Sitting around thinking about what a 25% tariff could do to your international business? 

Don't.  Here are 5 things to do instead: 

1. Stop wasting time worrying about something you can't control.   

If there's one advantage in being a small to medium-sized business at a time like this, it's that you can be nimble.  You can't predict the future so don't try to.  You can react when there's something to react to. 

2. Review your pricing. 

You should be doing this at least annually, anyway.  If you haven't upped your prices in the last 6 months, you're probably due for an increase because it seems that every input on the earth has gone up in price – it would be surprising if your costs haven't risen.  Additionally, a price review may give you some knowledge about how a tariff or a change in the value of the Canadian dollar will impact your business.  Knowledge is power. 

3. Review your finances. 

Knowing where you sit with debt and cash flow are critical to making good decisions when the economy takes a hit.  Again, know where you stand and you'll know how to move forward. 

4. Review your suppliers. 

Now is a great time to look at your internal supply chains and understand where you're buying inputs and look for alternative suppliers.  Are you receiving the best value for your money – not just product – but pricing, financing, delivery, stable supply, customer service etc.? 

5. Look at Alternative Markets 

If you've been putting all your hopes and dreams into the US market, maybe it's time to diversify a bit.  Over the past 3 years, one of our clients has expanded to sell on 4 continents with 2 in the southern hemisphere – the diversity in seasons, governments, currency, etc. has set them up to ride the economic tides more easily. 

This could apply to diversifying from selling products only to adding in services.  Intangibles are harder to tax and can become a source of recurring revenue. 

Taking action is always better than stewing about all the scenarios that could happen. Remember pressure creates diamonds.  Don't let this opportunity pass without something good coming from it.