Have You Made Your Brexit Plan?

Brexit Referendum Result Brexit Referendum Result

START MAKING BREXIT PLANS TODAY

 

Based In UK

Trading With UK 

BASED IN UK?

NEED TO REMAIN CONNECTED TO THE EU

If you need to retain an uninterrupted connection to the EU; It may be worth considering a satellite office in Ireland in order to maintain a solid connection whilst there is uncertainty over the next 3 years. If Scotland gains independence and retains a Sterling linked EU currency - this will position Scotland as a strong contender however is unlikely to happen for the next few years.

 

TAKING ADVANTAGE WHEN THE POUND IS WEAKENED

At times when the pound is at it’s worst … (There are going to be several of these over the next 3 years) your products and services are going to be extremely attractive to European and American customers during these periods. Prepare to have budget and a ready made campaign to take advantage of these swings in the exchange rate. 

During these periods - customers can notice as much as 15 - 20% off the price of your services; whilst you still retain the full price of your services.

Start identifying international customers; when they are paying in their local currency a weakened pound will mean that you are receiving a higher payment. Being paid in dollars and euros will provide a better exchange rate.

Ask your business bank account about opening a dollar and euro account so that you can be ready to take advantage of these opportunities when they arise.

The local UK economy is likely to be hit the worst due to the uncertainty and the decline in UK funding - which means that those dependent on their local and UK market are going to be hit the hardest.

 

RETAINING TALENT AND REASSURING STAFF

With reports of professionally mobile workers exploring their international opportunities it is worthwhile explaining your Brexit plan to your team. With an opportunity to start satellite offices for EU and other market connections a pro active approach to international opportunities will provide any international talent on your team to your commitment to retaining European and International connections. 

The Upcoming Economic Downturn is likely to cause some apprehension for your staff about the future of the UK and your business. A pro active international approach showing that you are taking efforts to thrive in uncertain times can help provide assurances and bring together your teams. This unique position has the potential to get your team to take international aspirations a lot more seriously.

 

BEING PRO ACTIVE OR REACTIVE

Although nothing has been announced,  a prepared attitude committed to securing the position of your company and employees can motivate them.  Involve staff in discussions about what your plans are and ways that you can mitigate the impact of unknown results from Brexit.  Preparations will show that you are investigating your options and have an actual plan. With just over 50% of the UK population concerned about job security it is worth communicating to your team about how you are intending to reduce the impact of Brexit.

 

CURRENCY CONCERNS

Those working in multiple currencies or trading with multiple countries need to be aware of the potential swings in valuation and the current sensitivity.  Knowing how to react to what is happening and having contingencies and plans in place so that international cash flow can be planned.  It may not always be in your companies interest to change currencies at particular times - this is where it is worthwhile subscribing to financial information support services and making sure that strict payment.

 

TRADING WITH THE UK

  • Fact 1 : The UK has not left the EU YET
  • Fact 2 : No actual plans for when this will happen have been made yet
  • Fact 3 : The country is in political turmoil … (but so are many places)
  • Fact 4 : The vote was against the status quo and not the European Union itself 
    (arguable but happy to make the argument!)
  • Fact 5 : This will impact the world markets 

Over the next 5 years the UK is going to be worth keeping an eye on rather than avoiding - with change comes opportunity. Timing is going to be important in order to take advantage of the limited time opportunities of a weakened currency and a weakened economic position. It is recommended to have a plan and pre evaluate the decisions that you would like to make with the UK market in the event of a weakened pound.

Have your well evaluated plans ready to go - and make sure that the funds are allocated and available for a snap decision based on the currency and prices reaching a set point.

Be aware which currencies you are being paid and maintain a firm in order to make the best of the situation, The pound will likely recover in the longer run - but over the next 5 years will take several dips; in which opportunities will become available.

OUR PREDICTIONS

Year 1 - Political Stabilisation - Potential Snap Election

At the moment the UK is busy fighting itself about what is going to happen. Scotland wants to leave the UK, The tories have been busy fighting themselves and cutting their party to pieces, Labour are currently challenging their leadership and populations. The far right is currently lurking in the background to start making false promises all over again of further disruption and destruction.

The UK is a high risk market at this point with the potential to get some bargains and low cost international services. With a reputation for high quality digital and professional services - contacting companies with international opportunities would be very welcome and deals can be made just by operating and paying in a timely manner.

Year 2 - Terms of Article 50 Trigger and EU negotiations begin

Whichever political party ends up in power or coalition will have the non enviable task of pushing the large red self destruct button for the UK / EU relationship. There is a 99% chance of it happening - because else there will be rioting and British Civil War … which is usually a combination of badly made cups of tea, football hooliganism and letters of complaint.

The fallout from the markets will likely cause disruption for the UK pound. This is when Scotland will likely make a successful bid and secure an independence vote.

Year 3 - Funding Cuts, Austerity and New Relationship with EU

As the reality of Brexit now stares the UK in the face, the realities of where the gaps in previous funding programmes will now be apparent. The UK EU support infrastructure has been taken away and there is less ability to support businesses and the previous support and growth programmes that have been available in the past.

There is now a demand for international funding on a local level - there will be a requirement for innovative solutions and rolling out cost saving, innovative solutions will be essential for the UK survival. Local Government funding will likely be cut - but the requirement for business support will still exist.

Year 4 - New Trade Deals, Laws and Negotiation Implementations Begin

As Britain finally has closure with Brexit,  the terms are starting to become clearer as to what will be happening in the years to come.
It will be at this time that new laws, trade rules and deals and relationships with Europe will be coming into effect and the reality of the next few years will start to become clearer.  It is at this point that the UK will be able to start looking at starting international negotiations .

The UK will now be able to start attracting foreign direct investment in new ways and setting new rules for international trade deals.
The relationship with Europe will start to be re-established in some shape or form meaning that a relationship with the EU SHOULD be secured.

Year 5 - New Relationship and New Reality

Within 5 years the UK should be operating with new opportunities,  some better deals but a strained relationship with the EU.
Our prediction is that some rather crazy and bizarre deals will be made,  which will take many years to come to fruition.
The UK will have a strong position as a professional and financial sector,  Scotland will have a professional and technical focused economy and will be making use of it's new found EU status and likely establishing a strong Sterling position within the EU.  Scotland can effectively become the UK's back door into the EU.

Last modified onSunday, 31 July 2016 19:57
James Gumble

Founder of Xpand Access

Website: www.xpandaccess.com

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