As a Canadian business owner or entrepreneur, you’ll no doubt always be looking for new ways to take your business to the next level. Indeed, you may have paid for a marketing campaign to get more people to check out your website, launched new products or acquired a competitor to boost your market share and customer base. One option that you may not have considered yet is international expansion – but a growing number of Canadian business owners are doing so.
In this article, we round up some of the reasons why Canadian businesses are flocking to to Ecuador, and share tips on how you too can enjoy an overseas expansion to boost profits.
An introduction to Ecuador
Situated on the North West coast of the Southern American Continent, Ecuador is a country like no other. Despite being one of the smallest countries in South America, Educador is home to more than 14 and a half million people – a figure that’s climbed more than ten million since the 1960s. With a GDP per capita of 5,968.98 US dollars and unemployment figures sitting at 4.8 per cent, the country has a healthy economy when compared to some of its neighbours, but the good news is that average wages remain low at around $437.44 US dollars per month, meaning cheap labour, which can be utilised to grow your business in Ecuador and around the world.
Unlike some South American countries, Ecuador is made up of multiple cultures. Its official language is Spanish, but Quichua – which is an Incan language – is spoken as a first language by the country’s Indian population. English is the most spoken foreign language, and is the first language of the tourism sector, making it easy for business owners and entrepreneurs to visit the country and get by without having to learn much Spanish. Of course, should you choose to settle within the country and hire people to launch a new business, you’ll need a native speaker.
There are a whole host of reasons why businesses are flocking to Ecuador, including that the country has vast oil and high mineral resources, that agricultural resources are diverse, and that the cost of energy is subsidised, whilst transportation and labour remain relatively low. What’s more, the country makes a great base for those wishing to serve the Andean Market thanks to its geographical location, and an additional bonus is that the official currency of the country is the United States Dollar, making conversions and exchange fees much more manageable.
The benefits of international expansion
We could write for hours about why businesses are choosing to expand internationally; one of the biggest reasons, however, is because of a growing number of online businesses such as Amazon, which is now responsible for an eye-watering 50% of all ecommerce sales. In order to stand out and remain competitive, both in Canada and around the world, it’s essential that you take a global standpoint and think about ways in which people around the world may find use in your products and services – and offer those services at a price that suits the market.
Another reason why international expansion is popular is ease. Indeed, with ecommerce allowing businesses to set up overnight without having to invest in a physical base within a country, there’s now no need for multi million dollar investments, although there are still some benefits to having a physical presence in the country you’d like to expand into. Indeed, doing so offers benefits like a closer relationship with international staff, the ability to develop effective marketing campaigns and much more – and businesses offering company incorporation Ecuador-based make all of that possible for a low fee. Yes, it’s true that there is some risk involved in an international expansion and forming a company in a new country, but those risks are much smaller than they once were, and can be managed by those a strategic mindset.
Countries such as Ecuador are also enjoying an improved infrastructure, making them safer than ever for long-term investments. With road networks, internet speeds and phone coverage improving year and year, and living and working conditions for employees also making great strides, Ecuador is now a country any professional would be satisfied to live and work in – and new opportunities and improved education will only make those professionals even happier.
The drawbacks of international expansion
As we’ve already highlighted, there are some drawbacks – or risks – associated with businesses expanding in territories such as Ecuador. As with any major business decision, you should weigh up the opportunity costs to determine whether or not Ecuador is the best option for you, but with relatively low barriers to entry, you should find that it’s an affordable risk worth taking.
Other things to bear in mind are language barriers and translation. Ideally, you should look to employ a local expert who can speak the language, help assist in your recruitment and work on marketing campaigns and business development. As we’ve already discussed, average salaries are much cheaper in Ecuador than they are back home in Canada, so you should be able to find an experienced professional to assist in your company growth and expansion without hassle.
Finally, there’s the issue of management. You may decide to temporarily move to Ecuador whilst the initial expansion takes place – but if you’re not in Canada, who will be responsible for the day to day running of your business when you’re not around? Ironing out these small issues before you go full steam ahead with an expansion is the best idea – and solutions are very easy to find.
The truth is that there’s a whole world out there, and that countries such as Ecuador can give businesses like yours access to truly untapped potential. Being the first Western business to enter the market can give you a whole host of benefits and opportunities, so it’s important to act fast if it’s something you’re interested in doing. Whatever your plans, we wish you the best of luck and hope that you can translate the success of your Canadian business into Educador.