Import From China Business
A practical guide for starting a small business
2010-
Import from China
Sell on eBay
Sandra Kell
Ontario, Canada
Baby Products
Profit This Year: $10,400
“I started with $1,000 and began importing baby products from China. I sell them on eBay, Facebook and in my local stores. After 8 months, I am earning $400 a week. I finally quit my day job!”
Learn How
Small Business Name
What’s in a Small Business Name?
Once you have chosen a business idea, you'll need to give it a good name. This task should not be taken lightly. Take your time, and choose the best meaningful name that you can come up with. Once you pick a name, it is yours for life. Changing your substandard business name after you’ve started is not something that you not even want to entertain.
Deciding a name is a subjective exercise but there are a few golden rules to follow.
- Pick a Small Business Name that is Meaningful. If you are importing goods for moms with tots, what do these women relate to? Convenience? Safety?
- Don't Try to be Cute. Everybody thinks that they are the world's best marketer. People come up with what they believe is a cute name for their business only to discover that it seems corny to the potential customers.
- The Best Small Business Names are the Ones that Sells your Benefits to your Potential Customers. Speedy Mufflers (Mufflers installed quickly), Thrifty Rent A Car (Cheap Rentals) are excellent examples of incorporating what the company has to offer in its name.
- Can’t I Just Make Up a Word for my Small Business Name? Isn't Nike a made up word which turned out to be a world class brand? The intellectuals will tell you that Nike is a Greek word for victorious. As a small business thinking about importing, can't you just make up a word too? The answer is no. Big companies with big budgets can develop a brand name overtime. As a small business owner, you just won't have the time or the luxury to explain to your potential customers what your name stands for.
- The Shorter the Better for your Small Business Name. The best brand names in the world are short, crisp names such as Coke, Delta. It's easier for your customers to remember. It also gives you greater flexibility in where and how to place your name in promotions and advertising if your name is shorter than longer.
- Don't let your Small Business Name Pigeon Hole Yourself. Don't call yourself “Teen Ear Rings” if you know you are going to broaden to other categories. Perhaps you should go with a broader name like “Teen Jewelry” or “Something for Teens”?
- Check if Someone is Already Using the Small Business Name. You'll be kicking yourself when you have everything ready to start your business only to discover that there is another “Flower Emotions” store across the city. Start by checking your local directories. Then check the Internet. Even if there is another Flower Emotions in a very distant state, it is best to avoid the future battles. Fighting with trademark lawyers is not something that you want to waste your time and effort on.
- Does your Small Business Name Pass the Customer Test? Find some people within your target. Tell them the name of your business but nothing else. Then ask them what the name tells them about your business. Did they tell you what kind of business it is? What does the business stand for? If your name passes this acid test, most likely it is a good name.
Tips for Choosing a Small Business Name
After Small Business Name is Business Location
The Real Estate slogan of "it's all about location, location, location" is true for certain types of businesses. If you planned to import goods from China to sell in your gift shop, then all good retail rules follow. You need to pick a location where your potential consumers like to shop. If you are importing for the purpose of wholesale and you are looking for warehouse space, then you will have more flexibility.
- Cost -
No matter how great the location, if the rental cost prohibits you from make a profit, then it is not a good location. Figure out what you can afford before you commit. - Competition -
If you can find an area where there is little or no competition, that is great. Sometimes it may not be possible to have zero competition. You should always be aware of who else is doing the same thing in your neighborhood. Build this in your plans. - Labor -
If you are a one man or one woman show, then having a good labor force to choose from may not be a deciding factor for now. Sooner or later though, businesses grow to the point where you will have to hire employees. Keep this in mind. How difficult will it be to hire someone for your gift store? - Shopping Plazas and Shopping Centers -
Be sure to check out who are the other tenants. Are they competitors either directly or indirectly? If you are not competitors, do the neighboring tenants have similar customers? Will they help to bring customers to you? - Work from Home -
Working at home is a growing trend in the western nations. Starting a business at home works best for services but less so for retail oriented businesses.
In the U.S., there is a tax benefit for using your home. You can deduct some or all of your home expenses and apply it against your business revenue. Sometimes you can only deduct a percentage of the home expenses. This is usually calculated based or square footage used for business versus square footage of the whole house.
For instance, you have a 20 feet by 20 feet room (400 Square feet) in the basement that you set up for your office and your whole house is 2000 square feet. 400 divided by 2000 is 20%. So you can deduct 20% of your house expenses and apply them to your business revenues. Check out the IRS Publication 587 for more details.
www.irs.gov/pub/irs-pdf/p587.pdf
Tips for Selecting the Best Location for your Business
Name, location and Now Business Structure
The next step to setting up a business is deciding on one of the four business structures: Sole Proprietor, Partnership, Corporation and Limited Liability Company.
- Sole Proprietor -
simplest to form. Business owned and operated by yourself. You have unlimited personal liability which means that they can come and take your house, car and assets if your business goes into debt. Business ends when you die. You do have total control of your business. - Partnership -
simple to form. Business formed and operated by two or more individuals. Same unlimited personal liability risk as sole proprietors. - Corporation -
most complex to form because it is a separate legal entity. There are many more regulations to follow. Your personal assets are separate from the corporation. So they can't take your house if the corporation goes bankrupted. - Limited Liability Company (LLC) -
somewhat moderately complex to form. It is a combination of the benefits of the sole proprietor and the corporation. This is not a separate legal entity. So you report profits as your personal income. Your assets are protected from the business liabilities if there are financial difficulties.
