Is your business ready for Brexit?
Do you have commercial contracts with customers or suppliers in the EU?
Do your customers or suppliers depend on free movement of goods and services across the EU?
We apologise for mentioning the dreaded B-word, but now we know that Brexit is definitely going ahead, here are some of the things to do to ensure your business is ready by the end of the transition period on 31 December 2020:
- Audit all your commercial contracts, starting with the ones that are most important to your ongoing success
- Do the contract terms spell out the implications of Brexit? If yes, are there any actions you need to take?
- What currency is used for payment? Are prices fixed or variable? Are there Forex implications for your business?
- Can you pass on any increased costs resulting from Brexit to the other party? Is there a risk they will pass on increased costs to you?
- Who pays for import/export licences? Can you negotiate to split the cost?
- If “the EU” is your defined territory, do you need to add a clause defining the UK as a separate territory?
- Which legislation governs the contract? Will it stay the same or have to change?
- Audit your data compliance practices. How does data flow in and out of your business? How can you be sure it remains unrestricted?
- Could you use Brexit as an excuse to terminate an unwanted contract? Or is there a risk that a key customer will do that to you? If the latter, talk to them now to establish steps they could take to continue the working relationship
- Are you currently negotiating new contracts? If yes, ensure they are Brexit-proof
Brexit is an opportunity to strengthen your commercial relationships, mitigate risks, and grab opportunities. Of course, if you’d like help with any of this, just let us know.