| Sir Mervyn King, the Governor of the Bank of England, stated this month that Britain's banks were now preparing for such an eventuality as the collapse of the eurozone.
Randall & Payne, accounts and business advisers, ran an online survey to find out how many businesses in Gloucestershire would be directly affected if the euro fails.
Will Abbott, partner at Randall & Payne, said: "The question was simple: 'If the euro ceases as an effective single currency, will it affect my business?', with a 'Yes' or 'No' answer.
"We were surprised at how many people responded in the first two hours. So far 56 companies have voted, with 91 per cent saying they felt the collapse of the euro would directly affect their business.
"The reasons for the crisis are complex and many. They are economic, political, social and cultural. But one thing is sure, if you do business, work for a company that does business, or even just use a business that does business in the eurozone, it will affect you."
So "what can we do?", you may ask...
Option 1: Sit on your hands and do nothing, just waiting and hoping that France and Germany can bail out the euro, or...
Option 2: Start planning ahead now and put a strategy in place just in case it all collapses.
Will's Top Tips:
1. Make sure your business' costs and revenues are in the same currency.
2. Think long-term not short-term – you should be planning three to five years ahead, for when markets return.
3. Don't just focus on reducing cost, think in terms of reducing the amount of wasted resources.
4. Look for alternative markets – Asia, Africa, South America or Eastern Europe.
5. Take action sooner rather than later, including talking to banks about extending or renewing facilities.
6. Talk to the experts: having been through 130 years of trading, Randall & Payne can see the pitfalls and repeating patterns.
Also, it's worth remembering that it's not just businesses that could be affected. Anyone with investments or mortgages in the eurozone may be left high and dry. The Foreign Office has said it is preparing contingency plans to help expats from the Costa del Sol and the Algarve, who could find themselves stranded without money.
Randall & Payne will certainly be monitoring events on a daily basis and keep clients informed of any proactive action they can take.
As David Cameron said "we're all in this together" – let's hope it's for the better in the long term. Talk to Will Abbott at Randall & Payne on 01452 723377 or contact him at wja@randall-payne.co.uk.
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