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The unrest and insecurity businesses are facing across the UK and the EU is valid given the Brexit scenario.
Brexit is going to be as troublesome for the business on both sides of the tunnel. However, if you take a step back and look at the entire situation, maybe you can prepare yourself for the anticipated no-deal Brexit.
5 Ways To Prepare Your SME from Getting Hit by a No-Deal Brexit
Brexit is being looked at as a force majeure to disrupt and probably distort the businesses at both the ends of the tunnel. There may or may not be a no-deal Brexit by the end of this month, either way, precaution is better than cure.
1. Talk to Your Counterparties as Soon as possible
The trade between both the UK and EU will face adverse impacts, it is better to talk to your counterparties and minimise the collateral damage as much and as soon as you can. Come to the basis of risk and loss sharing. This can form the basis of your Brexit clause.
2. Introduce the Brexit Clause (Deal & No Deal)
Make sure that any long term contract you are a part of, new or existing shall include the Brexit clause. And propose one for your existing suppliers and customers in the event of a small business no-deal Brexit.
3. T&C of the Brexit Clause
If your business trades between the UK and other EU countries include a subclause about custom duties and tariffs, this will help to figure out the payment terms after 31st October 2019.
The Brexit is expected to show an impact on immigration laws. If your company has hired staff from the other nation, you might want to include the terms and conditions for the same.
Anyone who has registered an EU trademark has protection throughout the 28 member states. If we leave, will that EU mark still give protection in the UK?
4. Trading in the EU
Check that you have the licences/permits/approvals you need in all the other EU states in which you operate so that you can carry on trading as you do now.
5. Stock up to help manage transport delays
There could be delays at UK borders after Brexit. If you import or export – getting advance supplies in place now will ensure that you can maintain sales in the run-up to Christmas.
Deal or No-Deal, Brexit is going to impact the business ecosystem in both the UK and the member countries of the EU. The immigration rules, the tax regulations and the government policies etc. are bound to undergo changes.
This might take a few months or maybe years to settle back at equilibrium.
However, if your SME is prepared well in advance, that will help you retain longer without much collateral damage.