The Preparation Advantage: 5 Things to Consider Before Taking Your Business Global

In a recent RBC poll, nearly 70 per cent of businesses said they are looking to expand into new markets. [RBC, New Markets 5 things]

It’s a shift that is already well underway – recent Bank of Canada data shows a growing share of Canadian businesses are increasing trade with non-U.S. markets, in part as a response to growing trade tensions. At the same time, more than one in three internationally active businesses say they plan to expand or increase trade volume in the next 12 months. [ RFI Global – Canada Commercial Banking Council]

The trend comes as no surprise. After all, expansion means access to new customers, diversified revenue streams and greater resilience in a changing economic environment.

But moving into new markets introduces complexity – financial, operational and strategic. And navigating this complexity takes time: time to understand your position, time to prepare for the realities of expansion and time to build the capabilities required to sustain growth.

RBC International Trade Specialists have a firsthand view of this reality. “The companies winning globally in 2026 share one thing: they built strategic foundations before rushing to market,” says Deepthika Gooneratne, Director of Trade Finance Solutions with RBC. “It’s not always visible or glamorous work, but it makes a big difference.”

Based on insights from RBC International Trade Specialists, this kind of preparation typically takes three to six months. And while every business is different, the most successful expansions tend to focus on three areas during this preparation phase:

• Financial readiness for growth

• Market intelligence and available advantages to Canadian companies

• Operational capacity

Here’s how each of these areas can be approached – and how they come together to support sustained, scalable international growth.

Build a clear financial foundation for growth

International expansion introduces new layers of both cost and complexity. So, before looking outward, it’s important to have a clear understanding of your company’s financial position – and how much capacity it has to support this kind of growth.

Start with where you stand today

A strong starting point is a realistic view of your current performance. This involves looking at your revenue, margins, operating costs, assets and working capital. Keep in mind, these metrics are most useful when they are assessed based on current conditions, rather than where you expect them to be.

This baseline helps clarify whether your business can absorb the added demands of expansion, including:

• Higher inventory and logistics costs

• Potentially longer receivables cycles

• Upfront market-entry investments

• Foreign exchange exposure 

Liabilities are equally important to examine. What does it cost to carry debt? Is there flexibility to take on additional financing if needed? And is your current structure optimized to support growth?

Model scenarios to prepare for uncertainty

From there, scenario planning becomes an important tool. Fluctuations in foreign exchange, inflation, supply chains or geopolitical conditions can all affect cash flow and margins. Understanding how your business performs under a range of conditions can help inform more resilient planning.

Understand the full cost of expansion

One of the most common gaps in expansion planning is underestimating the full cost of entering a new market – particularly the less visible costs that don’t surface until you’re already in market.

Beyond headline expenses like production and shipping, there is a larger set of inputs to consider, including:

• Compliance and regulatory requirements

• Local taxation and legal considerations

• Product adaptation, labelling and packaging changes

• Market-specific logistics, distribution and partner costs

These costs can vary significantly by market – and in some cases, may only become fully visible once contracts are being structured and executed.

Once you have a clearer view of these inputs, you can evaluate your margin sustainability, helping you answer key questions, such as:

• How will our margins hold up once expansion costs are factored in?

• How sensitive are our margins to shifts in pricing, competition or operating conditions?

While there are both expected and hidden costs involved in global expansion, there are practical advantages available to Canadian exporters. Most exports are zero-rated for GST/HST, and input tax credits are recoverable, which can support stronger cash flow when managed effectively.

But how much these advantages actually move the needle depends on how you use them. When they’re built into the broader financial strategy from the outset, they can make a meaningful difference on the cost and efficiency of your company’s expansion.

“Many companies run into challenges because they don’t look at all the aspects that matter — local taxation, cultural differences, import requirements, support infrastructure,” notes Nancy Halabi, Senior Trade Finance Specialist with RBC. “Readiness isn’t glamorous, but it is essential.”

Use market intelligence and Canadian advantages

As a Canadian company, your business has a built-in advantage: Canada’s robust and well-established ecosystem, designed to support businesses expanding internationally. New grants, financing and resources build on this foundation, and companies that use them can strengthen their growth plans.

Leveraging Canada’s free trade agreements

Canada currently has 15 free trade agreements in place with 51 countries, helping reduce or eliminate duties and lower the cost of entering new markets.

These agreements can also make markets easier to navigate. Standardized rules and regulations can reduce red tape, while faster border processes help products get to market more efficiently — a benefit especially important for time-sensitive agricultural and food-based businesses.

And in many cases, partner companies prioritize trade relationships within these agreements, giving Canadian exporters another meaningful advantage. [EDC, CPTPP]

For example, the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) has removed the majority of tariffs between Canada and EU member states, creating meaningful opportunities for Canadian companies looking to expand into Europe.

The best part? This comes at a time when many Canadian exporters continue to benefit from duty-free access under agreements like CUSMA, helping offset other global trade pressures.

Tapping into Canada’s global support network

Before entering a new market, access to reliable insight and the right support can help surface unknowns and reduce uncertainty. Organizations like Export Development Canada (EDC) and Canada’s Trade Commissioner Service (TCS) each help companies build confidence before entering a new market. Here’s how:

• Export Development Canada (EDC) supports financial readiness through market intelligence, practical tools and risk management strategies by helping companies understand the financial implications of expanding internationally.

• Canada’s Trade Commissioner Service (TCS) provides in-market expertise through a global network of offices, helping businesses assess market potential, understand local conditions and connect with potential partners early in the process.

The impact is measurable. According to TCS research, businesses that used their services between 2000 and 2022:

• Exported 20.1% more in value

• Sold to 20.4% more countries

• Exported 3.0% more product varieties [Canada’s State of Trade 2025]

The role of funding and incentives in expansion

Funding can play an integral role in a successful global expansion – but it’s crucial to leverage opportunities at the right time – before decisions are made. Companies that tend to make the best use of available resources build grants and incentives into their expansion strategy from the outset.

Some programs to consider:

• CanExport SMEs, a program run by the TCS, offers up to $50,000 in funding to assist small- and medium-sized enterprises exporting Canadian goods and services to enter new international markets, covering up to 50% of the costs of export-related activities, including export marketing and business development expenses.

• The CanExport Innovation program can cover up to 75% of costs for companies pursuing international R&D partnerships.

• There are also several sector-specific programs, such as the Sustainable Canadian Agricultural Partnership (Sustainable CAP), which includes federal, provincial and territorial support.

Once funding opportunities are identified, the next step is integrating them into how you enter the market – from pricing and partner agreements to payment terms and financing structure.

Additional programs can further reduce costs

In addition to federal programs, provinces including Ontario, Quebec, Alberta, British Columbia and those in the Atlantic region also offer funding and support tailored to local industries. Sector- and industry-specific grants can further reduce costs, particularly in areas like innovation, manufacturing and clean technology.

With a growing number of programs available, identifying the right opportunities – and applying successfully – can be time-consuming. Through RBC’s partnership with GrantMatch, businesses can access support to identify relevant government funding opportunities and navigate the application process more effectively.

Learn more about the specific funding opportunities for your business. Watch this webinar on tapping into grants for Canadian businesses.

With a growing number of programs, identifying the right opportunities can take time. Your RBC International Trade Specialist can help you assess eligibility and align funding with your expansion strategy.

Build operational readiness to support growth

Expanding into a new market tests both your strategy and how well your operations can support it. From product readiness to team capacity, the ability to execute consistently in a new environment is what ultimately determines whether growth is sustainable.

Plan for product and market adaptation

But even with strong standards in place, product adaptation is often necessary.

For instance, changes may be required to meet local regulations or align with customer expectations in the target market. This can affect the packaging, labelling, pricing, measurements or instructions – and sometimes, the brand or the product itself.

While these adjustments can be both time-consuming and costly, building them into the plan early allows for more accurate timelines and budgeting.

A clear understanding of the regulatory environment is equally important. Investing in market research – customer needs, competitive landscape and local conditions – can put your company in a stronger position to enter new markets with confidence.

Don’t assume one market translates to another

Expanding into a new market – even a neighbouring one – rarely follows the same playbook. There are differences in consumer behaviour, infrastructure and operating conditions that can introduce unexpected challenges. First impressions count, so taking the time to understand these nuances can help your company establish credibility from day one.

Assess your capacity to scale

Your decision to grow may be based on demand, but your ability to support that growth depends heavily on your operational readiness.

Before moving forward, it’s worth taking a step back and asking a simple question: can your business comfortably handle what growth will require?

This often comes down to several key areas:

• Production capacity: Can your current facilities and processes handle increased demand?

• Inventory and storage: Do you have the systems and space to manage higher volumes – especially if timelines expand or demand fluctuates?

• Systems and tools: Are your internal systems (ERP, CRM, automation tools) equipped to support a more complex, multi-market operation?

• Supply chain resilience: Where are your potential bottlenecks, and how easily could disruptions affect your ability to deliver?

• Regulatory readiness: Are you fully prepared to meet the permits, certifications and compliance requirements needed to operate in your target market?

Preparing your team to support sustained growth

International expansion places considerable and ongoing demands on leadership and operational teams. Time zones, travel, cultural differences and increased coordination can stretch resources quickly. Taking stock of team capacity – and where additional support may be needed – can help maintain momentum over the long term.

Entering a new market is more than an extension of your business. It requires the ability to operate and grow in an entirely new environment.

5 key lessons for companies entering new markets

Vive Crop’s experience, along with insights from RBC International Trade Specialists, highlight consistent themes for companies preparing to enter new markets.

1. Understand your capital requirements. Growth across borders often requires more working capital than expected. Inventory, receivables, regulatory approvals and market development all create new financial demands. Planning capital needs early can help avoid pressure later.

2. Plan for operational complexity. Currency exposure, logistics, tariffs and regulatory requirements can all create friction if they’re not addressed early. Understanding these factors up front can help you plan around them rather than react to them.

3. Use the ecosystem available to you. Canada offers a range of tools and programs designed to help companies expand internationally. Tapping into these resources can help reduce cross-border risk and provide greater confidence when entering a new market.

4. Build your commercial engine. Owning your route to market – supported by strong sales, marketing and operations – can drive long-term revenue and create resilience.

5. Build strong local partnerships. Entering a new market requires expertise in regulations, distribution and customer relationships. Building a trusted network of financial and trade partners can help you navigate complexity and move quickly to opportunities.

Bottom line

Expansion begins well before the point of actually entering a new market. The companies that recognize this are better positioned to grow, adapt and compete over the long term.

Taking a proactive approach – one grounded in financial clarity, informed by market insight and supported by operational readiness – can make that path more predictable and more sustainable.

Once your foundation is in place, the next step is execution – how you structure deals, manage risk and bring your strategy to life in-market.