Businesses Owners Need to be "Brave and Bold" Richard Branson Says
Canadian entrepreneurs recently got the chance to pick the brain of one of the world’s most successful businessmen, Sir Richard Branson. As a follow-up to his appearance at the Small Business Summit presented by American Express on October 21, Branson offered insights and advice on building a successful business in a recent online chat.
“Branson possesses not just a true entrepreneurial spirit but valuable insights on what it takes to achieve business success," said Howard Grosfield, Vice President and General Manager, Small Business Services, American Express Canada & International. "Branson has proven himself as someone who continually draws on the experience and opinions of many to take himself and his business ventures to the next level. This is very much the approach of the many determined Canadian small business owners that American Express works with every day."
The Right Attitude
When it comes to the characteristics of a good business leader, Branson subscribes to the ‘nothing ventured, nothing gained’ philosophy. “To be a serious entrepreneur, you have to be prepared to step off the precipice. If you make a mistake, learn from it and do things better next time,” says Branson, adding that in his most recent book, he’s “written a whole host of traits that make for a good business owner and entrepreneur. Good imagination, willing to take risks, courage and persistence are just a few important characteristics I believe are vital to any entrepreneur’s success.” Business leaders need to be fearless, and unafraid of making mistakes if they want to grow and improve themselves and their businesses. This willingness to try, and potentially fail, is something Branson always looks for in the people he chooses to work with.
The Right Team
In his book, Branson writes about working with an investment advisory committee, which helps review potential business opportunities and ideas. This select team helps Branson filter good business ideas from the less opportune, by listening to the idea submissions, questioning the proposals at length and then advising on the final decision. Branson says that many major Virgin companies, including Virgin Mobile, have been formed through this process.
Running a multifaceted business of any size means that there are numerous competing demands for attention and time, and although Branson acknowledges the importance of working with a team of advisors, he advises business owners to keep their team small, “so you don’t become too far removed from your customers and the core business decisions.”
The Right Ideas
Successful businesses are often inspired by big, bold ideas, but there is no formula for growing creative visions into viable businesses. Branson’s fusion of creativity and business strategy has certainly paid off, but he still insists that even he doesn’t know if a good idea will be successful or not. The difference, Branson says, is a willingness to try new ideas, despite the risk.
“I remember when some of the major record companies turned down Mike Oldfield’s debut album, Tubular Bells and as a result I had the idea that we would set up a record company and release his album under our own Virgin Record label,” says Branson, recalling the beginning on his renowned record label. “Island Records said they would distribute it for us but for a profit. I decided to do it all ourselves, be bold and take a bigger risk for a larger chunk of the upside. Thankfully… it paid off and the album was in the charts for something like five years and sold around two million copies.”
Of course, some bold ideas only lead to larger and more spectacular failures. In particular, Branson points to his foray into the soft drink market as an opportunity he wished he had passed on.
“[The] first year we were on a real roll, but then [a leading soft-drink company] sent two SWOT teams to the UK and shelf space got smaller and smaller,” he says. “Problem was, with [this company] there isn’t anything fundamentally different, unlike airlines. [The] key is to make sure you do something that is a big differentiator.”
The Right Path Forward
Drawing on his 40-plus years of business expertise, Branson offers practical advice for Canadian entrepreneurs looking to take their businesses to the next level – from always carrying a notebook to write down ideas, to becoming involved in every aspect of the business.
“Immerse yourself 100 per cent in everything; learn about the ins and outs of every single department, [and] as you grow, delegate. That way, when your team comes to you with problems, you’ll know the answers and have valuable advice to offer.” He adds, “I remember Andrew Black, CEO at Virgin Mobile in Canada, doing just that when he started the company. Andrew worked on the phones at the call centre in the early days to learn customer experiences first-hand. Today he still makes time to visit the call centre to keep in touch.”
Despite the current global economic downturn, Branson offers an optimistic outlook for small business owners who are unafraid of challenges.
“Over the last 40 years, the world has changed significantly, but the fundamentals of business have stayed the same and success is still out there for the brave,” he says. “Is it worth the effort? Absolutely. And although we are sailing right through one of the worst economic crises in decades, this current climate still brings opportunities for many businesses to capitalize on – you just need to be brave and bold.”
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