When the company is ruled by sales!!!!

It's curious, isn't it? When there's lack of long term vision, the short term turn's to be very easy to predict.

I am a former handball player that played just for 2 professional clubs. The last one was Portland San Antonio, a club in which every player around the world would like to play. Unfortunately I am not able to take my sport shoes, run and jump like any other team mate.

The reason I am posting this story is because Portland San Antonio is living a difficult period, and the responsibility for this situation is not a direct consequence of the moments we are living in the financial markets.

I arrived Pamplona in the year 2004, and I remember the first time we were with Esther Koplovich. I realized that the amount of money Portland was addressing to handball was not important in the overall budget that the company was managing by that time. When I arrived home I commented with my wife Sara that the day Portland would want to see the return on his investment, it would simple stop sponsoring San Antonio's team. Today that money is important for the company...

What's the point of this story?

The point is that the revenue of many companies is seen has secure... I don't know why everyone think it's secure, because the truth is that it is not secure. Do you agree? When the company decide to take obligations that are not assured by the revenue, the risk for short term liquidity raises. Seems simple to understand, but it is difficult to observe.

I am not saying that we are not living difficult times, however I prefer to think that the best players in every market over the past will be the best players in the future, and here I am talking about management skills. What we are currently living will choose the companies and the players that are prepared to compete in the macro economical environment of the present.

I want to welcome Gonzalo Gonzalez Alorda for following this blog.

My best regards

Ricardo Andorinho

MBUintelligence