Don’t believe all the doom and gloom about Britain’s prospects after Brexit.
Already the financial predictions of the aftermath of the Brexit vote in favour of leaving the European Union have been proven wrong. But even in the long term, there will be incredible opportunities before and after Brexit for those who are willing to find them.
Wait, you cry! These are clearly the words of a Brexiter looking at the situation through rose-tinted spectacles. Well, you’d be wrong.
I was a Remain voter. I was part of the 48% who felt their future and the future of their children was inside the European Union.
Since the vote, however, the actions of the European Union and the opportunities that have emerged point to a more positive future for any company willing to invest in the UK and take the opportunity available.
First, the issue of exodus to EU countries by those businesses who need a foot in the single market. While it’s true certain financial services will seek to protect themselves by potentially moving staff and operations overseas, the fact is the UK is still a hugely attractive place to do business. Some of the threats made by banks and manufacturers may be attributed to securing better terms but, at this stage, there is little evidence they’re going to move. Living in the UK is still seen a better personal option for many of their employees.
Flexible labour laws, an environment conducive to business, strong security and a highly skilled workforce makes the UK incredibly attractive to new and growing business ventures.
The second issue concerns uncertainty. Some commentators have said that uncertainty around Brexit will cause businesses to hesitate when investing.
The government have been very clear in their intent. “Brexit means Brexit”, Prime Minister Theresa May said, and so with that it is certain the UK negotiating position aims to achieve a “hard Brexit” and a clean break from the EU.
This level of certainty should cheer investors and businesses. The UK position and future landscape is now far more certain than the make-up of the EU. Not only is the organisation going through an existential crisis, it also has to deal with what seems a now-inevitable reform as well as clearing up the mess that is the Euro.
In light of this, investing in Britain which is clear on its future relationship with the EU and, in fact, the rest of the world, is sensible. Regardless of its position in the EU, Britain will also still represent the beachhead for EMEA business.
If you are pondering international expansion, the UK in this pre-Brexit stage represents huge opportunity for revenue growth and market share growth while competitors and other businesses hesitate over this perceived lack of certainty.
One fact many have forgotten, which is central to the debate, is that Britain is still the world’s fifth largest economy. It is a powerhouse of consumer spending and represents one of – if not the most – lucrative market in Europe for fast-growing businesses looking to expand internationally.
At the present moment, there is an immediate opportunity because of the strength of the dollar against the pound. This, of course, makes investing in the UK less expensive.
However, because short term returns may be weaker due to the pound returning less dollars, partnering may be a good short-term option for businesses looking to build internationally.
Of course, all these opportunities come with the caveat that much will depend on how successful the UK government is when negotiating a favourable Brexit.
Yet, instead of the gloomy outlook which is causing companies to hesitate and hold back on inward investment, there are robust opportunities to move into a market that is one of the world’s biggest.
This opportunity is there right now. And, at Destrier Markets, we’re helping fast-growing, ambitious software, SaaS and ecommerce vendors looking to expand internationally take advantage of those opportunities through joint ventures and sales partnerships.