How might Brexit affect my business?
Identify some of the risk areas and what you can do now to get ready for a post-Brexit environment.
Even though there are still many unknowns and the final Brexit deal is still not confirmed, the following questions will give you an idea of the possible ways that Brexit may impact your business. It should highlight to you some of the risk areas and what you can do now to get ready for a post-Brexit environment.
It is wise to keep up-to-date with the changing landscape associated with Brexit and to start getting prepared:
- Have you appointed someone in your team to keep up-to-date with Brexit issues and how you might respond?
- Have you looked at your current operating model and assessed how Brexit might impact on you?
- Are you looking into how Brexit would create new opportunities for your business?
The people you employ may be affected by some of the changes being implemented as a result of Brexit:
- Do you currently employ EU citizens in Jersey? If you do are they aware of the Settled Status Regulations which they will need to comply with?
- Do you employ anyone based permanently or temporarily in the EU? Have you considered the impact of Brexit on their employment? You can contact the Settled Status Team on 447900 or email them at [email protected].
- If anyone in your team plans to travel to the EU after the UK leaves the EU you must have a valid passport.
Changes to the movement of goods between the UK and EU is perhaps the least well-developed of all the areas under negotiation and as a result could be the most disruptive, so:
- If the UK leaves the EU Customs Union without a deal it is likely that there will be higher costs and increased documentation for goods you are importing from or exporting to the EU.
- Are you certain of all the current routes you have for importing or exporting via the EU?
- Can you manage the potential impact of customs delays to the delivery of goods?
- Do you know if/how tariffs, documentation and customs clearance could affect your business?
- If there are changes to the ‘rules of origin’, will they affect your sales into the EU?
- Are you working effectively with your logistics partner or freight forwarder to manage these implications?
If you are selling into the EU it is possible that the standards and regulations that currently apply to your products might change. Do an audit of your products or services to ascertain:
- Do you understand all the EU standards and regulations that apply to your products and know if/how these might change after Brexit?
- Do you have a process to adapt your product or service to changing regulations if you need to do so?
- If you have Intellectual Property in your business, have you considered how Brexit might impact on these?
Managing cash flow is always important for every business, but never more so than in times of uncertainty. Review your financial forecasts and consider:
- Have you factored possible cost increases in to your operating model?
- What impact might there be on your cash-flow if you have to pay import duties earlier?
- If necessary, how will you manage currency fluctuations and volatility?
- If banks become more cautious will this have implications for your finances?
- Have you thought about the contracts that you have with EU customer and suppliers and if you need to change or amend these?
- Have you considered the impact that a slowdown in the UK economy would have on your business?