How Does Europe Affect Your Business?2012-07-19 11:55:57
The European debt crisis is big news worldwide, yet it can be easy to assume that events happening so far away will not impact on your small business. However, unfortunately, this is unlikely to be the case.
How does Europe affect your business?
With Greece gearing up to leave the Euro, and Spain rumoured to be likely to follow, the European economy is on shaky ground. Should you do business abroad – including Ireland – perhaps exporting your products, then this is clearly likely to be affected. But what about the rest of us?
If you are a small UK business, dealing with a UK market, then the biggest difficulty that you are likely to encounter as a result is banks being even more wary of lending. Those who depend on external funding for cashflow, or expansion, will find this to be a major stumbling block.
As banks worldwide have lent $167.7 billion to Greece, according to the Bank for International Settlements quarterly review, they are set to suffer. The may lose money directly, or events may simply make them more wary about lending in the future. Either way, loans are set to become more expensive and more difficult to obtain.
In order to ride out the Euro storm UK businesses should look to make their balance sheets has healthy as possible – perhaps cutting back in order to negate the need to borrow. Now may not be the best time for expansion. Instead, batten down the hatches and concentrate on sustaining your existing business through a difficult economic time.
Where expenses can be cut, do so. Try to reduce your outgoings as much as possible without it being of detriment to your business. You can make savings on office consumables such as stationery and printer ink, or any new equipment or furniture purchases that you need to make, at Office Allsorts, your low price online office superstore.