Are you aiming for cross-border growth for your business? Despite the very concrete challenges posed by the current economic context, the time is right to break into new markets, while minimizing the financial risk. Provided you prepare well!
Exporting goods and services is a complex field, but Canadian entrepreneurs have a network of high-level allies who can help them achieve their ambitions by providing them with advice adapted to market conditions. Among them, Export Development Canada (EDC) has been supporting Canadian companies in their development across borders since 1944, regardless of their export experience, size, sector of activity and target market. The government corporation, backed by its trusted ties with the Government of Canada, the banking sector and a network of relationships in more than 200 countries, offers entrepreneurs strategic, commercial and financial solutions tailored to their ambitions.
Want to take action? Here are EDC’s recommendations for a successful foray into global markets. Because a well-prepared entrepreneur, who has a good product and who has developed a strategy perfectly suited to his market, can do well, regardless of the business context.
1/ Prepare financially, organizationally and operationally
Because international development cannot be improvised, there are a host of conditions to be met before even considering a project of this scope. Has your business reached its full potential in the local market? How do your products and services stand out from the competition? Is your leadership team mobilized for an export project and, necessarily, for expansion? Is your production capacity ready to grow rapidly? To see clearly, several tools, recommended by EDC, can assist you in your assessment and your decision-making. These include the online export questionnaire Are you ready to export? of the Government of Canada and the Internationalization Capacity Analysis, a three-hour interview conducted with experts from the Business Development Bank of Canada (BDC) to assess strengths, weaknesses and potential for growth outside borders.
2/ Identify the most promising markets for your sector of activity
If your business is ready to start exporting, you need to have an accurate view of the global competitive landscape in your industry and identify how (and where) you can stand out with a unique value proposition. To do this, EDC recommends conducting market research by consulting reliable resources. Free options include the Government of Canada’s Trade Data Online search tool, which works with codes from the Harmonized Commodity Description and Coding System (an international standard maintained by the World Customs Organization), allows you to generate reports on buyer countries in your product category. If it’s the US market you’re interested in, the US Commercial Service has country-specific business guides, which are very useful to find out if you can stand out there.
3/ Create a growth plan
Your target is designated, the work has only just begun. It is now necessary to identify the most efficient and profitable way to deliver your products or services to a targeted clientele. Depending on the market analysis made previously, you will have to choose between strategies such as direct sales, hiring local representatives, delegating a specialized team and, of course, e-commerce. This last avenue, which promotes rapid growth, requires having a leading transactional site or affiliating with the best e-commerce platforms for the target market. Because if Amazon is the ultimate reference in North America, Tmall, JD or Kaola may prove to be better choices for the Chinese market.
4/ Find the financing adapted to your needs
This step should be considered carefully, even in a promising context, in order to maximize the gains and minimize the risks. It is not always easy to land a financial partner in the case of a first breakthrough abroad, but the BDC, with which EDC maintains close ties, was created precisely to foster innovation and growth outside borders of Canadian entrepreneurs. Its SME support menu, which includes commercial loans and venture capital, also includes advisory services. Note: one of BDC’s fields of action is to guide Canadian entrepreneurs in their digital investment strategy.
5/Know how to navigate the maze of international trade
Even with financing, a well-crafted business plan, distinct products that will stand out in a well-defined market, entrepreneurs who embark on international trade will ask themselves a host of questions at each stage of their growth. That’s where EDC’s Export Help Center comes in, an FAQ center hosted by a team of export specialists. This platform dedicated to entrepreneurs is full of information and practical advice. It is also an exchange platform that allows business people to share knowledge, learning and issues of concern with their peers.
6/Prepare for the negotiation of international contracts
A well-thought-out and well-drafted contract guarantees success, while a poorly crafted agreement can cause major headaches – and potentially lead to failures. Before concluding a deal, the EDC team recommends that entrepreneurs ask themselves questions about their motivations and what they seek to accomplish, to assess the benefits they wish to derive from the contract and to consider the inevitable trade-offs. what they will have to do. The state-owned company further suggests conducting extensive research on the potential partner in order to understand – and anticipate – their motivations. To find out more, just consult EDC’s Business Check, which is a veritable mine of information on this subject.
7/ Solve the problems at the source
When embarking on exporting, the vagaries are inevitable: problems relating to shipping or storage, intellectual property rights, local partners, bad debts, to name a few. , are common. But they can – and should – be predicted and dealt with as quickly as possible. In this regard, the Trade Commissioner Service (TCS), which has a global network of commissioners, analyzes in real time what is holding exporters back and offers them direct assistance through the online service Solutions to export. If the situation is urgent, you can even fill out the Get Help Now online form to be connected with an SDC Network Global Delegate within one business day.
Are you interested in exporting?
Export Development Canada (EDC) helps Canadian companies of all sizes succeed abroad. We give them the tools they need to thrive with confidence. We use our unique business knowledge and financial solutions to support and grow sustainable trade between Canada and the rest of the world, as well as the country’s competitiveness in the international market.
This content was produced by Le Devoir’s special publications team in collaboration with the advertiser. Le Devoir’s editorial team had no role in the production of this content.
Learn more about Export Development Canada