With the current economic state in Canada, it seems that the Loonie is getting weaker and weaker when compared to the U.S Dollar. This economic state is what is causing many small and big businesses to have difficulties in lowering the price of their products and services to their customers. With the current decline in the economy, the Loonie is estimated to fall to half a cent of the U.S dollar, which has many small and large business owners panicking as they have no idea how to maximize the current value of Canadian currency in their organizations. While the decline will take some time to rectify, there are still many ways that you as a business owner can still minimize the effects of the low Canadian Dollar on your livelihood. Here are 5 ways that you can still earn a profit while spending less.
If you are a manufacturer or distributor, you need to double your customers if you want your business to thrive even as the Loonie is declining. Use social media as much as you possibly can by creating pages on all available social media websites. These websites charge you absolutely nothing to create a page and the only obstacle that you must hurdle is keeping them all updated.
With the decline in any economy, this means that all people must work harder to earn more money. This idea must be applied to your business. You must address each and every member of your labor force and try to inspire and convince them to work harder and be more productive. Start implementing quotas and targets that your employees must achieve. For those who are unable to achieve this should be laid off as your business is not a not-profit organization.
It is said that in order to earn a lot, you must first spend a lot. This idea applies to most business organizations as it tends to yield a great return on investment. By creating more events for your products or services, you are inviting more customers to test your product. When this happens, you gain a larger amount of customers who will buy your products to achieve more profit.
If your sales are slow, you must do all that you can to boost the purchase of your products or services. One highly effective strategy is to offer promos and deals with your products. This strategy will also prevent a slow inventory, which results in a negative working capital, where you encounter multiple short-term and long-term debts with your suppliers.
Another effect of a bad economy is competition gets stiffer in all industries. This means that most suppliers must lower their costs if they are to remain competitive in their specific industry. As a business owner, you must recognize this as an opportunity to find cheaper materials for your product or service. Start contacting multiple suppliers and see if you can get their material cheaper than what you are currently paying for. This will allow you to lower your costs while still earning a substantial profit.