Ray Croc and McDonald’s
Ray Croc mistakingly thought he was in the burger business. In the brilliant movie The Founder, Croc was becoming financially insolvent trying to sell hamburgers. He was close to losing his home and going out of business.
As a result of an impromptu meeting with Harry Sonneborn, he then discovers he is looking at everything all wrong. Croc was not in the burger business. He was actually in the real estate business. Confused? Watch the video below. It is a masterclass on how to understand what business you are truly in.
The greatest value Sonneborn brought Croc was properly framing his business.
He said, “You don’t seem to realize what business you’re in. You’re not in the burger business. You’re in the real estate business. You don’t build an empire off a 1.4% cut of a 15 cent hamburger. You build it by owning the land on which that burger is cooked.”
Croc would not be the first or last to not understand what business he was actually in.
Polaroid Pictures
In the 1960’s and 70’s, Polaroid dominated the instant photography market. In the late 90’s, the company was the top seller of digital photography. However, their priority was still on paper print.
Gary DiCamillo, the company’s former CEO, told a Yale audience in 2008, “People were betting on hard copy and media that was going to be pick-up-able, visible, seeable, touchable, as a photograph would be.” They had the digital photography already in their grasp but were still focused on print photography you could pick up at your local drug store. When paper print photos went the way of the dinosaur, the company was totally shocked.
Polaroid made the mistake of thinking they were in the picture business when in fact, they were in the “creating memories” business.
WCW vs. WWE
After purchasing World Championship Wrestling, Ted Turner called Vince McMahon. In a paraphrased conversation, he told Vince he was now in “the rasslin’ business.” Vince responded by saying he was in the entertainment business.
Southwest Airlines
Herb Kelleher is the founder and former CEO of Southwestern Airlines. Kelleher had a relentless, almost maniacal, focus on being a “low-fare airline.” One day a new marketing employee suggested testing chicken salad instead of peanuts as the snack on its Houston to Las Vegas flights. I can just hear the young, eager rep with fresh eyes saying, “After all, it would be healthier, trendier, newsworthy, and more attractive to young, hip travelers. This would help reach the all-important 18-34 demographic.”
Kelleher responded by asking, “Will adding the entrée help make us a low-fare airline?” Southwest still to this very day serves peanuts on all its flights, especially Houston to Las Vegas.
Southwest Airlines is in the low-cost travel business, not the upscale trendy-travel business.
Churches
Many churches have lost their way. They think they are in the social justice business, or entertainment business, or the political business, or community care business, or TED Talk business.
Successful churches who are making an impact are in the disciple-making business.
The NFL Draft
The NFL Draft is not a talent selection meeting to stock its football franchises with cheap labor. The League knows the Draft is the most highly-anticipated and most compelling reality show on television. And it produces it as such.
Much like the WWE, the NFL is in the entertainment business.
Sales vs. Consulting
Many years ago a church consulting company had a spirited internal debate. What type of company were they? Many factions of the organization had their own specific points of view.
One group said they were a ministry. Another said they were a consulting company. Others chimed in saying they were a friend to pastors. There was even comments about being a content-creation company.
Finally, the exasperated CEO slammed his fist down on the table and shouted, “We are SALES company!!! Nothing happens until we get the contract!!!”
He knew what business he was in. Do you?
Conclusion
John Maxwell’s Law Of Priorities says that leaders never confuse activity with accomplishment. Leaders understand you can have movement without progress. Some call this sideways energy. A proper focus prioritizes your efforts and activities. Focus allows you to edit out the non-essentials.
But none of this happens unless you first truly know what business you’re in.
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