Great Tips for Preparing for Brexit!
Brexit has been a constant theme in the headlines over the last couple of years and is having a huge impact on the confidence and outlook of a lot of SMEs.
The uncertainty looks set to continue for the rest of the year as negotiations continue.
There has been a lack of initiatives to strengthen businesses, and this is something that has been noticed in the economy over the last few months.
At the start of the year, Theresa May believed that negotiations for a Brexit Deal were mostly done, but that proved not to be the case, and the original Brexit deadline came and went with no progress.
We are now starting to see some clarity in parts of the Brexit negotiations, but the horizon is still unclear for a lot of small business owners so it is imperative that people start planning and preparing early in order to secure their outlook for the shape of the world to come.
Keep up to date on VAT news as you prepare for the inevitable changes.
1: Build Stronger Relationships with Your Suppliers
Now is a good time for you to solidify relationships with your existing suppliers and to look at building new ones as well.
You may be directly affected by the trade agreements and by some other political issues and confusion, so it is vital that you maintain robust, efficient relationships. Good communication and transparency are vital.
If you can improve your relationship with your current suppliers, and build contingencies for the future, this will go a long way to improving your chances of surviving as new border rules come in, customs demand changes, and other businesses may be potentially faced with delays and rising costs.
2 - Put Reliability First
Volatility is one of the key concerns that people have at the moment. Many people have already seen signs of that volatility in the way that the exchange rates are working at the moment.
There have been significant fluctuations in the GBP versus the dollar and the euro, and this has had a huge impact on the profitability of some businesses.
If you need to exchange currency, then staying on top of the latest currency movements is a must, and timing your transfers around periods where you can get the best value for your currency can have a big impact.
It is important that you learn about the transfer options that are open to you. Some businesses may benefit from hedging their exposure to the currency markets, especially if they need to convert currency regularly.
Hedging will not eliminate all risk, but it may help to give you some control and some stability. If you know roughly how much your currency is worth then you will at least have predictable cash flow and that is a big benefit.
3 - Take Good Care of All Your Employees
When the political and financial atmosphere is uncertain this can be a distraction to the workforce, and it can leave people fearful that their jobs are at risk.
This can reduce productivity and even impact on employee retention if people fear that they should start looking for another job.
If you can instil a sense of confidence and make your employees feel valued, then this will improve the atmosphere in the workplace and it will help you to retain key staff, as well as motivate people who feel that they are working towards a common goal.
You may want to review the structural changes that your company will need to make over the coming months and offer your staff training and growth opportunities so that they know that you are committed to improving your company and keeping it strong over the coming months.
When you have a reactive, supportive management structure and your staff is motivated too, this makes it easier for your company to rise to the challenges that Brexit will bring, and allows you to respond quickly to any unexpected issues and events.
4 - Be Open to New Opportunities
Brexit will bring a lot of challenges but it will also bring opportunities, and those who respond quickly to them will find that they are much better off.
Look at what businesses that are similar to yours, but based outside of the EU, are doing, and consider how they have taken advantage of being outside of the single market.
There are chances for growth out there, and while the changes are going to be hard to adapt to for some, and may feel chaotic, those who prepare for them stand to gain a lot in the long term.