Before I start and to ensure transparency, I am Canadian. I also hold the American business market in extremely high regard and believe it to be the truest form of capitalistic opportunity available to the world. That being said, there are risks associated with targeting a market such as the US for international business, let the seller beware.
• The US population is approximately 10 times the size of the Canadian population. Ten times the buyers, and ten times the sellers. Before you decide that expanding your target marketplace to the US is the answer to all of your revenue dreams, spend a significant amount of time assessing the US competitive landscape. If you are having a tough time setting your business apart from its competition here in Canada, you will sink 10 times deeper into obscurity in the American market.
• One word: distribution. Creating an internet platform to enable effective web marketing and online revenues sounds wonderful. That being said, Americans tend to have cheaper production costs and cheaper shipping costs. You need to figure out how you are going to compete financially when your US competition has lower overhead for the same product that you offer.
• The United States has an entirely different legal system than we do in Canada. Prior to assuming that you can just start shipping your product across the border, consider the following:
o Your product may not be legally protected, (the patent you have may not hold water, or worse, be in conflict with a patent held by an American competitor).
o You create an entirely new risk for legal exposure. Think really hard before you throw rocks at a hornet’s nest. The American society is a litigious one and you don’t want to leave yourself open to a host of lawsuits.
o Insurance. Make sure that your insurance here in Canada covers you in the US.
• Americans prefer to buy American. How are you going to provide an incentive for them to counteract their protectionist ideologies?
• Are you going to try to get in and get out, or are you going to try to create a long term business relationship with the American marketplace. If your product is successful in generating revenue in the US, you can expect a number of US based copycat companies to come on board with the same products or services that you offer. If you are planning to stick it out with your American customers, you need a strategy in place to ensure that you remain relevant and competitive.
The lucrative market in the United States is far too attractive a revenue stream for any savvy business person to ignore. What I am stressing is that the US market needs to be respected as a truly international marketplace, not an extension of the Canadian market with deeper pockets. Do the due diligence required to properly assess your risks and your benefits. I bet that you will still see opportunity but will realize that it will take a lot more work to do it right than you would have ever expected.
Have You Got What It Takes?
Prior to embarking on a new business venture, entrepreneurs will often act responsibly by performing a detailed assessment of the potential of their business idea. They will analyze their target marketplace, the competitive landscape, the unique selling proposition of their product or service and how their proposed messaging will resonate with their target customers or clients. They will confirm the applicability of their business model, their supply chain, production, the legal requirements and accounting protocol for their business. They will forecast sales and new competitive entrants to their market. They will layout plans for public relations and corporate communications. Investor packages and documents will be prepared. They will research the process of taking their company public. And without a doubt, begin the process of selecting the international locations of their beachfront homes situated strategically around the world.
All of this is extremely important, well maybe not the last step so much.... But there is one essential thing that is almost never assessed during this lengthy process of due diligence: the assessment of the ability of the entrepreneur to successfully lead this new business. In other words, can they actually do the job.
There are a number of personality traits that are proven to be beneficial in the business world:
• Task orientation
• Logical thinking
• Ability to multitask
• Leadership capacity
• Integrity
• Work ethic
• Ability to eliminate emotion and ego from business decisions
• Vision
• Dependability
Before you invest time and money to investigate whether or not you have the next million dollar idea, spend some time assessing your own skills and abilities. Objective introspection is technically impossible so I would recommend the following to gain additional insights into your own strengths and weaknesses:
• Seek out an expert within your target marketplace, find out what you will need to be successful
• Meet with a business coach
• Seek out a mentor (someone who has your best interests at heart and has the experience to help you avoid making the same mistakes that they made)
• Talk to qualified family and friends (people who have some experience and knowledge about the business area you would like to enter into)
Once you are armed with their feedback, you will be better prepared to fill the gaps in your skill set with help from qualified individuals. You can also write a business plan that focuses on your strengths and thus has a far better chance of succeeding.
All of this is extremely important, well maybe not the last step so much.... But there is one essential thing that is almost never assessed during this lengthy process of due diligence: the assessment of the ability of the entrepreneur to successfully lead this new business. In other words, can they actually do the job.
There are a number of personality traits that are proven to be beneficial in the business world:
• Task orientation
• Logical thinking
• Ability to multitask
• Leadership capacity
• Integrity
• Work ethic
• Ability to eliminate emotion and ego from business decisions
• Vision
• Dependability
Before you invest time and money to investigate whether or not you have the next million dollar idea, spend some time assessing your own skills and abilities. Objective introspection is technically impossible so I would recommend the following to gain additional insights into your own strengths and weaknesses:
• Seek out an expert within your target marketplace, find out what you will need to be successful
• Meet with a business coach
• Seek out a mentor (someone who has your best interests at heart and has the experience to help you avoid making the same mistakes that they made)
• Talk to qualified family and friends (people who have some experience and knowledge about the business area you would like to enter into)
Once you are armed with their feedback, you will be better prepared to fill the gaps in your skill set with help from qualified individuals. You can also write a business plan that focuses on your strengths and thus has a far better chance of succeeding.
A Million Dollar Business Idea
Recently, I came to realize that several of the most fascinating, constructive, and lucrative business meetings I’ve had have been the result of the following process. When the realization first hit me, I walked myself back through my experiences and drew upon the conclusion that I could not have acted in a more focused and strategic manner had I planned it from the beginning. If there was a Nobel Prize for sales, the following process would be celebrating on a beach somewhere right now.
• Somewhere in back area of your office or store, set aside a small area which I will refer to as your ‘showroom’.
• Think hard about who your ideal customer or client is and identify a material object that they are likely to purchase.
• Using a sales forum specific to your local area (Craigslist, eBay, Kijiji, newspapers...) find a posting where someone is selling one of the items that you have selected.
• Set up a meeting with the seller and if you like what they are selling, purchase the item.
o The exact same process I am describing below is applicable to your purchase of this item. Do not waste this opportunity.
• Take the item back to your store or office and place it in your showroom.
• Using the same means by which you were able to track down the item for your purchase, advertise the item for re-sale. If you can charge more than you purchased the item for, consider it a bonus.
o I recommend free online advertising sites as they are extremely popular and have the added benefit of being free.
o Where there is a charge to post your ad, build the advertising cost into the price of your product whenever possible.
• Each time someone wants to purchase your item, they have to walk all the way through your office or store in order to reach your showroom and view the item.
• While they are walking through your store, you have a perfect opportunity to present your business and learn more about theirs.
• Most importantly, you have already qualified this person as a potential client or customer of your business because of the item that you are selling.
This process is all about qualified lead flow with guaranteed face to face engagement and presentation of your products and services. A multimillion dollar industry has been built providing qualified leads for businesses, usually just providing contact information of potential customers in the form of emails or phone numbers. My process is free and guarantees you multiple opportunities to meet with your target marketplace, both when you buy and sell your items. Best of all, this process is not only free but provides the opportunity to make a few bucks on each of your purchases.
• Somewhere in back area of your office or store, set aside a small area which I will refer to as your ‘showroom’.
• Think hard about who your ideal customer or client is and identify a material object that they are likely to purchase.
• Using a sales forum specific to your local area (Craigslist, eBay, Kijiji, newspapers...) find a posting where someone is selling one of the items that you have selected.
• Set up a meeting with the seller and if you like what they are selling, purchase the item.
o The exact same process I am describing below is applicable to your purchase of this item. Do not waste this opportunity.
• Take the item back to your store or office and place it in your showroom.
• Using the same means by which you were able to track down the item for your purchase, advertise the item for re-sale. If you can charge more than you purchased the item for, consider it a bonus.
o I recommend free online advertising sites as they are extremely popular and have the added benefit of being free.
o Where there is a charge to post your ad, build the advertising cost into the price of your product whenever possible.
• Each time someone wants to purchase your item, they have to walk all the way through your office or store in order to reach your showroom and view the item.
• While they are walking through your store, you have a perfect opportunity to present your business and learn more about theirs.
• Most importantly, you have already qualified this person as a potential client or customer of your business because of the item that you are selling.
This process is all about qualified lead flow with guaranteed face to face engagement and presentation of your products and services. A multimillion dollar industry has been built providing qualified leads for businesses, usually just providing contact information of potential customers in the form of emails or phone numbers. My process is free and guarantees you multiple opportunities to meet with your target marketplace, both when you buy and sell your items. Best of all, this process is not only free but provides the opportunity to make a few bucks on each of your purchases.
How To Choose The Wrong Business Partner
Here are ten things you can do to ensure that you have the best odds of partnering with the wrong person:
1. Ignore your spider sense. Animal instincts and survival skills are not appropriate in the real world. Each of the concerns that you have when things are going well will definitely melt away when times get tough.
2. Ignore your friends’ advice. No one knows your business better than you. Listening to people who care deeply about your success will only distract you.
3. Don’t do a background check. It’s all about going forward. Don’t waste your time on proven track records and reference checks, only people who live in the past waste their time on these details.
4. Synergy is over-rated. You don’t have to get along with your business partner. Life is easier when you don’t have to waste time communicating.
5. Work ethic. If your partner works 10 hours a week, from home, and you work 80 from your store or office, that’s fair.
6. Shared goals. Don’t talk about your business objectives. If you want to make a $100,000 and your partner wants to make million, both are pretty good goals. Why nitpick the details?
7. Exit planning is for the future. If your exit strategy is targeted for 2 years and your partner’s plan is for 10 years, that won’t affect anything right now. Stay focused.
8. Energy is more important than experience. Picking a partner who works really hard will make you way more money than picking a partner who works really intelligently.
9. Pick a partner on the rebound. You’re lucky your potential business partner was just laid off or fired. Now they will be focused on your business and won’t be distracted by having too much stability in their life.
10. You don’t need to trust your partner. As long as you double check every single thing that they do, there is no risk to your business.
1. Ignore your spider sense. Animal instincts and survival skills are not appropriate in the real world. Each of the concerns that you have when things are going well will definitely melt away when times get tough.
2. Ignore your friends’ advice. No one knows your business better than you. Listening to people who care deeply about your success will only distract you.
3. Don’t do a background check. It’s all about going forward. Don’t waste your time on proven track records and reference checks, only people who live in the past waste their time on these details.
4. Synergy is over-rated. You don’t have to get along with your business partner. Life is easier when you don’t have to waste time communicating.
5. Work ethic. If your partner works 10 hours a week, from home, and you work 80 from your store or office, that’s fair.
6. Shared goals. Don’t talk about your business objectives. If you want to make a $100,000 and your partner wants to make million, both are pretty good goals. Why nitpick the details?
7. Exit planning is for the future. If your exit strategy is targeted for 2 years and your partner’s plan is for 10 years, that won’t affect anything right now. Stay focused.
8. Energy is more important than experience. Picking a partner who works really hard will make you way more money than picking a partner who works really intelligently.
9. Pick a partner on the rebound. You’re lucky your potential business partner was just laid off or fired. Now they will be focused on your business and won’t be distracted by having too much stability in their life.
10. You don’t need to trust your partner. As long as you double check every single thing that they do, there is no risk to your business.
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