Many Canadian business owners have big plans for their companies in 2019. Economic growth has been strong, and numerous businesses have been expanding.
One thing you may have on your mind is international expansion. As you scope out markets and determine where to expand, you may have some preferences for different countries.
The US is one of the markets that may not be on your mind but most definitely should be. Some Canadian businesses opt not to expand into the US market first because it can be difficult to succeed in the market. You may also be hesitant because of the current environment.
There are so many smart reasons you should be considering the US market right now. Here are a few of them.
1. The Economy Has Been Strong
Like Canada, the US has entered a boom time of economic growth. Unemployment is low, and the American people are optimistic about their job prospects and career growth. This is a stark contrast to a few years ago when more negative outlooks prevailed.
Why is this good for business? High employment and economic growth usually result in people having more money to spend. This means they may be willing to purchase new products or services.
Businesses too have more capital at their disposal, which makes them more likely to invest in new technological solutions or services.
2. A New Trade Deal Is in Place
Another reason you may want to consider the US market now is that a new trade deal will be coming into effect shortly. Negotiations for the North American Free Trade deal, or NAFTA, had been dragging on for months, creating uncertainty for businesses doing cross-border transactions.
This was finally resolved in late 2018, with the signing of a new deal, the United States-Mexico-Canada Agreement (USMCA). As the deal enters into force, Canadian businesses may find some advantages to heading south.
3. The US Market Can Set You up for Success Elsewhere
The US market does have a reputation as being difficult to enter, which is why some Canadian business owners may choose to avoid it during international expansion, especially early on. They may decide to try their hand in a few more forgiving markets before attempting to expand to the US.
There is a compelling reason to go to the US first. Success in the US market often predicts success elsewhere. If you can succeed in this market, you may be more likely to succeed in almost any other market.
By concentrating your initial expansion efforts on the US, you’ll make expanding into other markets later easier. It’s also easiest to expand into the US market first since all your resources can be concentrated on this single expansion market, rather than several others.
4. Canada and the US Have Strong Ties
The strong ties Canada and the US have as trade partners is another great reason to consider expansion into the US. The new North American trade deal has already been mentioned. The two countries also have various tax agreements and other deals to make doing business with each other easier.
Canadians and Americans also share some cultural sentiments, which makes the US market more amenable to Canadian companies. You’ll still need to conduct careful market research.
5. Great Help Is Available
When you enter the US market, you’ll be able to get expert help and advice from a professional employer organization (PEO) that operates on both sides of the border.
If you’re planning an expansion any time this year, why not get in touch with a PEO today?