OlyBLOG - strategies to help small & midsize
businesses profitably leverage Olympic momentum - we have no Olympic
Regional Business News
regarding the 2010 Olympics
in British Columbia, Canada
OlyBLOG is for businesses across Canada,
especially in Vancouver / Whistler and throughout B.C. We also
hope companies in Alberta and United States (i.e. Washington, Oregon,
Idaho, Montana and California) will find OlyBLOG interesting and informative.
"Leverage Olympic Momentum",
is the only business
book you will ever need regarding the 2010 Games.
here to purchase
The following article is excerpted
my new book, Leverage Olympic Momentum.
Negotiate and Manage
Increase your market share
Small and midsize business owners, or anyone working the Games must be
ready for all eventualities. It is critically important that you are thoroughly
prepared, and when opportunities arise you act immediately. You have to
be up to speed as soon as you enter the race because it moves so fast
you only get one chance to get it right.
Holes in Olympic organizations pop up unannounced. If you are standing
by ready to jump into action and provide a solution you have a great chance
of selling your product or service at a premium. Like anyone, when Olympic
organizations are desperate they will pay higher prices to save face and
keep things moving. Try not to solidify deals too far up front. If you
do you will place yourself at a disadvantage. Don't allow them to squeeze
you to death, or prey on your good nature and change the deal in the 'Spirit
of the Games' at the last minute.
Many local power players in your region soon realize after a bit of negotiation
and number crunching that they can do much better by operating on the
periphery and concentrate on their core business. They still leverage
Olympic momentum, but they do it independently. Many local power players
do not pursue Olympic contracts. Consequently, it inadvertently presents
an opportunity for a smaller competitor who in the normal scheme of things
is so far down the line the local power player rarely sees them as a competitive
For example, Olympic organizations need security at a number of levels,
from bag checkers to sharpshooters. They execute contracts with the military
and local police to provide heavy artillery. Weaponry is usually out of
reach for the average security company. There is however an opportunity
for security product suppliers to negotiate contracts directly for very
specific Olympic related hardware that a small company would not normally
Security is an extremely difficult challenge because it not only protects
human life and property, it also generates the most public relations concern.
Olympic athletes, Olympic VIPs and crowds, and Olympic facilities are
all targets for terrorists and protesters. When you consider the weakest
link in the chain theory it is not hard to understand that even a
small problem in a seemingly low level area can escalate quickly into
an international crisis that could be impossible from which to recover.
Security at all levels is taken very seriously.
In some respects the following extremely simplified example can
apply to not only security, but also to catering, cleaning, merchandising,
and transportation services.
This scenario is based on real events;
Your local Olympic committee meets with the top three security companies
in the region and begins exploring interests and services. It won't take
long for the three companies to realize that it will be harder to supply
a workforce for the event than they anticipated. Top companies get to
the top because they are organized. They also recognize when one of their
clients is organizationally challenged. The security company that 'wins'
understands they will be responsible to provide a service that delivers
as contracted. If they feel they will be unable to deliver due to financial
restraint or logistics challenges they will be extremely hesitant to put
the reputation of their company on the line and open themselves to liability,
lawsuits, or bad publicity. All companies have to carefully consider risk
and how it will affect their position within the community over the long
term. Top security firms often discover the risk does not outweigh the
financial reward, level of prestige, or visibility. Security companies
also recognize that as the Olympic event gets closer their services are
going to be increasingly valued by current and new clients. When they
consider all the ramifications it becomes difficult to get onboard with
what from a distance at first looked like a slam-dunk.
the top three companies decide to take a pass and instead
service their regular and growing customer list - which is growing because
everyone in town is getting nervous with the impending excitement and
attention. The top three security companies have more work than they can
handle, plus, if they are smart, they sit in the wings prepared to offer
organizational and 'last minute' services to the Olympics during crisis
situations. In fact they might have even explored some type of pre-negotiation
in this regard, but if they are cautious they will not commit too far
One reason many security companies hesitate to get directly involved is
because they eventually realize they have to make their employee list
available through a central labour pool, and this pool is available to
their competitors. The top three security companies will not want to share
their most valuable resource with each other. Security is a human resource
industry. Hardware plays a role, but not as much as warm bodies.
Top security companies have extensive training standards and often train
internally. They invest hundreds of thousands, if not millions of dollars
in their staff and they have no intention of jeopardizing their investment
over a chaotic, poorly organized, seventeen day sporting event that will
blow in and out of town and flatten them in its wake. This is by far the
A single security company, even in the largest metropolitan area
cannot possibly supply all the staff needed to properly service an Olympic
The top three companies will not even be able to supply everyone needed.
In fact even if you combine all the trained staff at all the security
companies, big or small, you still would not have enough people to service
the event. Security staff has to be pooled from current active workers
in the entire region, plus, and this is a BIG PLUS, new workers have to
be found, interviewed, hired, and trained. These new prospects can come
from hundreds of miles away. The challenge is daunting.
It's also important to consider the political implications of being an
Olympic security supplier. The top companies in the region often indirectly
establish municipal licensing regulations. They train their employees,
and through this training maintain competitive advantage over the industry.
Small companies cannot afford comprehensive training facilities and the
capital needed to get recruits up to speed. Municipalities create licensing
standards in conjunction with the top companies in the region. In other
words, politicians and security companies work together to decide exactly
what skills and accreditation is needed for specific license levels. You
can't just fast track a recruit through two hours of training, give them
a uniform, and expect them to manage high-level security situations.
Many companies are moderated through government licensing, including security.
Company number four is likely so far down the list they do not have a
large roster of trained employees. In fact they might not have any staff
licensed at the highest level. Top companies number one, two, and three
use exhaustive licensing requirements to maintain their competitive edge
in the market. They can literally keep small companies at bay. Company
number four has the most to gain by becoming an Olympic supplier simply
because it will have access to licensed security staff through the labour
pool. Quite often licensed staff at the top three companies will put their
names in the pool independently hoping to pick up what they erroneously
perceive to be a prestigious freelance part-time gig at the Games. Some
even do it anonymously due to non-compete agreements with their current
employers. The point is, they are in the system, and company number four,
and possibly all the other low-level security companies who want to supply
the Olympics, have access to them.
Company number four might not have the staff, but they have operational
experience. The risk for them is lower when they balance it against all
they have to gain when the Olympics leave town. Smart companies in the
number four position know if they take the risk they can grow their company
exponentially in a few short years. All they have to do is manage a system
in partnership with the local Olympic committee. Unfortunately, it's not
as easy as most think.
What they probably won't realize until later in negotiations is that Olympic
organizations will not hand over the very complicated operation of 'training
and logistics' to a smaller company. That lucrative and relatively risk-free
contract will go to one of the bigger companies in the area or to an international
company. The smaller supplier will just be responsible for the almost
impossible task of supplying bodies, but not for training.
Olympic organizations also have a history of not paying suppliers on time
and of not signing contracts in a timely manner. Contractors live up to
their end of the deal, but due to organizational difficulties often beyond
the control of Olympic organizations, they operate in limbo with little
Company number four doesn't just wake up one day to discover they are
over their head. They put their faith in the Olympic institution and only
slowly get themselves into financial quicksand. It starts out with a modest
investment of maybe $40,000, which in a couple of months grows to $60,000
and then maybe $100,000 by the end of the year. When would you bail and
eat your losses? $60,000? 100,000?
Remember, you initially trusted and based your decisions on the good name
of the Olympic organization. Not to mention they are also pleading with
you to give them a little more time to work out the kinks in their new
operation. The opportunity is still exciting and you dip even deeper into
your pockets because you trust everything will work out in the end. Don't
be so sure.
The above was excerpted
directly from my
new book, "Leverage Olympic Momentum"
here to purchase
* We invested almost three years and a six-figure budget researching
Olympic organization relationships with sponsors, contractors, suppliers,
partners, etc. The results surprised us too -- mouseover below
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Olympic organizations are
BIG BUSINESS MACHINES that attract corporations like CocaCola,
McDonald's, WalMart, etc. Consequently, VANOC (Vancouver Organizing
Committee) will be stretched thin trying to also develop ways to assist
small and midsize businesses leverage Olympic momentum. Surprisingly,
many people don't realize the event can also be lucrative for smaller
businesses, including agriculture producers, manufacturers, entertainment,
technology, retail & obviously tourism, even when they don't have
products or services that appeal to Olympic fans or serve a direct Olympic
The information we share here is invaluable in helping
small and midsize businesses leverage Olympic momentum.
If you have to pay for it?
Shouldn't you benefit too?
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