While working with early stage food businesses to strategize and plan for growth, we’ve learned that the most common questions entrepreneurs have concern export and venture capital.
Last week we read two articles that make us worried about how changes in the US government will impact both of these topics:
- Export to the US: The Globe and Mail ran an article about the US Republican Party’s plan to implement a ‘border adjustment tax’ which, if passed, will effectively impose a 20% tariff on Canadian goods entering the US. This tax will offset the benefit of our very low dollar and make that market far less enticing for all Canadian manufacturers.
- Investment: Earlier in the month, Food Business News published a case-study style article that analyzed what attracts investors to food companies; it’s a long read but offers solid insights about the challenges food companies face as they seek investment. We recommend reading the full article; however, we can tell you that the key take away here is that investors expect companies to be lean and cut costs but are really looking for firms who show consistent volume growth.
We realize that food entrepreneurs seldom have time to read and analyze every important article about growing their businesses. So, to help our clients face international and sector challenges, Food Starter is now partnering with the Toronto Region Board of Trade. Throughout the year, we’ll be nominating appropriate companies for the Trade Accelerator Program (TAP), a 90-day hands-on experience that helps expanding companies to take advantage of global expansion opportunities. Email us if you think your company is ready to be considered for TAP!