On Friday, January 31 of this year, I was giving a strategy conference and sharing with a group of around 150 businessmen, commenting from our particular point of view how we saw the development of the incipient 2020.
In this event we talked about the policies of the Mexican Government, the decrease in the national GDP in 2019 and the first news of a virus that was “bothering” the new year in China. I remember perfectly that I made a comment, an expression that my friends still remind me of, “You know, I know that many of you are concerned about AMLO, his idea of a country and the deterioration that Mexico is experiencing at an accelerated rate, but I am more concerned about what is happening in China, can you imagine if this virus hits them hard? What impact would it have on the world economy, especially the United States and therefore Mexico?
I NEVER IMAGINED UNDER ANY CIRCUMSTANCES THAT THIS WOULD BECOME A PANDEMIC AND SHOCK OUR COUNTRY.
Mexico has always been in crisis, or at least it is something I remember since I was a child: our parents criticizing the politics and economy of the leaders in power; his theft; corruption and constant love for power that sooner or later leads them to defraud millions of Mexicans who voted for an illusion, for that change of leader that takes Mexico by the hand and that with businessmen, academics and society we can reach the dream first world we long for. Will our crisis be different this time?
On March 30, 2020, the Undersecretary for Prevention and Health Promotion, Dr. Hugo López-Gatell Ramírez, informed Mexican society that we were entering phase 1 (first of 3 stages) for the control and regulation of the spread of the virus. called Covid-19 and that the staggering of the closure of productive activities in Mexico was officially beginning. At that time we wondered, what will happen to the country’s economy? if we also come from economic problems, how will this aggravate the situation? In the absence of employment, social insecurity and crime, what will companies do to get ahead?
The closure of productive activities is considered to take place from March 30 to April 30 – information as of today – however, it is known by the media that it could last the entire month of May or even a few days in June, depending on great measure of how the contagion curve is “flattened”. The help from the Government to the business sector does not exist, the political discourse is above action and serious projects in economic matters, they will continue to talk about “adversaries”, “conservatives” and “fifís” as if only there was a vision of a Mexico that should favor some and not all Mexicans.
What will companies do and what is next after COVID-19?
We have from March 30 to April 30 to get depressed at home or to learn from what is happening to us, from valuing the little things that we don’t have today – simply being able to walk freely down the street, go to the movies or have a coffee with friends – Until reviewing the strategy of our company, as Steve Covey says “focus on your circle of influence”, then…
Where to start?
Analyze the reduction of the complete cash cycle of your company, from purchase to sale, and the time it takes to return the money to your bag. The task is reduce, reduce, reduce as much as you can. It is time to return your multichannel company, you cannot continue to depend on a single distribution channel, now you remember in how many talks you have addressed the subject “on line” and you have commented, “that is a project that I have in my company for the following year ”, because this time there is no next year, you have two months to lay the foundations to take your company to an “online” commercial medium, either by doing it yourself under the E-Commerce model, or through third parties under the Marketplace model, but now! Your price strategy for the return of our quarantine will be of vital importance because the dollar has increased by 25%, will you raise prices? Will you keep the same for a couple more months? Does the repurchase value not allow it because you are an importer? You know, this is not the time to make money, this is the time to survive, this is the time for the cash flow that will allow you to be back in the game in three more months, for now try to maintain the prices of before the Pandemic. Attention we always tell the client but now it’s serious, do you know why? Because when we return, half of the clients will be there, the other half will no longer be there, so it requires twice as much attention so that they help us to return little by little to where we were. Make digital promotion, use social networks, use its full potential, today it is the most powerful means of information in the world, so your company cannot miss it, not anymore. It depends on the type of company and your target market, depending on it is the type of social network that you should use, but you know, you have two months to discover which is the best for your product or service.
It is time to survive, to learn and to focus on the most important thing, your family, their health and of course you, if that is missing, what else do you want it for? We are going to stay at home using communication platforms -Go to meeting, Skype or Zoom are some of them- with our collaborators to return strong, intelligent and with a lot of learning.
