Business Lessons from the Racing World
For 5 teams this has been a body blow to their aspirations. For 2 of these 5 it has meant filing for bankruptcy. For the remaining 3 teams, their collaborative request for financial aid was met with derisory contempt. They too face leaving the F1 circus for good.
Whilst this may diminish the number of constructors participating in future events, the F1 answer to the problem is that a number of tier-1 constructors could be allowed field extra cars, thereby maintaining the same number of cars for each event that we enjoy today – but dangerously ignores what the consumer wants which is more constructors.
The founding father of the industry is reported to have stated that “They are idiots. They have to stop spending money and reduce their costs. It is a simple problem — they spend more than they have got. You know what the teams said to me in that meeting? ‘We are constructors,’ they said. I told them they can’t afford to be constructors.”
The above scenario is readily witnessed in many business sectors. A regulator or key stakeholder (in this the F1 governing body) has introduced a rule change – one that affects business cash reserves, R&D spends and undoubtedly impacts the performance of the business, and it’s employees, customers and suppliers. These are typical of the situations that Business Doctors encounter when meeting businesses – constrained budgets, legal or regulatory changes (from the UK and EU) in their sectors, increasing demand from suppliers, financiers and customers to demonstrate capabilities to meet industry specifications, unplanned spend and undeterminable impact on business stability.
Experienced in working with business owners, Business Doctors can help you re-visit your aspirations and visions, leading to the development of business strategies that can not only help your business sustain operations in challenging times, but plan for growth too.
This business strategy will touch upon your market place; the legal and social frameworks within which you operate; your strengths, weaknesses, niches and specialisms. The strategy will lead you to examine potential growth areas, weak spots and identify the ‘Killing Fields’ that your business must avoid.
But the existence of a business strategy will alone not see your business flourish. Your ability to communicate the strategy to your employees and ensuring that you have the right mix of skillsets in your business will combine to deliver the strategy must be considered.
Measuring the success of a strategy is important too. This is not merely by the increased turnover or profits, but also by measuring your business against your competitors and market place, by measuring how motivated your employees are, and importantly by the enthusiasm and feedback of your customers
So, if you need to re-visit your business strategy or need assistance in implementing your strategy, then give Business Doctors a call. We are a national network of experienced business support professionals, dedicated to helping small and medium sized businesses achieve their vision.
“We don’t just coach, we get on the pitch”
Oh as for F1? There is a final race on the track to relish with the off-track drama becoming a business lesson for us all.
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