|By PR Newswire||
|April 9, 2014 04:00 AM EDT||
As some businesses react by reducing costs or raising prices, most admit they have not taken any steps to protect their business from fluctuations in the dollar
TORONTO, April 9, 2014 /CNW/ - A new CIBC (TSX: CM) (NYSE: CM) poll conducted by Leger finds more than one-third of small business owners are worried about the impact the falling Canadian dollar will have on their business, yet nearly 7 in 10 say they have not taken any steps to protect their business from currency fluctuations.
Key findings of the poll of small business owners are:
36 per cent of small business owners say they are worried about the impact of the
falling loonie on their business
65 per cent say they have no plans in place to deal with changes in currency
Importers are the most likely business owners to be concerned about a
lower Canadian dollar, with 86 per cent of this group expressing concern
- Within major business sectors, Manufacturing companies are the most concerned about the falling dollar (53 per cent), followed by Wholesale/Retail businesses at 44 per cent
"Our poll shows that some small business owners in Canada are feeling the pinch from the falling loonie, which can impact profits and make it harder to compete in certain industries," says Shelley Swanlund, Vice President, Business Banking and Head of Small Business, CIBC. "Many small businesses have become accustomed to a strong dollar, which may explain why many have not considered steps to protect their cash flow and react to the dollar's decline."
According to the most recent report available from Industry Canada, small businesses contribute as much as 41 per cent to Canada's GDP. While a lower Canadian dollar can benefit some business sectors like exporting and tourism, the impact on small business is often overlooked, says Ms. Swanlund.
Some business owners are raising prices or cutting costs to adapt
Among those small businesses which have taken steps to deal with the impact of the recent decline in the loonie, the CIBC poll finds that the most popular actions include reduced spending (14 per cent), pricing alterations (13 per cent) and sourcing new or alternative clients or suppliers (10 per cent).
"Reducing spending or raising prices are a natural reaction to dealing with a change in cash flow, but may not be sustainable in the long run," says Ms. Swanlund. "There are steps you can take to mitigate the impact of currency fluctuations on your small business through improving your cash flow management, and evaluating your foreign exchange needs to building a plan with your advisor that reduces the impact of a falling dollar on your business."
To prepare for fluctuations in the value of the Canadian dollar, CIBC offers the following tips:
Have a currency plan. Small business owners should include in their business plans a strategy
to manage currency fluctuations. Your bank can help - for example, CIBC
small business advisors work with owners to explore options such as
holding US dollar accounts and having access to capital to address
fluctuations in cash flow. CIBC also offers online tools such as FX
Online, a foreign exchange service for currency purchases, and free
business planning tools, such as the CIBC Your Guide to Business
Planning, found in the CIBC Small Business Advice Centre.
Monitor that plan on an ongoing basis. If Canadian dollar fluctuations could have a significant impact on your
business, monitor the environment, discuss with your advisor and make
adjustments based on changes in your business needs.
- Build flexibility into your business model. Currency fluctuations and other unexpected expenses can catch small business owners off guard. Be sure your business can withstand temporary fluctuations in cash flow by having access to an emergency reserve fund, whether it is accumulated savings or a line of credit.
KEY POLL FINDINGS
Percentage of Canadian small business owners worried about the value of the Canadian dollar as it relates to their business, by region:
Percentage of Canadian small business owners who have not taken any steps to protect their business from the fluctuations in the value of the Canadian dollar, by region:
The poll was conducted by Leger through a Web survey from February 12 to 19, 2014 among a representative sample of 500 English- or French-speaking business owners or decision-makers in Canadian companies (not publicly traded or NGO) with 500 employees or less. The results were weighted according to region and number of employees to ensure a sample representative of the entire population under review.
CIBC Small Business Services
For more than 140 years, CIBC has been providing small business owners with the advice, services, and support they need to thrive and grow. CIBC recognizes that the business and personal finances of small business owners are often intertwined, which can present both opportunities and challenges. We believe that the best advice comes from someone who understands your needs as a business owner and as an individual.
CIBC provide small business owners with the services of a dedicated CIBC Small Business Advisor, who acts as a single point of contact for all small business owner needs. This experienced professional is committed to understanding the business and the industry in which small business owners operate, as well as their personal financial goals. CIBC business advisors work with small business owners to find integrated solutions to help them achieve their vision for their business and their life.
CIBC is a leading North American financial institution with nearly 11 million personal banking and business clients. CIBC offers a full range of products and services through its comprehensive electronic banking network, branches and offices across Canada, and has offices in the United States and around the world. You can find other news releases and information about CIBC in our Media Centre on our corporate website at www.cibc.com.
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
Dec. 7, 2016 03:30 PM EST Reads: 1,761
Dec. 7, 2016 02:30 PM EST Reads: 935
Dec. 7, 2016 02:30 PM EST Reads: 4,302
Dec. 7, 2016 02:24 PM EST Reads: 218
Dec. 7, 2016 02:15 PM EST Reads: 947
Dec. 7, 2016 02:15 PM EST Reads: 2,189
Dec. 7, 2016 02:15 PM EST Reads: 1,107
Dec. 7, 2016 02:15 PM EST Reads: 3,376
Dec. 7, 2016 01:45 PM EST Reads: 1,103
Dec. 7, 2016 01:30 PM EST Reads: 2,143
Dec. 7, 2016 01:30 PM EST Reads: 393
Dec. 7, 2016 01:24 PM EST Reads: 218
Dec. 7, 2016 12:45 PM EST Reads: 1,078
Dec. 7, 2016 12:35 PM EST Reads: 261
Dec. 7, 2016 12:30 PM EST Reads: 620