The holidays might behind us, but one of the entertainment staples of the season is worth revisiting. A viewing of Frank Capra’s 1946 classic It’s a Wonderful Life is for many of us an annual tradition and as much a part of the holiday season as Santa, Frosty and the Grinch.
Besides the feel-good elements of family and community, the movie also offers some tips on running a business as well. Jimmy Stewart’s character George Bailey is tied to his family’s Building & Loan — to the point of personal crisis — but his business practices and relationships see him through.
So crank up the “Auld Lang Syne” one more time and heed these five business lessons learned from the film. (Having a life-saving guardian angel eager to earn his wings not included).
1. Pay your dues: Bailey keeps the Building & Loan afloat after the death of his father, and lets his brother go to college in his place. Then he sacrifices his honeymoon cash to keep it open during a near-disastrous bank run. Though these scenes all have the glossy sheen of Hollywood, the ideas can be beneficial for young entrepreneurs — paying your dues and short-term sacrifice for long-term success.
2. Take extreme caution with finances: We cringe at that awful moment in the film when Uncle Billy goes to deposit $8,000, but absent-mindedly wraps it up in a newspaper and tosses it at the evil banker Mr. Potter. Sure, it’s an unlikely scenario in modern days, but it’s a good reminder that careful treatment of all finances is crucial.
Also, from the Obvious Department, try not to trust a boozy, forgetful family member with $8,000 in cash.
3. Build a relationship with clients: Bailey’s approach to customer service is as good as it gets. Like his father, he helps Bedford Falls residents secure home loans so that they can avoid Potter’s apartment slums. During the bank run, he hands out his own money and keeps his customers’ accounts open so that they don’t run off to Potter. Bailey’s overwhelming sense of goodwill pays off at the end, when the loyal community members gather to bail him out of financial ruin.
4. Look for big opportunities: It’s a minor part of the story, but Bailey misses out on a major opportunity by a pal and former classmate. Sam “Hee-Haw” Wainwright wants to let him in on “the ground floor” of the plastics industry, but Bailey is too wrapped up in the Building & Loan.
Wainwright makes a fortune, and even offers Bailey a massive line of credit in his hour of need. Granted, the movie takes a whole new direction if Bailey takes Wainwright’s offer — It’s a Successful Life in Plastics doesn’t have the same ring to it — but it’s a good reminder to be alert and flexible for promising opportunities.
5. Stay focused and think steady growth: As Bailey’s good reputation threatens Potter’s empire, the crabby old man tries to turn the tide by hiring his young competitor. It’s a lucrative offer, more money than Bailey can imagine, but it would also mean the end of the Building & Loan. He’s tempted, but quickly comes to his senses and realizes that staying on the path is the right way to go. By not abandoning his ideals, along with all the people he’s helped, he keeps his integrity as a businessman.
