Entrepreneur's Journal: Business Lessons from Avatar's James Cameron

Posted Jan 31st 2010 5:40PM by Tom Taulli
Filed under: Competitive Strategy, Small Business

Some of my all-time favorite movies are from James Cameron, such as the Terminator series and Aliens.

And this week, Cameron's latest creation, Avatar, has become the top-grossing movie worldwide (going beyond his 1997 blockbuster, Titanic). So far, it has taken in $1.6 billion.

In a way, Cameron is a New Age entrepreneur -- that is, combining creativity, unconventional wisdom, over-the-top optimism and good business sense (this is also the case with others in the entertainment industry, like George Lucas, Steven Spielberg and even Steve Jobs).

So what can business owners learn from Cameron? Here's a look:

Find ways to charge a premium: By making a 3D film, Cameron was able to get ticket sales at least 30% higher than regular films. In other words, he found a way to redefine the business and, as a result, improve his pricing power.

So often, entrepreneurs seem to want to compete on a feature-by-feature basis, as well as with lower prices.

Get the vision: Cameron wrote the original Avatar screenplay back in the mid 1990s. And, it wasn't a quick draft. He spent much time thinking about the characters, the details of the aliens, the story arc and so on. He wanted to make his vision real and highly engaging.

Not only was this a great motivator, but critical in persuading others about the vision. After all, Cameron had to work hard to find the necessary financing.

Speaking of money, Cameron put a substantial amount of his own money into Avatar (it's the proverbial "skin in the game"). No doubt, this also made it easier to convince investors.

Use long-term thinking: While some entrepreneurs can make a quick fortune, this is rare. Instead, building real value takes time.

Consider that it took Cameron 10 years to make his film. How many people in Hollywood would have the patience to do that?

Yet, in the meantime, Cameron had to refine his ideas and experiment. After all, he was pioneering many new ideas. Oh, and Cameron made sure he got patents on the innovations.

Invest: In the recession, there has been too much emphasis on saving money, which can often be short-sighted. Instead, you need to make investments to make your offering standout. True, this is far from easy in a tough economy. However, if done right, the payoff can be huge.

Tom Taulli advises on business tax preparation and resolving tax problems. He is also the author of a variety of books, including The Complete M&A Handbook. His website is at Taulli.com.

Tags: Avatar, featured, James Cameron

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Reader Comments (Page 1 of 1)

2-01-2010 @ 9:11AM

Punjabi said...

This movie is the best i have ever seen. awesome graphics and many people critic that the story is like pokahontas.

2-01-2010 @ 9:45AM

gposner29 said...

What's next for Jimmy C....3-D Cartoons? 3-D has been around forever. Computer generated imaging will mean the loss of countless jobs for actors. Jimmy C fixed something that wasn't broken. I would never pay to see this but the clips resemble a Disney movie on acid.....

2-01-2010 @ 11:02AM

Tyrone Copper said...

Everyone I know, who seen this movie said that they were had. That the movie sucked and most of them did not stay for the ending. I haven't seen the movie and most likely won't pay to see it. However, I'm glad it didn't flop.

2-01-2010 @ 12:44PM

richwyant said...

I took my 12 year old son to see it yesterday. We absolutely loved the movie. Incredible images and the 3D was done very well. It really added to the movie. Not a single person left the movie early. I think some people are trying to spread negative rumors that are unfounded. As for people trying to read a political message into the movie - why? Don't take life so seriously and just enjoy the movie.

2-01-2010 @ 1:38PM

intangir said...

@gposner29
Obviously you don't know how the movie was made. The actors still need to act out the scenes. They use motion capture then used CGI to create all the effects for the alien creatures.

2-01-2010 @ 4:00PM

louis said...

the movie was a combination of the Matrix, Titantic, and terminator. along with a cartoon. i give it a 6...

2-01-2010 @ 3:34PM

bitasno said...

I am the last holdout for not seeing this movie but im going to football season is winding down and im going to take my sweetie and go see this . the trailers are very intresting cant wait

2-02-2010 @ 12:57AM

victoriasshbyctg said...

I've seen it twice and I'd go again tomorrow - FABULOUS movie!

2-04-2010 @ 10:51PM

lvwarjack said...

"The truth is stranger than fiction". The movie was a direct parallel to Indigenous and Native people fighting to hold their lands which is tied to the universal spirit in all life. Finally someone and in this case James Cameron was able to communicate the truth about what has and still is happening in Native and Thirdworld Countries world wide. Indian Reservations are in the post Avatar stage now. We won at the Battle of Little Big Horn but the cavalry came back with a vengence. The poverty, illiteracy, disease, drugs and alcohol on reservations are the result of losing many battles. The earth is fighting back now. I could write the entire triligy. Thank you for telling our story.