Businesses that export goods and services and those in the tourism and hospitality sectors are struggling to deal with the effects of our surging Canadian dollar. Generally sales are dropping, either from currency exchange or from fewer customers.

On the upside, Canadian importers, wholesalers, manufacturers and retailers are winning big with the costs of bringing goods into Canada becoming cheaper. And consumers are continuing to rally with lower prices.

The parity or premium that our Canadian dollar has reached with the United States greenback creates opportunities for Canadian small businesses that have been unprecedented in the last half century. While it is presenting challenges to many sectors, it is also prompting many owner-managers to rethink their business strategy. Perhaps it is time for owner-managers to go back to the drawing board and think about some ways your business can benefit from the higher dollar.

Invest in New Equipment

When our dollar was sitting at historic lows, the cost of importing equipment and machinery was at its peak. This may have prevented some businesses from upgrading equipment. As the higher dollar makes these purchases more affordable, this is an opportune time to acquire new technology, equipment and machinery. In many instances, these purchases will be less expensive than before while providing benefits such as less set-up time, improved accuracy or faster processing ability. Even if the equipment costs more than the older equipment, the enhanced productivity and potential to lower costs and/or prices will far outweigh the higher cost.

Boost Sales

Now is the time to become proactive in your marketing strategies and efforts. Trying to compete with less expensive offshore products is difficult at the best of times and, with a healthy Canadian dollar, the difficulty is compounded. However, many imported products may offer lower quality or have other limitations. Some may meet only minimum safety standards, be suitable for only light rather than heavy duty applications or lack support for parts or service.

How do your products compare? Demonstrating the advantages of a superior Canadian-made product that offers proven reliability, durability and service support can increase your sales. Consider targeting your marketing to higher-priced niche markets.

Expand Your Market

Increase your reach. With the Internet making it easier to sell across borders, consider entering this market or enhancing your online visibility and functionality.

In countries where the Canadian dollar is still considered a weak currency, there may be opportunities to build a new or expanded market or establish a distribution system.

Enhance Processes or Products and Become Full-service

If your product is a singular electrical component for assembly by a third party, would your client benefit in terms of cost and turnaround time if your company assembled the entire product?

Keep Costs under Control

Consider revamping your supply chains. Review the cost of importing products or components from your current suppliers. Can the same units be purchased in a country where the Canadian currency has a more favourable exchange rate?

Invest in Human Resources

This could involve training new employees, enhancing the experience-based knowledge of seasoned workers, or hiring knowledge-based outside workers, all of which can improve productivity. Many new Canadians may be from countries where opportunities exist for your company. Hiring someone who has both the required skills and knowledge of the foreign market, language and customs would definitely be advantageous.

Project Your Future

The success of any new venture begins with an idea, solid strategic planning and new or improved processes to achieve results. But to ensure those dreams are realized, you need to attach financial considerations to each step in the process. Make sure your budget provides for marketing, new equipment, hiring and training staff and the host of other costs that bolster new ventures.

Review your current and future cash-flow needs to determine if you need to increase your working capital with external financing. An integral part of any future development is to understand how the cost of financing future developments can affect present operating requirements.

The high-flying loonie is an opportunity to revitalize business with strategic change, increase productivity, improve staff morale and underpin the future of your business. Now is the time to work with partners, marketing and production staff and your chartered accountant to outwit the currency market.