Here’s a list of how your business could be affected by Brexit.
If the pound weakens the cost of imported goods and services will increase – you may need to factor this in to your budget and/or pricing. Exporters may benefit as their goods and services will be priced lower in overseas buyer’s markets. Consider increasing your prices and capturing more profit.
Keep an ear and eye out for predictions, forecasts and announcements about inflation. If the Bank of England may decide to increase interest rates so consider locking into long term finance agreements.
The opposite is also possible. If the Bank of England suspects a slowdown in the economy they may reduce interest rates and start quantitative easing.
The uncertainty caused by the result of the referendum may slow down the property market and have a negative or impact on prices.
Banks may be more nervous and cautious when considering loans and overdrafts. Perhaps it’s time to review your banking arrangements.
Businesses and non-profit making organizations that rely on EU funding should start looking for alternative funding now and get active to fight for funding direct from the government.
Businesses that trade with the EU should start to develop a plan and reduce their exposure just in case exports become subject to tariffs. Look for new markets and ways to sell more at home.
If your business is directly or indirectly linked to the supply chain of multinational think about the impact of them relocating outside the UK.
If the economy slows down businesses could see more price pressure from the consumer. Look at ways to add value to protect your profit margins.
Keep an eye on tax increases and how this will affect your cashflow.
Get in touch if you’d like to book and full Brexit business review and action plan.
Image from Flickr by Matt Brown.