5 Lessons Latin American Companies Learned About Growth Last Year

With the arrival of a new year there are new expectations and resolutions to follow, but the lessons that last year left us should also be heeded

With the arrival of a new year there are new expectations and resolutions to follow, but the lessons that last year left us should also be heeded
By Bloomberg Línea
January 02, 2023 | 06:40 PM

Read this story in

Spanish

Bogotá — As the new year begins, looking back is key when it comes to learning from the lessons of last year, as businesses always have room for improvement, and it is key to know how to act during different economic and business stages.

Five business lessons learned in 2022

Global insurance company Cesce has identified five lessons learned in 2022 that should be taken into account by companies when considering how they can boost the growth of their operations and act positively in the face of a number of situations:

  • Interpret and manage risks: It is key to identify the risks to which companies are exposed and have a plan of action to face them, because, for example, if companies face difficult times with their liquidity and do not have a cushion to ensure economic solvency, their business operations could be jeopardized, and with this the jobs they generate
  • Interpret the global economy: Macro and microeconomic problems will be a reality in the short and medium term, with high inflation, US dollar volatility, high interest rates and a decrease in the demand for products and services, and companies must be clear that there will be an increase in expenses, which in turn will affect the pace of their income. It is key to anticipate these situations.
  • Early warnings: For the last five or six years, the number of companies in Colombia that have signed up to business reorganization law introduced by the country’s Superintendency of Companies has increased by 50%, and it is estimated that by 2022, more than 1,250 organizations will be part of this agreement. Knowing what is happening in the environment and anticipating problems is important, as entrepreneurs often think that they know their customers and that they will never stop providing the company with revenues, but that may not be the case in times of crisis or economic contraction.
  • Challenge the moment: When organizations have a greater perception of risk in the market, they can act in a protected manner and thus seek new opportunities and advance their business objectives with the peace of mind of knowing that their liabilities will be covered amid an adverse scenario, and, in this case, reviewing insurance policies can be crucial to ensuring that coverage is adequate for any eventuality.
  • Search for new markets: For many of the companies in Colombia, an opportunity for growth and for procuring new clients occurs when they can do business with companies outside the country. However, there are several barriers to this, so it is key to get advice, make improvements in products if necessary, and to network, among other proactive strategies.