by Stephen Schochet
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.
1) 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.
2) Have passion for your product: Walt worked three long
years on Snow White and The Seven Dwarfs 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.
3) Make timeless products: Pinocchio, Fantasia and Bambi
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.
4) Test market: Walt could not get distribution on his
first nature film Seal Island. 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.
5) 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.
Author/Narrator Stephen Schochet researched Hollywood and
Disney stories and lore for 10 years while giving tours of
Hollywood. He had the unique idea the stories could be told
anywhere and that's what led him to create the critically
acclaimed audiobooks "Fascinating Walt Disney" and "Tales Of
Hollywood". He has entertained thousands of people by giving
radio interviews and has been called "Hollywood's Ultimate
Storyteller!" Realaudio samples can be heard at his website
www.hollywoodstories.com.