Having the courage and entrepreneurial spirit to open a business on your own and run it, at the best of times is a huge undertaking and challenge. To do this when the economy seems to be slowing and there is the great unknown, such as the Brexit, really takes not just a person with a strong stomach for business, but also one with a vision they are willing to see through.
Currently the economy seems to be slowing down, new car sales are down, and the Bank of England has not changed interest rates, despite there being an outcry to do so.
None of this has stopped our use of credit and credit cards. As to if we are using credit responsibly, or to just make up the difference in what our wages will purchase is unsure. However, there are those that are predicting we are sitting on a “debt time bomb”.
Couple this with the vote to leave the EU or Brexit, you may have a recipe for not opening a new business or company.
Of course it begs the question, is the economy slowing on its own, or did the Brexit bring all this about???
Regardless of there being a Brexit or not, making the decision to open a new business will still have you facing the same age old issues.
Business Models: You need, or should have a business model for your new company. One reason is to secure financing to start-up the business.
The other is to just give you a clear picture of what it is you plan to do, what are you selling, product or service, and to whom?
Also, when do you see yourself as being profitable?
Financing: Unless you have the cash yourself, or plan to use your own credit lines to financially support the new business, you may require a business loan. Business loans for small businesses can be difficult to be approved for, even if you have good credit.
Either way, you’re going to need come cash to get the business ball rolling.
The timing of starting a new business or company can be everything.
If you want to sell ice creams, then begin on a hot summer day and have a stand or ice cream truck in a park where all the families and children are out.
Using the Brexit as an example, there may be some businesses you may wish to avoid or wait in starting up until the exit dust has settled.
Companies that require regulation in the EU may not be a problem now, but what about after we leave the EU? Would you then be required to have your base of operations in the EU.
Using the current budget airlines, Ryanair and Easyjet as examples, both are considering opening major offices in the EU, just to protect their right to operate there under the open skies agreement.
This leads itself to the “beware of any import and exporting” issues.
Currently there is no duty to be paid between the UK and the EU, one reason we can have cheap wine. This may all change once the final leave is in place. You would need to factor this additional expense in when pricing your goods or services.
Wetherspoons recently announced they would be no longer selling champagne, and other EU brewed beers, this in an effort to prepare for the Brexit, and a possible rise in costs due to changes in importing such items.
So is this a good time to start a new business with the Brexit going on?
Some say yes it is. There is still a lot of time to go before the full exit, and that gives some business owners the time they need.
The Founder of online retailer iQualTech, Zamir Cajee said, “We accelerated our exports.”
“The thing is, whatever is going to happen isn’t going to take place for at least two years. We’ve got a lot of growing to do in the next two years.”
So some may be hopeful that this lag time will allow them to build up their business.
But are not entrepreneurs optimistic by nature anyway? So they would always see lemons as a way to make lemonade.
Of course the key is going to be planning, and having contingencies for what may or may not occur. Brexit is still a great unknown.