Where your organization's head office is located constitutes a crucial strategic decision, and I’d encourage you to ask yourself the following questions:
- does the city you’ve considering as the location of your head office provide you with access to a skilled talent pool, close to top educational institutions?
- what are the real estate (lease vs. buy) and labour costs?
- would you be in proximity of your target audience, as well as suppliers, partners, and even one or more industry clusters?
- what are the taxes, local regulations, business laws, and compliance requirements?
- how economically stable is the city in terms of business growth, population growth, and unemployment level, and would you be able to secure any financial incentives, grants, or tax breaks from the municipality?
- would you have access to nearby major transportation hubs (airports, seaports, highways) for logistics, distribution and global connectivity?
- is reliable internet and communication infrastructure readily available?
- does the location enhance your firm’s credibility, brand image and reputation, and is it in a business hub or close to industry leaders? The latter facilitates networking, partnerships, and business development opportunities.
- what would be your quality of life and that of your employees in the city (consider the healthcare, education, safety, and cultural amenities, as well as the cultural fit)?
- what are the political and environmental risks in the city (this includes political stability, natural disaster risks, and other environmental factors can pose risks to business continuity and security)?
- how does the legal environment impact your business’ operations in the city (including intellectual property protection and dispute resolution frameworks)?
- if you are planning to sell internationally, have you considered regional market access, time zone, and other global strategy-related factors, as well as what international trade agreements the jurisdiction has which can benefit cross-border operations?
The location of your head office affects numerous strategic, operational, and financial aspects of your firm, in that it impacts your expenses, access to resources, market opportunities, regulatory compliance, and overall business success.
In my opinion, the following are the reasons why firms decide to locate their head offices in Toronto:
1. economic hub: Toronto is the financial and business capital of Canada, with a diverse economy that includes finance, technology, manufacturing, healthcare, education, and many other key industries. In terms of access to capital, the city offers excellent access to capital markets, banks, venture capitalists, and investors;
2. talent pool: the city has a highly educated and diverse workforce, with access to top universities and colleges producing skilled graduates (including the University of Toronto, York University, Toronto Metropolitan University, Tyndale University, Seneca College, Humber College, and many other post-secondary institutions), and its multicultural population offers a wide range of language skills (which can be useful for companies with international operations);
3. transportation and infrastructure: Toronto has a well-developed transportation infrastructure, including international airports Toronto Pearson Airport and the Billy Bishop Toronto City Airport, extensive public transit (including the Toronto Transit Commission subway, bus and streetcar system, UP Express train, GO Transit train system, VIA Rail train system), and a network of highways. From a logistics and distribution perspective, its central location in North America facilitates easy access to both Canadian and U.S. markets, and its location on Lake Ontario allows for ship access to the Atlantic Ocean via the Saint Lawrence River.
4. quality of life: Toronto is known for its cultural diversity, offering a high quality of life with a broad range of cultural, recreational, and entertainment options including the Fort York National Historic Site, Royal Ontario Museum, Art Gallery of Ontario, and AFROFEST. The city has a high standard of living, with good healthcare (including major hospitals such as the Toronto General Hospital, the Princess Margaret Cancer Centre, Mount Sinai Hospital, and Sunnybrook Hospital), and public safety standards.
5. regulatory and business environment: the country of Canada and province of Ontario generally offer a stable political environment, making it a reliable place for business operations. The province of Ontario has a relatively business-friendly regulatory environment, with various incentives and support for businesses. To learn how to register your business, apply for funding and tax credits, and get free help to start your business, visit the Government of Ontario website.
Overall, Toronto offers a vibrant business environment with advantages such as access to capital, a skilled workforce, and a high quality of life, but I’d encourage you to do your due diligence and thoroughly investigate whether it would be a good fit for your organization’s head office.
If you decide to proceed with setting up your head office in Toronto, feel free to reach out as we’d be happy to help you find the right space to buy (or lease) for your operations.