What the tanking dollar means for small business owners.

Commodities keep making new highs and the value of the dollar is forecasted to drop significantly over the next few years due to the massive debt our country is in. Manufacturers based in the United States may benefit in a pick up in the export market since our goods become cheaper in the international marketplace relative to certain currencies. The problem is that as the dollar tanks further raw material costs rise so small business owners need to be proactive about hedging the prices of their largest raw material components. For example, if 50% of your product involves steel then an investment in either steel production companies or a play on futures can help protect your business if steel rises by 20-30%. This can also put your business in front of any competitors that aren't proactive enough to protect themselves from inflation and double digit interest rates.