Brexit Planning for Small Businesses
If you are the owner of a small business, it’s about time you and the management team responsible of your company come up with plans to mitigate Brexit's risks. You will also want to try and improve staff retention, as well as avoid employee insecurity.
In this respect, in today’s article, we’ll be talking about how small businesses should prepare themselves for Brexit.
Risks and Opportunities
It is well known that most businesses are considering both the risks as well as the opportunities of Brexit and its possible outcomes. It is important that you, as CEO, as well as your Senior Management team share what you know and inform your staff in regard to the risks of all the possible outcomes.
Here is exactly what you should be thinking of and talking about with your management team and employees.
You have to determine whether your business has expertise it can share with its customers in order to add value to their own Brexit planning. This will help you create a competitive advantage with them.
In this respect, you’ll have to consider transport, logistics, and maybe even contingency stock financing models.
For example, as a pallet delivery company, you should come up with alternative distribution channels that would maintain the continuity of supply.
You might consider a European pallet delivery chain in order to be in control of the Brexit impact on demand and supply.
Finance and Cashflow
You'll have to think about every single thing that can minimise the impact/outcome of Brexit. For example, consider the provisions for increased raw material stocks, for the financial impact of alternative distribution costs and for the increased pre-Brexit consignment stocking at customers.
You should also come up with a plan for short-term export growth in case your product becomes an international bargain.
It is important to determine exactly how much of your business is dependent on the EU. Also, consider the alternative markets beyond Europe and further improve their exploration.
In order to offset any EU losses, your business should increase its focus on the domestic market.
Staffing and Employment
When it comes to staffing and employment, your employees should feel safe with your business strategy. You might also want to consider employing European workers or even introduce part-time and apprentice workers.
In order to reduce reliance on labour and future proof all your systems, you should consider implementing automation initiatives. They will not only increase your productivity but will also make your business safer.
Innovation and Product Development
As you will most probably have to open your business to alternative overseas buyers, you should try and make your product/service more appealing to them. Obviously, you’ll want to take some measures in regard to the innovation and development of your product/service.
No Risk Opportunities
When coming up with a Brexit plan, it is important to determine if this is the right project for your business to approach. So, would your plan still be viable if Brexit wouldn’t happen or is it solely inspired by Brexit?
This is because you don’t want to take any risks. So, the most important piece of advice is to make sure that your future business plan is viable in both scenarios.
With Brexit just around the corner, it’s important to be prepared for everything that’s about to happen. Craft a sturdy plan and take into consideration all the risks and opportunities to keep your business going.