Options for Business Location
When faced with a decision between staying local or expanding to international
markets, business owners need to consider their ultimate business goals. Go global or
stay local. That’s the question. Here are some options that you may consider in
choosing the business location of CDM.
Domestic Business (Canada)
Domestic business refers to the business where economic transactions are conducted
within the geographical boundaries of one country. The buyer and seller in domestic
business belong to same country. It is limited to territory. In domestic business it is very
easy to conduct business research. The nature of customers in domestic business is
homogeneous. In this currency of parent/home country is used for doing business.
International Business
International business refers to the business where economic transactions are
conducted across border with several countries in the world. The buyer and seller in
international business belong to different country. It is quite wide. In international
business, business research is very expensive and hard to conduct. The nature of
customers in international business is heterogeneous. In this different types of
currencies of different countries are used for doing business.
Difference between Domestic Business and International Business
DOMESTIC BUSINESS INTERNATIONAL BUSINESS
Domestic business refers to the business International business refers to the
where economic transactions are conducted business where economic transactions
within the geographical boundaries of the are conducted across border with
one country. several countries in the world.
In Domestic business buyer and seller In International business buyer and
belong to same country. seller belong to different countries.
Domestic business is limited to territory. International business is quite wide.
In Domestic business selling procedure In International business selling
remain unaltered. procedure changes.
Quality of product or standards may be Quality of product or standards are
lower. expected and enforced.
In domestic business it is very easy to In international business, business
conduct business research. research is very expensive and hard to
conduct.
It deals with single currency. It deals with multiple currencies.
In domestic business capital investment is In international business capital
less. investment is huge.
There are few restrictions on domestic There is a lot restriction on international
business. business.
The nature of customers in domestic The nature of customers in international
business is homogeneous. business is heterogeneous.
In domestic business the degree of risks are In international business the degree of
low. risks is high.
https://www.geeksforgeeks.org/difference-between-domestic-business-and-
international-business/
If you will be setting up a business in other country, here are possible five
considerations.
1. Be sensitive to local markets and cultural norms
Every country has its own unique identity and culture, so honing your cultural
intelligence is critical, as well as understanding how business is conducted in your
target market. In Colombia, for example, negotiation is expected when closing a deal
and holding face-to-face meetings with prospects can mean the difference between
winning and losing a sale. For cultural profiles of more than 100 countries, consult
Global Affairs Canada’s Country Insights. You can also use EDC’s Country Risk
Quarterly to understand market risks and opportunities.
If you plan to hire employees, researching the local labour market is essential.
Employment laws, benefits and entitlements are different from one place to the next.
Does the market you’re targeting have skillsets that align with your needs? If you’re a
software company setting up an office in Argentina or the Czech Republic—the top-
ranked countries for tech skills—you’ll have access to an abundance of tech talent. On
the other hand, if you’re hiring in Eastern Europe, where there’s a severe labor
shortage, you may struggle to find skilled workers. Consult the experts. Start by
networking with others who have already set up businesses in your target country.
2. Know your tax responsibilities
All roads lead to taxation, so choose the structure that will allow you to comply with local
regulations while minimizing your tax liability. This is a critical area—one with a lot of
risk and complexity. Some countries such as the United Arab Emirates, Singapore and,
yes, Canada, make it relatively easy for your business to avoid tax liabilities. But tax
regulations in other countries makes things far more complex and time-consuming.
3. Plot out your sales strategy
When it comes to sales, one size rarely fits all. An approach that works extremely well in
one country, may be completely ineffective in another. Research your target market and
adopt market-specific best practices, whether it’s partnering, franchising or having
employees on the ground. Be cautious when using contract employees to sell your
products and services. If your business is their only client or they carry your business
cards, there’s a risk they’ll be deemed de facto employees, with rights and employment
protection. This could mean significant expenses associated with legal disputes,
benefits payments or tax liabilities. Learn the country-specific employment regulations to
avoid surprises. Too many companies find this out only when they wish to terminate the
contract arrangement, and by then, it may be too late.
4. Know the laws and regulations
When doing business in another country, you have to understand the rules and
regulations that will affect your exports. Each country has its own requirements for
filings and submissions. The European Union, for example, has extensive regulations in
place to ensure that products being sold protect human and animal health, the
environment and consumer rights. Because these types of regulations can be complex,
you may want to outsource compliance efforts and other back-office tasks and functions
to local experts to ensure you stay out of the penalty box.
5. Decide where and how to market
No matter what you export, a good portion of your marketing strategy will revolve
around your online presence, including your website and social media channels. While
you can execute your inbound marketing strategy from almost anywhere, there are
benefits to having feet on the street. With one or more marketers working in the field,
you’ll gather better market requirements, build stronger relationships with partners and
prospects and make it easier to have a presence at industry events. Do you need to
send a marketing executive to the country in which you’re opening new facilities? Again,
it depends on your business goals and the types of customers you’re trying to engage
abroad. As a general rule, if you’ll be selling directly to customers in-country, a
marketing presence will help you reach your business goals faster.
https://www.edc.ca/en/article/setting-up-business-in-another-country.html
As per deciding to start a business in Canada, you can consider this tips.
Starting a Business in Canada
Step 1: Make Sure You Are Your Ready for Entrepreneurship
It is easy to come up with an idea to start a business, but not so easy to actually launch
and build a profitable business. Eighty per cent of businesses fail in the first five years.
Before you take the risk of starting a business, make sure:
1. That you are ready to start your own company
2. That you have assessed your business readiness
Step 2: Evaluate Your Options
When starting a business, there are important differences between starting from
scratch, buying a privately owned business and buying a franchise. To know what steps
you need to take be sure to read these articles:
1. Ten Steps to Your Own Business - for starting from scratch.
2. Canadian Franchise Guide - if you are buying a franchise in Canada.
3. Comprehensive Guide to Buying a Business in Canada - if you are buying a
business (franchise or independently owned).
Step 3: Prepare a Business Plan
You should not skip this important step ... even if it means that you just jot your ideas
down on scraps of paper or a napkin! Be sure to read:
1. Business Plan Workshop - a practical guide written by the creator of
CandaOne's award-winning business plan!
2. Business Planning for Non-Planners - great advice if you find that you have
"business plan block".
Step 4: Register Your Business -select a province/territory
Now that You're Registered ... What's Next?
12 Steps to Entrepreneurial Success
Be sure to read this great overview on getting your business up and running. This
twelve-step series is a good introduction to what you need to know to develop a
successful business.
Creating an Action Plan for your Canadian Small Business
https://www.canadaone.com/tools/startingabusiness.html
