Trading is a technique where you match the buyers & sellers. You will need to perform the functions of a intermediary. You can trade at the local, national & international level. You will earn a profit margin equal to the difference between the purchasing & selling cost. Because of its potential & low startup investment, this business has attracted the attention of a few individuals. However, success depends on your skills & the way you use them to handle your business operations.
1 Research the basics of the structure of the trading industry. Learn the tools to manage your business. Look in to your immediate competitors & try to analyze how they handle their business. If feasible, work under of them to receive a clear view of the industry you need to enter. By doing so, you can also identify new strategies to manage issues.
2 List the feasible products or product lines that you need to trade. There's products with higher profit margins & some with lower margins that sell in huge quantities. Another factor is to identify your passion & select products accordingly. Since trading involves dedication as well as a powerful foundation to succeed, in case you trade a product that you are interested in & have knowledge of, you can anticipate & handle situations that may arise when trading that product. It is better to start with a single product & extend to other product lines as you make profits.
3 Write a business plan. Include a business overview, market research of the business climate in the trading industry in your locality & details of your competitors. Also include a promotion plan, background information regarding you & your partners, financial projections & contracts. You can receive funding from your local banks & credit unions with the help of your business plan.
4 Learn all the details about the market of the product. List notable insights in the future of the industry such as the current trends, the current profit margin earned by your peers & any issues trading the product. Analyze & work the knowledge to your require.
5 List the top suppliers of the product & assess them according to delivery timings, quality, cost, brand & experience. Pick a few suppliers & contact them to draw agreements.
6 Register your business structure & name. Apply for the necessary business licenses & permits based on your selected products & your location. You will require to register your business together with your Secretary of State, & procure a Employer identification Number (EIN) in case you have any employees. You can get an EIN from the IRS web-site at IRS.gov.
7 Collect names & contact information for potential clients who will be willing to buy your product. Approach them individually & learn about their expectations. Match each of their expectations to the products you are supplying & pick your client base.
8 Join the Chamber of Commerce & associations related to your product. Enhance your network & place adverts to reach & attract your target market.
