5 tips for doing business in the Canadian north

Doing business in Northern Canada is challenging for any entrepreneur. Cultural, political, logistical, rare housing and harsh climate factors often discourage many in venturing North of the 55th. Such factors, once correctly managed, added to careful planning and assistance from experienced councilors in all business aspects of Canada's North, can create a great business opportunity for any business looking to expand in new markets, particularly in the construction, housing and services sectors.
Here are 5 tips, from a legal perspective, in having great success when doing business north of the 55th, particularly in Nunavut, Nunavik and Labrador.

1- Plan your venture with care
Planning is an essential success key for any entrepreneur when comes the time to wonder in the 'wild wild' north. Plan your trips, your business set up, in brief a business plan with a northern approach should be drafted, closely executed and when things go wrong: Adapt!

2- Choose a local partner...wisely
Choosing a local partner helps the entrepreneur in developing its new northern market, while also diminishing the risks of any cross cultural differences in the way business is done in the North. In addition, local partners should be actively involved in managerial type decisions and not simply constitute a "front" for obtaining government or private contracts. This will most certainly help you when comes the time to ask for a local permit or obtain some additional delays in executing a given project. Don't forget, the northern communities have close ties and basically everybody knows everybody. You can build a stellar reputation but you can also ruin your existing one very fast. So watch out for any wrongdoing. Do some basic due diligence on your local partner before hiring them or signing a partnership agreement.

3- Invest and spend time locally
In my experience I've seen many entrepreneurs try but few succeed. One of the differences I've noticed is that the ones who succeeded often spent the necessary time in the north and the community or hamlet where they wished to get involved. They've learned and educated themselves about the Innu or Inuit culture and by making a great deal of efforts in getting to know their new northern environment. This of course implicates investing funds in traveling, spending precious time away from current or ordinary business activities and doing some important PR activities in the North, such as participating in northern trade shows, mining symposiums and northern focused conferences.

4- Sign a good partnership agreement, with a long term goal!
Signing a well balanced partnership agreement with your local partner is of the essence. Notwithstanding the form it takes, (shareholders' agreement or joint venture agreement etc.) great care should be given in the fact that the agreement should comply with local laws and also local business initiatives that can help you obtain valuable points or credits when the time comes to bid for obtaining government contracts or other large corporation private contracts. Needless to say that the time you invested in building your relationship with your local partner should save you time and money in the negotiation process of your partnership agreement.

5- Finally, follow up on your promises and deliver!
Having good intentions simply does not cut it any more. Whether up north or here in the south, as northerners call it, delivering the promises you've made tells the other party who you really are. So put any business rhetoric on the sidelines, keep it simple and move forward with a well executed plan of establishing your business up north, whether in Nunavut, in the Nunavik region of Quebec or in Labrador. With all that in mind, good luck with your venture.

Don't forget to consult with an experienced attorney, consultant or CPA that has significant business experience in Canada's north before launching yourself. It may cost you some dollars, but they can save you a lot by preventing costly mistakes and unplanned consequences for your business.

So jump on it and good luck with your venture!

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