Brexit - The opportunities and challenges for UK companies

Brexit - the challenges & opportunities for UK companies

Preparation for Brexit is Key

The Opportunities & Challenges of Brexit for UK Companies - Preparation is Key

Brexit brings challenges but also opportunities for UK companies. Preparation is the  key to success.

 As the end to the transition period for Brexit approaches, the UK will leave the UK and companies need to understand how to export a non-EU member country. Knowing how to export will save a company time, money and stress. 

 UK companies need to have a plan in place on how to deal with their new trading environment.  For many companies, COVID 19 has over-shadowed this event. Whatever the outcome of Brexit, it will definitely mean enormous changes for UK companies as well as the many companies that trade with the UK. 

 However, with detailed plans that have focused on asking the right questions, many UK questions will be able to continue good relations with existing customers.  Complacency is a sure way to lose those valuable relationships that a company has built up over time.

 As you develop your plan, look at answering the following questions: What do I need to do to ensure that I keep my current EU customers? Before companies try to leverage their newfound commercial freedom, they need to stabilise their current revenue stream and ensure that the day to day bread and butter is stable, especially, if a lot of that revenue came from the EU.  Talk to your customers and get their opinions on the change. Ask hard questions, questions that you may not want to hear the answers but if you can understand why your customers may move away from you, you can deal with the problem and in a lot of the cases, save that client and /or partner.

 If your customers are saying that they can get the same product in the EU now at a cheaper cost, you need to ensure that your value proposition clearly demonstrates the uniqueness of your offering and that tariffs etc. that value needs to be clear, that the benefits of your offering far outweigh the costs. If you do not get the value proposition correct for your current customers, you will struggle when it comes to selling to your new prospects.  Will Brexit affect your competitive edge?  If so, what do you need to do to ensure that you can maintain that competitive edge?

However, when talking to your customers and partners you need to know how the custom tariffs and VAT will affect them, not only as a cost issue but also as an administrative issue.  Most UK companies will have researched the impact of duties on their supply chain so they should be in a good position to talk with their partners. Another question that should be on your list is whether your existing EU customers will impose a different method of payment other than the one currently in use.

 Review all contracts that you have with your customers and partners and ensure you understand the implications of Brexit and your contracts. Are they still valid? Could there be issues in the future?

 Now that you have been negotiating with your current customers and partners, you need to look at new markets.  What help do you need to access potential new markets?  At the moment, there is still considerable work for the UK government  to do in this area. Negotiations with many countries are currently underway. However, keeping a good eye on where the early trade agreements (such as Japan) may occur may give your company a first-mover advantage, if your company is ready to quickly move into that market. 

 UK companies need to understand how to export in this new environment. Knowing how to export as non-EU company will save you time, money and stress.  Ensure that all personnel are trained for 1st January 2021. Know whether your terms of delivery will have to change.  Know what rules your company needs to abide by.  Exporting is changing in the UK, expanding into new markets is changing and if you can embrace these changes and move quickly, you have a good chance of success but this will only happen with preparation.  Know what your company needs to do in the next two months to be ready for the challenges and the opportunities that Brexit will bring.