British Businesses Fear an Unprofitable Future Ahead of Brexit Trade Talks
The biggest loser of the Brexit vote could be small businesses and firms located in Britain that also serve customers in the EU. Recently, the Federation of Small Businesses in the UK has urged the government to prioritize the interests of "small firms" when going into talks with the EU.
Data Shows Risky Future for UK Small Businesses
The figures released by Britain's Office for National Statistics did not spell a lucrative future for British small businesses. The government data indicated a disturbingly widening trade deficit gap in the country for the first quarter of the year. If the free trade agreement Britain used to enjoy with the EU market breaks off with Brexit, then many small businesses in the UK will face a bleak future indeed.
There's another thing British small businesses have to worry about: funding cuts. Now that Britain is no longer part of the EU, the European funds for business growth in the UK will completely disappear. Unless the British government is willing to replace billions of dollars in such funding, British small firms could end up in a "black hole" without funding, according to another financial report recently released to the media.
How Small Businesses Can Face Future Uncertainties
It's not only British small businesses, other companies from countries like US and Canada may also face an uncertain future in the EU without adequate preparation. The political climate is at best contentious on the Continent. Likewise, trade talks are under threat in the US as well. In this politically uncertain environment, it can be difficult for small businesses to plan ahead and achieve goals.
However, foresight may help. It's important to know first whether your business is resilient against potential political crises that may upend free trade or export and import sectors. These could include border taxes, like the new US president has promised, or a complete overhaul of trade deals as seen with Brexit.
Politics are often out of the hands of small businesses. Nevertheless, companies big and small must be ready to face a future rife with political uncertainties. Companies should invest in tools like business reviews, like those provided by Corporate Business Solutions, to understand whether your business is resilient towards changing political storms. It's more important to know whether your company can survive a future of changing markets.
Prepare with Business Reviews
Preparation comes first with understanding how profitable your business is. There are several profitability metrics a small business should be aware of, such as profit margin, gross margin, and costs of acquisition. These numbers can only be calculated with the help of experts. Business review consultants are great at crunching the numbers that show whether your company is moving forward.
A business review will provide a comprehensive and critical overlook of your business without the bias of an insider. You will be able to see whether your company is losing its competitive edge. Then you will be able to know whether your business can weather storms like Brexit. The politics of Europe are changing, so businesses must do everything to get ready to tackle inevitable changes and continue to thrive in the EU and elsewhere.