Understanding the sales landscape in international markets is critical for the growth of Canadian companies. That’s why Communitech, MaRS and the Toronto Region Board of Trade (World Trade Centre) are partnering on a four-part series of insightful talks called the Global Growth Series.

For the inaugural session, Canadian experts gathered in Toronto to shed light on the nuances of navigating the U.S. sales terrain. 

This session, held Oct. 5, was moderated by Mark Elliott, Founding Partner at Venture Accelerator Partners and featured panelists Humera Malik, CEO of Canvass.io, Brett Turner, Senior Partner at QA Consultants, and Bill Macheras, Manager of Info-Centre and Trade Commissioner at Global Affairs Canada.

Navigating the sales landscape of the U.S. from a Canadian vantage point presents a journey of decisions, strategies and potential pitfalls. The wisdom shared by the panelists offered a beacon for businesses at this crossroad. 

Diverging business mindsets

Malik crystallized the underlying contrast between the buyer journey in our two neighboring nations. "Americans work with the art of the possible – what can this product do for my ROI?” she said. “Canadians work with the art of probability – where can it fail?" 

Hiring: More than just salaries

Responding to the moderator’s query about how to build a better U.S. workforce, Turner emphasized the importance of offering competitive benefits and health insurance to U.S.-based employees, especially with the low unemployment rate and high demand for skilled talent south of the border. 

"It's not just the money,” he said. “If you want to get top-level salespeople, you've got to have several other sweeteners in the pot." 

Malik stressed the need for thorough research, planning and identifying state-based regulations while establishing a local presence. 

"You have to do your diligence, and you have to do your research,” she said. “You’ve got to get the right outsourcing partner and then build a business. We use Communitech (Outposts) to hire people anywhere in the States, and then (the Outposts team) can figure out all the payroll and health-care plans so we don't have the hassle of that.”

Support from Canada

Diving deeper into the strategy, Malik shared her own hands-on experience. 

"Okay, where are my customers? Which states?… I made sure that there was an investment that the Canadian government was making with me."  

She emphasized the Canadian ecosystem and its willingness to help. The Canadian Trade Commission, for instance, offers invaluable support, allowing businesses to gain access without significant investments.  

"One of the things we took advantage of was the Team Canada Pavilion at major trade shows,” Malik said. “We didn't have to buy a booth. You could just be in the centre of all of these events.”

Physical presence: A necessity or choice?

Macheras pointed out the conditional nature of establishing a U.S. team, emphasizing that business volume and sector are pivotal. Some industries, and some U.S. government contracts, mandate that you have a physical presence in the U.S. 

He shed light on the financial intricacies of U.S. - Canada business, noting the tax treaty between the nations. 

"If you're making $50 million in revenue in the United States, you report it in Canada," he said. 

However, the decision to incorporate in the U.S. is multifaceted. Beyond financial considerations, businesses must also heed sector-specific requirements, like the defense sector's preference for a local entity.

Turner also weighed in: "If the customer in the U.S. accepts that the person they're paying for can work remotely, you have a tremendous advantage versus your competitors in the U.S.," he said. 

He further emphasized the cost advantage of Canadian talent, noting that "generally speaking... talent in Canada is quite a bit cheaper than talent in the U.S."

These insights drive home a compelling strategy for Canadian businesses: build a U.S. facing sales team to engage with American customers, while anchoring the technical and delivery operations in Canada to leverage the cost benefits and access to great talent. This approach not only ensures a robust return on investment but also positions Canadian companies favorably to win deals over their U.S. competitors.

There are three more sessions in the Global Growth Series.  Click below to register: 

Agenda for each:

  • 3:00 p.m. - Networking
  • 3:30 p.m. - Panel and Q&A
  • 4:30 p.m. - Networking

For more information, email us at outposts@communitech.ca.