Breaking into the world of imports and exports with BeztForex
With around fourteen business sectors to choose from, the range of franchise business opportunities goes beyond just fast food and retail concepts. An important consideration when choosing a franchise is to align your choice to what interests you or what you may have experience in. So, if you come from the corporate world and are looking for something different… read on!
The ongoing globalization has resulted in a fast growing and rapidly changing the marketplace and one of the most exciting franchisors to join FASA has been BeztForex, currently the largest FX intermediary company in Sasfin Bank. They provide Foreign Exchange solutions for importers/exporters and investors, including overseas payments, buying and selling of foreign exchange and foreign exchange risk management. Despite a global meltdown currently being experienced, international trade is growing consistently as a direct result of the evolution of technology, expanding emerging market economies and trade agreements.
In the past opportunities for SME’s were restricted to the borders of South Africa, but today the global marketplace also provides opportunities for small and medium companies. The world has become a much smaller place with the rapidly expanding capabilities of the internet, technology in general and cheaper and accessible air travel.
Are you an experienced business person?
Whilst it is possible for a new start-up to enter the world of International Trade, it is offered for consideration that successful and experienced SME’s that are fully familiar with the all the aspects of business, enter this complex and exciting industry. Just remember all the normal business principles and philosophies will be relevant, with the added complexities of new risks, cultures and financial implications.
Defining Exports/Imports
Exporting is shipping goods and services produced in South Africa and selling them to a customer in another country. Importing is purchasing goods and services produced in another country and shipping it to South Africa for onward selling into the domestic market.
Types of Export/Import Businesses
There are three ways of exporting and importing; as a principle exporter or importer, as a trading company or as an agent.
Principle exporter/importer
This is when the Exporter sells its own products or services (normally a manufacturer) directly to buyers overseas without the involvement of an agent or broker. In the case of imports it is when the Importer buys goods and services directly from abroad for its own account and on sells into the domestic market. Goods are often used in a manufacturing process and are rebranded in South Africa.
Trading company
An international trading company is an export-import enterprise that buys products from other companies and then re-sells them into foreign markets under its own name, at the desired mark-up. These companies normally specialize either in a given geographical zone, or within a product range.
Export/Import agent/broker
If you have specialized knowledge or skills in a specific industry or region, you can position yourself as an agent or broker whereby goods and services can be imported or exported on behalf of another company. An agent or broker has the edge due to the vast knowledge and expertise in a certain market or industry.
Checklist of things to do when deciding to enter the field of Exports/Imports
- Are you an experienced business person familiar with all the sound business principles?
- Do you have a compelling product or service with a unique value proposition?
- Have you identified a specific need or product in South Africa that can be sourced abroad?
- Have you familiarize yourself with the various financial and operational risks associated with International Trade?
- Have you gained a good knowledge of the export/import process and if it is necessary to register as an exporter or importer with the Department of Trade and Industry (DTI)?
- Are there tariffs that are attracted to the transaction that could negatively affect your costing?
- Have you studied the cultures of the countries that you want to work with?
- Have you compiled a detailed business plan with regard to the new export/import leg of your business?
Don’t be overwhelmed by the new learning and processes! The key here is to follow sound business principles and a strong business case! Importing and exporting can exponentially increase the options available to your business in your chosen market!
For more information on this franchise contact Herman Bezuidenhout at herman@beztforex.co.za – Tel +27 83 700 8076 or +27 11 867 1818
BeztForex was founded in 2012 by Ex International Banker, Herman Bezuidenhout, following a 33-year career within the FirstRand Banking Group. He now has 40 years’ experience as an international banker within leading South African financial institutions and as an entrepreneur, encompassing marketing, sales, operations and general management, at senior management and executive levels. BeztForex is currently the largest FX intermediary company in Sasfin Bank.
