Are you still not ready for your business no longer being in the EU? It may hit you’re business harder than you think, so we have some tips to help get your business ready for what might happen.
Where many large businesses have planned and prepared for leaving the EU, most small business haven’t – so if you have, well done! But if you haven’t don’t panic, you’re probably in the majority, and we know from speaking to ours customers, most are not ready, and unaware of the potential impacts on their business.
But rather than just ride the storm and see where the land lies, here are a few handy tips to consider, and things to think about, in preparation.
1. Think of your suppliers
a. Are they in Europe? Do you buy and goods or services from Europe? If you do, then the price is likely to change, and it may take longer to get hold of goods and services, or require additional customs procedures.
b. Could one of your UK suppliers move to Europe? Most people don’t think about this, but many manufacturers will be thinking of moving to Europe if their client base is weighted that way. Have a think about your suppliers, and perhaps ask where they do most of their business!
c. Do your suppliers buy raw materials from the EU? Even if they’re a UK supplier, they will passing costs on to you if they do.
2. Cost of labour
a. Think about it, if non British labour leaves the UK then demand for labour will increase and push the price up. If you currently have staff, regardless of whether they are from the EU or not, then you may have to pay more in future, especially taking into account the proposed new Visa proposals for low skilled workers.
a. If you’ve register a trademark with The European Union Trademark (EUTM) system, then it may no longer be valid in the UK in future. You might have to apply for new trademark licenses separately.
a. Check the contracts you have in place with suppliers, distributors, and customers. Some may contain clauses that could trigger, for example ‘force majeure’, or any financial agreements linked to the Euro.
a. Check your product labelling. It may need to change if it references the EU or you deal with EU.
a. Consider what tariffs you might have to pay in future for goods or services you currently export to the EU. Check out World Trade Organisation tariffs at https://www.wto.org/english/tratop_e/tariffs_e/tariffs_e.htm
b. Depending on the ultimate trade negotiations outcome, some items may be exempt from tariffs anyway, for example pharmaceuticals, cosmetics and perfume, precious metals and stones.
7. Economic impacts
a. Inflation may fluctuate and move up, which will affect your customers buying power. If they are spending more on everyday essentials, they may have less to spend on other things. Will this affect you?
b. Financial volatility may affect exchange rates, and other rates. Could this impact your business?
We are sure there is plenty more to consider but these are some of the things we know our customers are thinking about.
We may not be able to help you answer some of these questions but we can help you grow your business online. Attracting more customers might be a way to offset some of the above concerns, so get in tough to see how we can help.