A new business ERA

Many of the current companies in Latin America and the Caribbean are SMEs and generate more than 60 percent of formal employment Tec de Monterrey (Photo: Cuartoscuro)

Is a reality more than 99.5% of companies in Latin America and the Caribbean are SMEs (small and medium enterprises) and generate more than 60% of employment formal productive, according to data from the Development Bank of Latin America, within these may be ours, that of our relatives or friends; These companies are the ones that form a relevant and majority part of the business fabric of the region and, without a doubt, who were also greatly affected during the recent COVID 19 pandemic.

There is also a great coincidence in the point of origin of these, since are based on common needs such as the search for self-employment (according to data from the International Labor Organization, around 26 million jobs were lost at the end of 2020), from the prevailing desire to become independent, or the firm objective of increasing income through a business project.

But it is also true that it is a large percentage (some of the authors speak of more than 90% of small businesses that fail during their first two years) and whose closure factors are mainly due to the lack of strategic and operational planningthe owners are more focused on operating than on managing, internal problems and relations with and between employees (work environment), failures in the quality and delivery of their products, lack of knowledge of changing and increasingly competitive markets with demanding customers, greater price care on the part of the clients and on the side of the competitors, a voracious competition, as well as fiscal and financial problems to name a few.

One of the most important closure factors is mainly due to the lack of strategic and operational planning at Tec de Monterrey (Photo: Cuartoscuro)
One of the most important closure factors is mainly due to the lack of strategic and operational planning at Tec de Monterrey (Photo: Cuartoscuro)

Consulting with various experts, entrepreneurs, academics and remembering my life as a counselor, I came to the conclusion that one of the most valuable business models that I have heard and that I follow with great fervor is the “IT WAS”, same that has great acceptance in my consulting processes and with more and more followers in my classes for its simplicity, but forceful; this was dDesigned by Doctor Miguel Luis Miguel Beristain and meets three fundamental premises that validate the success of a business project. Following the acronym we have:

ERA= Scalable, replicable and automatable.

The scalability it refers to real power grow your projecthave in view how much you plan to grow, both in terms of collaborators, as well as processes and production.

Successful companies plan from the beginning how they will reach millions of people, considering the local, national and international level and constantly reviewing these scalability indicators. It is not a “dream”, but an achievable vision, proposed to be achieved in a given period.

With the implementation of the ERA model, SMEs will have a greater range of sustainability and success
With the implementation of the ERA model, SMEs will have a greater range of sustainability and success

On the other hand, there is the replicabilitythat the starting point will be to consider when we will be able to replicate processes, strategies, objectives and forms to allow us to map our processes and models in this and other latitudes; replicability implies an ambitious vision of omnipresence.

Refering to automationwe will broadly understand that we don’t need to be somewhere for results to happen, that things work “despite”; it also refers to the implementation of techniques, processes and technologies that facilitate the work and go hand in hand with replicability.

Undoubtedly, if we consider these characteristics in our current projects or in those we will have in the future, success will be much closer and being protagonists of this new IT WAS.

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A new business ERA