by David Nash
The biggest grossing movie of all time was Gone with the Wind, which earned £1.685 billion (adjusted for inflation). In second place is Star Wars, which made $1.485 billion. Both of these blockbusters were produced and directed by big Hollywood names. Gone with the Wind was directed by Victor Fleming, who also directed The Wizard of Oz. It starred Vivian Leigh and Clark Gable, both of whom were megastars in their heyday. Hollywood legend George Lucas directed Star Wars. Harrison Ford, Carrie Fisher, and Alec Guinness all headlined.
Both movies have become an integral part of the fabric of Hollywood. Star Wars went on to spawn a host of successful sequels and its stars became Hollywood royalty.
Big Bucks Does Not Always Equal Success
However, not all successful movies are directed by big names or feature Hollywood stars. By the same token, plenty of blockbusters tank at the box office. Cutthroat Island starred Matthew Modine and Geena Davis but ended up losing $148 million at the box office. It sent Carolco Pictures into bankruptcy and killed the careers of Davis and Modine.
The takeaway from this cautionary tale is that doing it by-the-numbers with a big budget does not guarantee success. Sometimes, all you need to be a success is a great idea and the wherewithal to make it happen.
Crazy Ideas Are Worth a Punt
Take Paranormal Activity, for example. This low-budget indie film cost $15k to make and was filmed over seven days in the director’s own house using a hand-held camera. The movie became a massive hit after word spread online and offline. It ended up making $193 million worldwide and spawned four sequels. The Blair Witch Project was another surprise hit filmed on a low budget of around $60k and with an unknown cast. It was the first movie to go “viral”. The Blair Witch Project raked in $248 million at the box office.
What can Movie Plots Teach Us?
If you watched The Social Network, you will have a much better idea of the origins of Facebook. Estimates of its current and future value vary as futures trading is not an exact science, but experts believe Facebook is now worth more than $500 billion. But, once upon a time, Facebook was just an idea. As The Social Network made clear, the Winklevoss twins had the idea, but they didn’t have the tech knowhow to make it happen. They recruited Mark Zuckerberg to create their embryonic social networking site, but without protecting their intellectual property. Unfortunately, this was their downfall and today, Zuckerberg is worth billions while the Winklevoss twins lost out big time.
The takeaway from this movie is that you should take steps to protect your intellectual property from day one. If you have a great idea, look after it, nurture it, and prevent anyone else from cashing in before you have the means to do so.
The last lesson for today is that you should never make business decisions based on emotions. Remember the movie The Money Pit? Tom Hanks and Shelley Long fell in love with a house, but they let their heart rule their head and paid the price. Too many entrepreneurs rush in without practicing due diligence. If you make that mistake, it could cost you dearly.
Most movies are pure fantasy and highly entertaining to boot, Attack of the Jurassic Shark being a possible exception, but entrepreneurs can still learn some important lessons. So next time you go to the movies, take notes!
