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Is your Small Business at Risk?

Guest post by: Gregory Kopchuk

Article Overview: Six key tips on how to weather the fluctuating Canadian dollar

Is your Small Business at Risk?

Is your Small Business at Risk?

Possibly, according to the Conference Board of Canada.

And why? The usual culprit: that pesky Canadian dollar, doing a little better than some of us would like.

Don't get me wrong: a strong Canadian dollar is, generally, good news. But when it fluctuates, as it's doing now, it's not as easy for small companies to weather any minor storms, the way bigger companies can. Say you have a company that mostly exports to the US-when the dollar is stable, your US business is too. But when your US customers see the Canadian dollar slowly gaining strength.....they might consider moving their business elsewhere.

So: how can a small to medium sized company prepare for dollar fluctuations? Here is what I tell my clients:

1) Be the best. When you're the best there is, price ceases to be an issue.

2) Review everything you do. Are you as lean as you can be? Or are there people in your firm reinventing the wheel? Do you have 3 people doing the work of 2?

3) Are you doing everything you can to please your customers?

4) Make sure there is no fat in your prices. I'm not telling you to kill your bottom-line. I am saying that if the Canadian dollar continues to rise against the US dollar in value, you will need to keep your prices competitive. The old glory days of easy export sales are over.

5) Listen to your coach. It's during the tough times that I find clients tend to get stubborn, & get stuck in the patterns that land them in tough spots to begin with. Coaches are invaluable precisely because they have an outside perspective. If they see you a certain way, chances are customers do too. If they have suggestions, follow them!

6) Keep focused & stay positive. A little coffee shop in Ottawa recently opened their 10th location, despite the fact that all of their stores are close to a Starbucks, Second Cup or Tim Horton‘s, sometimes all three. How do they do this? Because they work hard. And they're the best!

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Article Tags: business, canada, canadian dollar, economy, Small business, usa



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