Small businesses are often beset with many worries and concerns. After all, there’s always improvements that can be made, and competition is rife. Furthermore, with economic and political uncertainties like Brexit looming nearer, many firms are understandably concerned with the current state of things. Very real threats are starting to emerge.
However, many of a business’s problems take root in the financing arena. Sometimes, with enough money, small companies can dig themselves out of any hole they find themselves within. With some wise and strategic money hacks, Brexit might not seem so intimidating. Consequently, here’s how small businesses can financially prepare for Brexit.
A thorough audit
All financial concerns should begin with a thorough audit of the company’s resources. This way, auditors can see where all their firm’s money is going, and ask questions such as; are corporate funds being spent productively, or wasted? Do we have many workers from the EU who are set to leave the UK? Funds can be shifted around and strategically moved to bolster the areas of a firm Brexit might impact most, enabling companies to adopt a stronger position.
For example, most small businesses will likely choose to detract funds from where they’re innovating and expanding, and instead bunker down in vulnerable areas where they need to survive; maintaining stock, maintenance costs of work premises, retaining talent through staff pensions and salaries etc. In the end, it’s more important that small firms keep up and running during the Brexit period than charging ahead in an unstable, risky economy.
Relations and supply chain
An SME could well have relations with EU partners, and more to the point, EU partners who are detrimental to the functionality of their supply chain. Trading contracts might be legally binding, but when Brexit is enacted, there’s a high possibility they’ll be unceremoniously severed, causing companies to lose a fortune and perhaps face closure. Consequently, all SME’s need a plan in place here that makes any transition period as smooth as possible.
In the end, one of the best ways to financially prepare for Brexit is for firms to understand where their bottom line is coming from. If they’re heavily reliant upon any EU partners or services, then the sooner they start to ease away from them, the less they stand to suddenly lose. By coming as self-sufficient as possible away from the EU, a firm’s losses shouldn’t be as big or impactful.
When managing commercial or personal finances, it’s easy to get tunnel vision. Feelings of isolation and intense misery begin to sweep in, and often obscure any decent and helpful ideas. It’s a rocky terrain that requires no short measure of determination and endurance. Still, while Brexit might intensify these feelings, in the end, there’s no reason to do it all alone.
For example, companies such as Liberis are always on hand to provide financial support to any company that needs it. They’ll provide a rundown of the pros and cons in business credit cars or business cash advances, and tailor all their advice and services to better benefit their clients. It’s personalised assistance, and in the dog eat dog environment Brexit is building, this kind of expert support is invaluable.