Have you been daydreaming about expanding your business to Canada? If your business has been growing rapidly and you have repeatedly heard from Canadian customers about how much they love your brand, it could be time to make your expansion dreams a reality.

Before you begin, though, there are some very important things you should know. A business expansion is no simple undertaking, and you want to do it right. Follow this five-step process for Canadian expansion success.

1. Start with Market Research

The first thing you should do is market research. You may have been impressed by a few tweets or gushing emails, but how it’s important to know if there is a real demand for your products or services.

It’s possible there could be other competing companies operating in the Canadian market already and if there’s not, it would be beneficial to know why. Are there rules or restrictions that make it difficult to offer the products or services you sell?

You may also discover there’s demand for your brand in only certain parts of Canada, or that the rules are different in one province, which could make it easier to operate in one providence over another.

2. Determine Which Province to Enter

Once you’ve collected information about your market, your competition, and the regulations in each province, you’ll be able to use the information to decide where is best to set up shop.

Suppose your market research shows there’s a high demand for your company’s services in Toronto and Vancouver, and both provinces allow for the sale of your services. While either city could be the right spot for your new office, you want to look at the rules and regulations of each province.

Ontario and British Columbia have different rules about business structures, taxes, and more, so it’s important to research both to make an informed decision. After you have chosen your province(s), you are ready for the next step.

3. Choose a Business Structure (and Learn about Taxes)

Next, you’ll want to choose a business structure. There are a few types of business structures that are the same across all provinces, while some provinces have additional choices.

A key consideration for business structure is taxation. The structure you choose will determine how your business is taxed, which will affect the business’s profitability.

Choosing the most tax-efficient structure is important. You may want to consult with the experts to make sure you understand the benefits and drawbacks of each structure.

4. Think about Logistics

There’s perhaps no Canadian business expansion failure that’s been more intriguing than the case of Target. The retail giant had a seemingly built-in market, picked up prime retail locations, and already knew most of its major competitors.

One of the big problems facing Target, though, was logistics. The chain expanded rapidly across all of Canada, and from the get-go, it had trouble keeping stock on the shelves. Canada is an enormous country, so supply and shipping must be considered. Geography and the smaller Canadian population also influence costs, which made it impossible for Target to keep the low prices the brand is famous for.

As you expand into Canada, take a critical look at your supply chain. How easy is it for you to send or receive stock from a Canadian location, or move people between offices and retail stores? Efficiency and cost are of paramount importance.

5. Get Familiar with Canadian Employment Law

There are many cultural differences between Canada and the United States, and those are highlighted in the Canadian approach to labour law. You won’t find any at-will employment here, and the provinces mandate vacation pay and holiday pay for almost all employees.

If you’re planning to hire employees, you’ll want to brush up on the ins and outs of Canadian labour law.

If you’re ready to start expanding, it helps to contact the experts. Get in touch now and start customizing your expansion plan.