You're facing economic uncertainties in business. How do you decide where to invest?

I supercharge organizational resilience and growth by fueling a dynamic combo of core strengths, digital innovation, customer devotion, collaborative firepower, talent excellence, data-driven savvy, and diversified opportunities. This unstoppable formula transforms economic uncertainty into a launchpad for success, propelling us forward with unwavering confidence and agility!

Cuando existe incertidumbre económica es necesario tener un control exhaustivo sobre el nivel de Capex de tu negocio ya que el objetivo es maximizar el valor de cada inversión minimizando el nivel de riesgo. Por un lado, hay que identificar las posibles inversiones que se pueden realizar en el negocio para ese momento dado y, por otro lado, los riesgos asociados a cada una de las posibles inversiones de tal manera que permita facilitar la toma decisión respecto al riesgo beneficio de la inversión. Para cada una de las posibles decisiones de inversión hay que establecer una matriz de análisis donde se especifiquen los beneficios por cada inversión así cómo el nivel de riesgo para cada una de las inversiones.

This I think is the first step in times of any down turn and volalitility in market fundamentals. Indentify risks in your line of business make assessments on this risks and decide on the type investments that will generate positive returns to the business. Perhaps look at safe and secure risk free investments and its payoffs in returns in the interim. Investments in securities and new capital investments may be risky.

In Economic uncertainty one has to read the market and weigh all the risks and in invest according to the investment strategy and appetite of the company. knowing potentail losses and profits.

The question is a little bit misleading, first we face uncertainties all the time. I always laugh when people say “this uncertain time”; when the future has been certain? Is my question. Now concerning the question, how do you decide? You follow standard protocols, already established by your company; if you are a leader, you have criteria already in place, just call you team and do the best you can.. depending on the subject, profitability, feasibility, if is a HR well you make a decision according to what you think is going to be the best in the future. This could be a good starting point.

Before deciding where to invest during economic uncertainties, it’s crucial to assess your company’s financial health. At Tru, I perform a detailed analysis of our financial statements, including balance sheets, cash flow statements, and income statements. This helps us understand our available capital and reserve requirements. For example, we ensure that a sufficient cash reserve is maintained to manage unforeseen expenses. This careful scrutiny enables us to allocate resources wisely, ensuring investments are made in areas that bolster our financial stability while still pursuing growth opportunities. This balanced approach helps us stay resilient and make prudent investment decisions even in uncertain times.

Any kind of investment you think about making needs to make sense strategically for your company. This entails matching prospective investments to the goals, beliefs, and mission of your business. Does the investment take you into a market where you have a strong strategic position or does it broaden your core competencies? Will it offer you a benefit over competitors? Even in situations where the short-term economic picture is uncertain, investments that align effectively with your strategic goal are more likely to yield value over

"The best way to predict the future is to create it."- Peter Drucker. By staying agile and resilient - invest in tech and automation to streamline operations and cut costs. Stay informed with market research and build business acumen to spot emerging trends. Enhance your geopolitical awareness to understand broader impacts. Keep cash reserves strong and invest in expanding knowledge and skills within your team. Identify the right people to keep your foundation strong and stay customer-focused, improving their experience to retain and attract loyal clients. Diversify to spread risk where possible across sectors with steady demand like healthcare and essential goods. Helping you stay nimble and identify new opportunities as they arise.

Take first observer advantage. Stand your ground, keep your powder dry, and let the panic competition blink first before assessing further.