Movie Case Study – The Founder
It’s easy to determine someone’s success is based on their intelligence. If this was the case then a large portion of successful entrepreneurs wouldn’t have the right to be where they are today. One prime example is the story of Ray Kroc, which is best shown in the movie The Founder.
Last night I ended up watching The Founder again for the 5th time. It’s a biopic about the man who made McDonalds the powerhouse that it is today. For anyone who has not seen it, here’s a brief outline: The Founder is about Ray Kroc, a man who was down on his luck selling milkshake machines, barely able to provide for his family. That was until he stumbled upon a small yet unique burger bar, seen the potential, had a vision, and pursued it. It’s a real rag to riches story and probably one of the best ever.
Along with being an engrossing film, it also contains some very important philosophies on business acumen. Here were the ones I found most significant.
Warning: If you have not seen the movie I would suggest watching it before reading this as there are SPOILERS ahead.
Determination (Approaching Failure And Rejection)
The original owners of McDonalds were brothers who had a small but successful burger business in San Bernardino. They tried franchising but became deterred after previous failed attempts. A year passed. Then Ray Kroc came along, seen how their systems operated and came up with an ambitious proposal. Yes, the McDonald brothers had the brains on how to create an amazing burger joint but Ray Kroc (despite the setbacks) had the determination to take it to the next level.
Waving the white flag is the easiest option to take when facing adversity. But a seasoned entrepreneur will know that failure is all part of the process of becoming successful.
Believe In What You Are Doing
If you do not have passion in what you are doing then you should probably look at another avenue of income. I’m elaborating on the previous paragraph here but its one of the main themes of this movie.
Ray Kroc seen the possibility of taking McDonalds nationwide while others did not. He had people doubt him, even the McDonald brothers did. But that did not stop him from following his vision and achieving what seemed to be impossible.
Open To New Ideas And Change
Even after the success that Ray Kroc had created, the McDonalds brothers were still cautious on what his plans were. When he brought around the idea of using powdered milk to reduce costs, they thought he was mad and at first were not interested. In the end, it was implemented (to the brothers’ animosity) and it saved McDonalds a fortune.
Further on down the track he is assisted by Harry Sonneburn; they meet purely by chance. During this time Ray had reached a plateau in developing McDonalds. Harry realizes that the real money (and leverage power over the brothers) is in real estate. From there Ray created another business – Franchise Realty Corporation (later renamed to The McDonald’s Corporation). After this occurred Ray Kroc was literally in complete control.
Always Get Business Deals In Writing
In business, a verbal agreement or handshake will not suffice. And the McDonald brothers found this out the hard way. Near the final segment of the film, they end up being bought out by Ray Kroc – not because they wanted to, but by this time he held all the power and virtually left them with no choice. They received a payout of 2.7 million, full ownership of their original McDonalds (both made in writing) and an annual 1% royalty (made with a handshake). As there was no evidence of the 1% royalty, it was never honored and the Brothers lost out on an estimated $100 million a year.
Moral Of the story – get it in writing!
Keep The Right People Around You
When franchising McDonalds, Ray initially picked wealthy people who had the capital behind them, assuming they knew what it took to run a successful burger restaurant. What he found was arrogance as they did not follow his system, as well as laziness. After some reconsideration he picked out working class people who had the desire in starting a franchise. This turned out to be successful as they had more focus and their morals consisted of hard work, grit, and following orders.
Along with being a great story, the Founder has a star studded cast and the lessons provided are a real testament to how you don’t need to be the smartest person to be successful.
© OBM Resource
