I had a conversation with a financial guy this afternoon - he looks after my pension matters. "It's all so irrational" he said, talking about the way currency is going up and down so wildly nowadays. He sounded tired and worried.
When things are chaotic and unpredictable, as they are right now, the important thing is to be able to change aspects of your business fast - not in a panicky way or daily, but at least with speed and decisiveness when it's needed. We set up our new online shop in Euros last year as we could see the need for basing our prices on Euro as it's more tied to the local currency. But we also knew that many of our customers like to shop in US dollars, so we also expanded our Etsy shop (it's USD) and installed an online currency converter right from day one of the new Baba Store. This last year, we have adjusted our pricing according to currency, bought silk in dollars when the dollar was way down, changed our non-US wholesaling prices to Euro-only when the Euro seemed the more stable currency. Almost every month, we did something to respond to the changes sweeping through the economy.
If we were a corporate, or even a large private business, can you imagine how many committee meetings and strategy documents and redeployment of staff moves like that would have taken? As a very small business, you have a huge advantage right now. Use it. Be swift.
Labels: adaptation, big and small business, corporates, recession, speed, taking actionLinks to this post