Export Opportunities for Manitoba
New trade agreements open doors for Manitoba businesses to export abroad.
8/23/20264 min read
Thanks to the US for their inadvertent help in opening international doors for Canadian small businesses. Thanks, as well, to the Team Canada approach to both responding to US tariffs and to a more global approach to trade. This opens many doors for small business across the country, including creating export opportunities in Manitoba.
Many micro-businesses feel overwhelmed by the logistics involved in global marketing and sales. In some instances, that is warranted. There are many restricted items that cannot be shipped to specific countries, and a great deal of paperwork for other goods. This limits the perception of export opportunities. The layman or neophyte global business often finds itself confused by the process.
The opportunity, though, is greater than the impediments. This applies both to international as well as national sales to new buyers and markets.
The “trade war” shifts the emphasis on sales but also offers new tools and weapons through government assistance. Government support for export and developing markets includes provinces and private/public joint support. But new non-USA markets mean you have to understand the nuances of many jurisdictions. Again, federal export business assistance offers lots of help, through existing and new programs. This includes financing opportunities for eligible business.
Government And Private Support for Export Opportunities
There are numerous government portals and sites offering assistance for exporters, from large companies to sole proprietorships. These include:
Canada Grants Database (private)
It is important to note that importing and exporting of small quantities of goods may have exemptions, but bulk movement requires federal licencing. Exporting is dependent upon country of destination rules, which vary from jurisdiction to jurisdiction. Generally, there is a $2,000 limit on export/import without CRA licencing.
Steps to Export Your Goods
Getting your business “export ready” involves many of the same steps that you examine in a small business plan and feasibility study. Particularly effective and necessary is the SWOT (Strength, Weakness, Opportunity & Threat) analysis.
What are the strengths of the product? This should be specific to each destination country and market.
What are the weaknesses of your entry into a local market? This includes competition, regulation, trends and biases in the niche.
What are the opportunities? This goes hand in hand with the next category, threats. Mostly, since you are entering a relatively new foreign market, what niche or area do you see as being the best fit? This will evolve as you penetrate the market, but is necessary at the outset, as well.
Threats are critical to your market analysis. Misidentifying, underestimating or ignoring threats to the product evolution is a recipe for failure. Often, government regulation and standards thwart new product entry. Other threats include price points, margins and quality control or customer service. But threats also occur within your product development, as well.
Is Your Business Ready for Export Opportunities?
While your product may be market-ready in our province, it may not be eligible for shipment out-of-province or worldwide. Standards vary from country to country, with some goods banned. Think of firearms coming into Canada, electrical goods into North America or meat products shipped between provinces and countries. CSA and ULL standards apply to all electronics and equipment. CFIA restricts inter-provincial and import trade in animal products. Cultural practice limits other exports. Consider beef products into India or religious icons into Afghanistan.
Identify Export Opportunities & Competition (Regional, National, International)
Opportunities abound worldwide, with the signing of over 20 trade deals with other nations in the past year. But just because an item can be shipped, that does not mean it will be purchased. How does your offering fit into the potential market where you want to sell? Are there better market options than the ones you have focused upon? How can you position yourself?
Improve Export Opportunities: Find Niche or Adapt Product
This positioning leads into niche markets. European cheese may be highly desirable in Canada, but the price points often eliminate lower-income buyers. A company in Vidir, Manitoba sells carousels for carpets, order picking racks and bicycle racks world-wide. However, its market is limited to larger hardware chains where companies purchase more than one unit at a time. Common strategy says that personalized décor, consumer goods and items like glassware generally cannot be mass-produced. Yet, Kindle produces books one at a time and does so effectively. It is a niche market that few can replicate and is adapted from mass printing strategies.
Identify Costs & Benefits
The costs abroad may be different than local costs. This ranges from marketing and packaging to warranty or distribution. There also may be benefits to penetrating a distant market. Testing abroad may be less expensive. The image of “exotic” may offer appeal to buyers. In considering benefits, explore how your product offer unique benefits to buyers in the same way that you explore local markets.
In-house, Broker, Partner With Symbiotic Company?
If this is your first foray into foreign markets, be aware of regulatory and logistical requirements. Sometimes, the cost of selling worldwide exceeds the return. Time and effort, physical costs, regulatory and red tape hurdles and customer service are just a few.
For smaller ventures, consider using a broker, or piggybacking onto another company’s existing export/import licence. There are many companies whose business focuses on moving goods for smaller businesses. Another option is to find another company whose products offer a symbiotic relationship with yours and share costs.
Business Number, Import/Export Account, Classifying Goods
To export (or import on larger scale, for resale), you require a federal Business Number and import/export account, along with classification of your goods. CBSA provides a comprehensive guide to the process and paperwork involved in cross-border shipping.
Promotional Strategies: Understanding Markets
Developing your promotional strategy may sound straightforward and simple. However, you are marketing to as different culture with different nuances. You should expend considerable effort to research and understand your future market in order to reach customers effectively. What works in Canada may not work, or may be harmful to your efforts in other countries.
Finding Local International Marketplaces and Drop Shipper Businesses
An underutilized tool for businesses entering a foreign market is the chance to work with local drop shipping businesses, marketplaces (particularly, digital) and wholesale resellers. While using extra “middlemen” may increase costs, it also allows for capitalizing on their existing marketing efforts.
Establishing Shipping Regimen
You’ve done all the legwork, readied your product and are set to sell. But how do you get the product to the consumer effectively? Explore all shipping costs (including warranty return), packaging, labelling, etc. Verify the reliability of shipping partners. Continually look for better, more effective packaging and shipping options.
The above list of “to-do’s” is far from comprehensive, but it provides insight and guidance into the task ahead of you.
If you require more assistance, visit www.profitrecovery.ca. They provide logistical and background support for micro- and small Manitoba and Saskatchewan businesses.