Tariffs don't have to be a barrier to you trading successfully

SMEs are often the bellwether for what happens to impact the business economy. They are frequently the first to feel the tremors of economic change and right now, they're sounding the alarm.

From rising costs and tight cashflow to new concerns over global trade, UK smaller business owners are among the most worried in the economy. And that worry isn't without reason.

Recent discussions around US tariffs and international trade tensions are causing fresh uncertainty. For smaller businesses, many of whom rely on imported goods or materials, any disruption to the supply chain can have an immediate knock-on effect.

The ripple effect of US tariffs has got everyone on edge, about how much it will have an effect on your competitive edge. If the US sticks to imposing new tariffs, especially on goods exported from the UK or components sourced globally, this could drive up costs across supply chains. Smaller businesses, without the buffer of large-scale buying power, are typically the first to feel it and the least able to absorb it.

So when global headlines talk about trade wars and economic uncertainty, everyday consumers pull back and that affects retail, hospitality, trades and service businesses almost immediately. Typically the sectors where smaller businesses proliferate and so are often the first to see drops in spend.

Smaller businesses may not make the headlines like big multinationals, but they represent a huge proportion of the UK's business population. If they're worried, it's a sign that the wider business climate is shifting and it's time to pay attention.

So, as an SME what can you do?

Getting clarity on your supply chain is likely a good first step. Review where your stock, materials or components come from. Are there alternative suppliers? Are you exposed to any regions likely to be affected by tariffs or other barriers?

SMEs are as concerned as their larger counterparts as to how much tariffs might impact their cash flow. So stress-test your cashflow. Consider whether your business can handle a short-term spike in costs or a drop in revenue. If not, it's worth speaking with your accountant about forecasting and contingency planning.

Staying close to your numbers is wise advice in this environment. After all knowledge is power. Even a simple monthly management report can give you early warning signs, helping you adapt before things get critical.

And there's no need to go it alone. For over 100 years of best accountancy practice, at GSM we've seen such patterns before. So, if you're unsure how international developments could affect your bottom line, we're here to walk you through it.

Smaller business owners might be feeling the weight of global uncertainty, but in our experience they're perhaps also more adaptable, resilient and resourceful than larger entities. With the right support, they can not only survive, but thrive.

If you're worried about how global trade, tariffs, or economic uncertainty might impact your business, get in touch. We're here to help you make sense of it all, to break through the barriers, so our clients to stay one step ahead. Contact GSM today on 020 7935 3793