Cashing in on the Olympic Spirit (TM)
Entrepreneur Office Hours - Issue #243
Like lots of people around the world, I’ve spent the past week dabbling in the Olympic spirit. And while I enjoy all the drama of watching the accomplishments of Simon Biles and Stephen Nedoroscik (pommel horse guy), I mostly find myself getting distracted by the enormous business of it all.
Yes, I realize the International Olympic Committee is technically a not-for-profit organization, but that doesn’t seem to stop it from being a serious business.
To be fair, my impression of the Olympics as “big business” might be a bit skewed since I grew up in Atlanta and vividly remember how the 1996 Olympics was basically just a giant Coca-Cola advertisement. Still, it’s hard to ignore the dollar signs.
For example, NBC paid $12 billion for the rights to televise 10 Olympic games. That puts their cost for these games at roughly $1.2 billion, plus let’s say another $25 million in operational expenses (Snoop Dogg doesn’t come cheap, I’m sure).
That’s an awful lot of money. But, since NBC is willing to pay it, we have to assume the company makes a lot more money than it spends.
Exactly how much more? Well, according to recent reports, NBC has generated $1.25 billion in advertising, so that’s a good start.
Plus, let’s not forget subscription fees for its streaming service, Peacock. I, for one, paid $14 for a month of service. Could you convince me 10 million other households did the same thing? Sure! That’s another $140 million.
And I’m guessing the smart folks at NBC have other ways of monetizing that I won’t dig through here. The important thing isn’t the exact profit. It’s the size of the thing. And I’ve only tossed around NBC and the U.S. market. Admittedly, it’s the biggest market, but there are lots of other countries in the world, and they’re all slinging around dollars for the Olympics, too.
My point is, while the average person is focused on Katie Ledecky going for her 289th medal, remember that the the Olympics are a brilliant business that can probably teach you a lot about entrepreneurship. After all, the people who are most excited about these games are the businesses ringing the cash register every time an athlete posts yet-another another TikTok complaining about cardboard beds.
-Aaron
This week’s new articles…
What Investors Actually Mean When They Say They Invest in “Great People”
VCs often talk about investing in great entrepreneurs rather than great startups, but they aren’t always clear about what that means.
The Correct Way Entrepreneurs Should Manage Warm Introductions
Warm intros are hugely important in the startup world, but inexperienced entrepreneurs are always bungling them.
Office Hours Q&A
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QUESTION:
Hey Man, love your posts!
One quick question, what qualities do you think are the most distinguished for separating "great" people or coworkers from "bad" people for your business?
-Daniel
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I like this question because it’s applicable to founders/CEOs who have to build out their teams, and it’s applicable to managers who have to run teams, and, in some ways, it’s even applicable to individual employees who can use the question as an opportunity to think about how they engage as coworkers inside of an organization. So let’s dig into it!
First off, one of the key qualities that separate great coworkers from the not-so-great ones is the same quality that defines great entrepreneurs. That quality is empathy. Great team members, like great entrepreneurs, can put themselves in others' shoes, understand their challenges and motivations, and act in ways that support the general harmony and productivity of others. Simply put, empathy enables effective collaboration and conflict resolution, which are both critical in a business environment.
The second trait I’d highlight is reliability. And I don’t just mean showing up on time. Reliability is about consistently delivering work that meets or exceeds expectations. Reliability creates trust in a working environment, which is critical. After all, if you can't trust a coworker to follow through, it doesn’t matter how brilliant the person might be—the unpredictability becomes a huge liability.
The third trait I’ll mention is adaptability. This is especially important in the startup world where things change quickly. But all businesses have to deal with changes, so it’s not exclusively a startup thing. Whatever the case, I’ve always found that the best coworkers are the ones who can take on new roles, learn new skills, and adjust their strategies as business needs evolve.
The final quality I’ll mention is the importance of people with good communication skills. I know “great communication” isn’t exactly sexy, but teams that function well have to communicate well, and working with people with poor communication skills is enormously frustrating.
Got startup questions of your own? Reply to this email with whatever you want to know, and I’ll do my best to answer!
