And so in a week where Chris Evans ‘Brexited’ from Europe’s top car show, the big boys in business continue to flail all over the place. prices up. Pound down. Business in. Business out. It’s all a bit ‘Top Heavy’ and not exactly ‘Top Gear’.
As I write this Global Stock Markets have fallen and the pound has hit a 31 year low as worries over the UK’s vote to leave the EU continue to rattle markets. And earlier the pound fell to it’s lowest level since 1985, before rebounding,
But what does this mean for the mall businessman and woman? Immediately, absolutely nothing. Because whilst Brexit is taking the headlines and we all sit back and marvel at a government that never thought they’d need a plan B, other things have gone under the radar.
Like the fact that when Brexit does actually happen, and that’s nearly three years away, what business in their right mind hasn’t made provisional plans for it? What? Are we as stupid as the Government? It’s well known that if Government was run as a private business, we would probably have been better off many years ago instead of going through austerity for their own incompetence. So to think that business owners aren’t starting to get their ducks in a row is just ludicrous.
Inside the walls of the Eu, we are meant to operate as one. Basically it’s like if we all do it this way, we all get the same results. Wrong. Since 2005 the UK’s economic growth is on a par with that of Germany and the US. The rest of the Eurozone are some way behind us. When you start to look at figures like that, it’s actually the case that the Eurozone needs us rather than we need them.
Unemployment is just 5.1%, which is as near to fully employment as you can get really. Inflation is low, real wages are solid and more people have been able to get on to the precarious ladder of housing. If you compare us to the rest of the EU, only the Czech Republic, Germany and Malta beat us for employment. (April 2016 figures). The more and more you look at it, we become less of a single market.
One of the biggest concerns in the single market is the redistribution of wealth. Here’s an example. London generates the greater amount of wealth than anywhere in the UK. If say Nottingham is struggling, the wealth gets redistributed. In the EU, Greece has had to gut itself in order to get a loan. That is not redistribution of wealth. The whole country has collapsed and is in a real state. The economic growth status of the EU is unfortunately deeply skewed with Germany propping up many of the manufacturing growth figures.
So what does this mean for small business? Well the phrase, “Don’t panic Mr Mannering, they don’t like it up ‘em!”, comes to mind. And they don’t. Thinly veiled threats, shock and amazement that a country like the UK should butt it’s head against the big super power of Europe is still being felt. But here’s the thing ladies and gentlemen. Now is a time of consolidation. Reverse planning and smart investment in your business.
The serial entrepreneurs are probably already out there scouting opportunities within the EU for AFTER ‘Brexit’. And quite right too. If your a business and you’re just sitting an waiting for the dust to settle, you may miss out. It maybe three years away, but starting to get your business into ‘Top Gear’ right now, may well be the answer to a lot of problems.