You have a great idea and years of experience to back it up. You’ve been wanting to leave your corporate job and set out on your own.
Will Brexit throw a spanner in the works? Should you give up on your dream and wait it out?
These are questions many want-to-be entrepreneurs are asking themselves these days. The uncertainty regarding Brexit makes it difficult to know which path to take.
While it may pose some extra challenges, Brexit shouldn’t make you shelve your plan to start your own small business. In fact, with the expectation that many jobs will be lost due to Brexit, you may have no choice but to start your own business.
In this article, I will go over some ways to mitigate any of the challenges that Brexit may cause.
Cut back on your personal outgoings
When starting out, you’ll need to be paying your personal expenses out of your savings or from a business loan. Stretch that money by lowering your expenses.
Your biggest expense is likely to be your mortgage. Remortgaging your house is a great way to bring that expense down. Figure out the mortgage cost by using an online calculator and comparing rates from many lenders.
Consolidate any personal loans like credit cards and auto loans. And definitely cut back on unnecessary expenses. Holidays are important, but maybe staying closer to home is the wise choice over a villa on the French Riviera.
Have the right idea
Having a solution to people’s problems is always a great foundation for any business. In the event of Brexit, there will be no shortage of problems people have that they cannot find a solution.
If you are stuck for a good business idea, then focusing on the challenges that people and businesses have may open a door to you.
Consider how the Y2K bug affected business all over the world. There were companies that offered solutions to those companies that worried that their software wouldn’t function once we entered the year 2000.
There are similar issues that people and businesses are having now that need a professional to solve.
Funding the business
Interest rates are the lowest they have been in quite some time. Take advantage and secure funding for your business now rather than later.
With a great idea and a solid business plan, you stand a great chance of getting a loan with very favorable terms. Be wary of tracking loans, however as interest rates will eventually begin rising.
Also, if your business is dealing with foreign currencies, your loan may end up being less than what you had imagines if the pound loses value against the dollar and euro.
Choose the right legal structure
This advice applies whether Brexit happens or not. You need to make sure your business is set on a firm foundation. This means that having the right legal structure is important. Whether you should be a sole trader or a limited company needs to be explored and your options weighed. Of course, the structure can, and should, change over time.