Exploring Business Opportunities - Small Business BC

Replace ImportsImport replacement means finding a productor service currently being imported intoCanada from another country, then replacingthe imported item by producing a similarproduct locally.Some Examples1. A line of farming irrigation equipmentwas imported from Europe. A B.C. firmbegan making similar equipment as animport replacement in the local market.2. Propellers for ultra-light planes wereimported from the U.S. A B.C. companybegan manufacturing the propellers toreplace the imported parts.3. A Victoria restaurant that purchasedprimarily imported produce initiated apartnership with local farmers, and nowoffers mostly local produce in its menuitems.4. A Canadian company supplies the softdrink and food processing industries withan alternative to imported cane sugarusing high fructose corn syrup.How To Do It1. Identify a product or service importedinto Canada that you could producelocally. To find such a product or service:• Examine import publications andimporters’ catalogues;• Contact purchasing agents to identifygoods that are purchased by localindustries; and• Examine the products around you tofind out where they are made.2. Determine your areas of expertise, andthen analyze imported products related toyour talents to find out which could beproduced locally.3. Find out which imported products withinyour fields of expertise are too expensivebecause of shipping costs or tariffs.Determine whether you could producereplacement goods locally, and lower thecost to customers.4. Identify and talk to potential customersfor the product or service you areconsidering, to determine whether there isa market for a locally produced item.Check this out thoroughly, as potentialcustomers may continue to buy theimported item if the local item differs insome way-for example, in quality, colouror construction material.Key Questions• What imported product could I replace byproducing it locally?• Have potential customers said they would buy alocally made product?• Have I thoroughly researched the product orservice I am considering, to make sure it equalsor surpasses the standard set by the importedarticle?• Will producing the product or service locallyresult in cost-efficiencies for the customer?• How will exchange rates and labour practicesrelated to the imported product affect myprofitability?solutions for small business exploring business opportunities 23