In 2003, the Women’s United Soccer Association (WUSA) folded after three years in operation. The cumulative losses amounted to approximately $100 million.
At first, it is difficult to wrap your arms around the magnitude of that loss. But what bothers me most is how quickly they folded. After all, this was the first women’s professional soccer league in the world. The owners should have expected success to take time.
ESPN began in 1979, but didn’t turn a profit until 1985 (six years). Turner Broadcasting Systems lost money during its first twelve years of operation. Robert Murdoch expanded into the U.S. market in 1973, but wasn’t profitable until 1983 (ten years). Airbus? They took twenty years.
The list goes on. What concerns me is that I regularly talk with entrepreneurs who think that the only way to win is by front-loading their idea with lots of cash and staff. The reality is that even if you have a great product, the smart thing to do is operate with as little money as possible. Had the WUSA done that, they might still be around today.
I’m not suggesting that you stop thinking big. Keep doing that. Just act small.
Love your blog…keep it up…your posts are always short, sweet and to the point! I can really relate to many of them.