10 Things That Will Impact Small Businesses When We Exit The EU
Despite what many people thought, Brexit happened and the UK may or may not be better for it. Both sides have strong arguments as to why their opinions are right and while the arguments and debates about Brexit will still be heard throughout the UK, it is business as usual for many small businesses throughout the country. Or is it?
Brexit has brought with it a great deal of uncertainty for small business owners and it has many of them wondering if their businesses will remain successful. Leaving the EU will impact many of the UK’s small businesses and we have created our own list of the “10 Things That Will Impact Small Businesses When We Exit The EU”
While the UK economy is currently very healthy, Brexit might change that. Many large companies have threatened to leave the UK, when Brexit happens and this could have an effect on the local and overall economies.
While many business owners think that trade with the EU will stop, it won’t. It will just be different and small businesses will continue to be affected by EU law and regulations. Trade with the EU won’t dry up, changes will be made and small business owners will adapt to these changes.
With countries deciding to make life difficult for the UK, small businesses can respond by becoming more competitive. This will ensure that the UK will remain an attractive place to do business regardless what effect Brexit will or won’t have.
Unsteady Financial Markets
The financial markets will be affected by Brexit and this could make borrowing more difficult for small business owners. Investors like to be sure that their investments will pay off and they could be hesitant about lending to UK businesses.
Immigration and Work Permits
Many small businesses in the UK rely on foreign workers, many of whom come from the EU. Brexit will cause new legislation to be introduced enabling these workers to remain in the UK. Without employees, many UK businesses might close.
If your small business does any European distribution, you may have to separate that distribution from your UK and US distribution. That means higher shipping costs, lower margins and increased workload.
New Laws, Rules and Regulations
With Brexit, there will be hundreds of laws, rules and agreements governing everything from trade and immigration to agricultural subsidies rewritten. This will affect many small business contractual agreements creating more work for UK business owners.
Many UK small businesses will need to increase their marketing activity and become more creative. Identify your strengths and communicate them to your customers.
There will be a pressure to push prices down. If your business sees this downward price pressure, know what your costs are and set a minimum price for your services or products. Watch your mark ups or margins to be sure they do not fall too low.
Keeping your overhead down is good for your business and cost cutting is something that every small business owner faces. Be sure that you don’t cut costs so low that your business or your customers suffer.