The Business Exchange Swindon & Wiltshire Edition 26: Aug/ Sept 2016 | Page 19
FINANCE
DON'T PANIC MR MAINWARING
Mike Lloyd's opinion on Brexit
It’s a universal truth as humans we are good at certainties and very poor
at dealing with uncertainties. Yet here we are in the wake of Brexit, facing
uncertainty over the prospect of leaving the European Union.
I, just like everyone else,
cannot know what the future
will bring post Brexit. We are in
uncharted waters. It could be
better, it could be worse but it
WILL be different.
For some there will be
opportunity and for others
there will be threats. For most
there will be both.
So the first step - identify
what those threats and
opportunities might be for
you. Try to quantify them if
possible. Once you’ve done
that, talk to your trusted
advisors (your accountant,
financial advisor, lawyer).
No-one will know your
business better than you but
they will be able to help you
develop a realistic strategy to
combat those threats and make
the most of the opportunities.
Some things to think about might include:
•
•
•
•
If you are an exporter the weaker
pound will work in your favour. Are there
opportunities you’ve not explored or
acted upon yet? If there are, then now is
definitely the time.
Do you source materials or services from
abroad and get invoiced in dollars or
Euros? Look at whether or not this needs
to be or can be changed to soften the
blow of the weak pound on your costs.
Have you avoided buying goods in the
UK due to cost? Is this the time to review
that decision?
Do you feel your business will be
unaffected? Have you considered your
important clients – are they affected by
it? Could a direct impact on them
indirectly affect you?
One thing we MUST not do is to allow panic
to push us into an unnecessary recession.
It’s very easy to put a hold on plans involving
investment, expansion or recruitment
because of worries or concerns which are
inevitably speculative. If we do that we risk
a self-fulfilling prophecy from a knee-jerk
reaction which stifles progress for months or
years to come.
One of our (much-maligned) experts,
Mark Carney, Governor of the Bank
of England, has made it clear that the
Bank of England has its “toolkit”, being
implemented now, for supporting the
economy immediately during this time of
adjustment.
This includes allowing banks and building
societies to offer new lending by tapping
into their reserves if necessary. The aim
is to counter or dampen any drop off in
confidence or volume of trade.
To be fair, it seems clear most in business
and in society did not expect Brexit to
happen – even the leaders who campaigned
for it.
It did and now a period of change is now
upon us for some considerable time.
If you would like to discuss the possible
impact of Brexit on your business – please
contact me on [email protected] or call on
01793 533838.
“He who dares…..?”
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THE BUSINESS EXCHANGE 2016
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