According to the Guardian, UK startups are facing a rather uncomfortable game of “musical chairs” when it comes to securing funding and investors.
A ‘lost generation’ of small businesses is emerging from the cost of living crisis, and some businesses are having a harder time wooing talent or exporting digital services to the EU post Brexit. However, the UK government remains committed to building an innovation-based economy, so chin up! Opportunities still abound in 2023 for investors and founders.
One rather clever way for founders to dodge these obstacles and sidestep the “usual” blunders is by calling upon the wisdom and networks of non-executive directors (NEDs). Virtualnonexecs.com is the UK’s largest and most well-connected community of NEDs and Board Advisors, providing priceless guidance to founders and their management teams, ensuring their businesses stay afloat and innovative in these choppy waters.
Priorities for founders to focus on in 2023:
- Cash runways: better long than short
With the economic climate becoming as unpredictable as the British weather, companies should focus on extending their cash runways. Partnering with experienced non-executive directors is like having a seasoned pilot on board, guiding startups with insights and connections to make informed decisions on financial planning and resource allocation.
- Quality, darling, quality
In a downturn, investors become pickier than a food critic at a mediocre restaurant. They’ll focus on higher quality opportunities. NEDs can help founders transform their startups into the crème de la crème by advising on refining value propositions, strengthening teams, and implementing bulletproof pricing models.
- Consolidation: the secret sauce of success
The current landscape is a playground for startups to consolidate their position in the market. Non-executive directors can play a vital role in identifying and acquiring other startups in the same sector, or in attracting top talent. By leveraging the know-how and connections of NEDs, startups can redefine their respective sectors and emerge stronger, like a phoenix rising from the ashes of adversity.
Despite the current economic headwinds, the UK’s tech development is expected to accelerate, like a marathon runner on a caffeine high, driven by innovation and consumer dependency on technology and e-commerce. In these times, the expertise and connections provided by non-executive directors through platforms like Virtualnonexecs.com can be instrumental in helping founders dance around uncertainties and position their companies for long-term success.
By engaging with NEDs, startups can access the support they need to create diverse, future-proof portfolios and seize the opportunities that arise in this ever-evolving landscape.