Written by: George Staikos, Boundless Business Consulting
For Canadian small and medium-sized enterprises (SMEs), 2025 has been, and will be, anything but predictable. Capricious and seemingly combative U.S. tariff threats have raised the spectre of increasing costs and exacerbated global supply chain friction. As a result, business leaders are facing economic headwinds and emotional whiplash. For many SMEs in Canada, this isn’t just political news—it’s a direct threat to cost structures, market access, and supply chain predictability.
While it’s tempting to retreat or “wait it out,” the most resilient SMEs are doing the opposite: leaning in, doubling down on what works, and evolving to meet uncertainty head-on.
1. Rethink Volatility as a Strategic Prompt, Not a Pause Signal
According to Rita McGrath, author of Seeing Around Corners, “Volatility isn’t a reason to freeze. It’s a reason to adapt—quickly, strategically, and with eyes wide open.” The most agile companies aren’t ignoring uncertainty. They’re using it as a strategic signal to re-examine assumptions, reinforce their value proposition, and revisit how they connect with their best customers.
2. Don’t Just Cut Costs—Refocus on Customer Value
During turbulent times, many SMEs turn to cost-cutting. While trimming waste is smart, slashing sales and marketing budgets can backfire. Why? Because visibility matters more than ever when buyers are cautious.
Instead, shift the focus to:
- Strengthening relationships with your best clients, particularly those that generate recurring revenue.
- Offering increased value through strategic check-ins, add-on services, or bundled pricing.
- Asking, “How can we help you succeed right now?” – and following through with tailored support.
As McKinsey & Company notes, “In times of volatility, companies that invest in customer relationships and innovation emerge stronger.”
3. Get Closer to Your Most Important Customers
In volatile markets, your best clients are your most substantial buffer. Deepening relationships with core customers is not just good service; it’s a sales and survival strategy. These clients offer recurring revenues, long-term potential, and insight into how to serve your broader market.
Sales implications:
- Reallocate your business development representative or account management resources to spend more time with key accounts.
- Conduct regular value reviews or executive briefings with top clients to reinforce your strategic role.
- Co-develop solutions or pilot new offers with them – they’re more likely to trust and adopt first.
Marketing implications:
- Create exclusive content, offers, or programs tailored to this core group.
- Gather customer testimonials and feedback to strengthen market positioning.
- Use account-based marketing (ABM) to personalize messaging and reinforce loyalty.
As Bain & Company has stated: “A 5% increase in customer retention can boost profitability by 25% to 95%.” Especially now, client retention is the new growth.
4. Modernize Your Sales & Marketing Engine
A volatile environment makes it harder to predict demand, but it also rewards companies with agile, digital-first sales and marketing strategies.
Best practices include:
- Re-segmenting your customer base to identify the most profitable and resilient sectors.
- Building targeted campaigns around specific needs, such as reducing operational costs or navigating supply chain risk.
- Doubling down on metrics – from pipeline velocity to content engagement – to quickly identify what’s working.
If you haven’t yet embraced account-based marketing or automated CRM workflows, now is the time. These tools help teams stay proactive, even with lean resources.
5. Rebalance Risk: Diversify Markets & Revenue Streams
With 70% of Canadian exports still flowing to the U.S., SMEs face serious exposure. Now is the time to diversify beyond American markets using tools like:
- The Canada-EU trade deal (CETA)
- The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
Domestically, SMEs should also examine how to stabilize cash flow through subscription models, retainers, or recurring services. These not only protect revenue but also create stronger client engagement.
Final Word: Resilience is Built, Not Bought
Canadian SMEs have been here before – through recessions, border disruptions, and supply chain crises. What separates those that survive from those that thrive is a proactive strategy, customer closeness, and a willingness to lead when others pause.
Now is the time to invest in the relationships, systems, and strategies that will carry you forward. In times like these, clarity beats chaos – and the best strategy is showing up smarter, faster, and closer to the customer.
Let’s build your strategy for resilience.
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