How to account for Brexit in your SME business plan
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There are times when political events require business fluidity and Brexit is certainly one of these. This presentation details considerations that business owners should be accounting for with the official exit looming.
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How to account for Brexit in your SME business plan
- 1. Accounting for Brexit in Your SME Business Plan
- 2. BE READY FOR ANYTHING AND EVERYTHING The number of potential consequences that Brexit are infinite, but don’t be a sitting duck. Assessing the lay of the land and the how changes will affect your own market is essential. Example considerations: • Import taxes changes • VAT changes • Supplier costs • New offices in the EU
- 3. In 2015, the European Union accounted for 43.7 percent (223 billion British pounds) of UK goods and services exports, and 53.1 percent (291 billion British pounds) of UK imports. statista.com
- 4. Implement Corporate Customs Infrastructure The number of custom declarations required for imports post-Brexit could potentially increase threefold. To deal with the extra paperwork and get your company Brexit ready, a dedicated team is a necessity.
- 5. Evaluate your employees • Do you have EU nationals in your staff that will leave due to Brexit? If so, you will need a plan to replace their talent. • Hiring and training new staff can be time consuming and expensive and UK nationals may expect higher salaries. Budgeting for these considerations is essential. • Brexit could also bring with it new employment laws and regulations. Ensure that your are ready by auditing your HR department and their processes.
- 6. Economists estimate that Britain will be at a loss equating to £75 billion, if they are excluded from the single market. market-inspector.co.uk
- 7. Increase your liquid capital In a capricious economy it is essential to have a financial buffer in order to stay afloat. Having the right financial planning software will allow you to accurately predict your incomings and outgoings and enable you to set aside enough capital to withstand the political climate.
- 8. Prepare for delays • As new Border and Customs legislation comes into effect, it is highly probable that we will see a backup at Dover for imports and exports. • To avoid letting your customer base down with delayed order delivery, increase your stock levels prior to our exit and ensure that your have enough warehousing capacity before this is snapped up too.
- 9. Tourism contributed £66.1 billion to the economy in 2016. This was 3.8% of total economic output in the UK. researchbriefings.parliament.uk
- 10. Key Takeaways There are no certainties when it comes to Brexit, so in order to be reactive you will need a watertight plan. Now is the time to get infrastructure in place to tackle new customs requirements, update software and stockpile wares. Be proactive and assess any potential obstacles, make sure your team is agile and arguably most important of all – make sure to create a fall-back fund should the worst happen.