From the USA to Canada, North America is filled with lucrative opportunities waiting to be seized. It’s a hot spot for global expansion, and its move towards digital transformation means even more potential business growth possibilities. This article explores how you can leverage these nations’ prowess to increase your success!
Five Reasons to Expand into North America
1. North America is the most lucrative market in the world
North America is the largest and most lucrative market in the world. It has more area than all of Europe, and its population is approximately 30% larger than Europe’s. The United States has a population more significant than all European countries combined. The per capita income in North America is about 50% higher than in most other regions. In addition, approximately 85 million people speak Spanish as their primary language—more than any different language except English. This makes this region an ideal target audience for companies looking to expand into new markets with ethnically diverse populations hungry for products from around the globe.
2. The North American market is accessible and easy to enter
You don’t have to worry about marketing and customer service, as these areas are already mature in the North American market. You’ll find plenty of options for these services if you decide to work with a third-party provider.
Legal requirements in North America tend to be more straightforward than in other markets, so you don’t need to hire a team of lawyers or consultants to help navigate them. You can also set up your company using a local office space or even use shared office space. Many small businesses choose this approach because it’s very cost-effective and allows them to work remotely from home without disruptions.
There’s no need for massive hiring programs, either. When you expand into North America, most companies will only require one or two new employees (and maybe an administrative assistant) since it is such an established market with good infrastructure already set up around things like customer service capabilities and logistics management operations (which means shipping).
3. North America has a large number of multicultural consumers
In North America, the multicultural population is large and growing. The majority of people in both Canada and the United States are either immigrants or have at least one parent born outside of their country of citizenship. This means that many consumers have grown up with a solid connection to their ancestral culture and are more likely to be interested in products that reflect their heritage—ultimately making them more accessible than other regions.
This is so important that members of this demographic have a higher disposable income than other groups, such as millennials. In fact, according to Bloomberg data from 2015, Asian Americans had an average household income of $72,000 compared to $64,000 for white households in America alone!
4. North America has a stable political system and economy
North America has a more stable political system and economy than other regions. Traditionally, North Americans have had a high degree of trust in the government and its institutions. This is partly due to its long history of democratic practices but also because citizens can generally voice their concerns through regular elections and public forums. With so many countries in turmoil around the world today, this stability can provide businesses with a reliable environment for expansion into new markets.
Another benefit of expanding into North America is that the region boasts one of the strongest economies today—even stronger than Europe or Japan (according to IMF data). It’s expected that this strength will continue for years to come, thanks largely to its young population: North America has nearly 35% fewer people over 65 than Europe, only 6% compared with 15%. A younger demographic means greater spending power and less debt burden per capita—factors contributing greatly toward economic growth potential over time.*
5. North America has a wealthy population with high discretionary spending
North America is home to many affluent consumers with increased discretionary spending. North America has the highest household income and is second only to Europe in per capita disposable income, meaning there’s money to spend on luxury goods like yours.
The US, Canada and Mexico account for nearly 80% of all luxury goods sold worldwide; globally, there are over 25 million millionaires (or individuals earning over $1 million), and they’re not afraid to spend their money! These wealthy individuals have higher spending power than those in other regions. They also tend to be more brand loyal: according to Forbes Magazine, American consumers buy 65% of all products sold domestically, while Europeans only purchase 40%.
More reasons to expand into North America.
- North America is the most lucrative market in the world. While China may have a more significant population than the United States, it’s important to note that the North American market is far more accessible and easier to enter. In fact, according to Foreign Direct Investment magazine, of all global regions, 61% of foreign direct investment (FDI) flowed into North America in 2014—the highest percentage of any part worldwide. This means that your business can grow faster here than anywhere else!
- The North American market has more multicultural consumers than any other place on Earth. With nearly 20% of its total population made up of minorities who speak more than 100 different languages and dialects between them, this diverse group represents an incredible opportunity for businesses looking to reach new customers with unique products or services—and if you don’t already offer products or services geared toward multilingual speakers, now’s your chance! By providing bilingual options now while they’re still relatively rare among competitors’ offerings (or none at all), you’ll be able to capture their attention and build brand loyalty before anyone else catches on: think about how long it took Starbucks® outlets across America before people realized they could order their coffees in multiple languages!
- The political system and economy here are stable–you can rely on consistent policies from year to year without worrying about sudden changes like those seen recently under Presidents Bush or Obama; moreover, our dollar remains strong compared to European currencies such as EuroLand’s Euro Dollar coin (EUR). All told then: stability equals security for investors like yourself–and why wouldn’t you want that kind of protection? After all, isn’t safety first when investing time/money into something new?
The three most popular countries are profiled below:
The United States of America
The United States of America is a federal republic of 50 states, a federal district, five territories and several uninhabited island possessions.
The country is a political and economic global power member of the G20, NATO, OECD and WTO.
The US has the most significant trade deficit in the world, and its external debt is the largest. Its currency is also considered to be one of the reserve currencies for international transactions.
Canada
Canada is a member of the North American Free Trade Agreement (NAFTA), which is particularly well-suited for companies looking to expand into the North American market. Canada has a low corporate tax rate and a good reputation for the legal protection of intellectual property rights. In addition, Canada is a member of the World Trade Organization (WTO), making it easier for Canadian companies to sell goods abroad.
Canada is one of the most popular destinations for businesses, with over 1.3 Million registered companies in Canada in 2022. In addition, Canada has a high standard of living and a strong economy, making it attractive to immigrants and ex-pats.
Mexico
Mexico is the third largest economy in Latin America and has a strong economy, with a GDP of $1.4 trillion. The country’s population is estimated to be over 122 million people. Mexico has a diverse workforce, an educated population and a well-developed manufacturing sector that can provide companies with high-quality products at competitive prices.
In addition to its size and market potential, Mexico offers foreign companies an opportunity for growth through free trade agreements with several countries including Canada, USA (NAFTA), Israel, Chile, Bolivia and Colombia – as well as access to other markets through non-member trade agreements such as Mercosur (Brazil/Argentina/Uruguay) or MERCOSUR + Venezuela + Paraguay).
Bottom-Line
In conclusion, North America is a great continent to consider for international expansion. The vast resources in the United States and Canada diversify business opportunities and enhance the potential for success. Moreover, the bolstered infrastructure allows businesses room to grow with access to global markets with seemingly endless potential. With solid standard law systems and healthy economies, North America is the gateway for growth and profit for many established businesses looking for that next level of expansion. Investing in North America carries considerable risk; however, with careful decision-making, diligent oversight of assets during evolution, and embracing significant changes within this ever-shifting landscape, a successful venture into North America could be achieved. International businesses can leverage North American markets to build solid global brands from which maximum value can be created. If you are ready to take your business to an international level, get in touch today so we can start planning your journey down this path of success together.
Who am I?
I am Dotun Adeoye, a Business Growth Strategist & Author of the 5 Pillars of Business Growth.
I’ve built up my experience via serial entrepreneurship, consulting leadership roles in business growth, business development and product innovation in large companies worldwide in the last 30 years.
Today, I consult with large businesses on how to sustainably grow their businesses, sustain infinite growth, ensure business continuity and achieve a legacy.
Hire Dotun Adeoye to Speak Virtually or In – Person at your company’s event to cover this or other topics. You can also get in touch via +44 203 097 1718 or dotun at dotunadeoye.com.
