Pro-Brexit campaigners have been celebrating this month, after the release of some key, and insightful, data release. Business confidence has rose during the second half of 2016, for example, while Britain also beat the economists’ forecasts by recording 6% growth during the last financial quarter.
These victories are relatively small in the grand scheme of things, however, particularly with experts suggesting that 2017 may well see significant economic contractions. This is particularly true as Brexit looms large on the horizon, as the government is likely to trigger Article 50 before the summer arrives.
How to Survive: 3 Key Considerations
This poses an interesting question to businesses, who must now ask themselves whether or not they are prepared for Brexit and its potential, economic consequences. With this in mind, here are three key considerations that will stand you in good stead once Article 50 has been triggered: –
- The Retention of Talent Will Be Crucial
Immigration issues have continued to drive the Brexit debate, with the government likely to offer financial incentives for companies that hire British nations as employees once an EU-exit package has been agreed. The issue with this is that the proportion of graduates in high-skilled jobs is already in decline, having fallen from 61% to just 56% since 2008. With further Brexit likely to trigger an exodus of skilled workers too, this could become a major stumbling block for the economy.
To negate this, firms will need to focus heavily on the retention of top industry talent in the wake of Brexit. This will not only reduce operational costs and employee turnover, but it will also afford your business a key, competitive advantage in a challenging economy.
- Your Pricing Strategy Must Be Carefully Managed
Ever since Theresa May has mapped out her vision for a ‘hard’ Brexit and confirmed that Britain will definitely leave the single market, firms have confirmed that this is likely to create a significant hike in prices. After all, FXPro have already reported that the value of the pound sunk to a 31-year low against the dollar in October, meaning that the cost of imports has risen steadily since last summer. This has begun to squeeze profit margins in the UK, so proactive businesses have been forced to reconsider their pricing strategy for 2017.
Banks have already blazed a trail in this respect, by slashing saving rates and increasing mortgage rates in a bid to raise more capital. Your firm will need to follow suit, by reducing operational costs where necessary and increasing prices in a fair and incremental manner.
- Maintain a Deterministic Outlook
While the economic climate is hardly positive, the fall-out from Brexit has not been as bad as some initially predicted. There are several reasons for this, but one of the most important is the increasingly deterministic outlook of traders and business-owners alike. This prevents individuals or corporations from reacting emotively to economic developments and forecasts, while it also takes in the underlying laws that govern change. This type of objective and considered outlook has served the global economy well since the Great Recession, and it is one that British firms will need to adopt if is to survive the peaks and troughs of Brexit.