Brexit was a shock but what will be the real impact on your business? Many businesses will simply ‘sit on their hands’ while the alert business owner or management team will want to spot the opportunities. Follow this checklist to review your options:
The issue can be split into Demand and Supply side factors:
1. The pound has fallen approx. 10% in value since Brexit – this could boost margins or provide more flexibility for exporters.
2. How will it impact access to Markets? In the short term the EU will remain open; in the medium term should you consider a EU base? What are the worst case WTO tariffs for your goods or services?
3. In the UK demand is likely to be impacted by consumer confidence which has taken a knock. How can demand be stimulated cost effectively?
4. With import prices rising, could your product or service benefit from import substitution?
5.What about business investment – with the uncertainty this is likely to be put on hold for a period – will this impact your business?
6. What about the impact of Brexit on your key competitors? How are they likely to respond?
1. The economy cooling off should reduce the level of skill shortages – could this be a good opportunity for your business?
2. With the fall in the pound do you need to anticipate an increase in your cost of goods (via direct or indirect imports), or cost of distribution?
3. Do you rely on overseas workers? It is likely that free movement of people within the EU will remain for at least a couple of years, but then what?
4. Supply of Finance – this could become more available as banks become short of good lending situations, coupled with B of E stimulus actions.
5. Could the easing back of house prices make it a little more achievable for those attempting to start on the property ladder (maybe your future recruits)?