The positives and negatives of the World Cup for businesses

It is widely regarded as one of the biggest sporting events in the world….but the World Cup is not guaranteed to have a positive effect on businesses.


Increased holidays and annual leave during the tournament, as well as increased numbers of people phoning in sick, could mean that some businesses struggle.


Invoices could be delayed and financial issues can occur as the cash flow of a business could be affected.


While these issues could do very little to the financial running of larger businesses, it could impact greatly on smaller firms where finances are a lot tighter.


Annual holidays and the summer months always tend to slow down financial processes according to IGF, a commercial finance company, but the World Cup could exacerbate the situation.


This could put smaller businesses in financial turmoil and at risk of company administration, although insolvency advice is available for those who feel they have reached that stage.


While turning to bank finance or company credit cards could be seen as a good short-term solution, it could equally damage the cash flow of a business in the long-term.


Using the World Cup to gain an advantage


However, despite the distractions that the World Cup can bring, there are also a number of positive factors that can come from it.


Companies that can develop advertising and marketing campaigns around the tournament could see far greater levels of exposure and sales.


This is especially the case for companies who work in the sports industry, although there is no reason for other sectors to fail to utilise the opportunities that result from the World Cup.


The global event has worldwide exposure and is a fantastic way of increasing brand recognition, even if this is only in a few countries.


Driving sales during the World Cup could also help to overcome some of the cash flow issues previously mentioned that could place pressure on smaller businesses.


Marketing should follow consumer trends and the levels of interest in the tournament in 2014 showcase the importance of getting a strategy right.


Social media exposure is at a record high, providing a cheap, yet highly effective base from which to launch products and develop customer awareness of a company.


By Phil Smith


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