Whether you’re a horse racing fan and follow the top contenders throughout the year, or you just join in on the fun on Derby Day, all of us can agree that the Kentucky Derby is one of the most exciting weekends of the horse racing industry. Over 100,000 fans don their fanciest hat and Mint Juleps, creating a buzz of excitement that fills the entire stands of Churchill Downs and beyond to the whole city of Louisville, Kentucky.
While there have been analogies made between horse racing and investing, we want to make a connection between the horse racing business and your business. While your business may not be quite as volatile as the horse racing industry, there are similarities to be drawn between the two. Your business may land far from horse breeding and betting, but that doesn’t mean your business doesn’t have similar core methods.
What core method could your business possibly share with the horse racing industry, you may ask? That is, betting on a winner. Whether a horse breeder is choosing to buy a horse that they think can win or a retailer is choosing to take a risk on a new product that may change the market, they’re one and the same. For either to find success, they have to choose a winner.
So, how do you know if you’re choosing a winner? Here are 3 quick tips to lead you in the right direction.
Tip #1: Do Your Research
If you don’t know much about the product (or horse) you’re betting on, how could you possibly know if it can win? By doing your research and learning the history behind whatever product you’re thinking about launching, you can better understand whether or not it’s worth your time and money. Just like horse racing owners do their due diligence when investing their hard-earned dollars in a new horse, so should you for your next product!
For example, if you run a marketing business and are thinking about launching a new strategy for lead generation, you will want to research everything about it. That includes researching the market and your customers. Click here for some in-depth research tips!
Tip #2: Know Your Competition
In order to know if you have a winner on your hands, you need to know your competition. Apart from researching the past patterns and performance of similar products like yours, you also want to look into what other companies in your industry are doing. In the horse racing business, the trainers likely research each other’s’ techniques and pay attention to how the other horses are performing. Their daily visits to the track to watch other horses run each morning aren’t just to get some fresh air and entertainment – they’re taking notes.
Ask yourself – who do I need to take notes on? By paying attention to the activity going on around you, you’ll know what you need to be doing and how to build your product to beat its competition.
Tip #3: Trial Run
In order to make it into a race as big as the Kentucky Derby, a horse has to build its resume. Owners place their horses in races all throughout the year to test their performance. Based on how they perform, owners know if the horse has the ability to be a true winner. Just like a horse owner, you need to test out your new product to see if the market receives it well. Based on the performance of your trial runs, you will know if you need to simply tweak your product or ditch it altogether.
If you apply these tips when thinking about launching a new product, or a new business altogether, your chances at choosing a winner will be much higher! For more business and financial tips, reach out to us! Good Life Financial Advisors of NOVA have the tips you need to succeed!