What’s the first thing that horse racing reminds you of? Most people would say it’s the thrill and excitement of the race, but if we look deeper, we can find the core principle that horse racing has been centered around: money and business.
So, beneath all the excitement, horse racing is one of the oldest competitive arenas of strategy in the world. Believe it or not, the way jockeys, trainers, and owners think about their decisions before and during race day makes it a similar process to running a startup business.
After all, what’s the secret to success in horse racing? It’s all about preparation, observing your competition, creating a strategy, and being able to adapt in real-time by understanding your environment.
Clearly, businesses can learn a lot from horse racing as a sport, and in today’s article, we will highlight some of the most important lessons.
Team Over Idea, But Not Without Both
The most common mistake business owners make, especially during the startup phase, is relying more on the idea than the team that should execute it. In the world of horse racing, that’s like relying on a horse that has potential or comes from a champion bloodline, without the trainer and the jockey. That horse won’t succeed, for sure.
The classic analogy in startups that most people talk about is: should you “bet on the jockey or the horse?” To connect both words, the jockey is the person steering the enterprise, and the horse itself is the core idea or product.
Let’s take betting on horses as an example. Handicappers who place bets never put money on the horse just because the horse has potential. If you browse some of the suggestions on TwinSpires by professional handicappers, you’ll see that they always take the team into account. After all, the horse cannot win on its own.
In the business world, it is better to get an A+ team with a B- idea, over a mediocre team with a great idea. Why? Well, execution matters more than the idea itself.
Therefore, you have to hire people who can adjust strategy on the go and aren’t afraid to make tough calls when conditions shift.
Market Awareness Beats Nice Slides
One of the most obvious parallels between horse racing and business is understanding your environment. When we take horse racing, jockeys assess track conditions and competition before they even start. Is the surface wet from rain? Is the surface too hard? Are there any big names racing along?
All of these factors will help them create a winning strategy before the race even starts.
In business, the market is your track. And if you don’t know your track (market), you cannot succeed, no matter how good your product or service. So, before launching your business, take some time to study the market, and look at various things like competition, demand, prices, offers, and what you can do better than the competition.
Start Fast, Then Pace Yourself
If you are a horse racing fan, then you probably already know that the horses that storm out of the gate first and get into the lead are usually not the ones winning the race. Yes, having a fast start is important, but remember that the horse can always burn out and lose momentum halfway through the race.
What does this mean from a business perspective? Well, you should aim for a fast start (don’t hold your idea too much). But after the launch phase, you should always pace yourself. Every startup needs momentum, and the success lies in knowing when to push and when to hold steady, just like in horse racing.
Data and Real-Time Feedback Are Your New Best Friends
Although horse racing might look easy, if we look deep beneath the surface, we can find out that this is a sport that heavily relies on data. Trainers, jockeys, and owners collect thousands of data points before, during, and after the race. Things like heart rate, stride length, track conditions, and many other factors. All of these things give trainers deep insight into their horse’s performance and health.
Well, you should do the same with your startup. Remember, after customer validation, a startup still doesn’t know its own path. You need to collect data and analyze it just to be able to make better decisions.
Expect the Unexpected
If someone says that starting a business is easy, they either got lucky or they’re lying to you. No matter how well prepared you are, there will always be a curveball that can change things drastically.
In horse racing, there might be a sudden rainstorm, or the favorite stumbles out of the gate. Well, we have the same thing in the business world, but in my opinion, you’re working with even more unpredictable variables than horse racing.
Now competitors emerge, regulations shift, demand shrinks, marketing trends are changing, and supply chain issues appear.
So, don’t expect everything to be perfect. It’s much better to learn how to adapt to such changes than fight them.
Final Words
Yes, horse racing might seem like an odd place to start when you’re looking for some business wisdom, but this is a sport that has been around for thousands of years, so there must be something they do right.
So, the next time you’re watching a race, try to think like a founder. Notice how the strategy unfolds in real time, decisions are made in milliseconds, and learn that the road to becoming a champion is never easy.
