With Theresa May’s upcoming vote on her Brexit bill, it’s understandable that most small businesses are concerned about the future. The recent negotiations and atmosphere spell out uncertainty which makes it harder to plan.
Although a deal is yet to be agreed upon you can still make sure your business is in the best-placed position.
Here are four key areas to focus on in order to minimise the impact of Brexit on your business.
1. Trade/VAT Tax Changes due to Brexit
Perhaps the most important change in regards to our departure from the European Union is the issue of trade.
Over 130,000 small businesses in the UK will be forced to pay VAT upfront on all goods imported from the European Union.
It would be beneficial to budget accordingly to ensure that your business has enough cash flow to adequately prepare this.
2. European Union Workers
The Brexit bill will be taking a close look at immigration rights and freedom of movement.
This means focusing on your worker’s nationalities ensuring that they are employed legally and have the right to remain.
Moving on, you would need to inform your employees of any changes to their pension and workers rights.
3. Local Sourcing
Setting up roots within local suppliers will make the transition of Brexit go smoother. By sourcing locally your company will be less dependant on outsourcing and save money in the process.
Taking this step will also present a chance to build new community ties for your business and is better for the environment.
In case of a ‘No-Deal’ Brexit deal, this should also help you negotiate trade terms more easily.
4. Investigate new markets beyond the European Union
Following on from the last point if your company IS dependant on outsourcing there are other options. For example, our Commonwealth allies: Australia, the US and Asia can help provide the resources you need to keep your business trading.
It is also worth looking at marketplaces such as Amazon and Alibaba etc who have already built up a good rapport and your customers will already be familiar with.
In uncertain times and the recent political atmosphere, it’s crucial that your small business starts preparing today.
By focusing on these areas you should be in a strong position to protect your business against whatever changes are made to your industry.
For further information, we recommend exploring the government’s guide for the full implications of our exit of the European Union.