How to Start an International Trade Consulting Business

Start an International Trade Consulting Business by following these 10 steps:

1. Plan your International Trade Consulting Business
2. Form your International Trade Consulting Business into a Legal Entity
3. Register your International Trade Consulting Business for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your International Trade Consulting Business
6. Get the Necessary Permits & Licenses for your International Trade Consulting Business
7. Get International Trade Consulting Business Insurance
8. Define your International Trade Consulting Business Brand
9. Create your International Trade Consulting Business Website
10. Set up your Business Phone System

We have put together this simple guide to starting your International Trade Consulting Business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is very important. Read our detailed guide on how to name your business. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.

What are the costs involved in opening an International Trade Consulting Business?

Startup costs for launching a new international trade consulting business range from $10,000 to $50,000. The following should be considered when writing the start-up budget portion of your business plan:

• Location — Save money by operating your new consulting firm out of a home office.
  

• Computer(s)
  

• High-speed internet
  

• Business management software
  

• Website and marketing materials
  

• Insurance and licenses
  
  
• Professional advice — Consult with an attorney and accountant to ensure your business is set up for success.

What are the ongoing expenses for an International Trade Consulting Business?

Fortunately, the ongoing expenses for this type of business venture are fairly minimal. The following should be considered when writing the ongoing expenses portion of your business plan:

• Rent and utilities — Once your business grows and you take on new employees, you may find it is necessary to lease an office space. Studies indicate that up to 4% of your business’s revenue should go towards rent and utilities.
• Equipment — Every employee will need access to business tools, such as computers and software, to ensure their job is done properly. This equipment must be adequately maintained, repaired, and replaced when necessary.
  
• Marketing — While it will likely cost up to 2% of your business’s revenue, an effective, targeted marketing strategy is necessary to achieve long-term growth.
  
• Insurance and licenses — Work with trained professionals on a regular basis to ensure your business is adequately covered.
• Wages — Industry leaders report over half their business’s annual earnings go towards their payroll budget.

Who is the target market?

As an international trade consultant, your marketing efforts will focus on gaining new clients who are looking to import and/or export their goods and/or services. As mentioned, however, your network should expand well beyond current and potential clients. Importers, exporters, manufacturers, distributors, sellers, buyers, and other market participants should all be targeted when developing a strategy to expand your business.

How does an International Trade Consulting Business make money?

International trade businesses trade their specialized knowledge and experience for a consulting fee. Some work under a commission-based fee structure, receiving a commission each time a trade/transaction is completed. Other businesses may work on retainer, receiving an advance against future commissions, typically on a monthly or quarterly basis. Still, others work for either a flat fee or an hourly rate, depending upon the services they provide.

How much can you charge customers?

Regardless of the industry they serve, the average consultant charges between $100 and $150 per hour. Your fees, more than likely, will vary depending upon the scope of each job. When determining how much you will charge, consider the client’s consulting needs, time spent on the account, resources required, and overhead costs.

How much profit can an International Trade Consulting Business make?

The import/export business has the potential to bring in profits well over six figures. Your business’s annual profit will be directly tied to your knowledge, experience, network, and commitment to long-term growth.

How can you make your business more profitable?

The most effective way to launch a scalable and profitable business is to expand your services. Use you and your staff’s business knowledge to offer additional services such as strategic management, human resources, or financial consulting. This strategy not only helps expand your network it will help solidify yourself as a leader in your chosen industry.

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your International Trade Consulting Business is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

Have you risen to the top of your field? Do you find yourself looking around, wondering what aspect of your industry you should become an expert in next? Do you enjoy working with clients from a myriad of backgrounds and cultures? Does the idea of global travel excite you? If you answered yes to any of these questions, launching an international trade consulting business may be your next career move.

What happens during a typical day at an International Trade Consulting Business?

As an international trade consultant, your days will be dedicated to ensuring everything is in place for your clients’ imports/exports. You will examine the unique details of their compliance program, identify any gaps, assist in closing those gaps, and train their workforce to ensure compliance is met moving forward. You will use data to analyze and forecast both current and future exposure as well as identify any potential risks. The information you’ve uncovered will then be used to ensure your client’s business operates seamlessly, with a plan-of-action in place to tackle any unexpected changes in international trade rules. Lastly, when not working with current clients or gaining new ones, you will need to work regularly to help influence and shape new policies that have your clients’ best interests in mind.

What are some skills and experiences that will help you build a successful International Trade Consulting Business?

Due to the intricacies of international trade law, you and your team must have extensive knowledge and experience in economics and finance. Those rising to the top of their field generally have, at a minimum, a bachelor's degree in Business Administration, International Business, or Economics.

While education in this field is beneficial, there are several other skills needed to achieve long-term success. You must possess strong leadership skills, be organized, and have the ability to work under pressure. You should enjoy traveling and be fluent in multiple languages so that you can communicate with clients from varying backgrounds and cultures.

What is the growth potential for an International Trade Consulting Business?

Due to the complicated laws that govern international trade, this industry has seen its highs and lows. However, the digital economy has helped level out these fluctuations, leaving significant opportunity for growth and profits.