SMEs must review their business strategy ahead of Brexit
03 Feb 2017
Green light given to trigger Article 50
MPs have voted overwhelmingly in favour of triggering Brexit negotiations and beginning the process of leaving the European Union (EU). The Government won with a majority of 384 after 498 voted in favour and 114 against.
Talks with the EU are expected to last up to two years, with the UK predicted to leave the 28-member organisation in 2019.
Commenting on today’s news that the Bank of England (BoE) expects the economy to grow 2 per cent in 2017, up from November's forecast of 1.4 per cent, Mark Carney, Governor of the BoE says: “The biggest determinants of the UK’s medium-term prosperity will be the country’s new relationship with the EU and the reforms that it catalyses.
“These processes will also have a significant bearing on inflation over the next few years. Market participants’ views regarding this economy’s future growth potential will influence asset prices, particularly the exchange rate. Firms’ assessments of the outlook for demand and the ease of future trade will affect their investments. Households’ confidence in their economic situation will help determine their spending. And, with time, the UK economy’s supply will be affected by a new set of trading arrangements with the EU and other countries.
"The Brexit journey is really just beginning. While the direction of travel is clear, there will be twists and turns along the way. Whatever happens, monetary policy will be set to return inflation sustainably to target while supporting the necessary adjustments in the economy.”
SMEs – To succeed you must prepare
In order to lessen the impact of Brexit on your business, SME owners and managers must ensure they are fully aware of income and expenditure by keeping accurate and timely records and monitoring trends and patterns. Profit and loss accounts will help you understand how your business is progressing, as well as alert you to any potential issues which might arise. This will give you ample warning to rectify any problems and make the necessary adjustments to keep your business on track and successful.
In this rapidly changing economic landscape, it is also essential that SMEs partner with business advisers who understand the challenges faced by SMEs and the environment you operate in, helping you navigate any pitfalls and implement the appropriate structures and strategies required to remain successful and increase your net worth.
At Beavis Morgan, our specialists to SMEs are available to provide comprehensive business advice and to structure your business for tax. We can also assist with business plans and strategy execution, long and short term forecasts, budgets, sensitivity analysis, and calculating and checking compliance with covenants.