How to Start a Linen Exporting Business

Starting an export business  can be a lucrative endeavor. By shipping products to other countries, you can reach new consumer markets that have not yet been saturated by the competition. Many people assume that opening an export business  is a complicated process. While this is certainly true in some circumstances, it largely depends on what items you intend to export. Linen is not consumable, perishable or hazardous. As such, it is not subject to many special regulations that other materials must follow, making it relatively easy to start a linen export business.

Things You'll Need:

• Linen Suppliers
• Shipping Partners
• Receiving Agents

Step 1:

Register a company to operate under, before you begin operating a linen export business. This gives you a legal business identity, and also registers you in the system for purposes of paying sales tax and any applicable employment taxes. If you are the single owner of the business, then an S-Corp is the standard structure to use, since it allows owners to carry business losses as a deduction on their personal income tax returns. If the business is being established as a partnership with two or more individuals, then a Limited Liability Company (LLC) is often the preferred corporate structure to use. If you will be receiving goods overseas via your own overseas import company, then that business will need to be registered separately. 

Step 2:

Establish a supply chain for the linen products you wish to sell, of which there are many varieties. Raw fabric, bathroom linens and garments are just a few categories of linens that you may expect to sell. Determine which types of products you will offer and establish accounts with wholesale outlets that deal in those products. There are many wholesale companies that specialize in linens and textiles. Open an account with these vendors and acquire any product catalogs they offer. As you receive orders, you can purchase them from the wholesaler at significantly reduced rates, allowing you to profit on the sale and shipment of the items.

Step 3:

Research the port where your linens will be shipped and come up with a plan for how the items will be received. Establish a receiving agent who will be responsible for receiving the linens you ship, and properly storing them until they can be collected and distributed to retailers.

There are two primary options available when choosing a receiving agent. The first option is to rent a small amount of warehouse space and hire your own overseas staff to pick up the linens, warehouse them and deliver them to customers. This option retains the most profit, but also has the highest overhead. The second option is to simply sell items to established receiving agents who have their own retail customers. In this case, you will be selling the linens at a slightly lower rate, but you have no costs involved other than the price of shipping the linens. Many exporters like to use a combination of the two.

Step 4:

Select your shipping methods. The best method for shipping your linens depends on the destination city. One method may be the only option available in a particular location, or may be the most economical choice. There are two primary options you can use for shipping large quantities of linen.

The first is to use airline transportation to ship the items. Almost all airports have a special section for cargo shipping, and visiting this location will give you more specific rates for shipping linens from your location to your destination city. If you choose the flight distribution method, you will need to pack the linens into boxes, which can be loaded onto pallets and shrink wrapped.

The second option is to make use of cargo shipping containers, shipped over the sea to arrive at the destination city. This method of shipping is slower than flying, but is much less expensive. It is also open to a wider range of distribution ports, particularly on islands or in coastal regions where airports are not common.

Tips:

Using an online catalog to accept orders via the Internet. Preselling linen in this manner will help you clear inventory much faster.

References:

• Lawyers.com: Taxation: Net Operating Loss Carryback and Carryforward Rules
• Foreign Trade: How to Start Your Own Import and Export Business at Home
• Entrepreneur: How to Start an Import/Export Business

Resources:

• Wholesale Linen Supply 
• Linen Company 
• Jersey Towel Supply  

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