Recent research conducted by Ipsos MORI on behalf of Price Bailey discovered that one in four businesses have no meaningful business plan, but with the EU referendum just days away, and the polls showing the two sides neck and neck, it is now more vital than ever to have a plan in place for the future says charted accountants and business advisers Price Bailey.
“Even though nothing will change immediately whatever the result, businesses need to plan to protect their business,” said Price Bailey Partner Daren Moore. “We’re urging clients to speak to their EU suppliers and customers as soon as possible to provide clarity and reassurance, discuss ongoing relationships and ensure that whatever happens, the terms of any agreements or contracts remain unchanged.”
The Ipsos MORI research also showed that almost half of respondents thought that leaving the EU would make no difference to their business.
However, James Sproule, Chief Economist and Director of Policy or the Institute of Directors warned: “Many companies believe that as they don’t export they won’t be affected should the UK leave 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.”
The referendum campaign has created a huge amount of market uncertainty for businesses, but whatever the news on Friday morning, businesses need to be prepared to ensure the impact on their business is minimised.