The constant news of Brexit and the struggles within the government to settle on a deal has had a profound effect on the confidence of many small business. Many businesses have halted their plans for growth due to the confusion still surrounding the looming breakup of the UK with the EU. This is likely to continue until we officially leave on 29 March and maybe to some degree, will do for some time after this. But is there something you can do to protect your business? This week we take a look at some actions business leaders can take to strengthen your position through this period.
Supplier Relationships
Your relationships with your suppliers are of vast importance and it’s integral to your business to keep these running as smooth as possible. In this tumultuous time, many business leaders probably have the same worries and concerns that you do, so start a conversation with them. Contact your suppliers and talk through any concerns that you may have and vice versa. Try to come to some kind of resolution and a plan of how you both want things to go moving forward. As well as this, look for ways to forge relationships with new suppliers if this suits your business needs
Currency Rates
Importing and Exporting may be a big part of your business, and you may have found that in recent months your finances have been affected by the fluctuating exchange rates. While there’s nothing you can do to control this unpredictability, there are transfer options you could try. Hedging is a way to project against major changes in currency exchange rates. There is still some risk involved but with hedging you are able to freeze an exchange rate for up to 1 or 2 years in advance after forwarding a contract. This will make your cashflow more predictable at least while the rates become less volatile.
Credit
If the worst happens there’s nothing wrong with being prepared. Looking back to the financial crash, there was a real lack of finance for businesses to tap into. Make sure you are prepared for every eventuality and plan what finance routes are available to you, so that you can protect your business and help it to continue growing. After the financial crash, the availability of finance became very limited, so think about other avenues you may be able to explore.
Employees
If you are feeling unprepared as we head towards exit day and are worrying about your business, the chances are that your employees will sense this. This can only have a negative affect and it could cause your staff to become less productive. Try to instil a little good faith and inspire some confidence in your employees. Communicate openly about the challenges ahead and strengthen your team through uniting together. Try presenting opportunities and providing a supportive management structure for your team. When employees are happy, you’d be surprised how well this can help them to perform.
If you have any concerns regarding your business and would like to discuss further then please contact us.
