Making Brexit Manageable for Cross-Border Traders
InterTradeIreland’s range of Brexit supports and funding will help businesses manage the challenges ahead
The trading relationship between the UK and the EU is set to change on 1 January 2021 when the Brexit transition period ends. InterTradeIreland’s recent allisland Business Monitor survey (Q3 2020) shows that 44% of small business owners across the island predict that Brexit will have a negative impact on their business over the next year, yet only 18% of firms have plans in place.
InterTradeIreland recognises the challenges many businesses have had to face in 2020 as a result of the Covid-19 pandemic. However, not being ready for Brexit is not an option. Businesses need to take action now to prepare for the new trading environment.
Whatever stage you are at with your Brexit preparations, InterTradeIreland has a range of Brexit supports available to help you and your business tackle the potential challenges ahead.
PREPARING FOR BREXIT
1. SUPPLY CHAIN
Firstly, understand your trade flows and map your supply chain. Speak to your suppliers about their post-transition period arrangements and familiarise yourself with Incoterms (International Commercial Terms).
Consider the impact of change in the exchange rate and supplier payment schedules, and make sure you review your contracts to protect your supply chain.
2. CUSTOMS
You will need to identify your Commodity Code, which you can do using our guide.
Visit: brexit2020.intertradeireland.com
You will need to understand your trade flows and identify your customs requirements. Find out what’s needed to complete customs formalities and decide who will complete them.
Finally, study the Brexit Readiness Checklist on enterprise.gov.ie/en/. This checklist highlights some of the key actions that businesses can take to prepare for the changes Brexit will bring about in relation to customs, product compliance and supply chain amongst others. It also includes links to the relevant agencies providing additional guidance and support.
3. PEOPLE
Make sure you are clear about how the EU Settlement Scheme affects you, your business and your employees. Our Guide to People (brexit2020.intertradeireland.com) tells you all you need to know. You will also find details on the postBrexit immigration scheme, salary caps, what’s changing in 2021 and more.
4. DATA
If your business involves the transfer of personal data across the border, you’ll need to ensure sufficient safeguards are in place so you can continue to transfer data after the transition period. This may include introducing Standard Contractual Clauses (SCCs) to your data arrangements.
5. UPDATES
You will need to stay up to speed as changes emerge during the transition period. You can register for our updates on brexit2020.intertradeireland.com.
BREXIT FUNDING
Voucher support is also available to help you understand Brexit’s impact on your cross-border business. InterTradeIreland’s Planning Voucher provides 100% financial support up to €2,250/£2,000 (inclusive of VAT) towards professional advice tailored to your business to help you to identify Brexit exposure and to plan. See intertradeireland.com/brexit/funding
Wherever you are with your Brexit plans, InterTradeIreland will keep you informed as changes emerge and continue to offer support and advice to cross-border traders via our dedicated Brexit Advisory Service team. Find out more at intertradeireland.com/Brexit or get in touch by emailing brexit@intertradeireland.com.
JULIE McLOUGHLIN Julie McLoughlin and her husband, Owen, run printmaker Jando on the north side of Dublin.
When stores closed in March, we saw an immediate drop-off in sales, as 90% of our business comes through our stockists. Luckily, we had a really strong website and were already in a position to sell online. We also have a home studio in our apartment and were quickly able to move our printing, packing and shipping back home.
We had to grow our social media presence and develop a digital strategy. We engaged with an expert and I think the understanding that we couldn’t do it ourselves was really the first step.
We were nervous about spending money on assistance and embarking into the unknown without the guarantee of return, but we knew it was the right thing for us to do. Taking the risk of asking for help was the difference between us surviving and thriving.
Lockdown definitely had some positives. Owen and I live in the city centre and it was really nice to have the streets to ourselves. It helped us appreciate the architecture around us more and see things from a different perspective — something we always strive to do in our work.
We made a conscious decision to take some time out for ourselves to do the stuff we love and rediscovered our love of cocktails in the process.
We have seen a huge increase in customers buying gifts for one another to show support, love, generosity etc. The trend towards supporting Irish businesses has swept in our favour and it’s great to see. We see this lasting into 2021 and we’d love to see the government doing their bit to encourage consumers to buy Irish.
BRENDAN COLBERT Brendan Colbert founded Poachers in 2017, providing low-sugar mixers to serve the high-end spirits market in Ireland and abroad.
During the lockdown periods, we have worked very hard to position ourselves as a premium Irish brand in the market for the next decade. If anything, Covid-19 accelerated our decision-making process around specific components, and in some cases allowed us the breathing space to execute more efficiently. It’s been very important for us to maintain engagement with all our customers, whether they are distilleries, trade or consumers.
My partner is a hospital consultant, so we were a very busy household during the early phases of the lockdown. Home schooling presented the challenge of all management challenges. We took the opportunity to support some of the amazing restaurants and bars with their takeout menus while they adapted to the reality of Covid. There was real innovation and attention to detail in the home delivery market. That also applied to drinks, where some of the takeaway cocktail menus were brilliant.
We remain very excited about 2021. Ultimately, we compete in a market where premiumisation, a more dynamic customer, and willingness to experiment with flavour and spirits, will see our market grow domestically and overseas.
JOANNE O’BRIEN Joanne O’Brien is the founder of Petit Avenue, an online boutique selling skincare products, baby clothes, toys and furnishings.
We adapted as quickly as we could to the Covid-19 situation. It was a very frightening time for everyone, and although we were mindful of what was going on around us, we were still receiving orders online. We adjusted our dispatch system so only one person was required to fulfil orders, and we increased our advertising spend to reach new customers.
My main management challenge was stock replenishment. As a small business, we don’t carry huge volumes of stock and some large production factories were closed. We brought in some new brands that had stock readily available. Supply is an ongoing problem that we have been navigating as best we can.
We have not had to avail of state supports but we had great support from Virgin Media’s Backing Business campaign. We were awarded a week of free advertising, and the prime-time TV slots were a huge boost for business and brand awareness.
After the pandemic experience, we’re exploring the development of our own brand. I think the lesson most businesses learned was that the ability to adapt and be flexible is hugely important. Some restaurants encouraged restaurant dining at home, and myself and my husband love doing this. It involves no babysitter or commute, yet you still get to enjoy premium quality food.
DANIEL McCARTHY Daniel McCarthy owns Star Seafoods in Kerry, which employs 40 people and has been in business since 1974.
The first lockdown was a huge shock to the system. Our business was 95% food service and it was shut down overnight, along with most of our fish markets in Munster. We were looking at our fleet of vans laying idle in the yard and no work for the majority of our employees. However, we saw an opportunity to grow our home delivery network through our website.
Given the fact that we don’t charge delivery fees and our minimum order is only €10, it was a big risk. However, with the roads being so empty during lockdown, we figured our delivery drivers would be able to deliver three times the amount of orders per day than usual. The risk paid off and we have expanded our home delivery service to 11 counties.
We had to learn so much — constantly redesigning our website and integrating delivery route planners etc. There were many additional challenges, but they were enjoyable. State supports were sufficient, but if a government is making the decision to shut down businesses through no fault of their own then these firms need to be protected.
We expect the food service side of our business to bounce back strongly in 2021, though we will keep up the home delivery service. My business lesson from 2020 is cast your net wide!
Lockdown showed us how reliant we were on the food service side of things. Thankfully, we were able to quickly adapt to the new trading environment and grow our online business.
MICHAEL GALVIN Michael Galvin is founder and managing director of National Business Machines. The Cork business specialises in printer and managed print services supply across Munster and south Leinster.
During the first lockdown we saw a significant reduction in revenue, with decisions on new contracts and machine sales put on hold. Recurring contracts revenue is also down as a result of lower usage on machines with fewer people in the workplace.
It took a few weeks to adjust to the new reality but we have adjusted well. We had invested in moving to Microsoft Office 365 last year, so we all did training on using Teams for online meetings and filesharing. We also use this for customer meetings and presentations when appropriate.
The immediate challenge was realigning our overheads to cope with the revenue reduction. We got support from our banks in suspending vehicle leases for three months, rents, rates etc. This all worked out well along with state wage supports. The first lockdown was a bit of a novelty initially. I availed of the time to read and spend more time with family. I also walked a lot, so I feel fitter.
I believe that 2021 will be a tough year, especially when government subsidies are phased out. I don’t see how revenues will suddenly go back to pre-pandemic levels. I think that there will be a lot of rationalisation for many businesses.
We had never experienced anything like the uncertainty that lockdown created. An important lesson is the importance of communication with staff and customers.
KATIE DOYLE Covid-19 wreaked havoc on Katie Doyle’s student travel agency, so the entrepreneur pivoted to establish Mentor Her.
My business startup Capture Travel was upended by Covid-19, with next to no bookings for 2020. We also had to refund four months’ worth of bookings, leaving turnover at an almost minus amount. I pivoted to establish Mentor Her, which is online and aimed at women who have been severely impacted by the lockdown.
The main management issue facing us is the lack of in-person communication. Whether it’s organising final year accounts, talking to licencing bodies, looking at marketing strategies, interviews and discussions, it was hard to get used to Zoom calls. It takes longer to get things done, and there’s more scope or miscommunication.
As someone who thrives on travelling, events and networking, building projects and seeing results, the lockdown knocked me off my feet.
Stuck at home with my businessowning partner, we were both going half-mad without a project to work on. Once we were able to pivot our businesses, it got a bit easier. I’ve really enjoyed the opportunity to spend more time as a family and find new things to do at home to keep us all occupied in the evenings.
The travel industry has been offered no real support bar the employment subsidies like every other business. For a sector that has lost all turnover for nearly a year now, and having to provide refunds with no money coming into the business, the government schemes barely scratched the surface of what is required to save indigenous travel agencies.
Starting Mentor Her, I became really inspired by the coming together of women to help others in such a weird and difficult time. The women who have been involved in the business have shown that even in the worst times there will always be someone there if you can make goals, keep faith and ask for help when you need it.
CHRIS KELLY Chris Kelly is CEO and co-founder of Limerick software startup Tracworx, which has developed a tracking solution for hospitals to monitor patients.
When lockdown happened, it was a bit of a novelty at first. We moved customer meetings to video calls and held daily check-in meetings with our staff to keep everyone informed. We also facilitated staff to set up comfortable home-working environments.
Everybody missed the office social interaction. We devoted one of our weekly calls to playing quizzes and games, talking about anything other than work in order to get everyone interacting socially and to improve the mental wellbeing of our staff. They were a great success.
With lockdown, our core market effectively closed down overnight. Every hospital in the country was addressing the pandemic, so all IT investment projects were put on hold. We needed to diversify in order to survive, so we built a contact tracing and social distancing solution by repurposing our core technology. During the last six months, we have opened up a new market sector and signed up some great clients.
One of the main benefits of lockdown for me was the opportunity to look at how I spend my day. I started to block out slots in my day to do things that I enjoy, such as running and playing the guitar. I managed to get a lot more balance back into my life, and ultimately, was much happier in the process.
The government support that we received was immense. However, the government needs to do more for restaurants, pubs and family-owned shops, which are the lifeblood of every town and village in Ireland.
The single most important lesson I learned from 2020 is ‘innovate or evaporate’. The momentum we built in our core business, before the start of the pandemic, was completely eroded overnight and forced us to innovate.
VIKI BAIRD Viki Baird is the founder of Stillgarden Distillery, which is located in Dublin 8.
Stillgarden Distillery was due to launch the week we went into lockdown in March, which was a disappointing blow to the business. However, we were focused on digital and the direct-to-consumer space through a broad and rotating range of experimental products, as well as a strong community focus.
We opened the distilling academy in July and installed booths to ensure safety. The sessions were running very well but we had to close in September when there were further Covid restrictions. Again, we diversified and developed our outside offering with seating for 15 people. We installed a covered heated area and developed our tours, so Dubliners could visit our community botanical garden.
We also expanded into the virtual world, offering groups a chance to meet online and partake in cocktail masterclasses or a gin-tasting experience, with products sent to attendees in advance. We made the difficult decision to lay off staff temporarily while we were closed.
I worked from home, which initially I thought would suit me, though the novelty soon wore off. It was difficult to adjust as I'm very much a people person and I like my routine to have a clear distinction between work life and home life.
Our main aim for 2021 is to start exporting our products overseas. With travel restrictions, this could be a barrier to business, and trade shows could be limited to a virtual online experience. Domestically, it’s entirely dependent on what the on-trade and restaurant environment is like.
We were recently approached by the Westbury Hotel to create a gin for them. This is the sort of opportunity that we would have never foreseen in our first year, and a huge compliment to the tenacity of our team and the quality of our product.
GILLIAN HALPIN Gillian Halpin makes the Jane Darcy brand of luxury scented candles.
Most of 2020 has been challenging for small businesses. We have been forced to rethink, innovate and change the way we work and communicate with the world. I have to say, I love a challenge, so I feel I have enjoyed the process. Of course, initially I was very worried, scared of the unknown and what was to come. However, after sitting down and brainstorming we came up with some great ways of working differently.
I am a very social person, so I miss catching up with all our retailers and customers. We already had a website and we are big on social media, so our customers were used to that. We decided to put more time into promoting our website, as well as dedicating more time to touching base with customers across social.
We have experienced a big increase in online sales. We had lots of orders going out to mums, sisters, best friends, frontline workers etc, which was amazing to see. Of course, there was a slowdown in retail orders during the lockdown periods, which was super worrying, especially for our retailers.
During the first lockdown I loved being at home with my girls. Don’t get me wrong, it wasn’t all easy between home schooling, packing orders, answering emails, making dinners (the list goes on). However, I made the decision that I was going to enjoy it and I will always treasure that time we all had together.
A lot of the time we fell through cracks for government supports, which was disappointing. Fingal LEO was extremely helpful. They are always at the end of the phone to advise and support, and they have been really brilliant.
I am under no illusions that 2021 will be challenging for us all. I am an optimist, so I have to hope that our customers will continue to get behind us. There is a bigger appetite to support Irish businesses than ever before, which I think is something really positive that has come out of 2020.
‘Nothing is a sure thing’ as dad always reminds me. In a micro enterprise, you can often get caught up in the day-to-day running of the business, when you should be looking at what is going on outside. Understanding our environment can help us to adapt quicker and smarter.
JOHN EARLEY John Earley is CEO of Airfibre, a B2B wireless broadband provider.
Keeping the business viable was my main challenge in the pandemic. We experienced a sharp downturn in new orders between March and August, and I had to carefully analyse cashflow impact. My commute is Manchester to Dublin. I have not been to Dublin
since mid-February and I have learned that I do not have to be physically present anything like as much as I used to be.
The Irish government has been incredibly supportive through the pandemic. In the UK, the government has been inept and foolish in its implementation of supports for business. However, I foresee significant bounce-back in the economy, especially once the
vaccines are generally available. History tells us that devastating world events are followed by economic booms buoyed by optimism.
What 2020 has taught me is that I am not that important to the business. Being at a remove from Ireland resulted in my colleagues truly stepping up to the mark, assuming control and more responsibility.
STEPHEN MURPHY Stephen Murphy is commercial director of DEPT Digital, a fullservice digital marketing agency. The company employs 1,500 people in 13 countries.
At a personal level the experience of 2020 has been pretty much the five stages of grief: first denial (March), then anger (April), then bargaining (May), then depression (June), and finally acceptance (July — although some of my colleagues would beg to differ). From a business point of view, DEPT has coped extremely well, as we were set up for at least partial working from home from the get-go.
What none of us expected was the speed at which it all happened during March — one minute we were on a city break and the next we were taking our chair home from the office and downloading every remote conferencing app out there. I’ve been amazed at how well productivity stood up during that period, while the service level to our clients remained the same and even improved in some cases.
The immediate dry-up in new business was a big management challenge. We would typically complete six to eight new client deals a year, and during the first lockdown there was an immediate impact on that sales line. Once the shock settled and digital services were front and centre of this work-from-home economy, this line picked up again. We were busy with existing clients, including the HSE, who required additional attention for their digital programme.
People do business with people they know and it’s very hard to get to know someone over Zoom or Meet. The essential chemistry of a sale is the personal connection on a real level. With the sterile confines of a video call, you don’t get to really chat about the problem and discuss solutions. Once the vaccines are widely available, I think a return to the office for commercial and procurement people will happen quickly.
I was meant to get married in Italy in June, with 200 people invited to a huge villa near Bari. Instead the wedding in September took place in the Dublin registry office, with 10 people and lunch in a nearby outdoor restaurant. It was a fantastic day. Once you are healthy and have your close friends and family around, you don’t need anything else.
CORMAC FITZGERALD Cormac Fitzgerald leads the Fitzgerald & Partners accountancy practice in Kinsale.
Through the pandemic period I’ve been struck by the great resilience of business owners — how they have adapted to change and have been quick to innovate. Some new businesses have opened, which is encouraging to see, and some entrepreneurs thrive in chaos.
We developed an innovative contactless tax return service so that our clients can get their returns done without the need for meetings. We also established Kinsale Digital Hub, a safe modern co-working space, and launched the Doing Business in Kinsale app.
However, I think that 2021 is going to be a difficult year. The damage inflicted by the pandemic has yet to play out, but hopefully there are better times ahead if people buy Irish, shop local, support SMEs and staycation.
Many of us will agree that there is a lot to be gained in slowing down, taking a deep breath, becoming aware and noticing our surroundings. We learned that we cannot afford to take anything or any day for granted.
RONAN MURPHY Ronan Murphy is CEO of CWSI, a mobile security specialist. The company recently launched a managed security service that combats cyber attacks targeting remote workers.
As part of our business continuity plan, we shut down our London and Dublin offices twice every year to remain prepared for office closures. We activated this plan last March and it’s been running ever since. CWSI already remotely supports users in 36 countries, so this form of working is very much a known quantity for us.
Our main challenge was around business development. We usually run a lot of events that generate new opportunities. With lockdown and limited or no travel, we had to adapt quickly and move our events to an online format.
We recognised that people quickly become fatigued by video calls and webinars, so our marketing team organised some creative initiatives. For example, we held a virtual winetasting masterclass for some customers and partners over the summer.
Being home every evening to eat with my family was really special. While I usually wait until June, I also started sea swimming back in March. I have kept it up, even if it is a little more challenging as winter sets in.
I think the government did a commendable job on the supports. The bigger challenge going forward is how to handle the future recovery. It would be disastrous for the business community and the economy if taxes are increased to recoup the 2020 subsidies. This must be handled with careful consideration.
I am optimistic for CWSI’s business outlook. The next 12 to 18 months will see significant investment in enabling ‘work from anywhere’ strategies, which is our area of focus.
ARTHUR GRIFFIN Arthur Griffin is Managing Director of Berkley Group, a specialist recruitment consultancy focusing on business, technology, engineering and life sciences.
We acted very quickly in response to lockdown. All of our IT is cloud-based so we set everybody up with laptops for home working. We used Microsoft Teams and organised a schedule of team calls for each department and management. Morale dipped a little for a while but we kept things going by keeping everybody as busy as possible. We also kept everybody employed.
We didn’t know if our cashflow would cope with the downturn, so we used Mazars as our corporate advisors. They were very good to work with, and quickly identified risks and created contingencies.
These included internal cost reductions and reviewing possible government support. While it acted quickly, the government’s initial focus was to push money at the
problem. Other than shut the country down twice, it hasn’t provided much else, and there has been no consideration for the impact on mental health in the workplace. I believe government could have gone further with 0% interest loans to SMEs, to be repaid over three to five years.
Businesses that have adapted properly to the pandemic will start to grow again. We have grown turnover by 23% this year, though
some areas of our business have suffered. We also employed an extra eight permanent staff and on average an extra 25 contingency staff. We intend to grow our business and workforce further in 2021.
Our company theme for 2020 was ‘teamwork’. That couldn’t have been more appropriate when lockdown came and we all pulled together, working as a team to create success.
AUDREY HUGHES Audrey Hughes is founder director of Principle HR, a Dublin recruitment agency that expanded to the UK in early 2020. A launch event planned for March was shelved but the new UK office has been managed remotely by Hughes and her team in the months since then.
From a technical perspective, working from home through the pandemic was quite seamless, as all our systems are cloud-based and everyone has laptops and mobiles. The biggest learning curve was the lack of personal interaction. As a team, we would feed off each other’s energy and ideas in the office. We had regular Zoom videos and calls, but the lack of in-person contact took some getting used to.
Our main management challenge was trying to keep the team upbeat, motivated, and comfortable working remotely. During quieter times, some of the team completed online courses, including yoga. The initial lockdown allowed me to spend more time at home and with the kids. The craziness of rushing around all the time was gone and I think it brought some balance back into life.
For our business, I believe the market will start to see a steady recovery in 2021. We mainly recruit in tech, engineering, marketing and operations in Ireland and the UK. While we have seen a slowdown in these areas, the roles are still vital to companies. I also think working from home is here to stay and most companies will offer some form of blended home/office work approach going forward.
One positive lesson from the pandemic has been to keep agile, which really helps to pivot your business offering in times of a disrupted economy. And positivity always helps you to see multiple solutions to problems and make better business decisions.