With Brexit approaching there remains a high level of uncertainty over the effects this will have on local businesses. It is important to act now rather than waiting for the dust to settle come exit day. In prepping for life after Brexit keep the following in mind:
Changing trade rules
In the event of a no deal Brexit there would be no transition period. UK trade rules would most likely revert to those covered by the World Trade Organisation (WTO). This means that goods would be subject to custom checks and tariffs, increasing costs and slowing processing times. Ensuring your current pricing structure is robust and that operations are running as efficiently as possible will ease the change to WTO rules.
Managing your supply chain
Currency fluctuations have always been a challenge for businesses trading with EU countries. These will likely worsen after Brexit. Increasing the percentage of products sourced from the UK will allow your company to bypass new import costs. If this is not possible it is advised to build a strong relationship with current suppliers. A global security account lets you pay suppliers in their own currency, both saving costs and improving relationships with suppliers.
Avoiding currency uncertainty after Brexit
A specialised currency strategy will be key post-Brexit. Currency experts will be able to work with your business in order to develop the best strategy. Setting up a forward contract will allow you to lock in exchange rates for a future date, making it easier to plan for future payments and budget efficiently. Dealing with suppliers in this way greatly improves your negotiation position.
Additionally, Specialist payment providers grant access to the most competitive exchange rates and can offer advice on managing your international payments.
Knowing your target markets
It’s not all doom and gloom! The EU will remain an important trade partner with the UK. 43% of British trade is with the EU and a large portion of this trade is likely to remain. By focusing a pricing and marketing strategy in the UK market you will be able to boost sales and reduce costs.
Looking inward is also not the only option. There may be opportunities in the near future to expand markets beyond Europe. In fact, Canada have shown considerable interest in UK exports. A reason for this being the growing appetite for ‘Brand Britain’.
The internet is also a powerful tool to expand your business. The UK is home to the 3rd largest e-commerce market in the world allowing international markets to be easily reached through marketplaces such as Amazon and Alibaba.
A majority of UK businesses remain positive about international trade and now is the time to get ahead of the curve so that your business can not only survive, but thrive after Brexit.
Further information on the wider-ranging implications of Brexit can be found here.
Setting up a company during Brexit
Setting up a company in the current environment can be a scary prospect. Here at the Company Shop, using our expertise of UK and Republic of Ireland company formations, we can guide you through the process with ease.
Do not hesitate to call us at 028 9255 9955 or contact us online!