How difficult is it to start an importing business?

[kathmandujava]

Hello.

I am a student in the US(permanent resident too). And my friends back home are getting into growing coffee. I want to import and sell unroasted coffee beans from Nepal.

I have a few questions:

1) How difficult is setting up the business, since Nepalese coffee does not have a reputation like Ethiopian and Colombian coffee?

2) How much can I sell a 60 kg bags for?


Any other tips would be welcome.

 

[PinkRose]

Hello kathmandujava,

Welcome to the Coffee Forums.

I'm curious.... How far along are your friends in their "getting into growing coffee" adventure? Are they just starting? Considering that it takes about 5 years for the coffee plants to produce coffee, it may be a long time before you can import and sell their beans.

Of course, planning ahead is always a good thing to do!

Rose

 

[eldub]

I suggest you open a Nepalese restaurant instead. Your chances of success might be 50/50 and that's WAY higher than your chance of success with importing beans from Nepal, IMO.

 

[kathmandujava]

Hello kathmandujava,

Welcome to the Coffee Forums.

I'm curious.... How far along are your friends in their "getting into growing coffee" adventure? Are they just starting? Considering that it takes about 5 years for the coffee plants to produce coffee, it may be a long time before you can import and sell their beans.

Of course, planning ahead is always a good thing to do!

Rose

Well. Nepalese farmers grow and sell coffee through co-operatives. My friend talked to one and is planning on buying some when they harvest this year. If there is no market to import, he'll probably sell it in India/Nepal.

I don't want to rush, and neither do I want to not inquire and think what could have been a few years down the line.

 

[kathmandujava]

I suggest you open a Nepalese restaurant instead. Your chances of success might be 50/50 and that's WAY higher than your chance of success with importing beans from Nepal, IMO.

I get your sentiment that coffee importing is not profitable/risky, but I have no interest in opening a restaurant. I don't have the interest or the capital to do so.

 

[eldub]

My real concern on the issue would mainly be your lack of coffee industry knowledge. (What do you know anything about the "C" market, quality grading, importing, warehousing or selling beans?)

Your best play would be to find a professional broker here in the states willing to work with your connections in Nepal, imo. Heck, you could maybe get paid on both ends of the transaction.

 

[CoffeeJunky]

My real concern on the issue would mainly be your lack of coffee industry knowledge. (What do you know anything about the "C" market, quality grading, importing, warehousing or selling beans?)

Your best play would be to find a professional broker here in the states willing to work with your connections in Nepal, imo. Heck, you could maybe get paid on both ends of the transaction.

Yup.

Go do your home work and learn coffee business before you think about the coffee business.

I will give you few points why you will not succeed.

1. There aren't any coffee wholesale company will touch your beans. The most reputable coffee importers will only import from 8 years old or older tree.
2. Only company who will import beans from such company will be StarBucks. And they will pay something like 25-50 cents a pound.
3. You will also need to get over all the shipping, customs, and other hoops that will cost tons of money. You said you are short of capital. Then this is not the business you should be even thinking about. You can sell small quantity on ebay. That is the only way you will be able to sell. And most likely, you won't sell much.

 

[kathmandujava]

My real concern on the issue would mainly be your lack of coffee industry knowledge. (What do you know anything about the "C" market, quality grading, importing, warehousing or selling beans?)

Your best play would be to find a professional broker here in the states willing to work with your connections in Nepal, imo. Heck, you could maybe get paid on both ends of the transaction.

That's a great idea. I should look into it.

 

[kathmandujava]

Yup.

Go do your home work and learn coffee business before you think about the coffee business.

I will give you few points why you will not succeed.

1. There aren't any coffee wholesale company will touch your beans. The most reputable coffee importers will only import from 8 years old or older tree.
2. Only company who will import beans from such company will be StarBucks. And they will pay something like 25-50 cents a pound.
3. You will also need to get over all the shipping, customs, and other hoops that will cost tons of money. You said you are short of capital. Then this is not the business you should be even thinking about. You can sell small quantity on ebay. That is the only way you will be able to sell. And most likely, you won't sell much.

Cool. This is a part of my homework. And yes, the endeavor does sound difficult.

Thanks for keeping it real. I'll consider the points you mentioned.

 

[CoffeeLovers]

Venturing and importing business is not as easy. You need to know how feasible it is in terms of its demand and supply in order to survive from the close competition of this business. However, there’s nothing wrong if you have the courage to venture. Those big importers started as beginners and became successful. Anyway, we wish you good luck and hoping for your success in the near future.

 

[eldub]

Venturing and importing business is not as easy. You need to know how feasible it is in terms of its demand and supply in order to survive from the close competition of this business. However, there’s nothing wrong if you have the courage to venture. Those big importers started as beginners and became successful. Anyway, we wish you good luck and hoping for your success in the near future.

Those big importers also had knowledge of the coffee industry before they started up. The op doesn't. It takes more than courage, imo.

 

[kathmandujava]

Venturing and importing business is not as easy. You need to know how feasible it is in terms of its demand and supply in order to survive from the close competition of this business. However, there’s nothing wrong if you have the courage to venture. Those big importers started as beginners and became successful. Anyway, we wish you good luck and hoping for your success in the near future.

Thanks. I am doing my homework. It looks tough, but by the same metric, what's easy?

Those big importers also had knowledge of the coffee industry before they started up. The op doesn't. It takes more than courage, imo.

It's not like I've been surfing internet forums dreaming of setting up a business. In the past week alone, I met a local roaster; an employee at a rival roaster who wants to get in the business; a girl who has been trying to import coffee from the Philippines(she has more knowledge than me right now, and is a candidate for MBA at the same University as me)

I've been asking for advice from small businessmen, my friends who graduated from business school and friends who are still attending it. Using the information and I'll gather from the people I mentioned I'll be able to make an informed decision. Also, it's coffee, not rocket science.

I just wanted to know if anyone on this specific forum had started an importing business. Or would provide me with some insight that'd help me in opening one--not for a series of discouraging posts with no insight.

 

[eldub]

Sometimes insight can be found in discouraging posts.