Why as a business you should care about Brexit
It's been bumbling along far longer than any of us would like and we really seem no further to actually knowing what is going on, never mind the politics, the impact this is having on business is huge and widely overlooked in the press.
Planning for the unknown is difficult to say the least, but on a day to day basis I am seeing the impact this uncertainty is having on clients.
For those who have to pay suppliers in euros the impact is actually quite scary:
If we consider a 1,000 Euro invoice:
As of writing this would cost around £890
12 months ago - £870 – so a £20 increase
3 years ago – a few weeks before the referendum £790 – so a £100 increase!!
Now multiply that up to a business spending 25k a month in Euro’s .. that’s a hit of £30k per year compared to pre-referendum rates and £6k a year in the last 12 months that can’t be planned for, that has to be funded and generally can’t be passed on to the end customer (market forces, RRP pricing etc all come into play).
And before you say 25k supplier costs is high a month and doesn’t reflect small business .. if the margin is 50% (pretty standard in retail) then that is 50k sales a month or 600k turnover a year – that’s still a small business.
This is why uncertainty is bad, it's why it's damaging to small businesses and it's why we are seeing large multi nationals pull out of the UK.
Whether you are pro Brexit or pro remain no longer matters, this uncertainty is damaging to businesses & our economy.