Moving Your Business Up North? Four Things You Need to Keep in Mind
"That's it, we're moving to Canada!" While you may hear such a statement in jest, the fact that remains that many business owners are packing their bags to see what the Great White North has to
“That’s it, we’re moving to Canada!”
While you may hear such a statement in jest, the fact that remains that many business owners are packing their bags to see what the Great White North has to offer.
And why not? Consider some of the big benefits of moving your business to Cananda, including…
- A change of scenery, which can be refreshing if your current work environment seems stagnant or stale
- The ability to explore a new market and give your business a bit of international flavor
- Finding a new pool of local talent: areas such as Toronto and Vancouver represent huge tech hubs, for example
However, there are a few things you need to keep in mind if you’re serious about your business into unknown territory.
Understand Your Cost of Living
You can’t realistically hope to get down to business if you don’t have a keen understanding of Canada’s cost of living. For example, it’d be a good idea to study which areas represent hidden bargains. RentSeeker’s list of average rent costs across Canada can help clue you in on which areas are realistically in your budget versus those which may ultimately price you out.
Despite popular belief, Americans and Canadians pay relatively similar portions of taxes. Therefore, especially if you’re a solopreneur or run a small operation, a move north represents the perfect opportunity to benefit from a lower cost of living. It likely makes sense to rent an apartment versus purchasing a home if you simply want to test the waters of a new country and avoid a steeper financial commitment.
Do Your Homework On Your Market
That being said, you shouldn’t simply move for the sake of moving. If you’re on your own and working remotely, making the transition isn’t such a big deal; however, brick and mortar businesses will quickly find themselves in the red if they relocate to a country that doesn’t support their industry. Also, keep in mind how your move will impact your current customer base and whether or not you’ll leave existing revenue.
In short, you need to have hard numbers to support your decisions versus treating relocation like a guessing game.
Look Out for Hidden Costs
Although the Canadian dollar’s slight slump might seem like good news to Americans, bear in mind that Canada comes with its own slew of hidden costs. Immigration costs, for example, can quickly add up; likewise, leaving the United States may complicate your current financial investments in the country in regard to taxes. Beyond regional costs, there’s always the cost of the initial move which can also be a headache.
Figure Out Your Team’s Needs
Remember that you’re not the only one impacted by your move. Your current team, including other clients and businesses you have relationships with, will likewise feel the effects of relocating. If you’re the only member of your team making the move as a solopreneur, you’ll need to keep in mind current exchange rates and time-zone changes in regard to payment and communication.
Working remotely from a different country requires strong organizational skills and a keen attention to detail if you expect to be successful.
Whether you’re dead set on moving your whole crew or simple want to relocate as a solopreneur, understand what you’re getting into before you make the leap. Canada has tons to offer any given entrepreneur who’s done their homework and has realistic expectations on what it takes to grow their business in a new country.
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