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www.oakvillebeaver.com The Oakville Beaver, Wednesday October 11, 2006 - 23 SMALL BUSINESS WEEK Global competitiveness: Canadian exporters face risks According to Edmée Métivier, Executive Vice President, Financing and Consulting for BDC, Canadian manufacturers can be broken into three basic categories. There are those born as exporters; those who grow to be exporters and those that have exporting thrust upon them. What all share is a basic understanding that the nature of doing business in Canada is changing, in some cases changing dramatically. Markets are increasingly global, she says, as is competition. "In past the traditional path was to serve a local or regional market and then to expand perhaps across Canada, perhaps into the United States or even into Western Europe," she says. "While those types of companies still exist, there are those new companies, especially in technology and bio-medicine that are born global. "Even among existing companies there is a fast growing number who have found Canada a small pond, a limiting environment for growth. In past the natural path led to the United States, today it leads all over the world, China, India, the former Eastern Bloc countries." Stick a pin in a world map and you are likely to find one of BDC's clients doing business in that country, she says. Making the switch from domestic to international trade can be a difficult transition, she warns. Success will depend on intensive research, a detailed go-to-market strategy and a willingness to monitor activities regularly and adjust operations according to changing circumstances. For most Canadian companies, heading south to take advantage of the 10 times greater US market has been the most popular path to exports. Those that have taken that route have found out that the United States is not just one foreign country but 50 different jurisdictions. "For all practical purposes, that is true," says Jeffrey Brown, leader of KPMG's multi-state tax practice. "Each state has its own laws, its own approach to taxation, its own regional consumer preferences, its own approach to the labour force and its own ways of doing business." The value of intensive research can not be overestimated no matter where expansion takes place, says Ms. Metivier. "You absolutely have to know everything you can. Who your customers are? Who the competition is and what are their advantages? What can you offer that will give you that necessary edge over entrenched competition," she says. Then there is the key matter of management. Managing a $10 million company in a domestic market demands different skill sets from managing a $20 million company with half those sales coming from exports, she points out. "The most successful companies have gotten to know and understand local customs and preferences. They have created a network of informed advisers who know the markets that have been Continued on Page 10 $$$$ Businesses always need money, but you may have more money, even cash, than you know! If, in the past 18 months your company has done, or is doing any scientific research or experimental development: new or different products, solutions or approaches, even projects that may have failed or been cancelled, your company may be eligible for a Canadian Scientific Research and Experimental Development (SR&ED) Tax Credit for that work. If you are a Canadian-owned company it could be cash. Applying is easy. Claiming what you deserve takes experience and know-how. It requires experienced people who understand technology, scientific processes, what qualifies and what is needed, not accountants. Assessors who will work with you to help you make the best claim for the work you've done. May sure you get what you are entitled to. EN-TECH Associates is an Oakville firm, in business for 16 years. s Among our services we do SR&ED's technology assessments for Clients. We may be able to help you. It costs nothing to discuss your opportunities, to find out more about SR&EDs or our other services. EN-TECH Associates call us at: (905) 847-1537 Email: consultants@ en-techassociates.com or on the web at: www.en-techassociates.com The Regional Municipality of Halton Supporting small business in Halton... All year round The Halton Region Business Development Centre recognizes the many small business owners for their hard work and valuable contribution to Halton's economy. The Business Development Centre is the ultimate walk-in resource for small businesses. Entrepreneurs can register their business name and access a variety of research and resource materials ­ and computer workstations. Business Consultants will provide advice and information on business and marketing plans, Halton's business environment, exporting and employment and training programs. Bridges to Better Business November 1, 11:30 a.m. to 4:45 p.m. Halton Regional Centre Cost: $50 (includes lunch) Keynote speaker: Ian Portsmouth, Editor and Associate Publisher, PROFIT Magazine "Secrets of Success of Canada's FastestGrowing Companies" · · Choose from five expert-led discussion groups. Enjoy networking opportunities. In addition, the Business Development Centre holds and Entrepreneurship, Canada-Ontario Business Service Centre several seminars and workshops year-round that help and RBC Royal Bank. entrepreneurs make informed business decisions. Presented in partnership with the Ministry of Small Business Call the Business Development Centre today to discuss your business needs and to register for Bridges to Better Business, or visit www.halton.ca and select "Business." 1151 Bronte Road, Oakville, Ontario L6M 3L1 Tel: 905-825-6000 · Toll Free: 1-866-4HALTON · TTY: 905-827-9833 · www.halton.ca