Newspaper headlines have declared the British decision to exit the European Union ‘The ‘Brexit crisis’. Already, there has been a noticeable crystallisation of the risks that were alluded to during the referendum campaign: exchange rate volatility, weakening investment, and increased business uncertainty. The future for businesses both large and small, already trading internationally, has significantly altered as a result of ‘Brexit’. The greatest risk for businesses following the decision is that the current uncertainty becomes an excuse for procrastination. It is vital for businesses to take the initiative and proactively plan for the challenges that lie ahead in order to prosper in a changeable economic situation.
So what are the consequences of this decision for businesses in Britain? What steps need to be taken and when do we take them? Should we consider setting up operations within the EU to manage the risk and protect our current and future revenue streams?
Regardless of whether the business trades in the EU or beyond, Brexit will have a direct effect on any business which is dependent on international trade. Proactive businesses are already planning and making decisions so as to mitigate future risks. In order to achieve or even maintain business success in the current economic climate, it is crucial to plan for such eventualities. This is best done by assessing the strategic, financial and legal implications of choosing a particular EU country as a point of presence.
The strategic importance of this decision is monumental, and there are many aspects to consider in ensuring the right decision is made. No business leader sets out to make the wrong decision, but without the right information, that is the inevitable consequence. Customer locations, growth potential and business culture are highly significant factors to analyse when evaluating the right location for a new business base. This is vital in securing international revenues on a long term basis.
Here at Shaping Business, we work with international businesses across Europe and are able to help you with market research and analysis, strategic planning and with establishing a European base to secure your future international revenues. Similarly, we can offer comprehensive support to European businesses looking to establish and secure opportunities in the UK market, post Brexit.
Ultimately there are different options for every business. However, the reality is, that these decisions cannot be put off pending some form of political stability, or trade deal that may happen in the future. There is an immediate need for businesses to plan, make decisions and take action, in order to secure their futures.