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Ten Lessons from China’s Olympics Preparations

Ten Lessons from China’s Olympics Preparations

Ten Lessons from China's Olympics Preparations

    It looks like much of the gold that was brought to China for this year’s Olympics will remain there after the games’ end. Michael Phelps’ legendary 8 gold medals for the US team helped the Americans bring up their count but not nearly enough to keep them in the top spot for winning gold since the fall of the Soviet empire. Even if you discount a few from China for biased judging, they still won this year’s Lycra War. This 29th Olympiad became China’s great coming out party. Everyone was invited and entertained while these enthusiastic hosts met their ambitious goals for the August event.

    There are some important lessons we can learn from what some call China’s great awakening. This relates to Napoleon’s account to his European colleagues that China was a sleeping tiger – one he figured should best be left asleep while his forces agitated in Europe and the New World. Since Napoleon is no longer around, we decided to fill in and take some careful notes from our experience in China these past several days. We have come up with the following ten lessons from China’s Olympic preparations:

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    1.    Plan

    China had a plan that went into high gear from the moment they learned the country won the bid in 2001 to host the 2008 Games. An important aspect was the focus on addressing the approximately 120 sports the country had never achieved any measurable success in such as swimming, track and field and water events.

    The country and organizing host city engaged in massive planning efforts to ensure the infrastructure was in good shape. Fabulous venues, subways, airports, highways and railways were built, dirty factories shut down, and automobiles restricted. The IOC suggested China went a bit too far in its planning that went overboard in some aspects of security and media control. The IOC had to publicly tell the hosts not to obstruct reporters.

    Plan well and start planning far enough in advance to achieve your goals, however lofty your goals may seem when they first start to take shape.

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    2.    Slogans for communicating the strategy

    “China Project 119” was a simple and clear slogan for communicating the strategy for China’s need to concentrate special resources on the 119 events in which the country was the weakest.  “Impossible is nothing” was an Adidas co-sponsor slogan that became one of the main public slogans used for boosting the Games to the general public. Use such slogans if you have a need to communicate ideas to large numbers of people.

    3.    Public buy-in

    Those who suggest that these Olympic Games were primarily a propaganda gimmick that came from a committee located in Beijing do not understand the Chinese people or the country very well. One would need to go deep into the countryside to find someone who did not have an awareness of or interest in this major national undertaking. Even mountain goats in the Tibet region had Olympic rings painted onto them! If that was purely propaganda, it does not explain how traffic patterns in diverse cities changed in response to events in Beijing with crowds gathered around television sets in the cities and around radios on the trains during various events.

    On the other hand, the Hong Kong crowd seemed indifferent in comparison to the mainland Chinese. Olympic flags, T-shirts and paraphernalia are everywhere although it is hard to know how much of it is authentic and from IOC approved suppliers. The Chinese buy-in was huge and you should make sure that you have whatever buy-in you need for your great undertakings.

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    4.    Resources

    There was about $40 billion dollars invested in this year’s Olympic Games by the Chinese. Some claim about $6 million was additionally spent on each medal-winning athlete. The country has only recently become able to afford this level of spending but did not appear to cut corners on costs. Put up the required resources for your project, plus support and reward your key players well is the message here.

    5.    Know yourself and the competitive landscape

    The Chinese Olympic leadership set its sights very high – taking aim at the American gold medal count as being the only target worth beating. The sights were high but the leadership understood its own strengths and weaknesses well enough to know that it was an achievable goal. It also knew the strengths and weaknesses of the competition. The American team had its traditional great individual capabilities which Phelps demonstrated to an extreme. The Chinese were able to overcome this through numbers, sifting through a quarter of the world’s population to create its talent pool.

    6.    Bring in the best

    The country brought in about 50 top coaches from a dozen countries to give their team the edge needed to make it over the top. This comes on top of the 2500 coaches China has sent to over 100 countries beginning in the 1960s. Great planners, architects, engineers, administrators and professionals of all types were brought in or consulted on the myriad aspects of the Games. As an example, China had global accounting powerhouse PricewaterhouseCoopers working on medal count spreadsheets.

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    7.    Great propaganda

    Starting several years ahead of time, a 24-hour national television channel was launched featuring Chinese athletes winning events and preparing for the upcoming Games. It is hard to see how this could not inspire athletes and interest the public. This programming was continually available considering that there are relatively few television channels available in China with about half of them still dedicated to old Chinese martial arts based movies and shows. Currently, the other half are dedicated to the Olympics and news. This is only one example of the positive propaganda used to generate and sustain interest in these events. There are many others. The lesson here is to deploy effective propaganda to support your initiatives.

    8.    Sufficiently developed infrastructure

    Along with new railways, airports and roadways, the whole nation’s plumbing system was reworked as part of the preparations for the Games. Entire river systems were altered with water, sewage and industrial wastewater pollution standards substantially upgraded. Ten years ago, finding a relatively clean western-style toilet complete with paper was a treat to find. Now it is the norm. The lesson here is to ensure you have sufficient infrastructure in place that you won’t find yourself in an uncomfortable place due to lack of suitable facilities for whatever you are trying to accomplish.

    9.    Strong motive

    The Chinese have accomplished amazing things in their recent development into a modern society. The Games represent a great opportunity for individual athletes, communities and the country as a whole to show off in a constructive way. This strong motivation is reinforced by the clearly aligned need to continue promoting Chinese interests internally and abroad. Whether your primary motive is showing off or something else, make sure it is a strong one that is clearly aligned with your interests.

    10.    Selection, screening and training process

    CBS News correspondent Barry Peterson recently reported that “Nine-year-old Zhang Huiman is on the lonely road to Olympic gold, running 20 miles a day preparing for the games of 2020.” Peterson also reported that the nation is “so obsessed with Olympic gold that it is training 200,000 handpicked kids in state-run sports boarding schools. It’s the same system the Soviets used to train gold medalists like Maria Filatova in their Cold-War sports duel with the United States.” The systems and processes are robust. When Chinese star athlete Liu Xiang failed to clear his first hurdle in Beijing, the massive selection, screening and training process ensured that China’s Olympic aspirations were not dashed. China’s numerous gold-winning weightlifters, divers and gymnasts were more than able to compensate. Have a similarly reliable process for achieving your goals.

    We’ll need to see how much of the gold China ends up with at the end of the Games. We already know it will be more than the Americans, who have been dominant since the former Soviet team divided into multiple countries. If you’ve learned any other lessons from China’s Olympic preparations, please share them in the comments.

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    Published on December 13, 2018

    How to Start a Company from Scratch (A Step-By-Step Guide)

    How to Start a Company from Scratch (A Step-By-Step Guide)

    If you’ve ever thought about starting and running your own business, you’re not alone. Being your own boss, having flexibility with your schedule and keeping more of the financial rewards that come with business ownership are all good reasons to own your own company.

    But as you might expect, it’s not all vacations and fat bank accounts. According to the SBA, 2/3 of businesses survive at least 2 years and approximately 50% survive 5 years.[1] So why is the failure rate so high? At least for the businesses that fail early on, lack of, or poor planning can be a major factor.

    So how to start a company?

    Starting a business from scratch doesn’t have to be hard or complicated, but it does take planning and work. Here are the first and most important 9 steps to take when your are starting a company from scratch.

    1. Do an Honest Evaluation of Yourself

    Do you work better in a structured or unstructured environment? Does a daily routine reduce your anxiety? What kinds of things are you good at? Does public speaking or making presentations make you nervous? Are you good at accounting and numbers? Can you handle the rejections you’re bound to get when selling or cold calling?

    These are all important questions to ask yourself, in fact it’s a good idea to get other peoples opinion about their perception of you in each of these situations.

    Whatever the answers you come up with for your evaluation, remember that’s all it is, an evaluation of where you are now. Think of it as a way to identify both your areas of strength and weaknesses.

    You maybe good at public speaking which can help when raising money, but bad at accounting which just means that you’ll need to find some kind of help with that area of the business.

    2. Evaluate Your Idea

    If your business idea involves a new product or service (or even an enhancement to an existing product or service), it needs to be evaluated. This is technically called market research.

    There are firms that specialize in doing market research for new products, but if you are on a tight budget, you can do this yourself.

    First, if you can build a prototype for people to use, touch and look at that’s the best option. If a prototype is not possible or it’s a service business, then offer a highly descriptive presentation of the business plan complete with it’s unique benefits and how it’s different from the competition.

    Then listen! Remember that this is not about others liking your product, this is not your baby that they are talking about. You want honest market research that gives you the best chance for a successful business. Take notes, when someone tells you that they didn’t like a feature or some aspect of your idea tell them ‘Thank you”.

    After several rounds of market research with different groups of people, you should see patterns emerging about things that they both liked and didn’t like. Use this information to tweak your product or service and do another round of market research.

    Keep in mind that you’ll never come up with a universally loved product, your job is to produce a product or service that appeals to the broadest range of your target market.

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    3. Make a Business Plan

    I know, I know this isn’t the “fun” part of starting your own business, but it is an very important step in creating a successful business!

    Basically, you can think of a business plan as an outline or blueprint of your business. A good business plan should have the following elements:

    • Executive Summary – This should lay out the businesses product or service and the problem that it solves for the consumer.
    • Market Evaluation – This should talk about the market you are serving. Is it an expanding market, and how does your product better fulfill the consumers in that market.
    • Market Strategies – How are you going to penetrate the market and sell your product.
    • Operational Plan – How will the company run from day to day? Who are the key employees and what are their specific rolls. Do your key players have specific goals set for them in advance?

    A final word on making a business plan: while lying is never acceptable especially when you are using the business plan to raise money, it is acceptable to “put your best foot forward”.

    Playing up the positives while minimizing the negatives is almost expected in a business plan.

    Besides, banks as well as professional investors will both do a more in-depth analysis before investing any money into your idea.

    4. Decide on a Business Structure

    You have many options here, and discussing them with your accountant or financial adviser is really the only way to know what’s right for you. But just to give you a quick rundown of the types of business entities and their pros and cons we will briefly go through them:

    Sole Proprietorship

    This is a common way for small businesses to get started.

    The pros being:

    Relatively low costs to set up (usually a business license and sales tax license).Owners normally do not have to set up a special bank account, they are allowed to use their personal one. Any income earned can be offset by other losses (check with your state!). You as the sole proprietor have complete control over all decision making. 

    Finally, sole proprietorship’s are relative easy to dissolve.

    The cons of using a sole proprietorship include:

    You as the sole proprietor can be held personally responsible for the debts and liabilities of the company. Some benefits, such as health insurance premiums, are not directly deductible from business income.

    If you need to raise money, you are not allowed to sell an equity stake in the company. In that same vein, hiring key people maybe more difficult because you cannot offer them an equity stake in the company.

    Partnership

    A partnership is formed when two or more people decide to start a business. Although there is no legal requirement for any documentation to form a partnership, it is my advice that you never enter into a partnership without having a partnership agreement. (Remember, spending $1500 now can save you $150,000 in legal fees later!).

    The pros of a partnership include:

    Being relatively easy and inexpensive to start. Hiring key employees can be easier as you are allowed to give equity ownership to as many partners as you want.

    For tax purposes, partnerships are relative simple as any income is treated as “pass through” meaning that each partner pays tax on their individual portion of the partnerships income (As of this writing, always check with your tax adviser).

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    As far as the cons go:

    It can be difficult for some general partnerships to raise capitol. Because it is a partnership, the actions of one of the partners can obligate the entire organisation. All profits must be shared according to the partnership agreement regardless of the amount of work done by any single partner.

    Some employee benefits may not be able to be deducted on income tax returns.

    Limited Liability Company (LLC)

    This is a very popular business entity for small to medium sized businesses. The reason for this is the cost of set up is not prohibitive and there is a separation between the owners and the company.

    The pros of an LLC include:

    Limited liability for the partners, unlike sole proprietorship’s and partnerships where the owners are held responsible for all of the companies debts and liabilities, an LLC provides some protection against certain debts and liabilities that are solely the companies.

    Simple taxation, just like the sole proprietorship and partnerships, income is considered “pass through” and is only taxed once on an individual level.

    There is no limit on the number of shareholders in an LLC. An LLC requires fewer fillings and administrative requirements than a corporation.

    Corporation

    A corporation is much more complex and expensive to set up. And a corporation is legally considered an independent entity that is separate from its owners.

    The pros of a corporation include:

    Complete separation between the owners and the company. Because the corporation is considered its own legal entity, owners can not be held personally responsible for any debts or liabilities of the company.

    A corporation can raise capital much easier just by selling more shares in the company.

    Cons of corporations include:

    Much higher administrative costs than any other business entity. Corporations generally have a higher tax rate. Dividends are not tax deductible for corporations. Income paid in dividends is taxed twice, once by the corporation and again by the shareholder.

    Again, this is just a short summary of the pros and cons, always check with your tax adviser about what will work best in your situation.

    5. Address Finances

    Again, not one of the “Sexier” parts of starting your business from scratch, but very important nonetheless.

    So, you’ve done your business plan and an estimate of your start up funding should be included. It should include the amount of funding you’ll need to get you through your first full year of operations.

    Now, how do you get that money?

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    Self Funding

    If possible, self funding is the easiest. You won’t have to go to banks and investors with hat in hand, or give up ownership or control of your company. But as we know, this is not a reality for most people. But don’t worry, there are still plenty of options available.

    Friends and Family

    They can be a good source of funding your business if they can see and understand your vision.

    Remember that business plan? Pass them out to everyone you know. Then follow up, be prepared to tell them the total amount of money you expect to raise, the minimum investment you are looking for and what you will give in return for the investment.

    For example, you give a friend your business plan and follow up with him/her a few days later. You can explain that you have secured funding for $80,000 of the $100,000 you need. You are selling a 2% share in the company for every $2,000 investment. How many shares would he like?

    And when he/she tells you no, thank him/her and ask if he/she can think of anyone off the top of his head who might be interested? Tell him/her you really appreciate his/her time and if he/she does come across someone who might be interested to let you know.

    Banks

    These guys are happy to lend you money when you don’t need it, but all of the sudden they get stingy when you actually need a loan! This is where preparation comes in.

    It’s a good idea to go over your business plan with an expert and maybe even have it rewritten by an expert before you approach either a bank or professional investor. Both will want to go over your business plan with a fine tooth comb, verifying all the numbers and data you provide.

    You should also brush up on everything in the plan so that you can answer any questions they have with authority.

    Crowdfunding

    Finally, there is crowdfunding through sites like Kickstarter or GoFundMe. Crowdfunding helps to build interest, community spirit, and a customer base. It’s also an efficient way to raise funds. You can take a look at these tips to find out more:

    6 Crowdfunding Tips To Get Your Project 100 Percent Funded

    6. Register with the Government

    As stated earlier, different types of business entities have different filling and administrative requirements. At the very least, you’ll probably need a business license as well as a state sales tax license.

    Unless you are forming a corporation, there are many good resources on the web that will do everything for you at a minimal cost.

    7. Assemble Your Team

    Remember when we evaluated your strengths and weaknesses? Here is where we fill in the gaps!

    Do you hate sales and cold calling? Great! There are people who love selling and wouldn’t want to do anything else.

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    Bored to death with accounting? There are a ton of small accounting firms out there that will take care of that for you.

    What about marketing? You can hire someone in-house or out-source that too.

    Your job is to keep on top of all the different aspects of the business to make sure they are all running smoothly and getting the results you need. If not, it’s your job to figure out the problem and implement a solution.

    Check out this guide and learn how to delegate effectively:

    How to Delegate Work (the Definitive Guide for Successful Leaders)

    8. Buy Insurance

    No matter what kind of business you start, you need insurance! Yes, I know, no one likes to buy insurance, but it can literally be the difference between having a minor inconvenience and declaring bankruptcy.

    We live in a very litigious time, even a minor slip and fall at your place of business could bankrupt you without insurance. If you need help finding a good agent, check with your local trade organizations or fellow business owners.

    9. Start Branding Yourself

    Has anyone ever ask you for a Kleenex or a QTip? We all know what they are because of branding, Kleenex is just a brand of tissue and QTip is just a brand of cotton swab. It doesn’t have to be as widely known as Kleenex or QTip, but you can make your brand a common name within your niche.

    I once owned a manufacturing company that developed a product that was so popular that my competitors started co-opting my brand name for their products.

    If you aren’t sure how to kickstart branding yourself, check out these ways:

    5 Ways to Build your Personal Brand & Make More Money

    The Bottom Line

    Starting a business from scratch can be one of the most rewarding experiences a person can have.

    But do you know what’s even more rewarding? Having a business that succeeds, is profitable and provides a good source of income for you, your employees and their family’s.

    More Resources About Entrepreneurship

    Featured photo credit: Tyler Franta via unsplash.com

    Reference

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