A lot of uncertainty still lingers in the air about what might happen either on or especially after the currently scheduled date for Brexit. At the time of writing, there are only weeks left to go, and quite a few SMEs are worried about their business futures. This kind of unpredictability without an obvious outcome makes it very difficult to plan things.
There are several crucial points you should consider as you do the best you can in getting your business ready for Brexit. First of all, do all you can to make sure that your supply chain is protected. Talking to everyone involved in your supply chain needs to be your top priority. Learn what they’re doing to make sure that they can continue their service consistently. Supply chain failures are debilitating to small business since even a single breakdown or late delivery can be quite an impedance. If you don’t have customers getting their services or products on time, then it’s you facing the consequences and not your suppliers.
Everyone involved in your current supply chain has to be aware of Brexit. They should each be coming up with their own plans of dealing with the possible outcomes so they can keep delivering consistent service levels in the near future. If you’re a small business owner, then you need to think about every step of your supply chain. Don’t wait until after Brexit to start talking to your current suppliers. Do it now. A proactive approach is usually better than a reactive one, and it means you have a chance to get a step ahead of possible complications, as well as enjoying more time to handle issues that pop up along the way.
If you have any chain suppliers that aren’t ready, especially if it’s multiple ones, then consider switching. Suppliers unwilling to talk about their Brexit contingencies or those expressing any reservations about keeping their service levels up might be parties you need to walk away from. Knowing all of this in advance gives you a lot more time to talk to other options and compare the possibilities, which means you hopefully find good alternatives that can take care of you well, no matter how Brexit turns out.
Another step in the proactive approach is making sure that you have more stock physically held inside the UK. This can be a great move if you typically rely heavily on EU imports. Good stock levels will allow you more preparation time to find alternatives if supplier relationships deteriorate after Brexit. Domestic stock stores mean you can keep your company running even after Brexit, no matter what shape it takes. You shouldn’t wait for Brexit to find out that your own stockpiles are insufficient to meet demand since your suppliers have wound up letting you down. Start your planning now about growing your own stock, since it means paying a bit more upfront in order to cover additional inventory costs. Stay on top of all payments owed and invoices, so you can be sure that your cash flow is strong enough to increase your current stock levels.
When my own business was far smaller, our biggest difficulty was just getting paid. We were not in the business of e-commerce back then, so we simply relied on our clients paying their accounts. The larger a customer was, then the more we’d boost their account limit in order to keep them happy. On the other hand, if someone chose not to pay, or just couldn’t, then we suffered a lot. This is a possibility to keep in mind since your own clients might choose to protect themselves from the pending impacts and influences of Brexit.
The departure of the UK from the EU is going to impact quite a few companies across many industries, so you have to be sure that your current client base is making on-time payments. If not, you might wind up not having the necessary funds to boost your stock if clients are delaying payments in order to handle their own concerns about Brexit.
Look into the possible changes in regulations. Put in some time learning about any possible regulation changes which might impact your company or just those working for you. There are many different possibilities that could take place once Brexit happens, and knowing what these possibilities are ahead of time gives you a way of making preparations and looking into feasible solutions. There have already been minor amendments to government health and safety regulations as the country gets ready for Brexit. These mainly relate to just removing EU references, and many aren’t actually changes to legal protections and requirements. Then again, there are other potential regulation changes that might impact things like cross-border travel and trade between EU countries and the UK. SMEs are likely to find it worth their time to read up on the regulations which apply to their sectors so they know the potential circumstances if the UK winds up leaving the UK. Keep up to date with VAT news with VAT global.
The potential circumstances include a ‘no-deal’ scenario, which would be the default position should no agreement be reached. A deal might be renegotiated around a backstop position, but there might even be a totally renegotiated deal via an Article 50 extension. Also, a general election or second referendum might even leave the UK in the EU.
Above all else, keep in mind what your business is specifically good at. Do what you can to make sure that you keep doing just that moving into the future, no matter which Brexit outcome takes place. Your business fundamentals aren’t likely to change, so maintain your focus on your customers and meeting their needs.
This applies to your staff just as much as your consumers too. You need a passionate team that results in your success. You need employees that buy into the vision and story of your company. You need people that come into work just because they want to, not just to get a paycheck to avoid starvation and eviction from their homes.
There’s no telling which outcome Brexit will wind up taking, but as we get closer to the actual day of reckoning, things will get clearer. Take a proactive approach so that you’re not only ready for the consequences of Brexit, but possibly even in position to take advantage of the new reality looming over all of us. It really is the only way to go in this uncertain time of pending change.
