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Small Business Lessons From Disney

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Learning from the “Big Boys” simply makes sense. Companies that claw their way to the Fortune 500 ranks obviously are doing something right and though few start-up companies will end up in the billion-plus class, there are some attitudes and actions that pop out when you read about those who do.

In a recent edition of Fortune 500 Magazine, the corporate history of Robert Iger, Disney’s most recent chairman and CEO (since 2005) chronicled examples of a leadership style that has boosted Disney back up in the ranks after a bit of temporary stagnation. Now 66th on the Fortune 500 list, the mega-entertainment company estimated 2012 fiscal revenue at $42.4 billion. The money is generated through cable networks, theme parks and resorts, broadcasting, studio entertainment, consumer products and interactive media. How the company manipulates these elements is part of the success story.

Imagination Has No Boundaries

Some of what can be learned from Disney includes a momentum that never stops. Every step taken by any of the various money-makers is expected to dovetail nicely into the whole. Imagination has no boundaries. For instance, passengers aboard Disney’s new cruise ship Fantasy find themselves asked to doodle on their place mats, which are then collected and transformed post-haste into an animated movie that they can watch as they plow through the ocean — a reminder that the ability to create entertainment is near-universal.

Do More Listening Than Talking

Photo By Loren Javier - Flickr

Iger has a reputation for “listening more than talking.” But when he takes a stand, he’s tough. If a member of the management team is not contributing in the way he’d like, the individual may be on the way out. “If I can’t trust a person to do that, then I need a different person,” he is quoted as saying. Compassion is nice, but tough gets the job done in some instances. Finding the right managers and then leaving them alone to do their jobs is the first step. But having the smarts to take their good ideas and disseminate them through the business is a cultivated talent.

Expand Your Assets

Sometimes, absorbing the competition is the way to go. When Pixar emerged as the new king of animation, Disney moved to get the company inside its circle, at a cost of $7.4 billion. It marked the end of an animation era in which Disney ruled without peer, but opened up new vistas in the genre that are beneficial to both. Also added to the Disney corral was Marvel Entertainment, which brought the popular mania for such characters as Iron Man and Captain America under the Disney umbrella. It was an immediate boost to a live-action-movie segment that had begun to flag. It also expanded the company’s $3 billion income from consumer products.

Learn From Your Failures

A good lesson in how to handle a failure was embedded in the “John Carter” fiasco. The movie has been described as one of the “biggest bombs” in movie history. Rich Ross, chairman of the live-action division, lost his job shortly after the movie hit local theaters to pan reviews all across the country. But the upshot is that successful companies do not wallow in the occasional flop. They take the steps necessary to go around the failure and learn what it can teach. Internescine warfare is not nice, but someone at the top has to do what must be done.

Think Outside The Box

The penchant for thinking outside the box has been a historic hallmark. The company’s acquisition of ESPN moved Disney even farther beyond Mickey and Minnnie and into a universal entertainment mode. The sports network is considered by some the Disney “outlier,” but if you define entertainment broadly, it fits the definition. Football fans, in particular, who make up the bulk of ESPN’s viewers, certainly hold a near-steady diet of sports to be the epitome of entertainment.

Details Matter

Looking at detail is an Iger quality that contributes to the company success. While scoping out plans for the Shanghai, China version of the Disney Resort, a joint venture with Shanghai Shendi Group, he was looking out for such things as spots that serve as convenient “photo-ops.” The company also is not averse to the occasional lateral move to implant the brand in the minds of those it hopes to make customers. Disney has set up English Language enters in Shanghai, a move that may eventually affect how many of the city’s residents are attracted to the theme part.

Recognize Your Limitations

Knowing, or at least anticipating, your limits can save some headaches in the future. Iger has announced he will leave his Disney post in March 2015. That way, he says, he may avoid some of the turmoil that surrounded his ascension to the company’s top spot. The company is on notice that a suitable successor should be primed and ready when the time comes.

Disney checks are one of thousands of popular Disney products.

Small Business Lessons From Coca-Cola

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Innovation Never Ends

When does a successful company come to the point at which it can rest on its laurels and coast? Never, according to Muhtar Kent, CEO of the Coca-Cola Co. When he took over the reins of the soft drink giant four years ago, it was a bit stagnant, struggling to keep up with the PepsiCo competition. Through a series of brilliant manipulations, he put Coke back on top of the rankings. Last year, the Fortune 500 company racked up sales of 5.5 billion cases of product in the United States alone, with more than twice that amount in top markets throughout the world.

World Wide Distribution
Coke Advertisement In Israel - 4/27/2012

Those numbers are staggering to smaller businesses struggling to establish themselves in a competitive market. But in a recent far-ranging article in Fortune 500 Magazine, he reveals tactics that could be applied by just about anyone. Among them:

Don’t become blasé about the possibilities.

When Kent spent five days touring Asia he cranked up employee enthusiasm by telling them “This is your once-in-a lifetime opportunity. Don’t miss it.” He describes his own leadership style as “constructively discontent.” There is no room for standing still.

Stick to business

The company talks in figures that track up into the billions, but Kent has initiated a policy of charging managers $15 if they use their cellphones for personal calls. He lives by the same rule. He bases this seeming nit-picking policy on his perception that one of Coca-Cola’s problems was a lack of respect for cash. He uses cash to fill his BMW at the service station and keeps a well-supplied money clip in his pocket for spending money. It’s a reminder that its small amounts mounting up that keep Coke in the top rankings. (Currently they are 59th among the 500.)

Look for ways to be innovative

When Kent was heading a marketing job in Rome, there were rumors that Coke planned to shut its Italy offices. He came up with the idea of putting Coke products into 150-milliliter mini cans, a much more manageable size for airline galleys than the standard 12-ounce cans. The company was first with the concept and latched onto major accounts with airlines, trains and ship lines across the Continent.

Watch out for your partners

Kent understands that while Coke manufactures its famed concentrates and syrups, the bottlers down the line are closer to the customers who buy the product. He capitalizes on that fact, treating the contributing components down the line with consideration and respect. At one point in his career with Coca-Cola, he quit over such issues, compounded by a stock-trading incident that involved short sales of Amital shares. He resigned from the company for a time. But bouncing back from reverses also is part of his approach to business. During the interim, there were several years of rapidly changing leadership and related problems in the company. He was rehired in 2005.

Be prepared to take a bold step when needed.

For Coke, one of the steps that put the company back in the lead was a deal with entrepreneur Steve Cahillane, who had founded State Street Brewing in the 1990s. Kent put together a deal that enabled Coke to acquire Cahillane’s company while giving the latter rights to bottle Coke products in Norway and Sweden, a profitable scenario for both. It was without question a bold move for Kent, but he shored up his chances of convincing his board by preparing a finely detailed plan that cogently outlined the advantages to the company.

Keep an eye open for products or services that fit neatly into your family

Coco-Cola has 15 brands with retail sales over $1 billion a year. The public’s demand for a periodic something new in the soft-drink arena suggests that the number could go up. Refusing to become bogged down in narrow interpretations of what fits has been a boon to Coke and could be for many a smaller company as well.

Capitalize on new technologies

Kent had the foresight to recognize the value of using emerging technologies to sell more product. He encouraged his vice president of innovation to head up the design of a self-serve fountain machine that allows customers to mix beverages to their own taste via touchscreen. The company has focused on marketing via digital strategies. It has the largest consumer brand fan page on Facebook, with 41.4 million likes.

Provide growth opportunity for your leaders

Coke has initiated a program called Talent 2020. Executives are assigned a research project outside their area of expertise and have six months to put up a defense of their findings to a leadership team. No Power Point. They are expected to stand up and present what they’ve found sans the glitter. Some of their ideas have already been woven into the corporate fabric.

Look ahead

Kent’s vision is incorporated in his statement that “The future of the world belongs to two groups: those that can grow and those that cannot grow. Those that don’t grow will go into oblivion.”

Next time you order personal checks consider Coca-Cola image checks.

Social Networks Can Boost Business Start-Ups

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Getting the word out about a new e-business can be a considerable challenge for a beginning entrepreneur. Social networking on such sites as Facebook, Twitter and LinkedIn can be an inexpensive and effective way to promote, but there are some things you need to know before setting out.

In a recent Wall Street Journal column, Sarah E. Needleman offers advice for the uninitiated, with the underlying message being to take time to understand how the networks work and use good judgment in choosing where to post your messages to get the biggest payback. The sites are free and “wildly popular,” she says, but diving in without a little know-how might be counterproductive. Among the dozens of choices, the newcomer to the game might spend a lot of time spinning wheels without the desired results. Some of the fast-growing newer sites, including Google+ and Pinterest are attracting scores of competing businesses, all of them vying for attention.

The average Facebook user spent seven hours on the site in February, according to comScore, a market research firm. That’s powerful incentive to get your company’s name before the social networking public.

However, those in the know recommend that you hold off using the social network until your start-up is functional. Spend your limited time and energy on establishing the business at the outset. Networking shouldn’t rob from the demands of your start-up during the tricky challenge of getting it in motion. Acting too fast might end in embarrassment or adverse reaction. One bad reaction from an unhappy customer could “go viral” and be re-posted many times, spreading negative information about your business in the exact opposite manner you desire. Needleman quotes Kevin Ready, an Austin, Texas entrepreneur who has learned from experience, as saying: “Your first priority is to get your operation started. . . Social media is a long-term investment and not magic. It’s hard work.”

With that in mind, when you think you are ready to launch social networking in your company’s behalf, look for a network that will get your message to those most likely to be interested. LinkedIn, for instance, is an outlet that has a membership made up primarily of companies and business professionals — a logical place to post if your business sells goods or services to businesses. A few days or even weeks spent in research could multiply the benefits when you are ready. There are plenty of examples of start-ups that found themselves consumed by networking while still in the throes of getting off the ground. Some reported they had to back up, become better prepared and begin again. Your preliminary research should include noting what your competition is doing on the network you are likely to use. Looking at the competitor’s messages also will give you a consumers-eye view that may guide you in creating your own ads.

Before using a network, you should secure your business name. There is the possibility you could lose your name to another business of another individual as you concentrate on building your company. Claim your name on the network you are considering so you avoid potential frustration. Post a “coming soon” message to hold attention while you prepare the real thing.

Long experience has shown that the most popular company profiles are those that attract visitors with contests, surveys and special offers, Needleman noted. Store shopping or social networking, buyers are assessing what’s in it for them.

For business start-ups, make sure you have adequate checking account supplies

Big Break For Small Business Suppliers

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An exciting new opportunity has been created for small business owners. The ability to offer their products or services to large corporations is a big boost to businesses that would otherwise not be able to even put their foot in the doors of big companies.

Supplier Connection, a program recently put into effect by the U.S. Small Business Administration is a program offered by the IBM foundation and was created as a way to improve part of the Obama administration’s American Supplier Initiative. The public-private effort involves 15 major corporations that are willing to consider ordering supplies and services from the small businesses registered with them. The corporations collectively have more than $300 billion in purchasing power.

It is expected that the initiative will grow small businesses, create new jobs and add strength and diversity to America’s supply sources, said SBA administrator Karen Mills.
“While it is clear that becoming a corporate supplier can lead to business growth, breaking in can be a challenge for small businesses,” she said.

The administration recently sent letters to more than 50,000 small businesses outlining the new program and providing tools to smooth entry into the process. Supplier Connection is available to interested small business owners and registration is free online. There, they are able to register their company name and include details about what kind of products they offer. The hope is to provide small business owners an opportunity to become suppliers to larger corporations.

Among the 15 companies that have signed on to the program are Wells Fargo, UPS, Pfizer, Office Depot, Kellogg’s, John Deere, J P Morgan Chase, Dell, Facebook, CitiGroup, Caterpillar, AMD, AT&T, Bank of America and Caterpillar. They have agreed to look at the services and products of small businesses that register online. They then will determine which services or products warrant their financial investment. Small businesses can learn to supply large corporations with their unique offerings.

Small business owners often have no idea how to connect with large corporations and thus never get the chance to get contracts with corporations who have large amounts of capital. This free service can help pull small companies that have real potential into the mainstream of American business and put them on the road to success. The new revenues coming from a business relationship with successful corporations may prove just the needed edge to grow revenue to new levels. On the other side of the coin, the corporations that are purchasing goods and services will have better insights on the pulse of emerging businesses. Everyone wins.

Small businesses connect with business checks suppliers for ordering discounts.

How To Woo The Media

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The competition among small business to get their stories into the media is fierce. Getting onto the pages of the local newspaper or on radio or television, however, is basically free advertising and trying to get there is worth the effort.

If you have been sending out news releases to alert the media to new products or events without much success, here are some suggestions that might land you in the public’s eye more frequently:

Know about current events in your community and see if there is a way to relate them to your company’s products and activities. Look beyond the community, in fact, to what’s in the news in your state, the nation and internationally. Media outlets are always looking for ways to make out-of-area news more relevant by relating it to what’s happening locally. Things from the outside may, in fact, affect what you do. Let the media know that. The issue of employment is currently hot-item for news reports, whether you’re up or down. In most cases, the old saying that “any publicity is good publicity” still holds true.

Look for unique stories to tell. Within your ranks there may be good human interest stories that will get your name into the media. Many in the media refer to such “human interest” stories as “fluff,” but they nevertheless are always on the lookout for good ones. Be aware of special stories inherent in those you work with. Some of them may be dealing with unique family problems or have talents that would merit media attention. Is your company involved in charitable causes? Are there members of your group who are in the military? Plumb the depths and see what you can find.

Be as professional as possible. Press releases that contain typos and blatant errors usually end up in the trash can. Few reporters are willing to make a call to try to clarify the press release. Have two or more people proofread the press release before sending it out. Make your releases good to look at. Be certain each release has all the germane information, such as dates, times, etc., and include a telephone number or e-mail address that will direct queries to the person with the information.You might want to put together an informative packet that a news organization can put on file for future reference. Showing up in a media office in person to pass such a packet along couldn’t hurt.

Getting acquainted with the business writers/editors is helpful. And understanding the newsroom process is invaluable. You will impress those you hope to cultivate if you understand the realities of deadlines and the hierarchy that puts an editor more directly in charge of the day’s content than a reporter. An assignment editor usually is the nerve center of a newsroom, making many of the decisions on what, where and how items will be placed. However, it is the reporter who puts together that content. Develop relationships where you can, but don’t expect special favors. Remember that the number of choices editors and writers have on any given day far outstrip the available amount of press space or air time. Avoid last-minute notice of timely events if you want media announcements.

A picture may be worth a thousand words. But be sure photos, video or audio bits are good ones. Don’t waste the photo editor’s time. Provide good photo opportunities. and describe them well so reporters and photographers/cameramen are not wandering around at a loss. Remember that the media is almost always in need of information before the fact, except in “live” story situations. If you call during your company’s big event , don’t expect a news person to arrive in time to clean up the dishes.

Buy advertising. Then when a news event relates to what you do, the editors and writers will remember your business name. Ad purchases do not position you for favoritism or guarantee spots in the news columns, but they make your name familiar.

Deadline is a firm fixture among the media. Be efficient, flexible and respectful in your interactions. In most cases, reporters have one day to turn around a story. If you miss an interview, it may not be convenient to reschedule soon. If you cannot meet a request for an interview, try to find someone else in your organization who can. Good old fashioned manners work with the media, as with anyone else. Some of the media, granted, have reputations for being pesky. But if you react in kind, the chances are that the word will get around the newsroom, squelching your chances for future favorable interactions.

Don’t just expect to deal with media issues when they arise. Work on a strategy and have a plan. Develop the relationships that count and understand how the media works. You may find yourselves in the headlines more often.