Ensuring liquidity, retaining human talent and identifying new market opportunities are ways to cope with difficult economic times.
Several businessmen in the region have noted that when the situation becomes turbulent and the solutions to a crisis are not in the hands of their organizations, The best thing they can do is recognize the vicissitudes and, rather than looking at profitability or profits, join forces to sustain themselves over time.
With this in mind, we share with you five fundamental axes that consolidate successful management of uncertain horizons:
1. Ensure the company's cash flow and liquidity
Although there is no certain way to anticipate the future, It is advisable to ensure the survival of the company by reviewing all possible scenarios, including the least optimistic ones. How can you stay afloat in a scenario where there will be no sales or collections, but the payments to which the organization is subject will still have to be made?
To keep expenses to a minimum, organizational clarity about which payments are a priority is essential. Jorge Soto, CEO and co-founder of Alegra, a digital accounting and billing tool with a presence in several countries in America, explains that “Conversation is key to identifying strategic suppliers and the conditions under which the company needs to maintain its workforce.”
To cover these expenses during adversities, it is recommended to turn to the financial system, take the available credit quotas and use them for these critical payments.
2. Think about the work team
The soul of companies, their ideas and their steps are made possible by the team behind each one of them. That is why, Before implementing any decision, it is advisable to take into account its repercussions on the company's employees and the need to retain its talent. Some organizations choose to continue with their regular payroll during crises, while others give the option to take or advance vacations, or make temporary reductions in salaries.
3. Form a shock group
Jorge Andrés Mesa, leader of the Colombian consulting firm Mesa Familiar, recently noted in an interview with a newspaper in his country that in times of uncertainty “We need to reaffirm leadership ties and create spaces for fluid communication between the areas.” Jorge Soto agrees with this and recommends forming a group of professionals representing the company's departments to constantly and jointly evaluate possible scenarios, review plans and think about the most effective measures.
4. Identify opportunities
If there is a moment that forces innovation, it is the moment of change. Therefore, although it may not seem like a transcendental task, Evaluating the company's processes, products or services with a flexible view to reorienting them opens the door to new business opportunities, articles or niches.
5. Explore new channels
Social media, websites, e-commerce, teleworking, home delivery, digital advertising, SEO… Why not take advantage of crises to find platforms that can strengthen the company’s coverage, reach and positioning? Although it may be complex at first, expanding to non-traditional channels both when distributing the organization’s products or services, and when implementing internal processes, can help it to sustain itself and, eventually when the situation passes, to grow.
We know that every company is a universe of interrelations, risks and decisions. These five general tips are designed so that, regardless of the sector and the organizational habits of each one, coping with the crisis and identifying the opportunities that arise from it is a possible path.
