It looks as if local businesses should sit tight as the uncertainty around Brexit is here to stay for now.
Director Mark Bramall said such uncertainty was likely to be around for the foreseeable future – and probably for several years. “The final outcome for our economy may be better for businesses in the long-run, but the effect on the value of sterling and the general feeling of uncertainty in the interim is generally not doing anyone any good.
“It’s particularly difficult for smaller companies as many are only just starting to feel more optimistic after a long drawn-out recession which has already forced them to cut costs to a minimum.”
Mark said as members of The Corporate Finance Network, Dyke Yaxley had helped to put together practical advice for SMEs to ensure they are prepared for what’s to come during and after the Brexit negotiations.
The CFN urged businesses to keep a close eye on their current costs and whether they are increasing.
“Companies that don’t import directly won’t necessarily be immune to importers passing on their cost increases from the weak pound, and the cost and availability of staff may also be higher.
“Be strict about the management reporting of your latest figures and ask your accountant to prepare regular updates so you can make timely decisions while they are still relevant.”
Mark said businesses should also prepare profit and cash financial projections for all possible situations.
“By planning ahead, you should be able to limit any nasty surprises that may crop up – and spread your risk too by reviewing your supplier list to make sure you’re not relying on any single key supplier.
“Review your staff contracts thinking particularly about how UK legislation may remove some EU requirements or how the changes may unsettle your staff.
“But most of all, communicate well – with your customers, your suppliers, your staff and your industry sector as a whole. Ensure that you and your business are living in the present and for now, let the politicians and lawyers worry about working out what our future will look like.”
Mark Bramall, Director