Clearview National August 2016 - Issue 177 | Page 5

BREXITUPDATE

What Next for SMEs
After Brexit?... Keep
Calm and Carry On
By Alex Littner, Managing Director of Boost Capital.
»»WITH NO ONE SURE HOW LONG
the UK’s departure from Europe will take, or
when Article 50 of the Lisbon treaty, which
sets the two-year countdown ticking, will
be invoked, the best entrepreneurs can do is
keep calm and carry on. While chaos reigns,
focus on what is within your control – your
business operation, day-to-day processes, and
plans for the future.
BETTER CASH FLOW
MANAGEMENT
The old adage ‘cash is king’ has never
been more true, so closely monitor what’s
coming into and out of the business, and
make provision for financial shortfalls.
Guaranteeing availability of working capital
is of primary importance, whether this is
through bridging finance or employing the
best payment practices and credit control,
such as issuing invoices promptly or chasing
debtors.
RENEGOTIATING WITH
SUPPLIERS AND SECURING
SUPPLY CHAINS
Now’s the time to revisit suppliers’
contract terms to see if better deals might
be struck, or to protect the business against
any possible price hikes, especially if
partners are based in the EU. Investigate
whether swapping to non-EU suppliers is
a possibility, spreading your company’s risk
against cost changes.
INVESTING IN PLANT
OR MACHINERY
What business would want to spend
money now? However, if your firm needs
any expensive equipment in the medium
term, it may be wise to do so. With inflation
likely to rise, prices will creep up, so it could
pay to make big purchases soon. Also, should
the threatened recession materialise, fi