Chapter 11
IN THIS CHAPTER
Investigating new markets, both at home and abroad
Solving your customers’ Brexit-related problems
Forging your personal reputation as a leader in your industry
So much of the news around Brexit, and particularly the impact of Brexit on business, has been, well, not exactly cheerful. (Some would say downright doom and gloom, while others might say hysterical.) And although there are obviously issues to be aware of and prepare for — which is the whole idea behind Part 3 of this book — plenty of businesses are finding positive opportunities in the face of Brexit.
This chapter looks at just a few of the potential opportunities that businesses in the United Kingdom (UK) could exploit as a result of Brexit.
If you’re already exporting goods outside the UK, or you’re eager to explore overseas markets, Brexit could deliver a welcome boost. Or, more specifically, the devalued pound resulting from Brexit uncertainty could help to boost your export sales.
For a reverse illustration of this, consider imports of cheap Chinese steel. Even though the product is coming all the way from China, it may still be cheaper than British steel, because it costs a Chinese steel producer less to manufacturer than it costs a British company.
What’s the flip side of cheaper UK exports being more attractive to overseas buyers? Imports from outside the UK become more expensive for UK businesses and consumers.
Of course, if you’re importing parts or products from abroad, this will cause you some headaches in terms of profitability, in which case, you may be looking to trade more with UK partners. But, on the positive side, rising import prices can bring big benefits.
On the whole, the UK is likely to remain fairly closely aligned with European Union (EU) rules. Yet, in some areas, it’s possible that post-Brexit changes to regulations and standards may offer UK businesses greater freedom and flexibility than EU rules.
Read more about changing regulation and standards in Chapter 8.
If you’ve struggled to comprehend the implications of Brexit for your business, it’s fair to assume that some or all of your customers (and potential customers) may find themselves in the same boat.
Now, I’m not suggesting you set up a new business as an all-singing-all-dancing Brexit consultancy service (although, for those who have the skills and knowledge, such a business would probably prove quite valuable in the short term). Instead, I’m talking about:
For example, if you’re an accountant primarily dealing with small and midsize firms, your clients may need extra support to understand potential VAT changes — in which case, you’re there to guide them through changes and help them implement new processes.
Or, if you run a legal firm dealing with employment law, you’re well placed to help local businesses that employ workers from outside the UK stay on the right side of the law.
If you’re a business coach or adviser, your clients may be looking to explore new growth strategies for their company or revise their business strategy in light of Brexit developments.
In addition to raising the profile of your business, as suggested in “Solving Your Customers’ Brexit-Related Problems,” Brexit may also present a tantalizing career opportunity for you.
Where possible, collaborate with others outside your own organization to discuss Brexit implications, stay in the loop on the industry’s response, and strengthen your personal network.
Rising automation is a huge topic in business, thanks largely to massive leaps in technology, robotics, artificial intelligence and so on. If your company hasn’t already looked at the potential to automate processes and roles, now is a good time to start.
Looking at automation opportunities is a bit like renewing your car insurance. We all know we shouldn’t just stick with the status quo and accept the renewal price from our current insurer; we know that if we spent half a day calling around dozens of insurers, we could get a better deal elsewhere. Yet, when renewal time comes around, how many of us take the easy route and stick with the status quo? Come on, you’re among friends, be honest. I know I’ve been guilty of this in the past!
Think of exploring automation as being forced to renew your car insurance the “proper” way. Sticking with the status quo isn’t an option, not unless you’ve really done your homework and you’re sure there isn’t a better alternative out there.
You may think automation only applies in manufacturing or agricultural contexts, but think again. A wide range of business processes are increasingly being automated, across all sorts of business functions, including HR, sales, marketing, and finance. For example, in sales, software can now automate lead prioritization, scheduling appointments, and logging follow-up tasks.
Therefore, use Brexit as an excuse to review your processes across the business and see where you have an opportunity to automate and improve processes. As a big believer in work–life balance and the passive income mind-set, I’m constantly reviewing processes in my businesses to see what can be done quicker, cheaper, and easier with software or well-designed systems.
My primary line of work is in real estate investment and real estate development. From what I’ve seen, there’s a definite sense that overseas investors have been holding back from investing in UK real estate development projects in light of Brexit uncertainty. In other words, there’s potentially a massive backlog of external investment just waiting to pile into the UK property market after the dust settles, especially because the pound is weak and investments represent better value and yield.
My experience in the real estate sector is indicative of a wider downturn in foreign investment. Figures from the Organisation for Economic Co-operation and Development (OECD) show that foreign investment fell 90 percent in 2017, after a bumper 2016. That’s obviously concerning in the short term, but the long-term picture is more positive, with many believing that foreign investment will flood back into the country after Brexit.
In the event that a direct competitor pulls out of the UK, consider whether there’s a chance to suck up some of their business. This could, for example, involve buying their client lists (where possible), advertising to their primary audience, or even acquiring the UK arm of an EU company.
Take the UK fishing industry as a big-picture example. If EU countries lose the right to fish in British waters after Brexit, this could give UK fleets a much fairer share of fishing rights. (In 2018, EU fleets were landing eight times as much fish in UK waters as British fleets were landing in EU waters.)
Many in the UK see Brexit as an opportunity to become more self-sufficient, to prioritize homegrown solutions over imported products and services. (In the case of the agricultural sector, the word homegrown is highly relevant because imported food potentially becomes more expensive.)
This isn’t just about Brexit, though. For all sorts of reasons, including climate change, more and more people are thinking “local” rather than “global.” Local producers, local suppliers, local services — all offer an opportunity for customers, clients, and consumers to feel more connected to the companies they deal with.