By Lyndsey Hall
London Olympics 2012 by Numbers:
- Spending generated in London by the Olympics: £16.5 billion
- Estimated budget when the bid was made (Nov 2004): £6 billion
- Estimated amount spent on hosting the games: £9.3 billion
- Estimated consumer spending during the games: £750 million
- Sponsor case study; Coca Cola:
- Number of drinks served: 17 million
- Number of plastic bottles recycled: 10.5 million
- Expected growth of economy as a result of hosting the Olympics: 3.5%
Major sporting events, such as the Olympics, are well known for creating a large amount of revenue for the cities, and countries, in which they are held. The vote for hosting the Football World Cup is one of the most keenly followed events in sport, ending years of nominations, bids, crossed fingers and held breaths for the countries in the running. The potential economic benefit for the country that wins the privilege of hosting the tournament is so high that many countries are desperate for the honour, despite the potential cost of building suitable venues, improving infrastructure and providing accommodation and services for the influx of visitors and tourists that will be attracted by the event.
The opportunity for self-improvement is too great for any country to ignore, and the fact is that in most cases the host country does enjoy a boost in economy, a drop in unemployment, and an increase in morale during and after such an event. Our own city has recently won the honour of hosting part of the Tour de France 2014; Stage Two of the Grand Depart will take competitors through several parts of Yorkshire, ending in Sheffield. With a television audience of 3.5 billion on average, across 188 countries, Yorkshire businesses are no doubt jumping for joy at the announcement of their region’s part in the world’s largest annual sporting event.
When it comes to the economy, as in business, you get out what you put in. Governments need to invest in their country’s facilities in order to attract tourism and trade, and major international events such as sporting competitions are a huge attraction to millions of consumers worldwide. When the potential pros outweigh the cons, it is just a case of taking a (calculated) risk and making sure that all the variables have been considered in order to maximise the chance of success (and profit!).
Say it with me: You’ve got to speculate to accumulate!
But what about business start-ups? Is the theory the same?
Start-up Facts and figures:
- Number of start-ups that fail:
- In the first year: 1 in 4
- Within 5 years: 1 in 2
- Within 10 years: 3 in 4
- Major causes of failure:
- Unbalanced experience or lack of managerial experience
- Lack of experience in line of goods/service
- Average cost of a new start-up, according to a study by Opinium Research: £94,000
All very dark and gloomy when you put it like that, but the key point is 25% of new start-ups are still going strong ten years later. So, how do these new businesses survive the first few years to become success stories? Steve Knowles tells us.
“Potential new business owners are encouraged by advisors like myself to thoroughly investigate the market they intend to engage with. They are also advised to monitor investment and expenditure. However, it is important to invest in the right product that will keep customers coming back, as well as a marketing strategy in order to build brand awareness and a strong client base.
“There are many different sources of funding available for new start-ups, but as long as you have a thorough business plan and vision for your business, and of course, passion for your product, then you will be off to a flying start. Take inspiration from these examples from the sporting world; do your research; give it your all, and with a little help from us, yours might just be one of the quarter of all start-ups that succeeds.”