Over the last 20 years, businesses in Europe have become very comfortable, with corporate risk being established as low and indeed very low in some countries. Most of the middle and senior management teams over the last 20 years have rarely had to make decisions that could seriously impact their company when choosing a European export destination and as a consequence have opted for this easy track and become risk complacent. However, with a new wave of politics sweeping across the globe, this is no longer the case and our safe havens of Europe have taken on a shaky existence.
I too was a victim of this because most of my income was deemed to be coming from a non-sterling source (more specifically the Euro) as a consequence nearly all the main mortgage lenders here in the UK wouldn’t include this income in the “safe and regular finances” category and we couldn’t get a new mortgage. All this despite paying full UK taxes as a UK registered company.
Bizarrely, for those who have not been keeping up to speed with the happenings across the globe, the safe havens of outward investment and export communities are no longer where you would think they would be. Typically the UK has looked to Germany, France, Holland, Ireland, the USA etc as their safe export locations. This recent shift in politics has warped this so much that investors and risk analysts alike now have a preference towards the Middle East, Far East, South America and Africa- (Mozambique and Nigeria to name but two).
So what does this mean for you?
Increasingly the financial stability of the West is being seen as “unstable to severely unstable” depending on which risk factors you include, but what is clear is that “business as usual” no longer applies. 20 years of risk adversity and a distinct lack of risk assessment expertise (the type where you don’t push in a bunch of data into a software program and repeat that well know satirical phrase “computer says no!”) all means that a large persuasion of modern companies are struggling to make decisions and this is killing productivity as well as company growth. Being able to review a situation and all the data involved and then making a “gut instinct” choice of direction, instead of relying solely on a software package is going to be a step backwards in some people’s eyes. I believe that in reality it is going to be a breath of fresh air to those of us who both know and still believe that it is people who do business and not computers. Good old fashioned common sense is going to make a glorious comeback over the coming months and so if your intuition and instinct has been dumbed down by technology then you may need to just start fine tuning it again as the road ahead is going to need you.
So here are my first 3 questions:
- Have you reviewed your risk exposure?
- Have you opened yourself up to explore new export markets yet?
- Are all the eggs you have in a newly labelled “unstable basket”?
Exporting can significantly improve your business growth and bottom line profit but knowing where to start and who to speak to about it can be almost as challenging as exporting itself. So if you want to understand more about how to reach outside of the European comfort zone then get in touch.