SME owners – Brexit implications for you (if you feel unprepared) – short note / no jargon promise as always!
‘Are you prepared?’
How often have we heard someone mention ‘preparing’ for Brexit lately yet no one can tell us exactly what that will look like just yet? So my note on ‘Preparing’ for you today is going to be simple. Two short steps to help you start the process below.
Small business owners have more than enough on their plates day-to-day so when talking ‘strategy’ sometimes you can visibly see SME owners’ tune out, perhaps believing strategy talk isn’t for them.
Maybe it’s for the larger company directors in their view – I disagree. Strategy for business owners is key to where you’re going, regardless of business size. Having goals and a plan of action is the only way to put your foot forward i.e. knowing it’s facing in the right direction!
For this reason, I work with many company directors and individuals on their business strategy, their goals and visions for their business and what they wish to achieve.
- Review your supplier list
- Your UK supplier costs should be reviewed. If using a UK supplier, if they have to charge you VAT going forward (again, who knows yet if this will be the case), know that could have a negative cash flow impact on your business for a period of time. We don’t know if VAT will be charged and then reclaimed here but if that happens, then the time between being charged and claiming your VAT back, would have an implication.
- Review your customer list
- How many customers of yours are based in the UK? Again, we don’t know the impact any changes introduced will have but the key is to start reviewing your records. If compliance issues delay payments from customers, how much of your business is impacted?
Scenarios will all be theoretical with any conversation you hear about Brexit but none the less they may have you feeling a little nervous about its impact on your business. Reviewing supplier lists and putting in place alternative plans (just in case needed) or seeking new options for your business could in fact highlight some benefits to your business that hadn’t been noticed to date. There is always opportunity in disruption! By looking ahead and facing these issues it allows you feel you’re managing strategically and not just reacting when changes occur.
By reviewing your customer and supplier lists and knowing the value of UK purchases and sales, you are building your awareness and taking back a little control and removing some anxiety you might feel about this issue.
Did you know the Local Enterprise Office has a ‘Be Prepared’ Grant in relation to Brexit? The below link can be useful for small businesses. Grant value could pay for additional consultancy needed by a company when reviewing the implications of Brexit with their financial advisors or other professional advisors in due course.
If you think you’d benefit from a review of your records from a Brexit viewpoint or just an overall financial health-check review from me, please feel free to give me a call or email me. [email protected]