10 ways to take advantage of the high Australian dollar

The Australian dollar has hit another two-year high overnight, reaching as high as US 96.45c due to some disappointing economic data released in the United States.

Major economists also expect that trend to continue, with some suggesting we will reach parity by early 2011, driven by continued economic weakness in America. There are now concerns the Federal Reserve will use more stimulus to prop up the economy while unemployment remains high.

But there is much more entrepreneurs can do with a high Australian dollar than just buy a few books off Amazon. The strong Australian currency can deliver your business plenty of benefits if you know where to look.

Here are the 10 opportunities entrepreneurs should take advantage of while the Australian dollar remains strong.

Contracts

Exporters and importers hate uncertainty. While the dollar may be too high for exporters to lock in long-term contracts, now is the time for importers to start considering making some of those long-term deals.

Creating some certainty in your business is always a good thing. Consider setting your import contracts for the next several months in advance in order to get a good deal and keep your business planning predictable.

Raw materials

If you require raw materials from overseas as part of your product or manufacturing range, you should look at buying in bulk now. Purchasing raw materials like product packaging or a particular component that is central to your business will mean you’ll be able to pick up some good deals if you start building up product.

Travel

Have any urgent business trips that need to be made, especially in the United States? The airline industry is still experiencing incredibly low ticket prices in the Melbourne/Sydney-LA route and now is a great time to get those necessary meetings out of the way.

Hire

There is a huge talent pool overseas and you shouldn’t limit yourself to local recruiters, especially considering the looming skills shortage. Start looking overseas for some talent you wouldn’t necessarily be able to afford when the dollar is lower. You can also look into some tax benefits from the ATO for hiring workers from overseas.

Google AdWords

All Google AdWords accounts are converted into US dollars. Use the high Australian dollar to boost more cash into your SEO and get more bang for your buck.

Equipment

Buying machinery can be incredibly expensive, but any necessary piece of plant or equipment you need from overseas is now much cheaper than it was at this time last year. If you need to replace some machinery start looking overseas for a bargain.

Acquisitions

Ever thought about expanding into North America? Acquisitions are cheaper now that at any time during the past two years and now could be the time to expand into the US, especially as the economy is set for a recovery over the next few years. Low unemployment means your payroll expenses will also be reduced.

Alternative suppliers

America isn’t the only region that trades in US dollars – most of Asia does business with the Greenback too. Many businesses source their products from the Asia-Pacific and if you are one of them, start looking for alternative sources for your products and pick up some deals.

Merchandise

Retailers should start looking at American merchandise that at one point may have been too expensive to sell. Companies in the fashion sector should especially start searching for brands and other merchandise they couldn’t afford previously.

Sale

Why not hold an “Australian dollar” sale and deliver some of your cost benefits (lower supply and transport costs) to consumers and clients?