Hi again,

Welcome to our 35th edition of the Growth Tactics newsletter. Some weird things are happening around the world. We want all of us to be safe and ready if something bad is coming. Last week, we spoke about a potential upcoming recession.

For this week, everything is focused on:

• 💸 Dollar is not the worldwide standard anymore? Why is that?

• 🆘 How will this affect the business environment, especially us, the small businesses?

• ⚔️ What can we do about it?

• 🚀 The 2023 trends

• 🔥 Meet Blackburn, a boutique sunglasses brand focused on enhancing your unique style

• 🔥 Introducing Cyndiy Ice, a digital creator with a passion for beauty, fashion, wellness, and skincare

💸 What is really happening around the world

• The US dollar's dominance is being challenged by recent developments, including the Xi-Putin agreement and Saudi Arabia's willingness to sell oil to China in yuan.

• These changes promote trade and investment using alternative currencies, which may benefit countries like China but could lead to greater currency market volatility and challenges for countries with weaker currencies.

• The de-dollarization trend could impact the US economy by reducing its influence through sanctions and other economic tools, but some experts argue that the US's other strengths may limit the impact.

• As the world moves towards a more multipolar currency system, the long-term effects on the global economy are yet to be determined.

🆘  How can it affect us

The de-dollarization of the world economy can have both direct and indirect impacts on small businesses. Here are some ways in which small businesses may be affected:

1. Currency fluctuations: As countries shift away from the US dollar, exchange rates may become more volatile, affecting the cost of imported goods and services. This can influence small businesses that rely on imports for their raw materials or finished products, leading to increased costs and potential disruptions in supply chains.

2. Access to capital: De-dollarization might lead to changes in global financial flows and access to capital. Small businesses that rely on external financing may find it more challenging to secure loans or investments, especially if their country's currency is perceived as being less stable.

3. International trade: As countries move away from using the US dollar for international transactions, small businesses engaged in international trade may need to adapt to new currency regimes. This could involve dealing with multiple currencies, additional transaction costs, and increased currency risk exposure.

4. Inflation and interest rates: De-dollarization may lead to changes in global inflation and interest rates. Depending on the specific circumstances, this could either benefit or hurt small businesses by impacting their borrowing costs, investment returns, and the overall business environment.

5. Geopolitical risks: The process of de-dollarization can contribute to increased geopolitical risks and uncertainties, which could affect small businesses in various ways. For example, trade disputes, economic sanctions, or political tensions could disrupt global markets and create challenges for businesses that rely on international trade or investments.

⚔️ What can we do about it

Building adaptation and resilience in small businesses involves:

1. Diversifying suppliers: Establish relationships with multiple suppliers from different regions to reduce dependency on a single source and minimize disruptions due to currency fluctuations or geopolitical issues.

2. Robust financial planning: Create a comprehensive financial plan that includes contingencies for potential currency risks, exchange rate changes, and other economic uncertainties. Regularly review and update the plan as needed.

3. Exploring new markets: Identify and tap into new domestic and international markets to reduce reliance on a single market or currency. Expanding your customer base can help mitigate risks associated with currency fluctuations and geopolitical uncertainties.

4. Adopting flexible business models: Be open to adjusting your business model in response to changing economic conditions. This may involve adopting new technologies, changing product offerings, or exploring alternative revenue streams.

5. Enhancing risk management capabilities: Develop a risk management framework to identify, assess, and mitigate potential currency and geopolitical risks. Regularly review the framework to ensure it remains up-to-date and effective.

6. Building a strong cash reserve: Maintain a healthy cash reserve to help your business withstand currency fluctuations and other economic uncertainties. This can provide a buffer to help you navigate difficult financial situations.

7. Investing in employee education and training: Equip your team with the skills and knowledge needed to understand and adapt to changing economic conditions, currency risks, and other challenges associated with de-dollarization.

1. Genuine, in-depth content continues to dominate, offering valuable information and engaging storytelling to audiences.
   The popularity of short-form videos is on the rise, providing quick, easily digestible content that captures attention. Check this out.

2. The use of chatbots and AI-driven conversation tools will grow, enhancing customer service and communication.

3. Voice search remains vital as more people rely on voice assistants for information and navigation.

4. Advanced data analytics will offer deeper insights into customer behavior and preferences, guiding marketing strategies.

5. Social media marketing will keep evolving to adapt to changing user behavior and platform features.

6. Despite setbacks, decentralized finance (DeFi) technologies will continue to develop and gain traction.

7. The metaverse will make a comeback, offering new opportunities for virtual experiences and digital assets. If you don’t know what metaverse is check this article.

8. The transition to a cookieless future is underway, pushing marketers to find alternative ways to track and analyze user data.

9. Prioritizing diversity, equality, and inclusion is crucial for businesses to foster a fair and inclusive environment, both internally and in their messaging.

   

📰 An interesting tweet 📰

🔥 Brand of the week

Meet Blackburn, a boutique sunglasses brand focused on enhancing your unique style with unisex designs that look and feel great on everyone. They're not only about looking good but doing good too – a portion of each sale goes towards expanding solar energy and reducing carbon emissions for a better, greener future. Discover Blackburn and embrace both style and sustainability!

🔥 Influencer shoutout

Introducing Cyndiy Ice, a digital creator with a passion for beauty, fashion, wellness, and skincare. With over 10.2K followers, she believes in using her platform to express her uniqueness and inspire others. Check out her account for a dose of creativity and inspiration in the realms of beauty and fashion!