How do you overcome challenges as a founder in uncertain times?
Launching a new business is always a leap of faith, but keeping your vision viable during global recessions, pandemics, inflationary pressures, or shifting political winds tests founders on a whole other level. When circumstances change, should your ambitions change too? Or do you stay the course? According to Mexican real estate developer Jack Levy, founder of pioneering firm JL Properties, the key is balancing prudent adjustments that reflect new ground realities with an unwavering commitment to your core mission. Across his over 25-year career, Levy has adeptly navigated major obstacles by sticking to several key principles. Upcoming founders learn valuable lessons from his approach in times of uncertainty.
Be adaptable to evolving conditions
When Levy first launched JL Properties in the 1990s, Mexico’s real estate landscape looked very different than today. Approvals were highly centralized and loans came predominantly from a few large banks. As the ecosystem modernized over the years with increased decentralization, more private investors, and shifting consumer expectations, Levy adapted accordingly without compromising on his commitment to imaginative projects. He has demonstrated impressive flexibility, adopting proptech to improve efficiencies, pivoting supply chains in response to shortages, and exploring diverse financing channels to access capital for his creative developments. By proactively accepting change and responding appropriately instead of resisting it, Levy has managed to future-proof his company even as the sands shift.
Focus on adding value
During major recessions or when investor appetite plummets, many developers concentrate on minimizing losses and staying profitable. While financial prudence is necessary, Levy believes founders should go one step further by identifying new ways to add value in downturns. When foreign investment into Mexico dropped after the 2008 global financial crisis, Levy directed his energy toward custom-built luxury condos for the domestic market rather than scrambling to attract overseas capital. The product innovation delighted residents and set his brand apart at a time when competitors were winding down activities.
jack levy mexico has built substantial cash reserves, limited debt exposures, and entered into credit agreements to ensure ample liquidity. Having resources socked away enabled Levy to act from a position of strength while rivals struggling with cash flow were forced into fire sales or bankruptcy. He was able to acquire prime properties at attractive valuations during 2020 and position his projects to meet evolving post-pandemic buyer preferences. Levy advises entrepreneurs, “Don’t get swayed by frothy times and ensure your strategy strengthens the foundations, so you control your destiny if crisis strikes.” The Mexican developer’s disciplined approach towards managing leverage and liquidity – especially in boom years – has been instrumental in remaining resilient in turbulent periods.
Double down on your vision
Despite Mexico’s complex socio-political dynamics, fluctuating economy, and licensing roadblocks over the years, Levy has stayed laser-focused on his ambition of creating vibrant multi-purpose spaces offering unique retail and hospitality. He continues pushing boundaries on sustainable construction and imaginative design because he firmly believes that vision matters more than ever during times of uncertainty. His tenacity and commitment to enriching lives have made Levy an inspirational figure for Mexican entrepreneurs. The developer’s unwavering dedication through every challenging period in Mexico affirms that the difficult moments in business and life often provide the biggest opportunities to leave your mark.
