The reality and perspective that numbers show on a business are often the differentiators between success and failure. Hence the importance of having up-to-date and quality information.
A businessman in Mexico, in addition to the challenges of his business, faces adverse statistics.
In 17 months, considering the impact and measures to slow down the rate of COVID-19 contagions, the pressure on Mexican micro, small and medium business increased to the extent that 21 out of 100 disappeared; that is 1,010,857 millions of the 4.9 million establishments closed their doors permanently, according to data from INEGI.
The pandemic accentuated a problem that has dragged on for years: Three out of four small and medium-sized companies (SMEs) close their doors just two years after being created, according to the Development Center for Business Competitiveness.
Pressure does not only exist in entrepreneurs or small companies, it is present in companies of any size.
In 2020, at the end of November, 36 bankruptcies were admitted in Mexico, the same number as the entire previous year, according to the Federal Institute of Commercial Bankruptcy Specialists (Ifecom).
Commercial bankruptcy is a legal resource used by a company and its creditors to reach an agreement to restructure debts. If negotiations fail, the next step is bankruptcy; if they are successful, the company with the least debt will emerge, although it is usually smaller than it was.
Among the causes of business closures in Mexico, according to the Failure Institute, are insufficient income, lack of an analysis process, poor planning, and problems in execution.
Regardless of the size or turn of a business, knowing and understanding company data allows from establishing strategies, implementing projects, to making the most appropriate decisions in financing matters.
Making decisions based on numbers, and not on hunches, allow you to create scenarios in different situations, from the most adverse to the most optimistic, which helps to minimize risks. The right solutions help accelerate revenue, reduce costs, and transform businesses.
With the relevance of the data, it must be as up-to-date, accurate, and of the best quality as possible. Furthermore, the more information obtained from other business partners, there will be more certainty when closing a deal.
Mexican entrepreneurs face adverse conditions, both internal and external. Therefore, key information, accurate numbers, and the best interpretation of the market are necessary tools to move away from failure and become success stories.