Ready to diversify? Checklist for growing into new markets

While trade diversification can create new opportunities for your company, it’s important to plan so you can better manage risk and expect the unexpected. We can guide you through the process of entering new markets and connect you with the programs and services that make it possible. 

Use this checklist to see if your business is ready to diversify. If you can answer “yes” by adding a checkmark to most of the statements below, you’re well positioned to start exploring new markets. 

• We have stable domestic or existing export sales to build from.
• Our production capacity can meet increased demand without sacrificing quality.
• We have the financial resources (cash flow, credit, insurance) to support market entry costs.
• We can dedicate staff time to research, travel, or manage international business development activities and relationships.

• Our product/service is competitive beyond our current markets.
• We can adapt packaging, labelling, or standards to meet foreign regulations.
• We have intellectual property (IP) (patents, trademarks) protected or a plan to do so.
• We can adjust pricing to account for logistics, duties, and currency risk.

• We have done some market research to identify 1-3 potential new countries or regions.
• We understand cultural, language, or consumer differences that might affect sales.
• We know the regulatory environment (tariffs, certifications, trade agreements) in target markets.
• We have identified potential distribution channels (partners, e-commerce, and local reps).

• We plan to explore financing, insurance, and payment tools like letters of credit or EDC insurance to help reduce risk as we expand into new markets.
• We track currency fluctuations and have a plan for managing them.
• We have contingency plans if a market doesn’t work out (ability to pivot).

• We have discussed our plans with a Trade Commissioner who can help guide us.
• We have access to other advisors or mentors who can help provide information in a new market.
• We know about government programs (Trade Commissioner Service, Export Development Canada (EDC), Business Development Bank of Canada (BDC)) that can help with trade diversification. Discover resources to Export from Canada from our partners.
• We are open to joining trade missions, virtual events, or business delegations.

You’re ready to take the next steps. Start exploring new markets and consider pilot exports to test demand.

Next steps:

• Use our market selection tools to identify strong opportunities.
• Connect with a Trade Commissioner for tailored insights and introductions abroad.
• Explore programs such as CanExport SMEs to support international business development.

You’re on the right track, but you’ll need to strengthen certain areas, like financing, research, or product readiness, before expanding further. 
 
Next steps:

• Talk to a Trade Commissioner in Canada to identify gaps and connect with specialized partners.
• Consider export training to strengthen your fundamentals.
• Review our Step-by-step guide to exporting or guides on building financial capacity, researching markets, and adapting products.
• Discover domestic programs and services offered through the Business Benefits Finder.

Focus on building a stronger foundation locally or consolidating your success in your first export market before expanding. 
 
Next steps:

• Review the “Getting started: Assessing your export potential” section of the Step-by-step guide to exporting.
• Discover programs and services offered through the Business Benefits Finder.