On behalf of the 1955 Capital team, I’m hopeful that you, your team, and your family are staying safe amid the minute-by-minute evolution of the COVID-19 crisis. Over the past week, we have been in close dialogue with our portfolio companies about the coronavirus situation. More specifically, how its unprecedented nature heightens the importance of solid leadership, good decision-making, and thorough scenario-planning through this crisis.
Having lived in Greater China and advised companies during the 2002–04 SARS outbreak, I know firsthand how a pandemic can dramatically slow businesses down and force a rethinking of their strategies. But I have also seen companies prepare themselves well and come out of a crisis stronger than before. By managing through the situation with prudence and calm, our hope is that companies will invent ways to emerge on the other side of this in an advantaged position relative to their competitors and be ahead of the curve when the market turns.
In taking stock of some of the challenges and opportunities in front of 1955’s portfolio companies, my team and I humbly suggest that our CEOs consider a few major points as they press on during these trying times.