Small and medium-sized businesses (SMBs) in the IT sector operate in a fast-paced, high-growth environment where technology evolves rapidly, competition is fierce, and innovation is key. As these businesses scale, many realise the need for strong governance, strategic guidance, and industry expertise—this is where a Non-Executive Director (NED) can add immense value.
A well-chosen NED can help an IT SMB navigate growth challenges, attract investment, manage risks, and build long-term resilience. However, finding the right NED requires a strategic approach. This guide will walk you through selecting a Non-Executive Director who aligns with your business goals and industry demands.
Why IT SMBs Need a NED
Many IT SMBs start with technical founders who are brilliant innovators but may lack commercial experience, governance expertise, or investor relations skills. As the company grows, challenges such as scaling operations, regulatory compliance, and financial oversight become more complex.
A NED brings independent oversight and industry insights to help the business:
✅ Refine strategy – Provide an outside perspective on growth, innovation, and market positioning.
✅ Strengthen governance – Ensure compliance with regulations (e.g., GDPR, cybersecurity laws).
✅ Enhance investor confidence – A well-connected NED can attract investment and improve shareholder relations.
✅ Navigate risk management – Identify and mitigate operational, financial, and security risks.
✅ Support leadership – Mentor founders and executives, fostering better decision-making.
However, not all NEDs are the same. The key is to find one that matches your business’s needs.
Step 1: Define Your Business Needs
Before you start searching for a NED, clearly outline what your SMB requires. Ask yourself:
🔹 What are the biggest challenges we face? (Scaling? Compliance? Fundraising?)
🔹 What expertise do we lack at board level? (Finance? Sales? Cybersecurity?)
🔹 Do we need industry-specific knowledge, or would a fresh perspective help?
🔹 Are we looking for a NED with investor connections or operational experience?
For example:
- A SaaS company seeking Series A funding might benefit from a finance-focused NED with investor ties.
- A cybersecurity SMB scaling internationally may need a compliance and risk expert.
- A tech start-up struggling with sales might look for a commercially driven NED with business development expertise.
Clearly defining these needs will streamline the search process and help attract the right candidates.
Step 2: Identify Key Qualities in a NED
An effective NED should bring a mix of industry knowledge, commercial acumen, and leadership experience. Here are the key attributes to look for:
- Industry Expertise
🔹 Deep understanding of IT trends, emerging technologies, and market dynamics.
🔹 Knowledge of cybersecurity, AI, cloud computing, or SaaS, depending on your sector.
🔹 Experience navigating regulatory challenges and compliance frameworks.
- Financial & Commercial Acumen
🔹 Strong grasp of financial strategy, budgeting, and risk management.
🔹 Fundraising experience (especially valuable for VC-backed IT firms).
🔹 Ability to drive revenue growth and optimise business models.
- Leadership & Governance Skills
🔹 Experience serving on boards of tech businesses or high-growth SMBs.
🔹 Ability to challenge and support the executive team constructively.
🔹 A commitment to ethical leadership and corporate governance.
- Network & Influence
🔹 Connections with investors, venture capital firms, and corporate partners.
🔹 Ability to open doors to strategic alliances and business opportunities.
- Adaptability & Cultural Fit
🔹 A NED must align with your company’s vision, values, and leadership style.
🔹 They should bring fresh perspectives while respecting your company’s culture.
Step 3: Where to Find the Right NED
Once you know what you’re looking for, the next step is finding the right person.
- NED Recruitment Agencies & Specialist Advisory Firms
Recruitment agencies specialising in Non-Executive Director placements can help identify candidates with the right skills. Moksha Advisory is one such firm that connects IT SMBs with experienced NEDs tailored to their needs.
- Industry Networks & Events
Attend IT industry conferences, tech networking events, and corporate governance summits to connect with experienced NEDs.
- Professional Associations & LinkedIn
- Institute of Directors (IoD) – Offers a directory of experienced NEDs.
- LinkedIn – A powerful tool for searching and connecting with potential NEDs.
- Investor Recommendations
If your business has existing investors or is seeking funding, they may have valuable NED connections who can provide board-level expertise.
- Advisory Boards & Mentorship Networks
Many NEDs begin as advisors or mentors before taking on a formal board role. Engaging with startup accelerators and mentorship programs can introduce potential candidates.
Step 4: The Selection Process
Once you have a shortlist of candidates, follow these steps to ensure the right fit:
- Conduct Interviews & Due Diligence
✅ Assess their track record – Have they worked with IT SMBs before?
✅ Gauge their understanding of your sector – Can they add real value?
✅ Check references – Speak to previous companies they have worked with.
✅ Evaluate their communication style – Will they challenge and support the leadership team effectively?
- Define Expectations & Compensation
- Set clear expectations for their time commitment, advisory role, and strategic contributions.
- Compensation can be structured as fixed fees, equity, or performance-based incentives.
- Trial Period & Onboarding
- Consider appointing a NED for an initial advisory role or trial period before offering a long-term position.
- Provide onboarding support to help them understand your business operations, culture, and goals.
Final Thoughts – Why Moksha Advisory?
Finding the right Non-Executive Director for an IT SMB is not just about experience—it’s about fit. A great NED will bring deep industry insights, financial expertise, governance skills, and a valuable network to support your company’s growth.
However, the search can be challenging. This is where Moksha Advisory can help. We specialise in matching IT SMBs with high-calibre NEDs who bring strategic value, investor connections, and leadership expertise.
🚀 Looking for the right NED to take your IT business to the next level? Get in touch with Moksha Advisory today and find the perfect fit for your board!
