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The Walt Disney Way - Reinvest In Your Business

Published: 3/5/2007 12:25:21 PM

Walt Disney was known for reinvesting most of the profits he made back into the company he created.  Not just for a few years, but for 25+ years, he and his co-owner brother Roy lived modestly in their choice of personal living habits.  Certainly the depression and the following second World War affected them greatly - the depression forcing them to be as frugal as possible, and the company prospered during the war by making films for the military services.  Once the war was over, they were itching to return to making the films they were famous for.

Roy Disney, who was charged with the financial aspects of the company, kept tight rein on the operational costs of the company to the extent that he could.  The extent was determined mostly by Walt, who had the mentality of sparing no expense to invest in the company's capabilities.

Why do it?  Because Walt wanted to separate his company from all the rest.  He believed that by creating a product that was so obviously superior, his company would receive the benefits of that increased investment many times over.  Other companies at the time minimized their re-investment, and the resulting products were inferior in most every respect.

Mostly, Walt was right in his belief in reinvesting in the company and its employees.  American and international audiences flocked to his animations and later to the Disney theme parks.  His single-minded investment mentality paid off.  Not everyone's company is made for the long term sacrifices of high reinvestment.  But if you're in it for the long haul, it may be worth serious thought - what might you be able  to create with greater reinvestment in your company?

Don Jones

www.VentureDeal.com

 

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Don Jones
CEO, VentureDeal

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