I am sure everyone who is in the know has heard about the word recession. For an ordinary person in the business of selling like myself, I was thinking that recession would mean less sales for me, less buying power, less leverage to get ahead of the retail giants and more limitations when it comes to considering expansion. Most business analysts would say that this is not the season to invest more with an expansion. Is it not really? Let us see.
With economic changes, they say that the power of your dollar will always be computed against its equivalent to any currency globally. Is this a sign that we should stop expecting profit from exporting products to any part of the globe? Will this year provide us lesser profit with longer turnaround time? This is where first-hand business reality should kick in. Unless your online business is encountering a real bump in the road with less orders, then there should be nothing to worry about. Remember, recession may be present but if recession does not change the way your customers demand for more of your products, then there is nothing alarming about it. Keep in mind that before you can feel the effects of recession, it will be the retail giants who will feel it first. As long as you still have your wholesale suppliers to catch the orders you are getting from your customers, then I strongly suggest not to be distracted by news of recession.
The good thing about a wholesale business is you do not have to maintain a big lump of payables to sustain it. Because with every bulk purchase that you pay immediately, no risk of recession is to hit you since your business thrives on real-time purchases and profit-earnings. The only thing that is a possible disadvantage of recession is the increase of dollar-exchange rate compared to a local currency which some of your out-of-the-country customers will use in buying your wares. This may somehow affect the buying price for some countries but again, with bulk purchases, this will just be a very minimal bump in the road.
But you know what, you can also use this positively for your business, especially if your wholesale supplier is overseas. Say, you suddenly realize that the dollar is weaker than the pound this week, and you happen to have a wholesale supplier from Europe. Consider selling to your Europe-based customers in pounds, this way, you get to quote the same rate that they have in the market. Just make sure to calculate a significant amount that you are willing to give as a discount to ensure more purchases from your European customers. So, you see, as long as you are fully aware how to maximize whatever resources you have, there will no wastage and no financial crisis that can dictate the fate of your business.