The chaos that has unfolded since the 2016 Brexit vote shows no sign of abating soon, with arguments and counter-arguments continuing to spring up in parliament and in conversation across the UK. Is there anything businesses can do to prepare when confusion still reigns supreme?
Own a business? What’s the biggest challenge you face right now?
The default position in recent times seems to be ‘Blame Brexit’. But does Brexit have anything to do with the business rates you are charged, or the levels of staff you maintain, or the number of customers you can depend on?
It might do. Equally, it might be national or local government policy, the labour market and the competition you have in the marketplace that affects all of this.
Dependent on the products or services you offer, Brexit may have very little influence on your profits – or it could be an absolute gamechanger.
Can we unpick anything from this? Let’s see if our simple advice could help you out – without getting political about it all…
Deal or no deal
It used to be a game show with Noel Edmunds. Now, it’s something altogether more important and challenging…
What will happen to businesses in the event of a no deal Brexit? The biggest problem is that nobody seems to know, though fear of leaving with no deal appears to be significant across various business sectors.
All anybody can do right now is make plans for what they think may happen based on all the current information available, ready to implement for whatever scenario unfolds.
Uncertainty – good or bad for business?
Every business is different, but the only thing that seems certain this year is uncertainty, and that’s famously something that business owners are known to hate. Why? Because it’s hard to plan effectively if you have no idea what’s happening.
Recent industry research has revealed that nearly 60 percent of UK businesses feel that the next 12 months will be unpredictable. Hardly surprising, against the backdrop of Brexit.
In response to such unpredictability, organisations are attempting to decrease their risk with the following mitigation methods:
- Putting additional funds aside for emergencies (34 percent)
- Diversifying products and services (33 percent)
- Diversifying their client base (31 percent)
- Preparing for multiple outcomes (30 percent)
- Developing a risk management plan (29 percent)
It will be all about whether your business comes out better off or worse off at the end of the process. The problem is – do you know the answer to that question?
Uncertainty isn’t always bad for business. Dependent on what you do, it could give you an opportunity to disrupt the market, offer something new and different, or take advantage of currency fluctuations for importing or exporting.
Equally, it could be problematical if you rely on staff from the EU or are affected by import or export taxes, duties, or exchange rate issues.
Brexit fatigue? Stay awake with your insurance arrangements
So, are you fed up of Brexit? Are you concerned about the deep divisions that have rooted themselves?
We all have our opinions, but this singular issue has driven an enormous wedge in the middle of society, with seemingly irreconcilable differences and little in the way of debate where one side will concede any ground to the other.
Which is why we are where we are right now – and why we continue to hear concern from businesses we deal with, too.
Where uncertainty exists, it’s important to have robust, accurate and effective insurance cover. Even when the market is unpredictable and unreliable, your insurance shouldn’t be.
Here’s a couple of considerations when it comes to ensuring you have appropriate insurance cover – regardless of the political situation:
- Avoid underinsurance—Despite having an insurance policy in place, your cover won’t be nearly as effective if your business is underinsured. Make sure your organisation’s sums insured remains accurate by regularly updating us on the value of your premises and any changes that take place in your business, including on-site stockpiling practices (in case you need additional cover for this).
- Set proper limits—In addition to communicating changes with us, be sure to carefully consider an appropriate maximum indemnity period for your business interruption cover by modelling worst-case scenarios. Analysing possible catastrophes will help your business further understand how much time and resources are needed to recover from disaster.
More than anything when it comes to insurance, it’s important to often communicate with your broker to make sure you have the best cover for your business. Don’t leave anything to chance – if you have any queries, get in touch with us and make sure your business has the cover it needs.
