With the EU Referendum merely hours away, now is a good time to consider whether your business is fully prepared for a Brexit. No matter how you’re voting it’s important to plan ahead for any eventualities.
Here’s what to consider while getting your business ready for the possibility of saying goodbye to Brussels.
Changes to trade
If your business relies on trade from within the EU a Brexit would hit your business hard. With half of UK overseas trade conducted with EU, it’s important to think about how leaving the EU would affect the trading of your small business.
While negotiations with the EU would be likely to continue after a Brexit, nothing would be certain. It’s a wise idea to keep your options open and explore international trading.
This might seem a big ask from SMEs, as getting a plane and travelling around the world might not be feasible with a small budget, but there is guidance available for businesses looking to grow their business overseas.
Much of the UK’s employment legislation comes from the EU, so it would be a good idea to revisit these contracts. Even though we’re still unsure as to how these contracts would be affected, being able to review them quickly would benefit your business.
Sections to pay particular attention to are holiday pay and breaks. Decide in advance whether you would choose to amend these in the event of a Brexit. Although this won’t apply to current employees already in possession of a contract, changes would apply to new employees.
Plan ahead with clients
Plans to expand or export would be complicated with a Brexit, and would mean uncertainty for your clients. Communicating with your clients and planning how your relationship would continue post-Brexit will go a long way in keeping clients happy and running a successful business.
If you have clients from the EU, putting in the hard work now will mean you benefit from could work with them around changed legislation if the UK does leave the EU.
Manage your Finance
In the event of a Brexit it has been predicted that the value of the pound could fall up to 30%. The ‘leave’ campaign argues that a drop in sterling will make their goods cheaper overseas, while the ‘remain’ camp argues that a weaker pound will hit those importing raw materials, such as metals.
Small businesses have less ability to absorb such excessive currency changes, so it’s important you get smart with your finances now. If you make international money transfers you should look to doing this through a broker opposed to a bank, as you will have the option to fix rates and give your business stability for select periods at a time.
Is your small business prepared for a Brexit? Leave your comments in the section below!