We have, for the last three years, been living in a world in which ‘Brexit’ has been rumbling on over the Atlantic, causing much confusion for industries and colleagues of our British cousins. It’s certainly a fraught time, and a time in which it’s been challenging to understand what will happen next – and how any eventuality might affect the nature of our business dealings with the UK.
For start-ups working alongside British firms in the Brexit process, the drama in the UK might have been an unwelcome distraction, but this ultimate guide aims to keep you optimistic and intrigued by events as Brexit reaches its end game.
Monitor Markets.
As a business owner and an investor, it’s your responsibility to monitor the markets across the globe in order to understand fluctuations and what they might mean for your business. If you’re a manufacturer, for instance, you’re likely to be somewhat affected by the rapidly approaching Brexit deadline. You may be able to find business opportunities lurking in the confusion that nobody else has spotted, and the first companies to begin the feeding frenzy once the UK is outside of EU regulation are likely to be the ones that profit the most from the UK leaving the EU.
Currency Fluctuation.
There is one element to the Brexit debate and ongoing traumas on the world-political scene that can be somewhat disruptive for start-ups: currency fluctuation. As you’ll have seen from the US government shut-down earlier this year, and the various stages in the UK’s own constitutional crisis, the dollar and the pound respectively dropped as investors showed their disgruntlement with the state of affairs in both nations’ politics. This pattern is likely to be particularly stark on the UK’s departure date from the EU.
Trade Bonus.
One of the considerable benefits to the devaluation of the pound, though, is that US citizens will find it cheaper to travel in the UK, and cheaper to buy products in the UK. As such, the swing in the nation’s currency might encourage far more trade with the UK than previously existed, with more companies opting to import UK goods at lower prices. This, of course, depends on the provision of a strong trade deal (or at least supportive trade protocols) in the immediate aftermath of Brexit.
Trade Dealings.
So, finally, it’s worth looking at IG’s FOREX timeline of politics and the markets, and how they have affected the flow of goods between countries and the business environment for large incumbents and startups. You’ll see that, on the announcement of large trade deals, economies receive a huge boost, allowing them to invest in further trade that unites and profits both the countries involved in the deal. You can certainly expect a similar boost to emerge for all companies involved in UK-US trade in the upcoming deal – something to watch as a startup business.
These financial market tips should be vital to understand your startup business’ place in the Brexit storm to come.
