Clearview National August 2016 - Issue 177 | Page 5

BREXITUPDATE What Next for SMEs After Brexit?... Keep Calm and Carry On By Alex Littner, Managing Director of Boost Capital. »»WITH NO ONE SURE HOW LONG the UK’s departure from Europe will take, or when Article 50 of the Lisbon treaty, which sets the two-year countdown ticking, will be invoked, the best entrepreneurs can do is keep calm and carry on. While chaos reigns, focus on what is within your control – your business operation, day-to-day processes, and plans for the future. BETTER CASH FLOW MANAGEMENT The old adage ‘cash is king’ has never been more true, so closely monitor what’s coming into and out of the business, and make provision for financial shortfalls. Guaranteeing availability of working capital is of primary importance, whether this is through bridging finance or employing the best payment practices and credit control, such as issuing invoices promptly or chasing debtors. RENEGOTIATING WITH SUPPLIERS AND SECURING SUPPLY CHAINS Now’s the time to revisit suppliers’ contract terms to see if better deals might be struck, or to protect the business against any possible price hikes, especially if partners are based in the EU. Investigate whether swapping to non-EU suppliers is a possibility, spreading your company’s risk against cost changes. INVESTING IN PLANT OR MACHINERY What business would want to spend money now? However, if your firm needs any expensive equipment in the medium term, it may be wise to do so. With inflation likely to rise, prices will creep up, so it could pay to make big purchases soon. Also, should the threatened recession materialise, fi