Accessing External Markets and Foreign Exchange Considerations
Foreign Exchange (FX)
If your business involves importing or exporting products to or from other countries, you're affected by the value of the Canadian dollar. If you provide a service in another country, you're similarly concerned with the rate of exchange. Foreign exchange is determined by the value of all the world's currencies in relation to one another.
While there is almost nothing you can do to affect the value of the Canadian dollar, there are some precautions you can take to make sure your business doesn't go under due to a fluctuation in FX. Learn more about protecting your profits and devise a strategy to manage your exposure to these changes.
Reaching New Markets
There are a lot of businesses competing for foreign markets in today's growing global economy. Fortunately, there are a few things you can do to help you gain a competitive advantage.
As with any business venture, you have to start with something that you're interested in and that you can do. Look around at some of the Canadian companies that have been successful in other countries. Your business may be able to use some of the strategies they employed.
Choose an appropriate market. Your target market must have a need for the product or service that you plan to provide; these new customers must also be able to afford a price that will allow you to profit. It's a good idea to choose a market in a culture that you are interested in, because spending time in that culture is essential to success. You'll have to travel there to do market research, establish contacts and keep up with changes in the market as your business prospers.
Do Your Research
It can be a challenge to expand your business outside your home province, let alone outside of Canada. Learning all of the regulations and researching the various options is time consuming, but essential to success. You have to accept that. Developing foreign markets is a long-term commitment, but one that can be very rewarding if handled wisely.