What the Sports World Can Teach us About Business

The sporting world may not be your first thought when it comes to business success however, the industry itself can contain some of the most high profile and profitable business decisions on a yearly basis. The transfer window occurs seasonally and allows teams to negotiate deals of selling players across teams, with multi-million offers rivaling that of most high profile business companies there is much to be learned about business from the sports world, that can be applied to real-life business management and negotiation.

 

Running a Team

A key point that the sports industry thrives on is team management, much like in the business world sports teams will consist of players and a manager, it falls to the manager to take up many roles to help maintain team strength. A manager must not only delegate key roles but also be a mentor, a friend, a therapist and a strict decision-maker, the qualities needed to be a good sports manager are also vital components of a leader in the business world.

 

In the business world, a good leader will have similar qualities and skills in order to keep up team spirit and ensure that everyone is where they are supposed to be. In order to ensure success is achieved in both industries a manager will also take up the role of guiding their team efficiently, it is clear that the sporting world and business world are both in need of strong management.

 

Financial Decisions

Something else that the sporting industry relies upon is the professional and sensible use of club funds, particularly in football the team will be funded in a variety of ways including under the club fund. Cohesive money management is vital in ensuring your team’s future is safe and the money isn’t being misspent in any way. Many clubs will raise funds by selling merch such as souvenirs, sporting equipment (some of which can be found on  runningandmiles.com) as well as hosting events and renting out function spaces, this money is relied upon to secure the club’s financial safety, which is why it is crucial it is managed properly.

 

This idea of being safe with money is something that can also be carried over into the business world, companies must be proficient with how much money they are spending particularly in the early stages of a new setup. When profits are just starting to come in, you must be careful not to overspend too quickly and to save some of the money you earn to ensure your business is covered if sales are to drop.

 

Negotiation

A final essential skill utilized largely within the sports industry is negotiation, teams must be skilled in negotiation particularly within transfer windows when teams will exchange players. Negotiation is a key factor as you must battle to sell and purchase players for a mutually beneficial price, the exchange must be worth it, for example, if you buy a player for a large sum they must bring revenue back into the team by helping to get wins for the team.

 

In the business world negotiation obviously plays a huge part in the investment process, if you were to sell shares of your business in exchange for investment it is vital you make good use of the money and use it to generate even more profit. Much like in sports the investments you make must be negotiated to get the best price and increase the likelihood of the money being well spent. Overall there are many aspects that can be taken from the sporting industry and applied in the business sector, particularly within team and finance management.

 

Have your say