Based on http://www.xe.com/, the US dollar equivalent today of one Philippine peso stands at 44.28. The value of the Philippine peso has been steadily strengthening itself, making it a bit difficult for a business like mine, which caters mainly to foreign clients. It also affects many Filipino families who depend on the remittances of their OFW-relatives. Business news reports indicate that it would continue to strengthen towards the end of 2010. Because of this new development, I have thought of ways on how to survive a strong Filipino peso:
1. Increase income. This is my first goal now since another problem we face is that we cannot increase our prices, due mainly to the recession that has engulfed the countries we serve. So one way to offset the currency exchange is to attract more clients.
2. Open a local business. We have thought about this and we have actually started one, albeit, still very tiny. Of course, we still stick with the mantra of doing something that we love. The Philippines is a very challenging market since the paying capacity of most Filipinos is limited so pricing is very important!
3. Cut costs. We have also tried to find ways to decrease the cost of doing business. Anything that we can save on we implement.
4. Increase productivity of the employees. It is not surprising to utilize the different talents of our employees, so multi-tasking has been the name of the game for us. Not only should our employees be good on one thing, they should also have the initiative to do other related tasks.
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