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Tips for Venture Capitalist Investors on Dealing with Brexit Uncertainty


Are you a start-up owner or a young aspiring entrepreneur?

If yes, you must be well aware about the events of June 23, 2019 and the Brexit press coverage throughout the entirety 2017, which has certainly left many feeling uncertain about the future of their business.

For many venture capitalists, their role not only requires them to understand the current economics behind the operation of a start-up business but they are also expected to predict future outcomes too.
Since the result of Brexit emerged, we have understood what Brexit means for small businesses and start-ups and what entrepreneurs should do about it.

Following are some key points which we think can be useful while entering a post Brexit economy.

Don’t Panic

Our first advice for the young entrepreneurs would be, does not panic. The UK government is making all the necessary efforts from their end to sustain the economy by stabilising the establishment of the UK start-ups. They have also invested a whopping £60 millions in the next generation of start-up talent. #

Alongside, they are also promoting the use of alternative finance firms in stabilising the finances of the UK SMEs. This means, regardless of Brexit, the investment in the talented UK entrepreneurs and start-ups will continue.

Know Your USP

During such a situation, it is worthy to highlight the fact the small business and start-up owners need to develop and communicate their unique selling point (USP).

It is their responsibility to focus on developing their existing products and services and giving them an innovative edge while also communicating this key factor to all the stakeholders (within the businesses as well as external stakeholders).

If you looking for securing funds, highlight what potentially separates you from your competition and be absolutely passionate about why you feel a VC should invest in your company. If you yourself are unlikely to be confident in your products and services, then it is impossible for an investor to be.

Remember, you need to make sure that you have a clear perspective on why your business is the one to back. So know your USP as Brexit uncertainty would reduce investors’ appetite for risks.

Communicate

A business owner should be able to communicate a clear vision of the future of their business to the potential investors. From your employees to your suppliers, it is essential for everyone to know where they stand and should be definite that at least for the next two years changes and upheaval will be minimal.

Additionally, it is essential that they know you are building plans for areas that you think could possibly be affected by Brexit. Hence, open and clear communications with your employees is essential to make sure they remain engaged, motivated and passionate about the journey they will be walking on with you.

Do not believe everything you hear

There have been many debates about the Brexit effect on the UK economy and much more. We suggest you to not believe in everything you hear. Although the Brexit wasn’t the outcome most of us hoped for, you need to understand that our tech community is vibrant, forward thinking and has world class professionals and talent. So it will not change the spirit and ambition in which our start-ups are built.

Keep calm and carry on investing in your business

It is very important for small business and start-up owners to remain calm in such a situation and continue hiring. It has been two years since the Brexit vote and for start-ups and businesses that have stopped investing in their future will be said to suffer the most when the time comes.

However, most companies are avoiding hiring EU citizens as they are uncertain about them being able to live in the UK or not. But we suggest you to not follow this path. It is important that you do not shy away from hiring EU talent. Regardless of the political landscape, all we can do is to operate within the current policies and laws that are been imposed.

Therefore, it is unhelpful to try and second guess what Brexit will mean and it shouldn’t dominate recruitment strategies – hiring the best candidate regardless of nationality is always a sensible approach.

Lastly, we can suggest that you take this one with a brave mindset and do not let the Brexit uncertainty doom your business or your thought processes, either.

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