The impact of Brexit will undoubtedly bring its fair share of challenges for SMEs but this uncertainly doesn’t mean that business owners should bury their head in the sand and not carry out Brexit Contingency planning.
Contingency planning for any extreme scenarios such as illness or death is good practice. There will be some small businesses who already undertake business continuity planning as a matter of course and will be looking at many of the areas as part of their normal business planning. There are others, however that may not normally engage in contingency planning.
According to FSB research, only 14% of small businesses surveyed have started planning for a no deal conclusion to Brexit. Almost half (41%) believe that a no deal would have an impact on their businesses but haven’t yet started planning for the possibility and are even postponing major business decisions.
Our CMC partners have prepared a list of key questions that all business owners should be asking themselves as part of their current Brexit contingency planning.
10 Key Questions for Business Owners to Ask for Brexit Contingency Planning
- Has your business completed an assessment of the risks and opportunities presented by Brexit?
- Does this include consideration of a ‘No Deal’ outcome?
- Has your business established a contingency plan to respond to Brexit and a no deal outcome?
- Does your planning cover the impact on core operations including the impact on your transport, sales administration and governance?
- What about the impact on EU customers and markets?
- Does your planning include the impact with your EU suppliers and any cost implications?
- Have you planned for the impact on your EU employees including recruitment and mobility of staff across borders?
- What about the impact on indirect Tax and Customs – including changes to customs procedures and tariffs and the possible effects on cash flow and payments processing?
- Have you considered the impact on your margins, including the increase transport costs, storage costs and currency fluctuations following Brexit?
- Does your planning cover the impact on Legal, Regulatory & Data changes – including the ability to operate overseas?
Avoid burying you head in the sand and start with addressing the above questions. Whilst it is difficult to plan for the unknown, there are measures that business owners can take in preparation for Brexit and a ‘no deal’ outcome. If you view Brexit as an opportunity rather than burden then it will you to assemble a plan of action that can facilitate future growth of your business.
If you are feeling overwhelmed by the uncertainly and wish to take control of your planning, contact us to arrange a free confidential appointment with your local partner.