We need to make enough cash
Despite the uncertain variables, there is optimism in the business associations for 2021, which is ratified by the Central Bank, in its latest Business Perceptions report. However, it is prudent to consider that even after a semester of adjustments, we have not overcome the complex panorama at the economic and social level, and we have to embrace the conviction that a new impetus is required, gathering what has been learned in this period, whose costs cannot be in vain.
At least now we know the conditions to a certain extent and we know how to adjust to better avoid the attacks. But we cannot be naive and less arrogant, and ignore the true possibilities of being hit by a second wave, with all that that means, for the health of people and the health of the economy, as is happening in Europe.
It is therefore necessary to anticipate what is coming and review the business again, adjusting the way of operating. To do this, we need to make cash, liquidating non-essential business assets in the short term, strengthening our focus on the core business; just as the real estate arm of CorpGroup, linked to the Saieh group, is doing - which seeks to finalize the sale of the 75% that he manages in the commercial income company VivoCorp.
Likewise, in order to tend to liquidity, it is imperative that the authority once again financially support companies, because they are seeking process productivity and state aid to strengthen themselves and maintain their operational continuity, as evidenced by a recent survey of Chilean businessmen. , where 43% recognized the need to adjust productivity numbers in their businesses.
Along these lines, the Government's announcement to present a Fogape 2.0 to Congress is well received, to promote the recovery of activity, investment and alleviate the financial burden that companies will bear in the initial stage of reactivation.
If we do not take these steps, and make the adjustments in this regard, we face the risk of destroying business value and not being able to assume the financial commitments acquired, whose flexibility has been given this year, but which will begin to become more rigid in 2021.
In short, we must carry out a review of our processes, which allows us to face this new scenario that we will face, which, far from being limited to 3 months, as was initially thought, no less than six, is projected much more long term. The demand is collective and must consider all levels, with reviews from directors to workers.
Orca Business Consulting Partner
Original Text in Radio Cooperativa