I am putting the finishing touches today to a Business Plan, using Excel.
There is one factor though that is difficult to manage. Although based in New Zealand, most revenue is likely to be generated in the form of US Dollars, Aussie Dollars, the British Pound and the Euro. That is creating a problem. With the NZ dollar at record highs, what impact will its eventual decline have on the bottom line? Given the unpredictable nature of exchange rates and different timing scenarios, how do I build this into a plan?
On Thursday, Export NZ and NZTE have organised an Export Breakfast in Tauranga called 'Understanding Your Exchange Rate Risk in a Global Economy'. I will be there. It is a little scary that no matter how well a business is planned and managed, a sudden major correction in the NZ exchange rate could blow a hole in the best prepared Plan.
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