Techblog
3 lessons SMEs can learn from The Founder
The film The Founder tells the story of the American businessman Ray Kroc, the franchising of McDonald's and its subsequent worldwide growth. Despite the difference in scale there’s plenty of lessons Small and Medium Enterprises (SMEs) can take from the movie.
Michael Keaton stars as Ray Kroc, the businessman who transformed a humble a family-owned business, McDonald’s, into the global food empire it is today.
Following the Great Depression in 1929, brothers Richard and Maurice McDonald move to California to make it big in Hollywood as producers. While this didn’t exactly work out they did have the idea of opening a restaurant. No matter how hard times are, people still need to eat.
Implementing their own version of the assembly line, the brothers pioneered fast food - serving high volumes of burgers and drinks quickly and cheaply. The duo met the rather unsuccessful salesman Ray Kroc when they ordered an unusually large number of milk shake mixers. Surprised by the big order, Kroc paid them a visit
Impressed by the restaurant’s efficiency Kroc pushed the brothers to expand. Striking his first deal in 1955 he opened his own McDonald’s franchise in Des Plaines, Illinois. That one franchise quickly became three. Today McDonald’s serves burgers in more than 35,000 locations around the world, from Des Plaines to Singapore.
The Founder offers entrepreneurs and SMEs some valuable lessons:
1. Have a vision
In 1961, following growing disagreements with the brothers, Kroc bought the McDonald’s brothers out for $2.7 million. Despite not being the best deal the brothers made, one has to admire Kroc’s ability to think big and have a vision to transform the family business into a fast-food empire.
It is important for small business owners or entrepreneurs to have a vision and “begin with the end in mind”. American businessman and author Stephen Covey says, “Begin with the end in mind is based on the principle that all things are created twice. There’s a mental or first creation, and a physical or second creation to all things.”
2.Be persistent
“Nothing in this world can take the place of persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent,” says the business coach recording Kroc listens to in his motel room.
Ray Kroc’s vision may have enabled him to succeed. However, it was his vision coupled with the tenacity to implement and achieve his goals that made the McDonald’s story a success.
Sustaining success is the result of taking actions and remaining persistent. Ray Kroc stayed focused and eventually convinced the McDonald brothers to allow him to lead their franchising efforts.
3.Work with the right talent
“You’re only as good as the people you hire,” says Kroc. Initially, Kroc tried to attract wealthy investors to open McDonald’s franchises. However he experienced a lack of vision and poor management which doomed the original franchise attempts. So, following a meeting with a Jewish man who sold bibles “to make a living”, Ray targeted middle class investors who were more hands on and willing to follow the successful McDonald's formula. New franchises begin to pop up across the country.
It is important for SME’s to hire people who not only have the business skills but also have the right attitude and values to help the business grow. When recruiting it is important to think beyond the immediate needs of the business, consider not only the skills the business needs today but also the skills it will need to develop and grow the business in the future.