I wrote an updated version of this here: Business is a Sport

I’ve recently adopted this analogy of business as a sport/game, and it’s been a game changer! (pun not intended)

I’ve heard this in a few different places along the years, but never truly understood it until now. One of those resources was Mark Cuban’s book: How to Win at the Sport of Business.

Here’s how/why looking at business as a sport/game has changed the game for me:

1. It allowed me to be unapologetic about wanting to win. Most people don’t get why I’m very harsh and adamant on certain actions. The reason why is because I want to win! Not everyone wants to win as much in sports. The best players in the world are those who are both obsessed enough with winning, as well as in love with playing the game itself. They’d do it for fun, they’d do it for free, but they also really want to win.
2. Bet on the best players: sports teams bring onboard the best players. They’re unapologetic about letting go of a player that is not bringing their A game, whether by sitting them on the bench, or getting rid of them entirely. Our social world views firing a team mate as cruel in the world of business. But once you look at it like a sport, and add to that the desire to win, it’s no longer personal. You must help me win. If you don’t, you’re useless. If you get in the way, I must bulldoze you out of the way.
3. The rules of the game: basketball is simple; get the ball in the hoop within a time limit. The team that does that the most wins. The rules of business are complex. It may even seem like there are no rules! It’s such a complex sport/game that people don’t even realize that it is. But it is.
4. Leagues: there are 10s of different leagues in any popular sport. Just because you’re good at a particular league, doesn’t mean you’re done growing. The best player/team is the best one in the best league globally, not locally/regionally. Most people in business get stuck at a particular league/level. Wanting to be the best in the game of business means that you want to be the best globally, and play in the best league. Being the best basketball player in the French league is not the same as being the best player in the NBA. Being the best player in the sport of filmmaking in Dubai is not the same as being the best player in Hollywood.

So, this is good enough to understand why the analogy is really helpful. But what are some rules/principles of the sport/game of business?

Principles

1. Build something people want (product market fit)
2. Make sure there are a lot of people that want it (aka pick a big market)
3. Reputation is everything (brand)
4. Money is the score: business is about solving a problem for a customer. In the process, the customer rewards you for your services. Just how in basketball the score is how many balls you got in the hoop, in business, the score is how much money you managed to keep from the customer. If a customer pays you $100, and you keep $20, and you get millions of customers to do the same repeatedly, then you’re winning. Business has many sub-sports (industries) and leagues (markets). The winner in the sport of the sportswear sport in the global league is Nike, because they take & keep the highest number of dollars from customers in that industry & market.
5. Team culture: business quickly becomes a team sport after a founder starts it. If a basketball team has turbulence in relationships, they’re unlikely to win or keep winning.
6. Continuous winning: winning 1 championship is one thing. Winning the championship every year is another.

Other analogous thoughts:

1. Rest, recovery, and seasons
2. Captains, coaches, managers, and owners
3. The best players get paid the highest (scorers more than defenders)

Unlike basketball, business is a mental sport.