Many Indian SMEs dream of taking their products to global markets or sourcing goods from abroad to strengthen their business. Exporting or importing offers exciting opportunities: higher revenue, international exposure, and access to better products. But success doesn’t come automatically. Jumping into import-export (IMPEX) without preparation can cost time, money, and credibility.
This guide helps you understand whether your business is truly ready. By the end, you’ll know whether to start immediately or focus on preparation first.
Table of Contents
Do You Truly Control Your Product?
One of the biggest mistakes SMEs make is assuming they can export or import without controlling their product.
Key Questions to Ask Yourself:
Quality Consistency: Can you maintain the same quality every time? International buyers reject even minor variations.Example: A textile SME in Surat exporting handwoven fabrics cannot send batches with different shades — buyers in Europe expect uniformity.
Production Capacity: Can you meet large orders without delays? Small businesses often underestimate global demand.
Market Competitiveness: Is your product unique or competitively priced? Exporting generic items at high costs rarely succeeds.
Actionable Tip: List your top 3 products and evaluate quality, quantity, and competitiveness. If gaps exist, improve processes or source better materials before entering IMPEX.
Do You Understand Your Costs?
Exporting and importing involve more than production costs. Hidden costs include shipping, customs duties, insurance, and currency conversion.
Questions to Consider:
Do you know your total cost per unit, including production, packaging, and shipping?
Can you price your product competitively while ensuring profit?
Have you accounted for customs duties and potential delays?
Case Example: A retailer exporting spices calculated cost as raw spice + packaging, forgetting customs and shipping fees. When buyers rejected the quoted price, the business lost money and credibility.
Action Step: Prepare a detailed cost sheet including all hidden costs. This clarity prevents unpleasant surprises and ensures profitability.
Is Your Supply Chain Reliable?
Even with the right product and pricing, a weak supply chain can sabotage your IMPEX plans.
Checklist:
Reliable suppliers: Can your suppliers meet quality and quantity requirements consistently?
Logistics partners: Can your courier or freight forwarder handle international shipments efficiently?
Contingency planning: What if a shipment is delayed, or a supplier fails?
Pro Tip: Build relationships with multiple suppliers and a backup logistics partner. Document timelines and expectations to reduce surprises.
Are You Aware of Regulatory Requirements?
Compliance is non-negotiable. Missing a license or misunderstanding customs rules can halt shipments or attract penalties.
Key Areas to Assess:
Licenses: PAN, GST, IEC (Import Export Code), and AD Code are mandatory.
Customs Procedures: Shipping bills, import declarations, and documentation must be accurate.
International Standards: Packaging, labeling, and quality standards vary by country.
Action Tip: Familiarize yourself with the DGFT portal and ICEGATE customs procedures. Knowing the rules saves time and money.
Do you have the Financial Buffer?
Import-export can strain working capital. Consider:
Pre-shipment costs: raw materials, packaging, shipping
Post-shipment costs: logistics, insurance, delays
Currency fluctuation (for imports/exports)
Payment delays from international buyers
Example: A small jewelry manufacturer exporting handcrafted pieces waits 30 days for LC payments. Without a buffer, they may struggle to pay suppliers or ship the next order.
Action Step: Maintain at least 2–3 months of operational buffer. Explore bank financing, government schemes, or short-term loans if necessary.
Score Your Readiness
Assign 1 point for each “Yes” answer in the five areas:
4–5 points: You are ready to start your IMPEX journey.
2–3 points: Some gaps exist; focus on addressing them before starting.
0–1 points: Strengthen your business fundamentals before entering IMPEX.
Common Misconceptions
“I can export anything I sell locally” – Market standards differ internationally.
“I don’t need extra documentation” – Customs will stop your shipment without IEC, AD Code, and other licenses.
“I can start big” – Begin with small shipments and scale gradually.
“Suppliers will handle everything” – As the exporter/importer, ultimate responsibility rests with you.
Practical Takeaways
Readiness depends on product, costs, supply chain, regulatory knowledge, and finances.
Honest self-assessment increases your chance of success.
Skipping preparation can lead to wasted resources and lost opportunities.
Once you’ve assessed your readiness - now its time to take a peek into introduction of Import & Export.