From the Racetrack to the Boardroom
Edward DuCoin
Co-Founder/Partner of Orpical | 3X INC 500 CEO | Professor at Montclair State University
Why Racecar Drivers Make Excellent Entrepreneurs
For racing fans, the Sunday of Memorial Day weekend is like three Super Bowls in one day.
Watching a race is entertainment. Driving in a race is the highest high I can imagine. I know from personal experience that racecar driving, whether navigating the tight corners of an open-wheel car or drafting in stock cars, racecar drivers develop a skill set that parallels the demands of entrepreneurship.
Professional drivers' careers on the track offer more than just thrills; they provide a master class in risk management, performance under pressure, and strategic thinking—traits equally valuable in the corporate world.
Risk Management: A Cornerstone of Racing and Business
Racecar drivers excel in environments filled with variables and uncertainties. Every decision on the track, from overtaking a rival to choosing when to pit, involves calculated risks. This experience translates directly into entrepreneurship, where risk assessment and management are daily tasks. For instance, open-wheel racers operate in incredibly precise and technically advanced machines. This ability to assess and act swiftly and effectively is mirrored in business scenarios, whether it involves launching a new product or entering a new market. Stock car racing, with its close-quarter battles and long races, tests drivers’ endurance and concentration, traits imperative to the long hours and unrelenting demands of founding and running a business.
It was 135 degrees in my car at a race in Alabama, and during the 75-minute race, I lost 11 pounds of water weight.
Performance Under Pressure: Staying Cool When the Heat is On
The cockpit of a racecar is a crucible of pressure—a situation familiar to any startup founder pushing for a breakthrough or a business leader steering through challenges. Racecar drivers are trained to maintain focus and make critical decisions, much like entrepreneurs must lead their teams through high-stakes decisions or crucial negotiations. With its close-quarter battles and long races, stock car racing tests drivers' endurance and concentration, traits imperative to the unrelenting demands of founding and running a business.
Think about this: the average F1 race is about 90 minutes. The average driver shifts the gears 3,500 times per race. While driving at high speeds, braking, and making more adjustments than people realize – while doing all this – the driver shifts 38 times per minute.
Technical Acumen and Innovation
Drivers of both open-wheel and stock cars often work closely with their engineering teams to optimize performance, offering insights only possible from behind the wheel. This technical knowledge and the ability to work symbiotically with tech teams are beneficial for entrepreneurs, especially in the tech industry, where product development is iterative and rapid. Furthermore, modern racing, particularly in open-wheel formats like Formula 1, incorporates advanced technologies such as energy recovery systems and hybrid engines, paralleling the innovation-driven environment in businesses focused on sustainability and efficiency.
Team Leadership and Collaboration
While it might seem that racing is an individual sport, it is intensely team-oriented. Drivers lead by example and must motivate and align their pit crews and technical staff, like a CEO or team leader in a business setting. The coordination required in a NASCAR pit stop, where a split second can mean the difference between winning and losing, reflects the precision teamwork needed to run a successful company.
The budget cap for a Formula 1 team is about $140,000,000 (yes, $140 million US dollars) BEFORE extras are taken into consideration, such as driver salaries, wages of the three highest-paid staff members, travel costs, marketing, legal costs, entry and license fees, non-F1 or road-car activities, parental and sick leave payments, employee bonuses, and staff medical benefits.
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Forbes estimates F1 Driver Max Verstappen's 2023 earnings, including salary and bonuses, at $70 million.
Resilience and Adaptability
Resilience is perhaps one of the most direct transferences from racing to entrepreneurship. Drivers routinely face mechanical failures, weather conditions, and accidents, yet they quickly refocus and strategize for the next race. In business, setbacks are inevitable—financial, operational, or market-driven. A driver's resilience in getting back behind the wheel mirrors an entrepreneur's determination to learn from failures and pivot strategies when necessary.
Examples from the Track
Several racecar drivers have transitioned into successful entrepreneurs, bringing their track-tested skills to the boardroom. For example, NASCAR legend Dale Earnhardt Jr. parlayed his racing fame into a business empire that includes automotive dealerships and a media production company. Similarly, former Formula 1 driver Nico Rosberg has invested in technology startups and promotes sustainability through the Greentech Festival, blending his technical expertise with a passion for innovation.
Conclusion
The skills honed on the racetrack—risk management, performing under pressure, technical acumen, team leadership, and resilience—are inherently transferable to the business world. Whether from the precision-driven circuits of open-wheel racing or the endurance-testing arenas of stock car racing, racecar drivers emerge as equipped entrepreneurs ready to navigate the fast-paced, ever-changing business landscapes. By embracing the lessons learned from their time in racing, these individuals demonstrate that the qualities that make a great driver are strikingly similar to those that define successful entrepreneurs.