Wise business leaders are constantly searching the globe for growth opportunities. Canadian businesses preparing to expand have good reason to rank the US at the top of their lists.

The US offers advantages not available from many locations overseas, starting with a population that's nearly 10 times the size of Canada's and uses the same business models, speaks the same language, has a stable political climate and quality labour assets.

Contract Pharmaceuticals Ltd., a contract manufacturer of prescription and over-the-counter pharmaceutical products, expanded its operations into Buffalo, NY in 2005.

We chose a 415,000-square-foot facility on a site acquired from Bristol-Myers Squibb. Our expansion to the US has attracted new business from both new and existing customers, requiring a 20% increase in employees.

The upside was immediate�an instant boost to capacity and no more currency exchange risk. Add US domestic shipping, one set of regulations and the customer appeal of "Made in the USA" labelling.

The key to achieving success is a well thought-out, strategic plan that incorporates the following six factors:

• Take advantage of local experts. Economic development organizations throughout the US offer Canadian companies a range of expert advice free of charge. Some groups have representatives in Canada. This arrangement provides a single point of contact to experts in every key area: site selection; human resources; accounting; taxation; insurance; legal issues; patents and trademarks; financial services; real estate; utilities and corporate incentives. They also have connections to local agencies, suppliers and customers.
• Ensure your management team has easy access to your new location. Whether your business is big or small, critical members of your management team must be able to reach your US site easily for face-to-face coaching and knowledge exchange. Ultimately, this helps strengthen both your Canadian and US operations.
• Structure your company to gain the best tax and financial advantages. Significant government tax incentives exist to attract Canadian companies to the US. How your company is structured�as a branch, subsidiary, joint venture, other partnership, or limited liability company� will impact the available incentives. Your organizational structure also impacts other forms of financial assistance such as capital and training grants. A US economic development group can guide you through the application process and recommend a plan for maximizing incentives. In addition to state benefits, they can direct you to incentives available through the local utilities that will offset some start-up and operating expenses.
• Ensure your essential business resources are available. Determine, along with your US economic development contacts, where your transportation, distribution and communications infrastructure requirements are best met. Likewise, conduct due diligence on the initial and continued availability of a quality workforce.
• Choose a location your employees will want to call home. Employee satisfaction is enhanced when staff can live well where they work. Reduced commute times and reasonable cost-ofliving offer excellent quality of life. Look for signs of investment such as reputable schools and property development.
• Learn from other successful Canadian companies. Your economic development contacts provide access to fellow Canadians that have been through an expansion into the US. Gain insight into their challenges and the benefits they have accrued.

The trend to expand to the US is gaining momentum. According to the Regional Institute at the University of Buffalo, nearly 500 Ontario companies are presently invested in New York State. If you're seeking growth opportunities outside Canada, be sure to look south of the border first.

John Ross