For a lot of businesses right now, it’s hard to know what to make of 2023 so far. Barely a month in, headlines about the year have been dominated by a grim outlook, predictions of companies collapsing, and eye-popping figures around inflation, the energy crisis, and the cost of living that seem to be getting worse before they get better. While on the other hand, it seems the World Cup may, for now, have saved our recession bacon according to UK analysts. Given this confusing state of affairs, it wouldn’t be surprising if most business leaders were already over 2023.

But looking at the UK business landscape, is survival all that business leaders are focussed on in 2023? And if the picture really is as grim as it’s made out to be—how can we ensure that in a year’s time, we’re looking back on a far rosier picture than expected?

What the current landscape looks like

In Pleo’s recent survey conducted with senior decision makers at SMBs across the UK, less than half (45%) described themselves as recession-ready, leading many to point the finger at a lack of control and clarity over spend management. Meanwhile, 37% and 36% said they needed better access to financial technology/solutions and improved talent/skill sets respectively.

This might suggest the coming year is out of the hands of UK businesses and that they’re in for a rocky ride regardless. Yet, once we look past the initial challenge—we can find the blueprint for greater business resilience.

With visibility lacking, there is therefore an unused wealth of data and insights on business spending. Now, if businesses can only get access to it, they stand to unlock a significant amount of insights to help control their spending and unlock further opportunities for agility, productivity, and growth in the coming year that can see them withstand the waves of economic uncertainty. Now, suddenly things don’t sound so gloomy, do they?

The opportunity mindset

This sentiment is corroborated by The Institute of Directors (IoD) Directors’ Economic Confidence Index too, with optimistic prospects for UK businesses in 2023. It might seem like blue sky thinking given the low proportion of those that describe themselves as recession-ready, but it’s heartening to see businesses realise that the key to survival is not standing still, but moving forward.

Thinking about how much of an opportunity they’re prepared to turn 2023 into is a good first step for businesses to take this year. The notion that it’s as simple as changing their mindset and searching for the possibilities might cause a few eye rolls, but I want to be clear that I understand what businesses are facing this year, and the livelihoods that are caught up in what they stand to lose.

I also believe that by focussing on the opportunities this period opens up to them, businesses can come out of this year stronger than ever before. That, more than a change in sentiment is what I want—resilient UK businesses that have spent time appraising their own setups, and owing to unfortunate, yet unavoidable, circumstances, have seen ways of improving their own business model for the long-term.

The right kind of growth

When we talk about growth in 2023, of course it is not the same as the growth we talked about in 2019. The world has changed, and we must expect businesses to as well. The biggest change I see happening is that businesses should now target efficient growth. This means not reaching beyond their means, but ensuring they are retaining their customers—and that their employees are empowered to do so.

For this to happen, strategy is needed and businesses should be looking at their CFOs and Finance leaders. 97% of UK businesses said the role of their CFO had changed, working in a range of departments across the business, yet only a quarter of businesses said they had become more of a strategic partner to the business in the process.

It remains the case that while the financial skillset of the CFO is in high demand, CFOs are not being relied upon to be a strategic partner to the CEO and the wider business. Yet, unless this changes, any growth businesses undergo risks lacking the strategy and planning to truly benefit them in the long term.

Blueprint for the future

So, will 2023 be the year of survival or growth? It’s sadly impossible to say right now. But what it can be is a year of opportunity—a period defined by UK businesses using the challenging market conditions they are all facing to their advantage.

If they do, then businesses can finally stop thinking nothing good will come of 2023, because developing processes for better decision-making, strengthening business fundamentals, and laying the groundwork for sustainable growth isn’t just a blueprint for the calendar year—but the future of business in general.

James Keating, Chief Marketing Officer, Pleo.