Business lessons from the World Cup

The 2014 World Cup has sported moments athletic accomplishment at a high cost to Brazil– leading to some important business lessons that can be learned from both the tournament and the sport of soccer itself.

Everyone was prepared for foul-ups leading up to the World Cup. But so far, there have been no major disasters–apart from a biting incident. This is a reminder to always have a crisis management plan in place; in the case of the bite, FIFA responded quickly with punitive measures.

Also, emotion can trump logic. The outcomes of World Cup games have affected markets. When making business decisions, use reason rather than impulse.

Creating a budget for your business can be related to preparing for a soccer match. Consider your expenses like you’d analyze the opposing soccer team; once you understand the details, you can create a comprehensive budget (or game plan). Once the plan is in place, stick with it; keeping your eye on the ball will help you defeat your nemesis–in this case, your expenses.

Lastly, creating a positive brand and lasting legacy for your organization is equally as important as fiscal success. While the World Cup will have generated billions for Brazil , the country’s inflated budget for the tournament will likely overshadow economic gains. The stadiums erected in multiple poor cities around Brazil likely won’t be filled to capacity in the future, so the financial gains will probably be short lived.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.