#BusinessEducation Canadian market: mentality, segments and | Idea factory
#BusinessEducation
Canadian market: mentality, segments and how to start
Today Canada is in a venture exposure which makes loads of novice entrepreneurs to develop business here. In the first half of 2021, Canadian startups raised $6.3 billion across 414 deals. Let us insight into why Canada is so attractive for entrepreneurs now.
Culture
Typically, business communication is direct. Canadian people are not prone to insinuate or read between the lines. Hence, when it comes to business meetings, try to be straightforward.
Canadian mentality means respect of everyone’s opinion. In spite of the social and financial status, anyone is supposed to be heard and understood. So, be welcoming and respectful to whoever you meet.
Bilingualism
Canada is officially bilingual in French and English. Therefore, you have to be prepared to use both languages in meetings.
Customer advantage
The key Canadian rule is the customer is always right. Even though the product is not defective, it can be easily returned if a product doesn’t meet client’s expectations. Many people like to buy something for a while and get it back when it’s not needed anymore. The company has to sell returned goods with 50% discount.
Segments
In Canada it’s better to launch the goods of middle and luxury segments. There is no sense to compete with China and Turkey — the low segment leaders. Besides, you should plan smaller volume and higher price due to the good transportation, storage, and delivery. Nevertheless, you should wisely approach the price formation. Consider risks and at the same time set the price which is lower than the competitors’.
Taxes and rent
The insurance is a large expense for any business beginner in Canada. In the beginning, the taxes and insurance are the highest. The same thing relates to the rent. There is no leasing for a year. Though, if you take it for 10 years, you gain the trust credit and your business is taken more seriously.
Sale start
First of all, you should provide a good delivery service and storage. Once these problems are solved, address the local distributors. Frequently one distributor simultaneously works at the Canadian and American markets. This can be very useful for the potential sale expansion.
Advantages:
Investment-friendly environment
Canada has its own ecosystem aimed at assessing and teaching the startup founders. Thanks to it, novice entrepreneurs can gain funding to launch and develop their projects. This ecosystem includes Canadian Venture Capital association. They approve business incubators at the State level.
Strong financial opportunities
In Canada there are huge venture funds. They are ready to invest in talented startups as the state program prioritizes this type of investments. Canada has been working on shifting from the commodity-based economy to innovative one. Which is why CAD billions are contributed to the venture funding and lending of innovative enterprises at reduced rates.
Various professional market
Well-developed immigration programs can attract specialists from any industry or country. The synergy also appears because the standard of living is lower than in the US. So, attracting foreign employers cost less.
Proximity with the US
American market is one of the solvent markets in the world. Canada has free customs regulations with the US. This gives enormous opportunities for testing any business idea. Particularly, coupled with the production located in China and quick delivery through International Vancouver Port.
However, if you are willing to develop your business remotely, Idea Factory is at your service. Don’t miss Monthly Pitch 21.10.21
Would you like to develop your own business in Canada? Share in comments
