How does Brexit affect my business?
So, as Boris sets up his stall at number 10, he's committed to taking us out of the EU on 31st October, do or die!
The EU say they won't reopen the deal, and Gove now says that no deal is "assumed".
No deal Brexit it is then!
When establishing your defensive strategic options, it's sensible to establish cost of failure ranked against the likelihood of an event happening.
Change also opens up opportunities.
Both need to be considered, a strategic response to Brexit established and implementation sufficiently carried out. And all by Halloween!
So who does no deal Brexit effect?
No deal will affect you and your business if:
- You trade with the EU or your customers use your product or service as part of their EU supplies.
- You import or export significant quantities of product, whether or not to the EU.
- Your services are regulated within the EU.
- You rely on EU workers.
- Your business has vulnerabilities that may be further exposed by economic downturn.
Most of our clients are ready for no deal by now, although some had relaxed their preparations, but will now need to ramp them back up.
The no deal issues outlined above have affected all of them in some form, meaning alternative plans or solutions being implemented. For example, to tackle hedging for currency risk, or increasing stock holdings to maintain UK service levels if the border transits slow down, and the impact these and tariff changes place on pricing strategies. Some have already ensured they have a cross-border corporate presence.
Our clients have taken steps to ensure that they are sufficiently resilient with the necessary resources and strategy to cope with a general economic downturn. Are you?
If you're not prepared for no deal by now, regardless of whether EU trade affects you directly, you really should consider the impact and make plans.
So, what can you do?
- Pull your leadership team together and identify all the risks your business faces; be honest and list out your vulnerabilities.
- Rank these, by reference to severity, likelihood and how much time you would have if they happened (detection), with less being worse.
- If you rank each factor out of ten, with ten as the worst, and multiply the three scores, any product above 100 must be addressed.
- Research the facts: there are plenty of useful resources which clearly identify no-deal Brexit specific effects and facts, make sure you are well informed.
- Problem solve and create action plans for all the key risks. Some will be on hold for now, but many will yield opportunities for growth and profit right now, regardless. Why not get on with them immediately?
- If there is something about the business culture or maybe some leadership disharmony which prevents you from getting radical honesty and responding quickly to challenges, get in touch - we can also help with this.
- Examine the potential financial outcomes of no deal Brexit and develop scenario plans which allow you to change the scale of your organisation - either up or down - depending on the economic landscape.
- Get an expert facilitator to help with the process. They will give it structure, make the meetings really effective, and help you bring everyone together, engaged with appropriate urgency to implement solutions. It is always money well spent and leaves the CEO free to contribute fully to discussion.
Feel free to get in touch if you want help to examine the effects of no deal on your business rapidly, and develop solutions that you can get on with now.