Import From China Business

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A practical guide for starting a small business

Gut Feel Versus Number Cruncher

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Business Finances is an interest topic.  In the small business community just like the corporate world, there are number crunchers who make decisions based on facts and there are those who rather make decisions based on gut feel.

Although both types of decision makers have been successful, trying to make gut feel decisions for an importing business can be challenging without knowing the facts.  The inflows and outflows of cash can be a nightmare to keep track of.

The basic concepts represented here will help you become a smarter small business owner or operator whether you import from China or from any other country.

Business Finances

Business Start Up Costs

Prior to starting an importing business, you'll need to sit down and figure out what are all your your Business Start Up Costs.  How much will it take for you to launch this small import business?  This is critical because it will tell you how much funds to raise.

Price Import

After you make contact in China, you will need to calculate how much you are going to charge or Price import to make a profit.   What is the optional price point to sell your import goods?

Gross Profit Margins

As your business begins to generate revenue, you need to understand what are your Gross Profit Margins for your line of import from China goods.  This is the money left over when you subtract your costs from your sales.  The ability of a small business to profitably generate revenue is the key to long term survival.   No matter how much revenue is generated, if it is not done profitably, the small business can quickly go out of business.

Business Break-Even

When your business grows even further, you will need to make decisions on the right time to add equipment and other supplies.  An analysis will let you know your point of Business Break Even and assist in making these critical business decisions.   It determines how long it will take for your business to recoup the cost of the investment.

Business Financial Budget

You will also need to control your business finances through the creation of a
Business Financial Budget either on an annual, biannual and or quarterly basis. Similar to a personal budget, the Business Financial budget will allow you set goals and monitor the progress of your business finances.

Learning these basic concepts will help you manage and grow your Business Finances.   It will ensure that you will become successful in this exciting world of importing from China.

 

Business Finances - Basic Tools