How Global Events Can Impact Your Small Business
As a small business owner struggling to keep your business alive, you probably have an enormous sense of personal responsibility. In fact, chances are you have a tendency to blame yourself when anything goes wrong.
However, in some cases, itt miscalculate, choose the wrong strategy, or fail to anticipate market trends. Sometimes itt attracting enough customers or clients, it might not be because you donre in a supply chain management business, you could be affected by global events that result in fewer people importing and exporting goods. Often you might not even know about this global event unless you regularly read the top financial newspapers. For instance, a new tariff, geopolitical sword rattling, economic sanctions, or an outbreak of war in the Middle East could affect your business.
1. Increased costs
As a result of these global events, the price of everything from raw materials to your software vendors can rise, which cuts into your profits. However, by staying abreast of how markets react to global events, and by restructuring your business to safeguard your profits, you can avoid being a victim of forces outside your control. One way to restructure your business is to learn how to choose supply chain software to streamline your business operations.
2. Politics and regulations
While most changes in politics and regulations can be anticipated ahead of time because major changes are often controversial, hotly debated and well-covered in the mainstream media, some can take you completely by surprise. A recent example is when President Trump pulled the US out of the Paris Accord. This shocked the world because the US had been a world leader in environmentalism for years. As a small business owner providing green goods or services, chances are you would be affected. For instance, if you own a construction company that specialized in green construction, you would have been devastated by the news. Similarly, if you manufacture, build, or supply solar panels, you might have been stunned. In both these instances, your marketing edge over traditional companies powered by the fossil fuel industry would have disappeared overnight.
If your business grows to a point where you can reinvest your profits, doing so in the financial markets is a strategy that can help you stay in business when your competitors manage to get a lions important to avoid feeling victimized when macro-events impact your small business. While it may not be your fault, you still have to stay flexible enough to find ways of working around a major setback. In some cases, you may have to diversify and add a new product line, and in a worst case scenario, you may have to sell your business and start a whole new one. Keeping in touch with current events, like the examples listed above, will minimize setbacks and help your small business adapt and thrive in this ever-changing world.