Logan, your post aptly brings out a fundamental truth about commerce. This truth is that the fortune 500 CEO and the owner of the local grocery store have the same obligations. The CEO only has a scaled-up model of the grocery store. The two business people have to worry about the capital and how to ensure that the business eventually provides a return against all capital inputs (Ritala et al., 2018). Contemporaneously, the two have to worry about risk management on a continuous basis.
As per your post, both the large stadium and the small stadium have capital-related issues pertaining to how to build the stadium and get is running. The massive stadium may require hundreds of millions of dollars, while the small stadium may only need a few million. However, since the large stadium has wealthier investors than the small stadium, the project managers will face similar challenges. These challenges include developing a model that convinces the respective investors that the stadiums are worth investing in. After the investment, the big stadium managers have to worry about filling the pews to ensure that the stadium makes money. Following the same scaling argument, the filling of the small stadium may make exponentially less than the massive stadium. Still, the smaller amount is commensurate to the smaller investment that the smaller stadium demanded.
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Finally, but perhaps most importantly, your post also brought up the issue of significant risk management. The significant risks associated with running a business have the potential to derail the process of recouping the capital invested in the business (Ritala et al., 2018). For example, a stampede in the large stadium could lead to numerous fatalities or severe injuries. The negative reputation from the stampede would affect the stadium’s brand while the lawsuits could cripple the business. A smaller scale of such risks also faces the small stadium. Based on the totality of the above, yours was an enlightening discussion post.
References
Ritala, P., Huotari, P., Bocken, N., Albareda, L., & Puumalainen, K. (2018). Sustainable business model adoption among S&P 500 firms: A longitudinal content analysis study. Journal of Cleaner Production , 170 , 216-226.
