How CFOs Are Navigating the Uncertain Economy in 2023

Macroeconomic uncertainty is facing companies like never before: the 2023 economy is full of challenges and opportunities for companies across sectors. Business leaders are having to deal with a lot of volatility, including rising interest rates, slowing growth, political unpredictability, and changing consumer preferences.

Some industries, such as AI, electric cars and clean technologies, are thriving – while others, such as life science and general tech – are struggling to survive.

The IPO market has also cooled down significantly compared to previous years: on the ground floor at many of our clients we are seeing selective investments by venture capital firms. To illustrate, there have only been approximately 70 IPOs so far in 2023 compared to 181 in 2022. By comparison, the 1,035 IPOs that happened in 2021 shows a staggering difference relative to this year’s outlook, which will likely come in at around 140.

So how are organizations and their leaders coping with these complex and dynamic conditions?

We surveyed some of our clients – who represent a diverse range of companies at various stages of growth – to find out what the top 10 trends and issues are that they’re seeing in the marketplace. The results were revealing and insightful.

Here is a summary of their experience (in no particular order):

?Top 10 Challenges for CFOs in 2023:

1. Cybersecurity – Adequate protection and planning
2. Securing talent – Getting proper bench strength to grow
3. Fundraising – Choppy, dealing with the new rules of the marketplace
4. Alignment at the Board level – Fundraising, exit strategy, tactics
5. Growth focus – Managing entry in new markets and multiple channels
6. Banking relationships – Dealing with the aftermath of the Silicon Valley Bank collapse and other banks. Dealing with existential crisis: war, Covid, etc.
7. Managing through downsizing – Right-sizing operations in a non-disruptive way
8. Recession worries – How to cut costs and manage expenses
9. Workforce – How to plan for quiet quitting, rising salaries, and employee retention. For example, should employees return to their workplaces and what should be mandatory versus voluntary?
10. Technology adoption – How to find and properly utilize qualified talent with the help of technology, including operations technology, automation, and machine learning solutions. How can companies incorporate AI into their solutions?

No doubt your company may have some of these areas of concern, as well as others. Hopefully these insider perspectives will help you make informed decisions for your business for the remainder of the year.

At RoseRyan, we help our clients navigate these complex and dynamic conditions with our?best-in-class expertise and extensive experience?guiding our clients through previous market cycles. If you want to share any of your own experiences, or have any questions, feel free to reach out and schedule a complimentary, no obligation conversation with one of our leadership team members. We can also do a?Rapid Business Assessment?to discover what trouble spots might be affecting your company’s growth (and find out what you’re doing right!).

May the rest of your 2023 be smooth!??