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The Lessons Walt Disney Learned Still Apply Today
by Stephen Schochet
More Business Skills
Articles
Published on this site: December 2003 - See more
articles from this month
Contrary to popular belief, Walt Disney spent more time
as a struggler than a success. Described at a various times
as a visionary and a genius there were actually many occasions
he could not foresee the results of his ideas, and they nearly
brought him to financial ruin. Yet the lessons he learned
through the years are useful and timeless.
- Ownership is key: Early in his career, Walt created
a character on behalf of Universal Studios named Oswald
the Rabbit. When he tried to negotiate better payments
for himself, Walt was informed that Universal had the copyright
on the character and he was entitled to no compensation.
From then on Walt owned everything he created.
- Have passion for your product: Walt worked three
long years on Snow White and The Seven Dwarfs (1937) which
was originally budgeted at a $500,000 an extraordinary
amount considering the average cartoon in the 1930s cost
$10,000. His competitors, his wife and his brother all
predicted Disney would be ruined. During the filming, Walt
was plagued with both health and financial problems as
Snow White ran way over budget. Needing an additional half
million to complete the picture, he acted out the story
in front of a tough-minded banker and got the loan he needed.
The result was a classic that made $8,000,000 at a time
when movie tickets cost 25 cents for adults and a dime
for kids.
- Make timeless products: Pinocchio (1940), Fantasia
(1940) and Bambi (1942) all failed in their first releases.
World War II cut off international distribution. The national
mood turned away from public sentiment. Disney plunged
four million into debt and it looked like Bank Of America
would cut off his line of credit. In a dramatic meeting,
the founder of the bank, A.P. Giannini stood up and told
the board members that Disney made great movies and that
the war would not last forever. They voted unanimously
to keep Disney afloat after the old man's speech. He was
proven right years later when all three films became profitable
classics.
- Test market: Walt could not get distribution
on his first nature film Seal Island (1949). After several
frustrating months watching it sit on the shelf, he found
one movie theater in Pasadena willing to show it. Seal
Island, achieved full distribution, won the academy award
for best short subject and led to a series of highly popular
nature films.
- Sometimes you need to pull the plug: Walt was
determined to have a circus at Disneyland despite his staff's
advice not to. The idea failed. A pretty trapeze artist
lost her top while performing in front of the kiddies helpless
to prevent it. The camels kept spitting into the crowd.
The llamas got loose and ran down Main Street scattering
customers every which way. More than one performance of
this poorly attended venture ended with Walt burying his
face in his hands. He decided to kill it.
By learning lessons from each of his entrepreneurial attempts,
Walt always moved forward, which is a timeless business model.
Stephen Schochet is the author and narrator of the audiobooks
Fascinating Walt Disney and Tales Of Hollywood. The Saint Louis
Post Dispatch says," these two elaborate productions are
exceptionally entertaining." Hear realaudio samples of
these great, unique gifts at http://www.hollywoodstories.com.
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