Creating a New Business is Like Betting on a Horse Race

| December 1, 2017

Starting a new business is like betting on a horse race.

When it comes to opening a new business, you’ll need to employ some creative strategies while getting advice from industry insiders to get your business off the ground. And some have likened this to betting on a horse race.

Experts suggest that the mindsets and skills gamblers use could translate to managing employees and money, staffing and funding startups and making important financial decisions. And if things don’t go to plan, you’ve found some helpful tips that’ll help you make sure your horse/business is on the right track next time.

With this in mind, here are some of the similarities that can be found between creating a business and betting on a horse race:

  1. Taking a Risk-Based Approach

If you’re not experienced at betting on horses, you’ll take a risk with the horse you’re betting on while also adding a little bit of caution to your approach by not betting too much. This is the same with any new company because you have to invest money in order to generate revenue while still making sure you’ve got some cash left over for the future. You need to take strategic risks.

  1. Doing Research and Consulting Experts

When conducting research for your new business, it’s important to consult with people/organisations who know what they’re doing – i.e. when trading in the forex market, creating the best customer journey online, managing finances or creating a marketing campaign, for example. This is like researching the odds on a horse – unless you’re just betting for fun, you wouldn’t just plump for any old horse but would do plenty of thorough research beforehand to make sure they’re a potential winner.

  1. Trusting Your Gut Instinct

Even though there has to be some planning and research involved in establishing a new business, many entrepreneurs will also follow their gut. Just like looking through a list of horses in a race and having an emotional reaction as to which one ‘feels right’, business owners will often feel drawn to a certain business idea. After all, if there was a dead-cert formula, everyone would be doing the same thing.

  1. Analysing the Results

Finally, when you’ve watched a horse race, there’ll be plenty of celebrating if your horse has come in. But what happens if you lose? Do you just give up and say you’ll never bet on another race again, or do you try and learn from what’s happened so you can come back and win next time? The latter, of course!

And that’s exactly the same with any business. You’re never going to win every deal or secure every sale; there are always going to be hurdles around every corner. Therefore, even though you might fall at certain hurdles, you’ll analyse why before making sure you put the right strategies in place so you overcome this hurdle next time.

Equally, even if your entire business idea fails to get off the ground, you don’t give up – you put the lessons you’ve learnt to good use, which increases your odds at succeeding next time.

Category: Betting, Special interest

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