Managing a US Business from Across the Border

 Having a fantastic product or service is insufficient in today's increasingly competitive global market. Whether you are considering spinning off your firm overseas or internationalizing your organization, here are some tips from two Canadian business entrepreneurs on how to keep operations running smoothly.Marco Yu is the managing director of Canada Sinosky, a North American import and export corporation. With offices in the United States, Canada, Italy, and China, Canada Sinosky has grown into a wholesaler of designer items specializing in business-to-business contracts. Yu believes that understanding the country in which you intend to establish a company is critical, based on his extensive experience managing a worldwide corporation. For Yu, that country is Canada.

"The majority of Canada's population lives in a few big metropolitan centres close to the U.S. border," he reveals. Furthermore, Canada has six separate time zones, which, according to Yu, means that the logistics cost of conducting business there is higher than in most other countries. Yu continues: "Canada is also known for its cultural and linguistic diversity." He emphasizes the need of considering this when employing employees. "Your team must be able to accommodate the ethnic and cultural variety of the target market. So they should be diversified and speak multiple languages."

However he also advises business owners to keep costs under control

Canada may be a smaller market in a big country, but the costs could really mount, so keep things in perspective."Tap into the local expertise. To flourish on local soil, corporate leaders should endeavor to understand the country's diverse population. A lack of cultural awareness may impede a company's capacity to expand its operations. William Cheng, president of Premier Candle Corporation, Canada's biggest privately owned candle producer, discusses the difficult decisions he had to make while taking over the company from his father. Cheng was raised in Hong Kong and educated abroad in Canada. In 1979, his father started Universal Candle in Hong Kong, which eventually became Premier Candle Corporation in Canada.

Cheng took over Premier Candle and restructured it to include additional Canadian staff. I think the most important thing is to consider the business environment," he adds of his decision to hire local employees. When I took over more than 13 years ago, we started hiring a lot more local North American talent who understand the business's economics as well as the labor environment," Cheng says. According to him, Premier Candle is now a Canadian corporation rather than an international firm with a Canadian division.A little networking goes a long way It is critical to stay current on new ideas and developing trends, regardless of the type of business you manage. Interacting with like-minded people and learning about other people's experiences in the field can be beneficial while establishing a business in a foreign location.

Cheng suggests connecting with the business community and developing a broad and deep network

He also proposes alerting them of your intention to establish up shop in the neighborhood so that people know you are eager to invest in the country. Networking can lead to opportunities, such as meeting possible colleagues and developing new clients. Meanwhile, Yu's business experience in Canada includes participation in the country's popular sports scene. "I do find that going to sports games helps me tap into the local business networks," according to him. Yu claims that ice hockey has been his main pastime since moving to Canada in 2001. "I became very active in my hockey networks and have developed close relationships with fellow hockey fans," he says. Many of them went on to support his fashion business.

Business may be enjoyable when you have common interests and hobbies with clients and possible partners; "so open yourself up to different sports and cultures," he recommends. Maximising the Potential of a Cross-border Busines In addition to the many legal and foreign exchange ramifications for their businesses, business owners should think about the tax and estate-planning implications of storing personal assets in another nation, such as real estate and investments. When it comes to asset management, Cheng recommends consulting with local private wealth groups. He claims that working with them will provide you with access to estate planning professionals.

Cheng recommends keeping an open mind while making decisions based on a core set of beliefs. The bank's partners and legal experts know exactly what to do. I recommend starting with your banker, who can help you manage your personal and business assets. Yu advises business owners who are considering growing internationally through mergers and acquisitions to undertake due diligence before proceeding. "Engage a good lawyer and team to do the due diligence on the entity you are eyeing, as well as a thorough analysis of the targeted business partner." The character and ethics of the partner are as important as the company idea. Yu adds that before entering into a transaction, one must be confident in both the business and personal sides of the target company. But he acknowledges that it is not always easy. "They give you the advice; how you interpret and incorporate that is entirely up to you."

Trial and error are essential. Give it a shot and make your decisions from there

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