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Preparing for Brexit when we don’t know what the result will be? Why?
The Brexit clock is ticking and negotiations go on. However, you don’t need to wait for the result before reacting. The winning businesses are already preparing for Brexit and will be ready to react immediately.
And it’s not just about your own business – you might think you won’t be directly affected much but what about your clients? – You could get an unexpected knock on effect.
Preparing for Brexit is about making your business one of the winners.
Why Prepare Now?
Assess your future options now and you can start putting elements in place that may not be available to you as we get closer to Brexit day.
Why? Pressure on most businesses will increase with finance becoming harder to get, interest rates rising, materials and fuel costs rising, pressure on wages increasing…. All of these will reduce scope for manoeuvre even if new opportunities appear.
Before starting though you need an honest assessment of your business strengths and weaknesses. You may be doing really well but it’s essential to assess yourself honestly: List the threats you’re dealing with; Identify every hidden weakness.
When pressure on your business increases any minor weaknesses can quickly become major problems so don’t gloss over anything. Preparing for Brexit is all about preparing for your future.
What Issues Should I Look At?
The point is finding out how different Brexit results would affect key areas of your business, such as:
Existing customers – changes to the needs of your clients; Finance; Supply Chains and Logistics; Standards and Certifications; Staff citizenship; Staff/skills availability & Wage pressures; Contracts; Intellectual Property; Export options; Changes to your existing markets; New opportunities and markets; New threats including overseas competition.
You may also have sector-specific issues to add.
Scenarios
Effects will vary by sector and whether you’re in Manufacturing, Retail or Services. However, a good approach is looking at both extremes then one or two middle options:
- The “Hard” Brexit – i.e. no or very little agreement – The UK deals with everywhere on world trade rules.
This doesn’t just mean import and export delays and costs; it is also likely to mean greater business competition from low cost countries; even in the service sectors, so this must be carefully considered. Imported goods, raw materials and fuel will be subject to increasing prices. Even if your business would not be affected directly, a lower pound and higher interest rates will put pressure onto wage demands. Trade agreements will come but even the easiest are expected to take years. Also, trade agreements don’t just get us access to their markets but gives them easier access to ours. - The “Soft” Brexit – i.e. the UK remains in the Customs Union and Free Trade Area.
As things currently stand this looks less likely but it would involve the least changes from where we are at present. However there will nevertheless be changes to address. - The “Somewhere In-between” Brexit. You may wish to consider 2 versions of this.
The details could vary significantly between any two scenarios but the key issue is: Understanding the changes that really matter to your business and circumstances. As we get closer to the eventual outcome you’ll see much quicker if it will cross any critical thresholds for your business.
Once you identify your critical issues you can plan the actions you need or start readying alternatives. Regardless of the Brexit outcome, if you’re better prepared and faster to act than your competitors, that’s a win.
How to Proceed?
You need to treat this as a project with a key manager, resources, goals and dates.
Engaging professional consultants may save you a huge amount of time. You’ll get an unbiased, clear and independent view of your business plus expert knowledge and experience.
Combining internal and external resourcing may provide the balanced approach that’s best for you.
Whichever you choose, waiting is the worst option.
Ring us today for business advice you can trust: 0114 3993985 or Contact Us here.[/vc_column_text][/vc_column][/vc_row]
