UEFA Champions League Final: Lessons for small business owners

There is a huge business insight from the Champions League finals we love to watch. This article brings to your doorstep an eye-opening value of the UEFA Champions League.

From the home to the office, market to the park, transaction is inscribed in everything we do, and as small business owners; everything looks like it. Transaction is the exchange of value. If that's agreed upon then we are all business undertakers.

The football pitch is not an isolation of business either. The goalkeeper, the player, and the referee are all seeds in one apple of business dealings running interactive transactions.

When spectators cheer, they do so in exchange for being entertained by the players whether the home team wins or loses.

In this article, I am going to run a brief analogy of the Champions League Semi-Finals and draw insights for business ideas. As one who owns a business or an entrepreneur, you might want to read this to the end.

You'll love it.

Football is big business and the owners are in it for the big money. Like the rise and fall of startups, the transition of players from one club to another is thrilling.

For instance, Eden Hazard left Chelsea FC for Real Madrid and met his former teammates at the semi-finals of the UEFA champions league. In that game, the dribbling skills of Hazard were almost shrouded. Prior to the game, it could be argued, however, that Eden felt his time at Stamford Bridge was over. Plus, Madrid was his long-time dream. Added to that, the Spanish club had been a constant fixture on the UEFA Champions league table. It seemed like the perfect summer for roses to bloom. But is Hazard having an 'Eden' experience as was his time at Chelsea?

First Leg of Quarter Final UEFA Champions League Results 2021

 

David Beckham left Manchester United for Real Madrid and that magical ball 'bending' went exile. Recall Christiano Ronaldo almost face the same fate when he left Madrid for Juventus. But being the highest goal scorer at Serie A comes with a lot of effort to make it count. Neymar Jnr left Barcelona for PSG and your guess is accurate!

These moves can not be faulted because there are valid reasons for them. It is argued that if Ronaldo had remained in Man United he may not have been able to win 5 Balon d'Or from 5 champions league cups. Beckham left because he had issues with his former boss who felt he was being distracted with the celebrity streak. Every business is designed to succeed given the right geography.

Business implication

Location is key to the growth of every business. In this era, most people would think the ideal for a sugar factory is the urban area. In another niche it's reverse.

Jose Mourinho won the Italian league with Inter Milan. He came to the Chelsea football club and won the Champions League trophy. But moving to Man United and Spurs wasn’t favourable as many thought it would. Based on past achievements within the space of professional football, he is still on the most hired list by club managers. A portfolio that houses champions and home league trophies cannot be ignored by Roma. Mourinho is hired!

Thomas Tuchel was kicked out by Paris Saint-German for poor performance with the French giants. Today, he is one step ahead of becoming the champions league winner 2021 with the Blues. Same coach but a different team.

Champions League race and implication for small business owners

Sacca is a local fruit seller in the suburbs. She runs a business named Sacca Fresh. Two years ago, it was just a couple of households who knew about her supplies. Today, Sacca Fresh is a brand that has its product with every household that can afford a refrigerator. As expected with every thriving business, expansion becomes a necessity. Sacca and her team decide to explore the rural. The goal is to make products readily available to the lower class. Eight months later, the branch closes.

A summative review report explains why the Sacca Fresh branch B failed. The villagers were predominantly farmers. Bringing a product that is superior to what they already have is like exchanging candy for a child. You won’t leave without a cry. Sacca Fresh's market analysis was based on quality, not availability. Meanwhile, the product sells faster in the midst of scarcity.

For a small business owner, the decision about the location and pioneering staff is important as the business itself. But let's assume you are in the ideative phase of a business are yet to decide about the location. Then that brings the question of how to start a small business to the fore.

Small business definition

It's relative to your industry. We can, however, agree on a unified definition of small business. In its simplest terms, when a business has an employee range of 250 - 1500, it is defined as a small business. Often these businesses are privately owned as sole proprietorships, corporations, and partnerships.

A report by Fundera explains that in the U.S. 28 million small businesses make up a huge 99.7% of firms. If you asked me, I'd say that's a big figure. The small business administration of the United States (SBA) has a standard table for the definition of small businesses. These are categorized according to industries:

Average annual income (receipts) falls between $7.5 - $20.5 million - Technical, Scientific, and Professional Industry.

 

1500 maximum number of employees and average annual receipts fall between $32.5 - $38.5 million - Finance and Insurance.

 

Average annual receipts have a maximum of $7.5 - $32.5 million - Real Estate, Leasing, and Rental.

 

Employees have a maximum number of 500 - to 1500 and an average annual receipt of $7.5 - $37.5 - Warehousing and Transportation.

 

Employees are 500 - 1500 with average annual receipts of $7.5 million - $38.5 million - Information Industry.

 

Employees range from 100 to 250 - Wholesale.

 

Average annual receipts are $36.5 million maximum - construction.

 

Employees are 250 to 1500 relative to the subsector - Mining Industry.

 

Maximum average receipts of $750, 000 - Agriculture.

 

250 (specific for renewable electric power generation) to 1500 maximum number of employees (specific to electric power and natural gas distribution) - Utilities.

Average annual receipts fall between a maximum of $7.5 million to $38.5 million - Health Care and Social Assistance

 

Infographic showing definition of small business

In Africa, small businesses often termed small and medium enterprises (SMEs) form a backbone of the economy. 

 

In Nigeria, the number of enterprises amounts to 41.5 million as of 2019 released by the National Bureau of Statistics. Within that figure, SMEs constitute 0.17% making microenterprises to be 99.8%. Do the math, it means the number of small businesses in Nigeria is 17,228 while that of micro-enterprises is 41.5 million.

 

Going by these statistics, what then is the standard meaning of small businesses in Nigeria?

 

A report detailed by the central bank of Nigeria explains small business as a business with a turnover of less than ₦100 MM per annum and less than 300 employees. 

How to start a small business

In Africa, small businesses often termed small and medium enterprises (SMEs) form a backbone of the economy. 

 

In Nigeria, the number of enterprises amounts to 41.5 million as of 2019 released by the National Bureau of Statistics. Within that figure, SMEs constitute 0.17% making microenterprises to be 99.8%. Do the math, it means the number of small businesses in Nigeria is 17,228 while that of micro-enterprises is 41.5 million.

 

Going by these statistics, what then is the standard meaning of small businesses in Nigeria?

 

A report detailed by the central bank of Nigeria explains small business as a business with a turnover of less than ₦100 MM per annum and less than 300 employees. 

How to start a small business

Starting a business begins with the idea and a couple of relevant questions. What problem do you want to solve? Who are the people encountering such problems consistently? Where do these people live? How do you get the solutions across to them? When should you get the problem solved?

Having clarified these questions, the step next step is to build on the idea. Are there existing or similar concepts? Run a swot analysis of all existing competition and identify the business gap. That's your unique selling point.

Generate a business plan. A business without a plan is a plan without a structure. You need a business plan to convince serious-minded people. It does not stop there. get an online QuickBooks for your plans. It explains your leadership skills to a large extent.

Measure your finances. Most intending business owners would pick location before determining their business budget. A good project management institute would suggest an evaluation of your finances before location.

Measuring your finances comes with a number of DOs. First, you need to determine your break-even point which is the fixed cost divided by the outcome of average price minus variable costs.

 

After all, under break-even analysis, the next thing you want to consider as small business owners is the choice of bank. 

Choose a business location. Accessibility is as paramount as the sustainability of the business. Choices here can affect your revenue with taxes inclusive as a small business owner.

Decide your business legal structure. Decide whether it's going to be a Sole Proprietorship, Partnership, Corporation, or Limited Liability Company.

Get your business registered. Every country has its business registration formalities. You need to get a business name. That comes after conducting a background check on what best describes your business goals. And register with the corporate affairs commission.

Build a good team. For a start, you might be the only one running customer service, procurement, overhead cost, and other responsibilities peculiar to small businesses. But don't worry. As the business grows, the need to recruit and outsource tasks becomes a necessity.

You need vendors. Depending on the nature of your business, you need people who'll supply your raw materials. A healthy B2B partnership contributes to business sustainability and growth index. Third parties in business usually have access to sensitive data of your business. The more reason you need to choose your vendors on the basis of trust.

Brand awareness. First, you need an attractive website. Build a website. Although, if you're not within a budget you can jump-start the business using google my business. Free or hosted, just make sure you have a home on the internet called a site located on the web - website. Creating a website helps you to run project from phone and even integrate POS systems. You can also run your retail shop online.

 

With the help of social media today, there is no need to get to the ends of the earth. Just hire a skilled social media manager to spread the message your brand has to offer. Using Facebook and Instagram for business alongside novel social media strategies, you can fly your own Tesla to space.

Get ready for the customers. As a small business owner. I did not see the importance of an invoice until the client began asking for it. B2B partners needed receipts for verification and other formalities. There are a number of invoicing such as Zoho and others out there. 

 

Starting your own business as small business owners comes with a lot of hard from the start as an entrepreneur but paste your focus on the big picture. It pays off soon.

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