Potential impact of Brexit on my family business
Question: I am responsible for my family business and given our location I am concerned about the potential impact which Brexit will have on it. What can I do to properly assess the effects Brexit will have on our business and what actions can I take?
To date the effects of Brexit have been limited to a rise in consumer uncertainty and the effects of weak sterling and a volatile exchange rate.
If your business is buying or selling in Sterling then the most recognisable effect of Brexit will continue to be exchange rate volatility with an underlying weakness in Sterling. A recent Irish Exporters Association survey revealed that as little as 30% of Irish SMEs are actively hedging (or reducing) their foreign exchange risk.
Now more than ever it is vital that business owners look at either a natural hedging process or a financial product to reduce their business’s foreign exchange risk and cost in relation to Sterling.
Sterling aside there are also a number of other steps which I would urge business owners to take in order to properly assess and manage the fall out from the Brexit process for their business:
1: Assess your exposure
2: Review your Supply Chain
There currently is a free movement of goods and people with Britain. Brexit will mean that movements in and out of Britain will give rise to potential duties, tariffs and delays.
3: Prepare for Customs
Most of us haven’t had to deal with customs in 25 years. Start planning now for potential tariffs, duties and declaration processes. These will also apply to movements in and out of Northern Ireland.
4: Review Staffing Issues
Restrictions on movements in and out of Britain and Northern Ireland also include workers.
5: Look for Opportunities
6: Develop a Business Strategy
If you have any queries or would like to discuss your business issues in confidience, please contact Barry Kieran on firstname.lastname@example.org or call our offices 047 84955