Friday, September 30th, 2016
Already the referendum is disappearing in the “rear view mirror” but to many, the long term economic consequences still remain very unclear. As Business Advisors, Copia Wealth and Tax Limited are keen to further explore some of the opportunities and indeed risks that may face our clients going forward.
The initial reaction of the markets was probably to be anticipated with a predictable fall in the Stock Market and weakening of Sterling with an equally predictable rebound when the dust had settled. Sterling remains well below pre-referendum levels but then if you’re an exporter that’s probably welcome news!
Evidence is starting to support the fact that the Brexit vote, having created a short term shock to the UK economy leading to some Bank of England intervention including a cut in interest rates, has not been the apocalypse that some predicted.
Markets were initially nervous because of uncertainty over the future. Indeed, many Copia Wealth and Tax Limited clients certainly found the run up to the vote difficult as their customers deferred decisions. Obviously, this state of affairs cannot continue indefinitely and it appears that many business owners are now beginning to realise this.
Although the EU continues to take a hard-line publicly, it is highly likely that in private the key players recognise they will need to be more pragmatic given that the UK is too important a trading partner. Given there is still very likely to be a significant period of upheaval until such time as full impact of Brexit is felt, what then are the key issues that business owners should consider in order to minimise any potential downside to their businesses?
With that in mind, the team at Copia Wealth and Tax have put together a 10 point Business Advice checklist covering the main issues, to include:
Funding and liquidity
For many SME’s based in the UK, the medium to long term effect of Brexit on the economy is likely to result in something of a “rollercoaster ride”, in that there will be times to proceed with caution and other times where opportunities will arise that need to be acted upon. Consequently, it will be important to remain vigilant and to approach the future with a positive mind-set so as to be able to focus on any opportunities that will be created by it as well as any potential downsides.
Here at Copia Wealth and Tax Limited, we will be in regular communication with our clients to help ensure that they avoid the pitfalls and recognise any opportunities. If you would like to talk things through and explore how Brexit might affect your business, just give our Managing Director Shaun Philpott a call on 01902 783172 in order to arrange an informal chat over a cup of coffee!