Foreign nationals with an entrepreneurial spirit may be a good fit for the Canadian Startup Visa. This path to immigration involves purchasing or starting a company with the intent to conduct the majority of your business in Canada.
Aside from figuring out whether your desired business is eligible on paper, there are other practical considerations. Here’s what you should be thinking about when buying or opening a company for the purposes of obtaining a startup visa.
What is a Startup Visa?
A startup visa is a fast-track program for foreign nationals who wish to purchase or start a business in Canada. Applicants who are accepted into this program will receive their permanent residency and will be permitted to operate their business on Canadian soil.
Selection criteria include meeting certain language requirements, obtaining support from a designated organization, and providing proof of sufficient funds to comfortably live in Canada.
How to decide on a business idea for your startup visa
The overarching goal is to come up with a business idea that will convince one or more investors to partner with you. If you want to stack the odds in your favour, take the time to consider these factors before presenting your idea to potential backers.
→ Market Demand
No matter how innovative your business idea may be, it needs to hold water in its intended market. Companies that would be incredibly successful in a large metropolis might not fare as well in a smaller or less urbanized city, for example.
Market research and demand forecasting will be crucial in figuring out whether your business will be successful in your desired location. Depending on the resources at your disposal, your market research approach can range from seeking advice from local contacts to conducting surveys via email, phone, and social media.
→ Cultural Compatibility
New immigrants to Canada need to navigate a cultural and social context that differs from what they have previously experienced – and the same rules apply to businesses. In fact, a study by Deloitte found that when companies come together during a merger or acquisition, cultural differences were at the heart of 30% of failed integrations.
In this way, companies and humans are very much alike: without cultural understanding, it’s difficult to get along. Think about local languages, religions, and even diets before you decide on a business idea, since certain incompatibilities might spell trouble moving forward.
→ Business Legality
It’s a good idea to take a deep dive into Canada’s corporate regulations as one of your first steps in the decision-making process. Different countries have different laws regarding how businesses must operate, so you’ll need to verify that your proposed endeavour does not fall outside of legal practices in your local market.
Canadian legislation includes governance regarding importing, exporting, and employee management, as well as industry-specific regulations. The province of Nova Scotia even has a free service that provides support to help business owners comply with local regulations that affect their operations.
→ Pricing & Competition
A simple way to start looking at potential pricing for your product or service is to read up on your competitors. Research local operators to collect information about how much it costs to do business in your desired market, and how many other companies just like yours exist in this space.
If the market appears quite saturated, think about how your business might be able to stand out. In terms of pricing, is there a lack of higher-end or budget providers? Has a certain niche not been explored in-depth? The more you know about direct competitors, the better equipped you’ll be to make critical decisions about your offering and pricing.
→ Selling Channels
Once you open up shop (and, realistically, even before you launch), you’ll need to understand how your target market researches and purchases your products or services. This information will help you establish the most relevant selling channels for your company, and craft a marketing strategy that pays dividends.
Where does your messaging need to exist? Which marketing channels are favoured in your industry? Will your website be an important selling tool, or simply a place for your brand to live online? Which social platforms should be leveraged? Answer these questions and you’ll be well on your way.
Research Now, Thank Yourself Later
Demand, compatibility, legality, competition, channels: these five factors are the driving forces behind any successful business. Before you get too attached to a business concept, you’ll need to compare it against the best practices discussed in this article. That way, when you do come up with the perfect idea, you can confidently move forward as a Canada Startup Visa applicant.
