Revealed: Brexit Impact on Small Business
What to expect in the world of business
One of the things that have recently taken the world by storm is the United Kingdom exiting from the European Union; an event which has been branded as Brexit. It is good to know that never before has a country exited from the EU and due to this, many people across the globe have mixed reactions and expect different reactions. However, the major impact could land on the business world.
The business world is in a state of confusion since exiting from the EU by Britain came as a shock.
Many global businesses, especially those based in the US, expect so many ups and downs. But as of now, we are going to share with you how the Brexit impact on small business will be.
One of the beneficiaries that many small business entrepreneurs in the U.S will enjoy is the low-interest rates that are currently offered by the Federal government. Since the federal reserve did not raise the interest rates on loans prior to the Brexit vote, this situation is expected to continue. This means that this is the right time for small business owners to go for loans from banks as well as other micro financial institutions.
According to business consultants as well as other business stakeholders in the market, their advice is that a strategist entrepreneur can use this Brexit vote situation to their advantage by applying for business loans that are available. However, before going for these loans it is good to stay on the look out on issues concerning global business trends.
If indeed you think that your revenues will increase despite the Brexit shock.
If you believe that your business can take advantage of Brexit and the demand for your goods will either improve or remain constant, then we would highly advise you to go for those business loans while they are still at lower interest rates.
As a small business entrepreneur, this could be the best time for you to expand your business by injecting in more cash inflow.
Prior as well as after the British exit from the European Union, the US economy has been stable and so far nothing has been reported regarding market trends. Perhaps the only thing that the US government will do is to go back to the drawing board and negotiate vividly with the UK as a state on issues concerning business ties. Due to this, there could be a dip in the sales volume of certain commodities. Thus each and every small US business owner should assess how the demand for their products change with time.
If you run a customer based business in the US perhaps you should not worry about anything. However, as an entrepreneur, it is good to monitor consumer trends and find out whether consumers still have an appetite for your goods or not. On the other hand, if your business has been operating with another business in the UK, there could be more than what meets the eye. If your customers are tightening their budget, then consider reducing your supply. When the Brexit is officially confirmed by the EU, it could be a problem for you especially when your supplies have been coming from a British company through the EU.
One of the key things that are yet to be established is the kind of instability that will set in after Brexit in terms of global business trends. Since no one is really sure of what could happen, every investor is flocking to traditionally safe havens such as the US dollar.
According to different economists, uncertainty in any given part of the world could lead to a recess in global investment. At the same time, it provides a very big opportunity for startup entrepreneurs to gain new partnerships. Around the world, many venture capitalists who wish to seek high returns on their investment in the long run may decide to take chances on your small business. This means that as a small business owner in the US, you should stay on the look out and bring on shareholders. Nonetheless, you have to prove to them that your business is worth risking in and has a huge ability to withstand whichever storm that Brexit may bring.
In the US, most global companies that have been working or rather relying on supplies from EU countries with British origin could suffer and be forced to wait for the Britain and US governments to do bilateral agreements before resuming their business to normalcy. This means that those smaller US businesses which have been relying on the supply from that chain could also suffer in the short term.
The above is very tricky and has a double edged sword. It could be a very important thing for US small business owners that rely on products from Britain for resale while at the same time giving a very great opportunity for their competitors who rely on the supply of goods from other areas apart from the UK.
If you are a victim of the first scenario, it is time for you to change your suppliers. Look out for suppliers who are not from the UK and make a connection with them to avoid a lack of supply in the mean time. However,we are sure that the two governments will make business ties and hence bring everything back to where it was before the Brexit.
Brexit comes at a time when the US economy is very stable and little impact is expected. However, business owners need to prepare themselves for the worst. Since we are risk takers, we have to stay on the look out and be aware and informed on what is happening in order to either seize the opportunity or run away from it so as to avoid losses.
In conclusion, all small business owners should look into the above scenarios and decide what impacts on them more. If you want a loan to expand your enterprise, then this is the right time since they are available at low rates. However, before taking a loan, weigh in and see whether your sales are going to flourish or not.