It’s the holiday season and that means that channels such as Lifetime and Hallmark are rolling out festive fare. Teeming with cute couples donned in stylish red and green outfits, quaint country inns and endless baking, these movies also share some surprisingly good tips for small businesses — from brainstorming marketing campaigns to staving off big business. And they do it with a heaping of positivity.
The Financial Pipeline looked at three popular films to break down what they got right – and where the financial content falls a little short.
Baking All the Way
Key message: Surprise your clients to gain a competitive edge
The storyline: Famous cookbook author and pastry chef Julia Wilson, who runs her business in Chicago, solicits her readers for their best gingerbread recipes. When one particularly tasty batch of gingerbread arrives at her office, she seeks out the sender, a bakery in a small town in Wisconsin. It’s run by Kris Thompson, a widower with a young daughter, struggling to generate business in the face of competition from a sleeker bakery in town. Reluctant to part with the family recipe (the gingerbread was sent to Julia by his mother) he strikes a deal with her to increase his business 50 per cent over the 12 days before Christmas. She promises to generate interest in his products and in exchange will publish his recipe in her book, set to go to press.
What it gets right
It capitalizes on the novelty factor: Julia Wilson’s marketing plan – involving the development and introduction of exciting new products, as well as TV and radio hits – is a great strategy for attracting new customers. By rolling out a new product each day, she builds customers’ curiosity, raising the profile of the business while remaining true to its spirit. She manages to boost the desirability of its products – and increase sales.
It employs expert advice: Julia is a pro at managing a food business and is great at self-promotion. Utilizing her skill set, Kris is able to breathe new life into his stagnant business and finally turn a profit.
It monitors metrics: To track the businesses’ progress, Kris relies on a spreadsheet, which he checks frequently. It’s how he realizes he’s finally making a profit.
What doesn’t ring true
There is no paperwork: When Julia signs on to help Kris there is no contract outlining what she plans to deliver in exchange for his recipe. When working with a contractor, small business owners should always get everything in writing to ensure the deliverables arrive on time and on budget.
There’s no one managing the store: Julia leaves her successful business in Chicago in the hands of an apprentice during the busiest time of the year, potentially threatening its success.
The business needs a reality check: Bakeries are a tough business, requiring lots of overtime and are sensitive to even small fluctuations in the costs of ingredients, such as butter, chocolate, and nuts. The film unrealistically portrays the business, with two staff members running the bakery, one of whom is a senior. The costs of the ingredients needed for the new products are also never mentioned.
Check Inn to Christmas
Key Message: Banding together can help protect your future viability
The storyline: A glamorous NYC lawyer, Julia Crawley, returns to her small town in Colorado to discover that a big spa is threatening to take over the local inns: Her family’s business, the Crawley Inn, and the family’s chief competitor, The Mason Inn. Despite a long-standing rivalry between the Crawley and Mason families, Julia’s deepening affection for Ryan Mason helps mend the rift. In the end, the two inns decide to merge and also buy a property in the downtown to help prevent the entry of a big spa developer.
What it gets right
Business owners listen to the younger generation: The families rely on the guidance of the younger members of the family, Ryan and Julia, who are respectively an MBA and a lawyer, and who realize that customer needs are changing, requiring a fresh perspective on the situation. Ryan and Julia are also enlisted to run the newly-purchased hotel.
They embrace innovative thinking: Despite their differences, the families’ willingness to embrace change – rather than adhering to the status quo – helps them to develop a plan to save both aging inns in the face of increased competition.
They form a key partnership: While one inn could not afford to purchase the property, by pooling their funds, the families are able to cover the sale price while protecting their current businesses.
What doesn’t ring true
The costs of doing business aren’t mentioned: With both inns in decline, profits must be down. Yet, both inns are somehow able to purchase a new property, committing to costly improvements, such as a spa, gym and other luxury amenities – not to mention Ryan and Julia’s salaries. Such a move could lead to a large debt load for the newly-formed company.
12 Gifts of Christmas
Key Message: Sometimes you have to take non-traditional approaches to become successful
The storyline: Anna Parisi, a struggling painter, dreams of becoming a recognized artist. To make ends meet, she starts a small business as a personal shopper. Her first client is Marc Rehnquist, an overworked ad executive, who pays her to buy Christmas gifts for his friends and family. They develop romantic feelings and in order to help her art career, he secretly uses her painting for a high-profile ad campaign, something which offends her. In the end, she realizes the value of marketing in promoting her business and he learns about respecting artistic integrity.
What it gets right
Your side gig can help you achieve your dreams: Anna’s personal shopper business brings in much-needed funds, allowing her to still paint.
Marketing can help build your brand: Although Anna isn’t keen on “selling out” her painting for an ad campaign, she realizes that the promotion of the work will boost her brand and open doors to new opportunities.
Your existing clients can help build business: Rather than always seeking new clients, sell more to the clients you have. When Anna needs more work, she returns to Marc, who rehires her for a new project.
What doesn’t ring true
There is no reference check: When hiring a private contractor, small businesses should always get solid references, something Marc doesn’t do when he hires Anna, a newly-minted personal shopper with no work experience.
The contractor has no idea of her worth: When Marc asks her about her rate, Anna has no number in mind. Instead, she relies on him to set her fee, making her seem unqualified.
While Christmas movies aren’t typically the first place you’d look for financial advice, they do contain some sound tips for starting up and running a small business. Just make sure you check with an expert before you hang up a shingle or leave your big-city dreams behind to open an inn in the country.