10 tips for companies to stay competitive

A struggling global, and U.S. economy will slow growth and reduce demand in the construction, manufacturing, retail and wholesale industries, says Ernst & Young.

Read: Follow growth beyond borders

This will create obstacles this year for Canadian companies operating in the private mid-market.

Read: Entitlement reform key to recovery: TD economist

“If sustainable growth isn’t achievable, then companies must assess whether there are opportunities to reduce costs or improve efficiency internally,” says David Fabian, partner and co-leader of Ernst & Young’s Private Mid-Market practice.

Read: 13 accounting red flags

To stay competitive, companies should look at the following:

• Workforce. Review productivity and the benefits generated by teams.
• Vendor relationships. Measure whether value is being generated by all suppliers.
• Product line. Confirm gross margins realized are consistent with expectations.
• Organizational structure. Ensure each legal entity holds the appropriate assets, and that legal exposure is minimized and costs are being managed.
• Capital structure. Evaluate whether debt/equity ratios are consistent with risk tolerance.
• Succession planning. Ensure your company is appropriately structured for the future.
• Estate planning. Assess whether estate planning needs are appropriately structured.
• Global expansion. Consider opportunities to expand abroad.
• Transaction opportunities. Investigate domestic or international acquisitions.
• Global reach. Manage remote locations/offices/sales forces in other countries.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.