A few interesting things happened this past week. The Eagles won the US SuperBowl for the first time in history. And EU leaders met to discuss one of the most crucial topics for UK companies: Brexit.

Since I felt that this issue concerns you, I invited an expert on EU trading to offer a new perspective on what Brexit means to business owners.

This week, my guest was Charles Markowicz. Charles runs a firm that helps companies from non-EU countries acclimate to the trading conditions of the EU. As a business owner working on issues of EU compliance for over two decades, Charles had some unique opinions to share about Brexit. Hopefully, you can learn from his insights.

Brexit is a time for evaluation

One of the first factors Charles noted is that the Brexit negotiations are volatile and business people should treat it as such. As Brexit negotiations are underway, you as a business owner should keep informed and look at all possible scenarios. What would a hard Brexit mean for your company? What would a soft one? How likely is either outcome? Are you prepared for both these scenarios? Do you have contingency plans in place? Only by evaluating the position of your business can you better prepare for any Brexit outcome.

You need to be ready for the cost

During our conversation, Charles pointed out a significant point: businesses based in the UK can expect the downside of losses in terms of time and money for as long as Brexit negotiations run. He cited a study that showed the UK’s economy could take a hit of about 2-3% from a soft Brexit and up to 15% from a hard Brexit.  Even the English pound has taken hits so far. You need to accept, that Brexit might have adversely affected your company, before moving on to step three.

The best course of action: prepare a plan

One path Charles proposed was expanding your market. For instance, setting up a subsidiary in an EU country or one per continent, preferably one with English speakers. The benefit of such market diversification is that your business would be able to source materials cheaply and export products despite the outcome of Brexit.

To summarize, being aware, staying informed and preparing for the consequences of Brexit is the best way to look at the bigger picture for your company.

Don’t forget to follow me on Facebook/Youtube for these and more interesting takes on emerging financial issues.

Have an engaged, informative week!

P.S. If you find this content useful, we do provide tailored professional advice on your personal or business tax matters. If you are interested, please book me in via the link so we can arrange a chat: https://hannah-xu.youcanbook.me

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