August 18, 2016

The Brexit business plan - what should small businesses be doing?

The Brexit business plan - what should small businesses be doing?; Brexit what should small businesses be doing

Two months since the UK voted to leave the EU and the dust finally seems to be settling - but its still very early days in trying to determine what post-Brexit Britain might look like.

Truth is, for all the forecasts and predictions, nobody really knows what the future holds in store for our economy.

Unfortunately, wait and seeis not really part of the small business psyche. Businesses dont like to stand still - so in this uncertain and potentially turbulent period, what can you do to keep your business moving forward?

In this blog, weve identified a few things that all small businesses should be doing to prepare for our future outside of the EU

 

Investigate opportunities

While the long-term prognosis for the UK economy remains unclear, Brexit has already had a significant and tangible effect on businesses through the sharp drop in the value of the pound.

Bad news for importers, its conversely great news for businesses selling products or services to international clients trading in Euros or Dollars.

If your customer or client base is UK orientated, now might therefore be the perfect time to explore the possibility for international growth.

Thanks to the currency drop, your products or services are now around 10% cheaper to international buyers then they were a couple of months ago - so make hay while the sun shines and look to capitalise on that extra value to sell yourself to potential overseas clients.

 

Be positive

However you voted in the referendum, the die is now cast and theres no turning back. So even if Brexit looks like it might hurt your business, theres no point in self pity - its time to be positive. 

And there are some positives to cling to! 

For starters, leaving the EU should free up the UK Government to liberalisered-tape regulations, which often reduce the productivity of small and medium sized businesses.

And by eliminating the cost of EU membership from the Governments budget, theres an increased possibility of tax reductions that could benefit businesses too.

 

Open communications

If youre concerned that Brexit spells bad news for your business, you can bet your employees are feeling the pinch too. And an environment where people are fearing for their jobs (or even just worrying about the lack of potential for a pay-rise) isnt conducive to business success. In effect, its a self fulfilling prophecy.

Nows the time for you to show your mettle as a business leader. Talk to your staff, motivate and encourage. Get them to buy in to the concept of pulling together through potentially difficult times.

If you are a service provider, make sure youre communicating to your clients too. They may be equally apprehensive, and theyll look to you for re-assurance.

 

Change the way you evaluate success

If youre used to measuring success by looking at your businesss bank balance, nows the time to change your thinking.

With the game-changing exit from the EU looming, its becoming far more important to look to your sales pipeline or new business enquiries instead, setting KPIs that measure your future prosperity rather than reflecting on metrics youve already achieved.

Monitor new leads, website traffic, conversions, social media engagement - anything and everything that shows you how your offering is resonating with your customers.

This may also be a good time to start looking for a little external help in the form of management accounts, which help to give you a clearer picture of how your business is performing.

If youd like to discuss management accounts with us, or talk about how we can help prepare your business for the post Brexit era, just give us a call on 0121 667 3882.

 

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You may find these blogs of interest too:

Four ways to top up your turnover

Three ways your accountant can help grow your business

Three ways to better bookkeeping

A virtual CFO for your small business

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