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A few months back I had the chance to visit the happiest place in the world, Disneyland!
Okay, so it was actually Disney World, but same idea ha.
Ever since I started my fund a couple of years ago I’ve seen the world through a whole new financial lens, and this trip was an eye opener.
Who would have thought that Disney would teach me so much about how to set up a successful fund?
Not me.
Disney has become one of the most powerful organizations on the planet with a reported $201.55 billion in assets as of 2020.
To put that in perspective Disney could buy EVERY SINGLE person on earth a Little Caesars Pizza and still have $163.55 BILLION left.
Sheesh!
So, how can we take some strategies implemented by Disney and turn that into a pattern we can use with our funds?
Let’s dive into it.
First, Control
From the moment my family and I landed at the Florida airport we were entirely integrated into the Disney ecosystem.
We had people coming in to grab our bags from off the plane and usher us off to the “Magic Bus”.
You gotta love it.
They took us to the resort and strapped a wristband on us that could be used as a room key and credit card for anything we wanted.
Disney literally provided us with anything and everything that we could ever need, and all the money we spent went right back to them.
My father had implemented a similar strategy with his Real Estate fund.
He and his partner had been involved in the space for several years when they noticed that all of their residents in the multifamily unit needed the same basic items.
Insurance, laundry, cable, day care, etc.
All of these things that they had previously outsourced, could turn into streams of additional revenue IF they became a provider, and controller, or these resources.
So that’s what they did and their business grew exponentially.
That’s the power of becoming the best option for your clients in all these different areas.
Something that should be aggregated into your fund thesis and business model.
And this is something that our dear friend Walt has perfected.
Second, Convenience
This is such an underrated aspect of every business in my opinion.
People do not want to put forth more effort than they have to.
If it comes down to choosing between two deals that are even somewhat close in price/return, they’re going to go with the one that is easier for them.
The one that requires less exertion on their part.
Disney has mastered this, and there’s no better place to see it than in those dang parks.
Everything there is just seamless. All you could ask for is literally at your fingertips.
And don’t even get me started with the the little wristband they gave us, that thing basically begged me to spend more money.
The principle is the same with investors. The more streamlined that you can make the process, the more likely it is that they’ll be willing to work with you.
If your process for raising money involves endless meetings and different hoops that you need people to jump through you’re going to turn off a very large portion of your audience.
Therefore, it’s important to turn your fund into a well-oiled machine that is streamlined and easy to work with.
Third, Reputation
Honestly my theory is this is how Disney is making the big bucks.
We have this perception ingrained in our minds of just what Disney is since we’re basically able to think.
People are led like a moth to light in these parks, and it’s almost as if we feel safer there than we do in our homes.
This crazy psychological effect that our brains have undergone is something that will be huge for you as a fund manager.
If you can associate success, high IRRs, and big deals with your fund and create that brand, things will go your way.
The more you can reinforce this perception of accomplishment, the more doors are going to be opened to you with investors.
Some of the most successful people that I’ve ever met were coincidently some of the best self-marketers I’ve known.
Conclusion
Disney, a place where dreams come.
Maybe there’s more meaning to this than we think.
This giant of a company can give us the roadmap we need to succeed, even in an entirely different market.
As you strive to create increased opportunities for control, facilitate convenience, and build your reputation, your fund will grow.
Take Care,
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DISCLAIMER: This content is for educational and informational purposes only. It is not to be taken as tax, financial, or legal advice. You should always consult a legal professional before taking action. Furthermore, this is not a recommendation to buy or sell any security. The content is solely just the opinion of the authors.
