31-Oct Brexit: How can SME’s prepare for no-deal?
23rd August 2019As we edge ever closer to what looks more and more likely to be a ‘no-deal’ Brexit, SME business owners should now be readying their businesses.
There is clearly no certainty over quite how affected we shall all be by Brexit. However, there are sensible risk management mitigation steps that business owners may wish to consider.
- If your business imports or exports goods from/to the EU, you should make sure that you already have a UK EORI number and that you have appointed a Customs agent. If you are an importer, you may also benefit from using this registration to sign up for the Transitional Simplified Procedures (TSP) scheme and Authorised Economic Operator (AEO) status.
- If your business is reliant upon imported goods, consumables, etc, it must make sense to stockpile more of these than normal, to bridge any possible initial bottle-necks in your supply chain during November.
- Many fear that prices will rise on imported inputs, due to tariffs and exchange rate movements. If this happens, be prepared to pass This on by adjusting your own selling prices.
- If any of your suppliers invoice you in euros, it might be wise to convert a significant amount of spare sterling cash into euros, to hedge the possibility of the pound being initially devalued, as it was post referendum.
- If you really are worried how Brexit could affect your business, perhaps you should consider trying to switch reliance on EU suppliers and/or customers to UK alternatives. If this is not possible, your own ‘backstop’ should perhaps be to consider ceasing to trade or selling-up.
Even if your business is not directly reliant upon European transactions, Brexit shockwaves could undermine the overall level of UK confidence and economic activity – so be prepared.
Disclaimer - All information in this post was correct at time of writing.
