Tariffs and Small Business Advice
As for tariffs and self-employed advice, it's always helpful to be proactive. Rather than standing back and waiting to see how things shake out, take action — even if you don't think the current tariffs affect you. After all, it's always a good idea to save money and strengthen your business position.
Do you have long-standing relationships with suppliers? If they want to keep your business, you should be able to cut better deals. If you need to sweeten the deal, try offering added value. You might offer to refer your industry contacts to the supplier. If you buy raw goods or components, consider offering the supplier a discount on the finished product.
If your company depends on suppliers that are affected by tariffs, you might want to start creating relationships with backup suppliers. That way, if your current suppliers are forced to raise their prices out of your budget, you have another solution. In an emergency, these backups can be a lifesaver — they can keep your operations running smoothly. Keep in mind that finding new suppliers may take weeks or months of research. You want to ensure that the supplier is reliable, and that they can coordinate with your shipping needs. What's more, you need to make sure their products meet Canada’s regulations before you begin contract negotiations. By starting early, you can have a plan in place when you need it.
As a small business, your cash flow is the lifeblood of your company. Tools such as QuickBooks Online and QuickBooks Self-Employed can help you organize receipts, monitor income and expenses, and handle invoicing on the go. You can use the tool to check in on your profit margin and look for places to save money.
You might find opportunities to reduce variable and indirect costs. One option is to see if you can cut your utility bill by lowering the room temperature a few degrees when the ovens are on. You might also negotiate better insurance premium rates if you haven't filed any claims in the last few years.
If you’re in retail sales, you might review your inventory to make sure you’re not carrying more than you need — overstock takes up storage space and is prone to damage. Then, stock more of the products that sell quickly. If you're overloaded with old stock, consider having a sale to generate cash and rid yourself of unnecessary burdens. you might also make a charitable contribution that qualifies for a deduction at tax time.
Are you planning to make capital improvements or buy an expensive item that might be impacted by tariffs? It's a good idea to talk to your accountant or tax advisor about possible tax credits and deductions. More importantly, don’t be shy about asking for help in negotiating the purchase price and repayment terms.