Success in sportsSuccess in sportsBusiness Business

““There’s a reason Parky’s so There’s a reason Parky’s so successful at sport….. He’s the successful at sport….. He’s the

best player!!”best player!!”(Charlie Bilbe, 2013)(Charlie Bilbe, 2013)

How do you measure success?How do you measure success?

• Tangible way – count the measureable Tangible way – count the measureable indicators such as profit, income, growth indicators such as profit, income, growth and sizeand size

• Less tangible way – judge subjective Less tangible way – judge subjective indicators such as image, levels of indicators such as image, levels of customer, staff satisfactioncustomer, staff satisfaction

Task 1Task 1Can you think of a successful sportsCan you think of a successful sportsbusiness? business? • Why is it successful?Why is it successful?• What type of business is it?What type of business is it?

Why do businesses fail?Why do businesses fail?

• In your tables think of 3 reasons why you In your tables think of 3 reasons why you think businesses fail….think businesses fail….

• Success or failure reasonsSuccess or failure reasons

Reasons why businesses failReasons why businesses fail

• Poor cash flowPoor cash flow• Fall in demandFall in demand• Poor business planningPoor business planning• Rise in costsRise in costs

What makes a successful What makes a successful Business?Business?

SUCCESSIN A

SPORTSBUSINESS

INCOME

SUCCESSIN A

SPORTSBUSINESS

PROFIT

INCOME

SUCCESSIN A

SPORTSBUSINESS

GROWTH

PROFIT

INCOME

SUCCESSIN A

SPORTSBUSINESS

STAFFSATISFACTION

GROWTH

PROFIT

INCOME

SUCCESSIN A

SPORTSBUSINESS

CUSTOMERSATISFACTION

STAFFSATISFACTION

GROWTH

PROFIT

INCOME

SUCCESSIN A

SPORTSBUSINESS

Income Income

• The amount of money that the business The amount of money that the business makesmakes

• The business will then have to deduct The business will then have to deduct money from it’s income to pay taxes etcmoney from it’s income to pay taxes etc

ProfitProfit

• Profit literally means “to make progress.” Profit literally means “to make progress.” • If a business is not making profit after a If a business is not making profit after a

certain period of time they will usually certain period of time they will usually have to close downhave to close down

• Money coming in is more than money Money coming in is more than money going outgoing out

• Expenditure can include salaries, costs, Expenditure can include salaries, costs, tax deductions, rent etctax deductions, rent etc

Growth Growth

• If a business is doing well it will normally If a business is doing well it will normally grow in some waygrow in some way

• Take on new staff to cope with greater Take on new staff to cope with greater demand for product or servicesdemand for product or services

• Open branch in different locationOpen branch in different location• Open a websiteOpen a website

Staff satisfaction

• If staff are happy in their job, they will generally do their job well.

• If staff are not satisfied, they may take time off sick or may not be very efficient at their jobs

• Recruiting staff costs time and money

Staff satisfaction

• Meet deadlines

• Promotion

• Stick to procedures

• Do your share

Customer satisfaction

• In order for the business to succeed it is vital that the customer is satisfied with the product or service they receive

• If the customer is satisfied then the benefits the business will receive include….

Customer loyaltyCustomer loyalty

• Customers will return to a business if they Customers will return to a business if they feel they have been treated wellfeel they have been treated well

• Being treated badly can include waiting Being treated badly can include waiting too long to be served or not having too long to be served or not having complaints dealt with effectivelycomplaints dealt with effectively

New customersNew customers

• New customers can be generated through New customers can be generated through word of mouth from existing customersword of mouth from existing customers

• If someone is happy with a business they If someone is happy with a business they will normally recommend it to other peoplewill normally recommend it to other people

Increased sales and profitsIncreased sales and profits

• If customers are happy they will continue If customers are happy they will continue to use the products or services provided to use the products or services provided by the business which in turn will increase by the business which in turn will increase the money they makethe money they make

A good imageA good image

• Most sports businesses want to portray a Most sports businesses want to portray a good image to the public and this can be good image to the public and this can be done through good customer caredone through good customer care

Employee satisfactionEmployee satisfaction

• Can be gained through ensuring the Can be gained through ensuring the employees are given thorough training in employees are given thorough training in customer carecustomer care

• Training helps staff handle complaints Training helps staff handle complaints rather than becoming upset by themrather than becoming upset by them

A competitive edge A competitive edge

• Very important in sports business as there Very important in sports business as there are usually a number of facilities that are usually a number of facilities that provide the same service in one areaprovide the same service in one area

• If one business provides better customer If one business provides better customer satisfaction than the other, they should satisfaction than the other, they should have more customershave more customers

SustainabilitySustainability

• Not just economical (continuation of the Not just economical (continuation of the business)business)

• Ethical Ethical • Velvet tissues Velvet tissues • McdonaldsMcdonalds