How will Brexit affect my business?

What does this mean for my future?

Coins

Since the UK voted to leave the EU there has been intense speculation about the consequences for UK business.

Predictions range from devastation on one hand to very little, or even a positive effect on the other. In truth it’s too early to tell what the impact will be in the longer term.

Having a plan

“Even though nothing will change immediately, businesses need to plan to protect their business,” said Price Bailey Partner Daren Moore. “But businesses do need to have a plan in place to protect their business or take advantage of the opportunities which Brexit may present in the medium to long term.”

Recent research by Ipsos MORI showed that almost half of respondents thought that leaving the EU would make no difference to their business in the short term. You can download this report here

Knock-on effect

However, James Sproule, Chief Economist and Director of Policy or the Institute of Directors warns: “Many companies believe that as they don’t export they won’t be affected when the UK finally leaves the EU, but every company has a degree of interdependence which is greater than most people think. For example a supplier’s supplier may be impacted, and may not be able to deliver on time or at the agreed cost, which will have a knock-on effect.

“Similarly a customer’s customer may loose a contract due to increased tariffs, resulting in loss of business. Businesses need to examine possible threats to their supply chain and customers, and plan accordingly.”

So if you haven’t already, the first step should be to speak to your EU suppliers and customers as soon as possible to provide clarity and reassurance. This will also be an opportunity to discuss ongoing relationships and ensure that whatever happens, the terms of any agreements or contracts will remain unchanged.

The referendum campaign has created a huge amount of market uncertainty for businesses, but now the result is clear, businesses need to plan and be prepared to ensure the impact on their business is minimised.