As I watch this season's English Premier League unfold I'm struck by the difference in the fortunes of two clubs who, until recently, were the only clubs really in contention for the title each season. Namely Manchester Utd and Arsenal who from the time the premiership began in 1992 to 2004 all but shared the title between them. Since 2004 however Arsenal have not won a single trophy whilst Man Utd have won two titles, as well as the Champions League, and are well placed to make it a third in succession. The other player in the field in this time has been Chelsea who seem to have taken over from Arsenal as Utd's main challengers. Liverpool have also risen from also-rans to title contenders for the first time in may years. The big and obvious difference between Arsenal and the other three clubs seems to be ownership and thereby investment. Now I'm not suggesting that football is an ideal candidate for study for those trying to draw lessons for business in other sectors. However it would appear that there is a compelling argument that had Arsenal allowed a single investor to take over the club, as has happened at the other three top four clubs, maybe they'd still be in contention rather than struggling to make the Champions League play offs.
What's got me thinking re this scenario, is investment levels in my own company. To date my partner and I have been very keen to avoid taking on debt or giving away equity as we want to remain in control of our own destiny and are fairly risk averse. And to date this strategy has served us well. We've grown from zero to £1.2m turnover in five years with only a very small amount of capital (from another business of mine, which has all been repaid) and bits and pieces from our own pockets. We've financed this by taking very little money out of the company so we can reinvest in our own growth.
So my question is, is now the time to consider taking on some sort of investment so that we can remain in contention or are we doing just fine as we are? Thoughts anyone?
What's got me thinking re this scenario, is investment levels in my own company. To date my partner and I have been very keen to avoid taking on debt or giving away equity as we want to remain in control of our own destiny and are fairly risk averse. And to date this strategy has served us well. We've grown from zero to £1.2m turnover in five years with only a very small amount of capital (from another business of mine, which has all been repaid) and bits and pieces from our own pockets. We've financed this by taking very little money out of the company so we can reinvest in our own growth.
So my question is, is now the time to consider taking on some sort of investment so that we can remain in contention or are we doing just fine as we are? Thoughts anyone?
Posts
No comments:
Post a Comment