastic business plan to back it up. I am gonna start small, limit the debt I make and draft a business plan just for reference and guidance. Thanks you so much.

[Harold Mansfield]

I think I really needed to hear this from somebody...Could be the best advice I have received in a while. I was under the impression I could get a loan at the bank if I had a super idea with a fantastic business plan to back it up.

Of course. That's the way they make it look on TV. It's also easy to confuse how VC's and Angel investors do it with how banks do it. However even they don't just invest in ideas on paper. They invest in products or services that have at least shown some kind of proof of concept..that it works, and shows potential to scale and be successful with a target audience.

People also want to see that you have some skin in the game.


I am gonna start small, limit the debt I make and draft a business plan just for reference and guidance. Thanks you so much.

That's an excellent plan. What you learn along the way will help you scale your idea so that it has a shot at being successful. You gotta walk first. No one just goes from idea in their head to getting money or success without all of the steps in between. It may have seemed that it was that way in the 90's tech industry, but it's never been that way for non tech products without a proof of concept first.

Even if you watch reality business shows, the first thing they want to know is what have you done so far and how successful has it been.

[Bobjob]

Also make sure this spread and other items you want to deal in are allowed where you want to sell them. I'd study up on food transport and get in with a freight forwarder and have them answer all the questions you might have.

I recently watched a video about a company that learned a valuable lesson when their freight got held up a week or so at the port of Los Angeles due to a port strike. I import from Germany, and have had my freight held up due to Customs investigating my freight, Pairs strikes, volcanos erupting in Iceland, and bad weather.

I say all this because when I think of food, I think of spoilage.