Hello Everyone,
Today I would like to shed some light on one of the significant events of yesterday. That event being the continued decline of the US Dollar. What does this mean to the small business. Now before I dive in to “my opinion”, let me clarify that I am not an economist. This is my opinion from a layman’s stand point. Please feel free to comment.
The very long and short of the decline of the dollar that I feel (as well have read on other sites) is that this means that goods and services will cost the small business owner more. Why? Well! The US is a consumer & importer of goods. When the dollar falls in comparison to other currencies from which we buy our stuff , e.g. stuff from Europe, China, Japan, etc; we will not be able to buy as much. Therefore, this will produce a shortage, and cause vendors/suppliers [to small businesses] to increase the price of their products; as their costs will increase undoubtedly. So, ultimately, the small business owner has to raise its prices to the consumer. This is also called inflation.
So what can a small business owner/entrepreneur do to prepare for this? Well! as a small business owner you will have to start to plan your strategy for this scenario. You need to start by identifying new sources of revenue. You need to diversify your product offerings. You also need to build strong relationship with your existing clients so that during trying times they will still buy from you….because remember people do not buy your product; they buy the feeling, they buy YOU.
Start to streamline your operations. Identify where there is waste. Start to run a lean operation. This will not only help you in tough times, but also ensure that you are operating optimally.
Planning is key. Without planning you will not be well prepared.
Posted by Salman Khan 