{"id":8421,"date":"2019-03-11T13:32:27","date_gmt":"2019-03-11T13:32:27","guid":{"rendered":"http:\/\/www.styledeals.co.uk\/blog\/no-deal-brexit-and-how-businesses-are-planning-for-it\/"},"modified":"2019-03-11T13:32:27","modified_gmt":"2019-03-11T13:32:27","slug":"no-deal-brexit-and-how-businesses-are-planning-for-it","status":"publish","type":"post","link":"https:\/\/www.styledeals.co.uk\/blog\/no-deal-brexit-and-how-businesses-are-planning-for-it\/","title":{"rendered":"No-deal Brexit and how businesses are planning for it"},"content":{"rendered":"\n
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\"JackImage copyright<\/span>
\n Ian Davies, Brussels Street Studio<\/span><\/p>\n

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We’re still no clearer on what will happen on 29 March when the UK is set to leave the European Union.<\/p>\n

The prime minister doesn’t seem any closer<\/a> to getting a deal finalised and leaving without one remains an option.<\/p>\n

If that happens it means the UK would leave the EU and cut ties immediately, with no agreement at all in place.<\/p>\n

Some economists warn that it could mean businesses have to pay more to send their products to countries in the rest of EU.<\/p>\n

The government says it’s planning for a no deal and told businesses to do the same.<\/p>\n

Radio 1 Newsbeat has been chatting to people who run their own companies to find out if they’re preparing. <\/p>\n

‘Keeping things local’ <\/h2>\n
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Image copyright<\/span>
\n Alex Leslie Wyman<\/span><\/p>\n

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\n Harvey and Rory are founders of Matcha Work
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\n <\/figcaption><\/figure>\n

Harvey Hodd is 23 and runs Matcha Works with his friend Rory Jeffries.<\/p>\n

They’re a range of iced lattes containing matcha green teas with plant-based milks, including almond, coconut and oat milk. <\/p>\n

Harvey says the main thing they’re trying to do is keep everything they do in the UK.<\/p>\n

“A lot of manufacturing, especially for beverage companies, is in Europe or further afield.<\/p>\n

“We had an option of working with a manufacturer in Austria but decided to stay in the UK because of the worries around Brexit.<\/p>\n

“We thought if we can get something closer to home, yes, it’s more expensive but it would safeguard against any future supply issues.”<\/p>\n

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Image copyright<\/span>
\n Alex Leslie Wyman<\/span><\/p>\n

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Image caption<\/span>
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\n Matcha Works was founded in 2018
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\n <\/figcaption><\/figure>\n

The drink’s main ingredient is plant-based milk, which Harvey says is hard to find in the UK.<\/p>\n

“We formulated our own range of milks, but obviously we have to source the almonds, the coconuts and the oats. <\/p>\n

“It’s all well and good working directly with someone, but that doesn’t create a supply chain, so we’ve had to find partners we can work with in the UK but it’s really hard.”<\/p>\n

Harvey says keeping things local means the cost goes up but there are benefits to keeping things in the UK<\/p>\n

“There’s more control over the manufacturing if it’s closer to home which is a benefit and is a strategic move and we can work in smaller quantities.”<\/p>\n

‘I’m optimistic about future deals’<\/h2>\n
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Image copyright<\/span>
\n Brussels Street Studio<\/span><\/p>\n

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Image caption<\/span>
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\n Jack Thompson and Amelia Watson have high hopes for Brexit
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\n <\/figcaption><\/figure>\n

In Leeds, Leave voter Jack Thompson and Amelia Watson, both 22, have a make-up company called MEMI.<\/p>\n

It’s an online business that started in 2017, which has most of its customers in Europe. <\/p>\n

These two aren’t preparing for a no-deal Brexit – they’re going to wait and see what happens instead.<\/p>\n

“In Parliament there might be a new development that can alter the direction of Brexit.<\/p>\n

“We’ve taken the decision to wait and see before we restructure any of the business as one wrong decision could be costly.”<\/p>\n

Jack told Newsbeat there are some things they’d have to consider if the UK left the EU without a deal.<\/p>\n

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Image copyright<\/span>
\n Simon Lyle Ritchie<\/span><\/p>\n

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\n MEMI is aimed at 16 to 22-year-olds
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\n <\/figcaption><\/figure>\n

“At the moment we have the free trade deals so we can depend on quick and reliable delivery, that’s why we can have a shipping cost of \u00a35.99.<\/p>\n

“If we leave with no deal and we leave the customs union we would have to increase our shipping rate for international sales by about \u00a33.<\/p>\n

“We could end up paying a lot to ship large amounts of stock to Germany or France – that would impact our margins as we would have to factor in the cost customs checks.”<\/p>\n

But he is optimistic about Brexit and any trade deals the government can do with other countries.<\/p>\n

Jack told Newsbeat: “I voted to leave and I stand by my vote.<\/p>\n

“Depending on what trade deals we get outside of the EU, that could potentially be a massive help for us so we are hoping for free trade deals with the US and Australia,” he adds.<\/p>\n

‘It’s a constant worry for me’<\/h2>\n
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Image copyright<\/span>
\n Ian Davies<\/span><\/p>\n

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Image caption<\/span>
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\n Jocelyn Evans has helped develop more than 40 brands
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\n <\/figcaption><\/figure>\n

Jocelyn Evans is 28 and runs a manufacturing company in Birmingham called Hook and Eye UK.<\/p>\n

She helps new or small clothes brands turn their designs into real products – she says she’s helped set up more than 40.<\/p>\n

She voted to stay in the EU and says she’s thinking out of the box to prepare for Brexit.<\/p>\n

“Instead of offering the customers physical goods I am trying to offer more digital support. <\/p>\n

“I think that’s the only way people can get through a no deal Brexit – think of innovative ways to provide a business and still avoid costs.”<\/p>\n

Joss told Radio 1 Newsbeat she thinks about Brexit a lot and worries about it too.<\/p>\n

“I don’t know what the full effects of a no deal Brexit will be to my business. <\/p>\n

“If we come out of the EU and there are no trade deals that is going to put the price up on everything – it’s a constant worry for me.”<\/p>\n

Follow Newsbeat on <\/i>Instagram<\/a>, <\/i>Facebook<\/a> and <\/i>Twitter<\/a>. <\/p>\n

Listen to Newsbeat <\/i>live<\/a> at 12:45 and 17:45 every weekday on BBC Radio 1 and 1Xtra – if you miss us you can listen back <\/i>here<\/a>.<\/p>\n<\/p><\/div>\n