What the Brexit ‘Leave’ result will mean for you as a Parentpreneur

BBC - EU Referendum results

Today I have woken up to a terrifying result. In the UK’s EU Referendum, the UK has voted to leave.

I believe that sadly issues like immigration and national identity have trumped issues on the economy and integration. I like to think that if David Cameron had ever thought this was a possibility, he wouldn’t have done it.

However, what does all this mean for us as Parentpreneurs?

First, let’s be clear about something and avoid a panic…

The EU referendum result does not mean we are now out of the EU. For that to happen, our Prime Minister must issue Article 50 (like giving notice when you want to resign from your job) and after that we then have 2 years to gather up our possessions in a box, say goodbye to everyone, apologise for the lack of a leaving party, and exit the building. (By which I mean negotiate various deals, and set up new laws and agreements with individual countries for data protection, migration, trade etc).

In fact, it’s theoretically possible that we never exit the EU (by not giving notice), although clearly the referendum has given a political shove in that direction.

We don’t yet know the full impact of the actual exit in 2+ years’ time… But there are some ways in which the vote’s result will impact you immediately.

The immediate impact depends a lot on you and your business, and so I’ll tackle the ramifications by looking at 4 examples:

  1. An established business with overseas customers
  2. A newish business with minimal exports
  3. A brand new startup with no customers
  4. UK parents!!

If you have an established business that trades with customers from around the world, (like my software business), 3 things will happen very quickly:

  1. You may enjoy a temporary bonus in the form of customers paying in Euros and Dollars whilst the Sterling is weak… Meaning a customer paying you $1000 gets you about £755 now, rather than £660 previously. This could provide up to a 15% increase in sales revenue, depending on how much you export.
  2. You may find you have customers who decide not to buy, or to wait to make a decision while they consider the impact of Brexit. Keep an eye on this! You might need to find innovative ways of helping customers make a decision / find ways to cover cash flow while customers dither.
  3. You may have customers who are worried about what Brexit will mean for them, and have questions for you about data protection, exchange rates, terms and conditions and other questions. Start an FAQ and add questions and your answers to it to save you and your team some time when dealing with 1-2-1 queries. After a week or two, consider sending an email to all customers with a link to this Q&A. In the long term, you may want to consider setting up an office in an EU country to make your customers happier and take advantage of EU laws and stability.

If you have a newish business, or have very few customers outside the UK:

  1. You may find you have customers who decide not to buy, or to wait to make a decision while they consider the impact of Brexit. Keep an eye on this! You might need to find innovative ways of helping customers make a decision / find ways to cover cash flow while customers dither.
  2. For anything you currently pay for in other currencies (e.g. $ or Euros) – you’ll now be paying up to 15% more for these, so you may want to review this spending and see whether you can switch provider (or the currency in which you pay in) to get a better rate.
  3. If you plan to expand internationally, keep an eye on what happens over the next two years, and be open to the idea of setting up an office elsewhere (US / Europe) to provide stability, access to a wider pool of talent, and easier answers to customers’ questions.

If you are a brand new startup, the world is still your oyster… (Or perhaps that should be ‘Moules’):

  1. You may want to consider setting up your business outside the UK (Amsterdam perhaps?) to help attract talent, funding, or customers more easily.
  2. Design and build your processes to be ready for changes following a UK exit from the EU. Paperwork can be a time-killer for entrepreneurs, so don’t create a load of extra effort for yourself after the exit – review the likely changes and build them in as you go along.
  3. Open your eyes to the new opportunities that are created by the change – businesses and people will need help to adapt (for example, helping them set up an office in Amsterdam!), and the likely downturn will kill off some businesses and make room for yours.

As a parent like me, you will no doubt be shocked, outraged and be asking people to ‘think of the children’. 🙂 Here’s the immediate impact of the vote’s ‘Leave’ result:

  1. That holiday you have booked in Italy is now going to be up to 25% more expensive… I hope you pre-paid.
  2. Center Parcs and other UK holiday destinations are going to get busier as a result of the poor strength of the £ abroad… You might want to book now!
  3. Your little ones may have questions and what the result means, and will look to you for answers and strength. Share their (and your) questions in the Parentpreneur Accelerator Community and use answers from your peer group to be all wise-owl about it all.
  4. Family members without UK passports may get jittery. Reassure them that you have more than two years to decide where to extradite them to, that Munich is lovely in the summer, and that you’ll visit them as often as your £s will afford it.

So, hope that helps!

What other impacts do you expect to see? What are you worried about? Please comment below!

About The Author

Alexis Kingsbury

Alexis is founder of the Parentpreneur Accelerator and Making Greatness Ltd. He is a serial entrepreneur, with experience creating start-ups in a variety of areas, particularly in SaaS and EdTech. He is also a lucky husband and proud dad, and now helps other 'parentpreneurs' like him to achieve their dreams of having successful businesses, making a difference in the world, and spending time with the people they love.

2 Comments

  • Alexis Kingsbury

    June 25, 2016

    Thanks Kelly – sadly that’s entirely possible.

    Fortunately as entrepreneurs there will be as many new opportunities as there are risks & negative impacts… we just need to be talking to people about the problems they are facing to see these coming first!

    I suspect employees will be hit hardest, as they find their employers down-sizing, moving jobs overseas, or being unable to get European employees Visas to stay.

  • Kelly

    June 25, 2016

    From what I understand those 2 years are for us to negotiate the ‘divorce’, it will take at least 10 years to sort trade deals etc. So potentially, it will be 10 – 15 years before this is completely sorted!