The Serie A,
Italy’s top flight football league is one of the best in Europe. Each of the
major leagues in Europe have their own identity, and the Italian game is known
for its tactical superiority and attention to detail. Teams from the league,
most notably “AC Milan” have conquered the European continent and the world
time and time again. As a matter of fact, AC Milan is adjudged to be the most
successful club in the world by virtue of the number of international titles
won. Juventus, AS Roma, and FC Internazionale are some of the other Italian
giants to have done the country proud on the global stage.
You are
right to ask, “What has soccer got to do with business?” Well, I have found
that some of the factors that make the Italian game so successful can also be
applied to achieve business success. Here is a critical look at one of such factors.
BEST DEFENSE
WINS
It is no
secret that the Italian game places a high premium on defensive solidity. More
often than not, the team who wins the league is the team with the best defense.
As long as you minimize the goals you concede, you will be safe…so it is in business.
The key to a successful business is the ability of the entrepreneur to keep
costs at the minimum; and I am not just referring to the ‘cost of sales’ alone.
The ability of an entrepreneur to create a business model which runs on little
or no financial costs is pivotal to the long term sustainability of the
business.
Every new
business venture is a risk which can go either way. The best thing any
entrepreneur can do to minimize his exposure is to ensure that he creates the
business, product, or service with minimal resources. This resonates with the
principles of bootstrapping, and the lean startup methodology. It is unwise for
a business to invest in infrastructure and systems when the concept has not
been proven through sales.
Football
matches are won on goals, businesses thrive on sales income. Where there is no
sales income, the business begins to die…except in instances where the
entrepreneur had prepared himself by creating a business model that burns
little or no cash; a situation similar to keeping a clean sheet in a football
game…you will end up with a draw at worst.
'
Did I hear
you say it is impossible? It actually is possible because I did it with my
first business. I started Flytitude Ventures without rental costs, salary
costs, and other key recurring costs. I launched the venture at a time when the
buying season was over so we couldn’t get a sale in the first five months. But
because my costs were limited to marketing and customer acquisition, the lack
of sale wasn’t a threat to the business. The business entered into its season
and it has been smooth sailing ever since.
It feels great to win this way; a
feeling comparable only to FC Internazionale’s 2-0 Champions league victory
over Germany’s Bayern Munich in 2010.
Forza Milan
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