Product or service readiness

Launching in a new market often requires upfront spending on production, inventory, marketing, travel, or digital platforms. Customer payments, however, may be delayed. Export financing and insurance tools can help you bridge this gap and reduce financial risk.​

• How much working capital is needed to fund production, inventory, and receivables for your launch?
• Which payment methods and terms can you offer while protecting cash flow?
• Do you need guarantees, insurance, or other instruments to support bank finance?
• How will financing costs, fees and exchange rate risks affect your margins?​

When you are ready to launch in a new market but lack the budget to do so, you may be able to access cost‑shared funding through CanExport SMEs (Small and medium-sized enterprises) program with delivery support from NRC-IRAP. This program can reimburse a portion of eligible international business development expenses such as; 

• in‑market travel
• trade events
• adapting promotional materials or websites for specific markets
• market research
• certain advisory services

For additional support programs across federal, provincial, and territorial governments, you may refer to the Business Benefits Finder.

When it comes to financing, Export Development Canada (EDC) can support exporters by providing working capital loans, guarantees (including the Export Guarantee Program), trade credit insurance, and bonding. These tools help protect against non‑payment and performance risks and can help secure bank financing. EDC may also provide buyer financing for some foreign customers. 

Similarly, the Canadian Commercial Corporation (CCC), Canada’s government-to-government contracting agency, can support financing in certain situations. Specifically, CCC can bid on foreign government tenders on your behalf and then sign the contract with the foreign government. It also gives the buyer a Government of Canada performance guarantee. This alone can make some banks and EDC more willing to finance a project. EDC complements this by offering trade credit insurance that protects you against nonpayment by foreign buyers. It can also make it easier to obtain working capital financing from your bank (secured against your insured receivables).

Currency volatility can significantly affect your margins and cash flow. Consider how exchange rate movements may impact your pricing and profitability when planning your launch.

Options to manage currency risk include:

• forward contracts that lock in exchange rates for future transactions
• natural hedging by matching foreign currency revenues with foreign currency costs
• pricing strategies that share currency risk with customers

Work with your bank or financial advisor to determine which approach fits your situation and risk tolerance. 

The Financial planning workbook provides templates for developing 12‑ to 24‑month export budgets and cash flow projections tied to your launch plan. 

Finalizing your offer means confirming that everything needed to sell, deliver, and support it is ready, documented, and tested, at least on a small scale. This helps reduce last‑minute surprises with specifications, packaging, documentation, or service delivery.​

• Review product or service specifications against regulatory requirements and buyer expectations.
• Confirm packaging, labelling, and instructions meet local requirements.
• Defining success criteria for initial shipments or pilot projects (for example, on‑time delivery, defect rates, customer satisfaction).
• Put simple processes and tools in place to capture and act on early customer feedback.
• Confirm that your final offering remains competitive against in‑market alternatives on price, quality, certifications, and service. Use competitor research from your planning stage to support this review.

Many products require third-party testing, certification marks or type approvals before they can be legally sold in target markets.

Be aware that:

• certification typically takes three to six months or longer
• costs can range from thousands to tens of thousands of dollars
• delays in certification can postpone your entire market entry

Each market has its own rules on product standards, labelling, customs, tax, Environmental, Social, and Governance (ESG), requirements labour, and data privacy. Building compliance tasks into your launch plan helps you prevent delays, penalties, and reputational damage.​

Some compliance obligations are mandatory. For example, certain markets and supply chains require environmental, social, and governance (ESG) reporting, forced labour, due diligence, or human rights audits as conditions of market access or procurement.

The ESG and Sustainability Compliance Guide identifies where these requirements apply.

• Product and sector requirements (standards, certifications, health and safety rules).
• Customs, tax, and trade control rules affecting your shipments or services.
• ESG requirements, forced labour, and human rights due diligence.
• Data privacy, cybersecurity, and digital commerce rules if you use online channels​.
• Documentation on product traceability and circularity, specifically plans to ensure products stay in use longer and can be repaired or recycled.
• Basic international tax considerations, such as indirect taxes (VAT, GST), permanent establishment risk, and withholding taxes, that may apply when you sell or deliver services in‑market.

 Begin compliance tasks as soon as you select your target market. Product testing, certifications, regulatory approvals, export permits, and ESG audits, can take three to six months or longer.

The Compliance Checklist provides a structured list of legal and regulatory items to review before entering a market, so that you can identify gaps and assign responsibilities. 

The Regulatory Compliance Checklists support ongoing obligations and monitoring tasks once you begin operating in-market. 

For specialised topics, consult:

• Sanctions and Export Control Compliance Guide
• ESG and Sustainability Compliance Guide

Supply chain and distribution decisions determine how reliably and efficiently you can deliver to customers and respond to disruptions. Decisions about suppliers, logistics partners, inventory locations, and in‑market channels affect cost, resilience, service quality, and carbon impact.​

• Which freight forwarders, carriers, and, where relevant, customs brokers you will use.
• How you will route shipments, which transport modes you will use, and how you will manage transit times.
• Where inventory will be held and how returns will be handled.
• Which inventory management strategy fits your product and market, such as consignment arrangements, bonded warehousing, drop shipping, or just-in-time delivery, and how each approach affects cost, cash flow, and risk.
• How after‑sales service will be delivered.
• How you will build resilience through backup suppliers, alternate routes, or diversified partners​.
• Who bears the risk of loss or damage in transit and who insures inventory held by distributors or other intermediaries (responsibilities should align with your Incoterms® selection and contract terms).
• Which Incoterms® you will use.
• Whether you clearly understand who is responsible for each logistics step (pickup, export clearance, main carriage, import clearance, and delivery) and for insurance and risk at each stage.

When setting up or reviewing your supply chains, pay attention to geopolitical and trade policy developments that increasingly affect sourcing and market access decisions.

Recent examples include:

• trade tensions between major economies and their ripple effects on global supply chains
• regional content requirements under trade agreements such as the Canada-United States-Mexico Agreement (CUSMA)
• buyer demands for supply chain diversification away from single-country concentration, often described as nearshoring, friendshoring, or de-risking

Consider whether your supply chain design could expose you to sudden tariff changes, buyer restrictions, or access limitations. Build flexibility into your sourcing and logistics strategy where practical.

Before you finalize supply chain and distribution details, confirm how you will enter and sell in the market. Entry method choices affect control, risk, cost, speed, and operational requirements.​

Common market‑entry methods include:​

• Direct exports: You sell directly to customers in the foreign market. For products, you ship and invoice them; for services, you negotiate and deliver contracts yourself. This can include working with an international sales agent. This method generally provides higher returns and stronger customer contact but requires more in‑house capability and time to build and manage the relationships.​
• Indirect exports: You sell to an intermediary, such as a foreign distributor or trading house, that resells to end customers. This approach may be simpler for new exporters, but it usually reduces margins and control. That said, a local distributor can provide essential support and infrastructure. This may make sense when you need a ​partner in the market. 
• Partnerships: You partner with a local firm whose position complements yours, to share risk, resources, and market access (for example, joint ventures or strategic alliance).​
• Acquisitions and investments: You acquire or invest in a local company to gain faster access to customers, capabilities, and licences. This approach can accelerate growth but requires significant capital and risk management.​

When choosing an entry method, consider:​

• customer expectations in your sector (do buyers prefer dealing with local distributors or directly with producers?)
• your internal capability and willingness to manage foreign operations
• regulatory, tax, and accreditation requirements that may favour local partners or entities
• how quickly you need to establish a presence and how much control you need over pricing, brand, and service

Our Trade Commissioners on-the-ground in over 160 cities worldwide can share what entry methods typically work best for your sector and market. They can also provide feedback on your assumptions and, where appropriate, point you to local associations, or share service provider lists that can help you implement your chosen approach.

You can capture your chosen entry method and rationale in the Export Plan Template  and align supply chain and partner decisions with it.​

For many new exporters, using intermediaries can be the most practical way to enter a market. The right intermediary can save time and money, but they need careful selection and management.

Common intermediary types include:​

• Agents and representatives: Agents typically secure orders from foreign customers in exchange for a commission. A representative usually focuses on a specific territory. They generally do not take ownership of the goods but may be authorized to negotiate or conclude sales on your behalf.  This approach is often less costly than building your own sales force. It usually gives you more control over pricing and customer relationships than working through distributors or some types of representatives
• Foreign distributors: Distributors buy and resell your product or service locally. They often set the final selling price and manage financing, inventory, after‑sales service, and warranties. This can give strong local presence but may reduce margins and direct control over brand and customer relationships.​ Working with distributors whose portfolios complement your offer can give you access to pre‑existing networks and client lists. 

• Trading houses: These domestic intermediaries may market your goods or services abroad and can often handle market research, transportation, trade shows, and documentation. Some buy your products outright while; others sell on commission.​

• Speak with multiple candidates and check references.
• Confirm they actively serve your target segment.
• Be cautious about granting exclusivity, especially in a new market, as it can limit your flexibility if the relationship underperforms.
• Use trial periods or limited‑term agreements before granting territorial or product exclusivity.
• Clearly document roles, territory, performance expectations, reporting, branding, and termination conditions.
• Seek professional legal and tax advice as needed​.

Your contract should also include clear exit provisions, such as specific performance milestones with consequences and probationary periods for any exclusivity (for example, 90 days, 6 months, or 1 year). This gives you room to adjust if the relationship does not perform as expected.

Our regional Trade Commissioners in Canada and/or our Trade Commissioners in-market can often help you conduct basic bona fide checks on potential partners or distributors. We may also maintain lists of known, legitimate actors, or associations in your sector that you can contact when shortlisting candidates.

Before finalizing your choice of intermediaries or logistics partners, you should also plan at least one in‑market visit that includes warehouse, facility, and retail or end‑user site visits. Seeing how your products move through the local value chain and meeting operational teams face‑to‑face can highlight practical constraints, undocumented work‑arounds, and relationship dynamics that are hard to detect remotely. These visits also demonstrate commitment to your partners, which can improve priority, problem‑solving, and transparency when issues arise.

See the Market Entry Mode Decision Matrix for a side‑by‑side comparison of when direct exporting, intermediaries, partnerships or investments best suit your situation.