Brexit means Brexit, or so they say. But what does Brexit mean for exporters? The problem is that right now we do not know what the future holds for exports.
All we can do is to prepare for the worst and ensure that our export businesses survive. Here we explore the steps you can take in the lead up to Brexit to ensure that you aren’t hit too hard by changes to exports.
Get your costs under control
It’s time to tighten your belt and stop wasting money where it doesn’t need to be spent. Businesses should always be looking to cut back on expenditure, but Brexit is the kick that many needed to get costs in order. Revisit your expenditures and renegotiate your HGV insurance, your fuel rates and your servicing costs. Looking to other providers for all of these services can save you a great deal and bring your costs down in the lead up to Brexit.
Consider the products
Looking at how you can diversify or change the products that you are exporting is a sensible step in the lead up to Brexit. At this point, it is unclear which products may be hit by high export duties, so it is important not to have all of your eggs in one basket. If you diversify your export loads, you can avoid being hit too hard by a duty increase in a single area.
Establish long-term contracts
If you can establish long-term contracts now and agree to pay the duties in advance then you can create a cushion for yourself before Brexit. This will stop you seeing increased charges initially and will give you time to assess the realities post-Brexit and work out how you can continue to operate in a profitable manner.
Look further afield
Exports to Europe are set to change dramatically, but exports to other parts of the world will not change at all. To avoid the risks of Brexit, you should start looking for trade further afield today. If you wait until Brexit hits then you will join the masses clamouring for a chance to trade elsewhere, but if you seek to diversify exports to other countries now then you will be able to establish this trade before the effects of Brexit hit.