Many Canadian companies are naturally drawn to the U.S. when they decide to expand internationally. After all, the American market offers lots of attractions—geographic proximity, a familiar language and culture, and a business-friendly environment.
But for too many entrepreneurs, a U.S. expansion ends in costly failure.
The U.S. can provide exciting growth opportunities for your company, but you have to be ready to take on this challenging and complex market.
“When companies go into the U.S., they often think doing business will be the same as in Canada,” says Marie-Elaine Beaudoin, Business Advisor, International Expansion at BDC. “But the U.S. has many different markets, and it’s a very competitive environment. So you must do your homework.”
Canadian companies that expand to the U.S. without carrying out the necessary preparations are often hamstrung by such factors as inadequate financial resources, a lack of understanding of the complexity of U.S. markets and a failure to clearly differentiate their product or service.
But, as countless Canadian companies have proven, expanding into the American market is not only possible, but can be highly lucrative when done right.