Editor’s note: This article was first published in April 2013. Virgin Group is described as having more than 400 companies, and Virgin Galactic as Branson’s latest company and a dream still to be fulfilled. Virgin Galactic flew its first commercial spaceflights in 2023.
Richard Branson, founder of Virgin Group, an empire of more than 400 companies that includes an airline, a mobile phone company and a credit card company, is an unusual kind of millionaire entrepreneur. In fact, we already mentioned him in our article 7 people who succeeded working from home: going to work in an office just isn’t for Mr Richard Branson, so he tends to run his companies from his boat or from some exotic island. As we’ve done with other millionaires, we’ve gathered what we consider his best tips and lines for entrepreneurs who, like Branson once did, are starting out in business today.
1. You can start a business with little or no money
While for most entrepreneurs a lack of funding is a huge obstacle, Richard Branson tells how, at 15, he got it into his head to launch a magazine where young people could give their views on the Vietnam War. Since he didn’t have a cent, he says, he borrowed about 100 dollars from his mother: enough to spend on phone calls to potential advertisers. Through perseverance he got the money from advertisers and was able to print the magazine. (Read: How to start a business with no money.)
2. It’s better to have lots of small businesses than one big one
Although this advice goes against what many other business people think, Richard Branson has shown that the practice works, and it could be seen as a form of strategic risk diversification. He proved it with his own record label, which he ended up turning into 30 different labels. That way, instead of having several managers supervising lower-level staff, some of those lower-level employees became managers of smaller companies. He created a company where professional growth was a reality and where, according to Branson, employees were motivated as a result. They were also strategically placed, and the failure of one of his small companies didn’t stop the rest from carrying on.
3. Your business can take on the big corporations if you focus on the customer
David can beat Goliath in business, or at least stop Goliath from finishing David off. Branson says that when he created Virgin Atlantic, he had many big competitors. Where are those competitors today? Branson says they’re gone, for the simple reason that they didn’t focus on their customers the way Virgin Atlantic did. Thanks to that small detail, which some companies ignore, Branson beat Goliath.
4. A company is simply an idea for making other people’s lives better
If your product or service can improve people’s lives and meet a need they have, then you have a business. (Read: What is the perfect business?)
5. If you don’t dream, you won’t achieve anything
Every business idea starts with a dream. A person without dreams is a person without hope. Branson says each of his companies was a dream he gave shape to. Today he dreams of Virgin Galactic, his latest company, which aims to offer space travel not just to millionaires but to ordinary people too. And he’ll get there, because so far he has made his dreams come true.
6. Small details matter a lot
Echoing the words of Warren Buffett, Branson reminds us that small details matter a lot, both in terms of small expenses and in terms of what customers say. He says he always carries a notebook to write down what people say about his companies, along with the advice he gets from all kinds of people. He jokes that he mostly uses the notebook to jot down advice while he’s out drinking with his friends, so that he doesn’t forget it the next day.
7. You need to find someone else to run the business day to day
Most successful entrepreneurs give this advice: in business you need someone to be your right hand. You have to find a person who shares your vision and who gives you the peace of mind that, in your absence, the business would run just as if you were there yourself. That way you can run a company from a boat and even think about other projects.
8. Prepare for the worst-case scenarios
Starting a business means taking risks, so when you embark on a new venture you should picture the worst possible case, and only then decide whether you’re willing to go ahead or would rather walk away. Although the usual advice is not to put your personal assets into the business, there are times when you might tell yourself: “OK, I’m so sure this is going to succeed that I’m going to mortgage my house.” Branson says he has done it a couple of times, despite his wife’s objections. Sometimes you’ll come a cropper, but other times it works out. Great successes only come to those who are willing to risk great failures.
9. “I find it hard to say no. Every day is a different adventure”
Branson admits to having a serious problem: when it comes to new projects and new risks, he can’t say no. For him, life is a constant challenge, a never-ending adventure. Take on new challenges every day, and you’ll find new opportunities every day. Learn new things all the time and don’t be afraid to try things and innovate. Sometimes it goes well and sometimes it goes badly, but only the person who tries gets a result.
Further reading
- Donald Trump: the mindset of an entrepreneur
- The inspiring story of entrepreneur Ramona Pierson
- The time to start your business idea is today
- 7 psychological traps that hold back your success
Featured image: Mat Hampson from Philadelphia, USA, CC BY-SA 2.0, via Wikimedia Commons.
.jpg){kind=link}