I never understood what the reason actually is, but MICROingranaggi has always had a time delay with respect to the negative economic situations that impact the whole world (or almost). A delay which, in some way, has always allowed us to identify the crisis before it hit us and, therefore, anticipate the course of events.
When, for example, in 2007/2009 I realized that something big was about to happen, my reasoning was based on a feeling I had in my gut rather than in my head.
If the situation was to lead to a total collapse of the economy – I thought at the time – then my company would probably also have failed like the majority of businesses across the globe and, – at that point – continuing to invest would only have anticipated the inevitable failure. But if on the other hand – as fortunately happened –
the economy was able to recover, then with some strategic investments behind us, we would be more prepared, more equipped and stronger when the moment came to shift into top gear and a considerable competitive advantage.
Today however, for MICROingranaggi in particular, the reasoning used back then is far more complex in the current situation.
This Coronavirus crisis is, in fact, very different. It came out of nowhere with an impact on everything and everyone, generating a global uncertainty which not only effects the markets, but also health aspects. It has generated a significant degree of uncertainty for the future, because a lot will depend on how the virus itself develops, hence something we still have no control over.
There is no historic background, we are all starting from the same level, ground zero. Nobody is an expert, nobody knows any absolute solutions, so nobody can provide valid advice, as everything is new for everybody. That’s the way it is. Despite the fact we continue to hypothesize and make forecasts.
Like everyone else, therefore, we don’t have the solution either.
Crises like these, however, are a necessary evil for all businessmen. They are cyclical and eventually return, always. So we have to work when the market is bullish, adopting prudent measures.
I would like to share what we believe is most important and therefore what is most important to us.
1. To be present in a variety of very different economic sectors.
2. To have a large number of customers and, where possible, diversified by geographic area.
3. To invest in qualified personnel, training, remuneration and satisfaction. Human resources must be first and foremost, because skills and expertise are vital to all activities.
4. To pay careful attention to market demands: we must be willing to supply what the market demands, and not what we like.
5. To monitor corporate liquidity and accrue, to the extent possible, the ESI amounts, investing them in low return – tendentially secure – options with the possibility to have guaranteed capital.
6. To create corporate value and competitive differences that make your business almost unique on the market.
7. To maintain acceptable and irrevocable minimum margins, below which it is necessary to forego the order (and, if necessary, also the customer).
8. To focus resources on the company’s reputation: it is always important, but in difficult situations it makes a difference.
9. To create a chain of reliable and loyal suppliers, establishing collaborative, continuous and serious relations.
10. To never stop investing in growth and improvement, bearing in mind the relative problems and priorities. There can be good periods and others less so for investments, but it is a mandatory objective.
