Crisis: A Business Opportunity

Many companies that have successfully overcome the challenges imposed by crises have done so by adopting certain premises that allow them to turn contractions in demand and capital flows into new opportunities.

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Every crisis presents opportunities to entrepreneurs with a long-term vision. Although high risk exists during times of weakness or uncertainty, companies used to positive financial results during boom periods must now face stricter demands.

By eliminating external concerns, companies that have successfully overcome crises have done so by turning challenges into premises that transform potential contractions in demand and capital flows into true consolidation opportunities.

The first step is to rethink business strategy, setting objectives based on clients and not just products, focusing on liquidity and profitability. Monitoring competitors, suppliers, and market evolution is critical to adjust plans and avoid losses.

Marketing and advertising budgets should be strategically adjusted, targeting specific customer profiles and prioritizing actions with immediate results to diversify risk and reduce exposure to revenue loss.

Financial management during crises should focus on increasing liquidity without sacrificing margins, allocating surplus cash flow to avoid volatile and speculative financial investments.

In processes and operations, companies should seek new synergies, systematically eliminating non-core activities unrelated to the company or client. Board and management meetings should increase in frequency, with stricter adherence to assigned tasks and proactive planning.

Top management must lead by example, demonstrating commitment, discipline, and perseverance. Quick decision-making is crucial when talent availability is high, and qualified personnel can be recruited.

Entrepreneurs should avoid distractions, such as excessive meetings or apocalyptic conversations, focusing instead on immediate challenges and the perseverance required to overcome them.

Companies that think long-term, prioritizing market permanence and innovation over short-term financial results, tend to outperform competitors. Those selected for government contracts must also maintain professional and ethical standards to strengthen their market credibility.

The core business focus should always prioritize the client, ensuring long-term relevance, while profitability remains secondary.

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Written by Gilberto CaicedoBusiness and Financial ConsultantPublished in Portafolio (Colombia)

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