CANADIAN
5 Ways to Protect Your Business When the Canadian Property Bubble Bursts
With economists predicting a possible fall in Canadian home prices of up to 40 percent, how can you protect your business (and yourself!) if the property “bubble” bursts? We’ve seen the ripple effect of a crash on the economy before.
First, let’s look at some risks:
- Customers lose their jobs and B2B companies downsize, hurting sales.
- Your landlord goes bankrupt forcing an unplanned move.
- Your sales depend directly on the real estate industry.
Next, do a SWOT (strengths, weaknesses, opportunities, and threats) analysis and this is where working with a good business coach will be extremely beneficial. At this point, you’ll start considering potential strategies, such as:
- Reducing your reliance on credit. Don’t get caught in a credit crunch.
- Maximizing your cash flow. Offer discounts to encourage early payment.
- Don’t keep all your eggs in one basket. Develop clients less impacted by fluctuations in the real estate market.
- Look into the future. Contact local commercial brokers to get their perspective and advice.
- Renegotiate Leases Proactively. Protect yourself from your landlord’s troubles and be sure you can take appropriate action if you rent to others.