Here are 7 things we can all learn from Richard Branson!
7 – Minimize your weakness
Born in 1950, Branson enjoyed a happy childhood, with parents who considered their children
equals and who often set challenges to make them self-reliant.
Branson's parents were supportive of his endeavors from an early age.
Branson's mother was an entrepreneur herself, and one of her most successful ventures was
building and selling wooden tissue boxes and wastepaper bins.
However, as unbelievable as it may sound, but is the case with plenty of self-made entrepreneurs,
Branson had poor academic performance.
He attended Stowe School, an independent school in Buckinghamshire until the age of sixteen.
While attending school, many of Branson’s teachers considered him to be a bit slow and
lazy.
He was, in fact, dyslexic and admits that by age 8 he still couldn’t read and was
hopeless in math and sciences.
As British schools worship the sportsman, Branson realized that he needed to channel
his energy into doing well on the field.
Before Branson left school, headmaster Robert Drayson said to him, ‘You’ll either go
to prison or become a millionaire’.
You know what?
That headmaster was onto something.
Instead of feeling sorry for himself and seeing himself like one big failure, Branson recognized
his weaknesses but also recognized his strengths – his ability to make things happen.
6 – Always be bold
Branson expressed his desire to become an entrepreneur at a young age.
At the age of sixteen, his first business venture was a magazine called Student.
Later on, Branson started his record business from an old manor where he ran the magazine.
Whenever Branson saw a need for something in the market, he asked, why shouldn’t he
do it?
Branson advertised popular records in his magazine, and the new business was an overnight
success.
Trading under the name "Virgin", Branson sold records for considerably less than the traditional
record stores.
Branson once said, "There is no point in starting your own business unless you do it out of
a sense of frustration."
The name "Virgin" was suggested by one of Branson's early employees because they were
all new at business.
Another example of his boldness is how he entered the airline industry.
Branson's first successful entry into the airline industry was during a trip to Puerto
Rico.
He formed Virgin Atlantic Airways in 1984, after his flight was cancelled.
He decided to charter his own plane the rest of the way and offer a ride to the rest of
the stranded passengers for a fee of $39 in order to cover the cost.
After that, he received a proposal to establish a transatlantic service to compete with British
Airways and he couldn’t resist the opportunity.
Against the better judgment of his advisers, he called Boeing in Seattle and negotiated
to lease a 747 for a year, ‘just to see’ if the whole idea would work.
Virgin Atlantic was soon a reality, although it almost never got off the ground.
On the inaugural flight, a flock of birds flew into one of the uninsured engines, ruining
it at a cost of 600,000 pounds!
This brought the company over its credit line, and it came close to being bankrupt.
Only an emergency recall of cash from Virgin’s overseas operations got everything through.
5 – Do the opposite
Earning enough money from his record store, Branson launched the record label Virgin Records
with Nik Powell and bought a country estate north of Oxford, where he decided to install
a residential recording studio, The Manor Studio.
The first act Virgin signed was an unusual choice.
A young musician called Mike Oldfield had spent months perfecting a recording that had
no vocals and a lot of bells and other unusual instruments.
This was a bizarre first choice for what was intended as a rock music label, but it paid
off.
Oldfield’s album Tubular Bells was one of the biggest selling records of the 1970s,
and helped to bankroll Virgin’s early years in the business.
Virgin later signed controversial bands, such as the Sex Pistols, a band many other companies
were reluctant to sign.
However, Branson saw opportunities where others could see only risks with the band.
Branson was willing to go against convention and do the complete opposite of what the trend
was.
Virgin Records would go on to sign other artists including the Rolling Stones, Peter Gabriel,
UB40, Steve Winwood, Paula Abdul, Culture Club, Phil Collins, and The Human League.
By the early 80s, Virgin had become an unconventional big label to contend with, because of Branson’s
willingness to step outside the box with artists many contemporary labels were afraid to sign.
4 – Nothing is ever too big Necker Island is a 74-acre island in the British
Virgin Islands that’s entirely owned by Sir Richard Branson.
The whole island operates like a resort and can accommodate up to 34 guests.
When Branson bought the island, it was uninhabited.
He purchased the island at the age of 28, just six years after starting Virgin Group.
The story behind the sale completely shows Branson’s attitude in life.
Richard Branson first became aware of the British Virgin Islands in 1978.
He had actually never heard of the ‘Virgin Islands’, had no idea where they were located,
or knew that the islands are actually called the British Virgin Islands.
He had just been trying to impress a girl he liked, they were still in the early days
of Virgin Records, and Branson by no means had the cash to buy an island.
Luckily for Branson, the realtor didn’t know this and offered him an all expenses
paid trip to see the Islands.
Branson agreed to go on one condition, only if he could bring a guest.
Seriously, I love the balls on this guy!
Anyways, they were given a luxury villa and went around the islands by helicopter.
The final island he saw was Necker Island, and after climbing the hill and being stunned
by the view and wildlife, he decided there was no way he COULDN’T purchase the island.
However, Branson had no money to buy the island.
But he figured he had nothing to lose, and he made an offer with an amount the thought
he could come up with from the bank.
After making a lowball bid of $100,000 for the $6 million island, the owner said no and
Branson actually had to find his way off the island!
But, he was in luck.
After a year, nobody else had made an offer on Necker Island.
This time, the owner of the Island was desperate to sell.
Virgin Records was in a much better position than it had been a year before, so Branson
quickly agreed to a purchase price of $180,000 – the only condition was that Branson would
need to build a resort on the Island within four years.
The rest is history.
3 – Get inspiration from others Branson has stated in a number of interviews
that he has been much influenced by non-fiction books.
Branson frequently cites "Long Walk to Freedom," Nelson Mandela’s autobiography, as one of
the most influential books he has read.
Mandela wasn’t just a personal inspiration to Branson, he was a friend as well.
One of the best lessons from Mandela that guide and inspire Branson is letting your
vision guide you, instead of your fear.
In his own book, one of the most interesting parts is the soul-searching that Branson did
when he turned 40.
Branson decided to put much of his free time into philanthropy.
A great example of Branson’s philanthropy is that of The Elders, an international non-governmental
organization of public figures, peace activists, and human rights advocates.
Richard Branson, musician and human rights activist Peter Gabriel, and Nelson Mandela,
initiated the group.
They describe themselves as "independent global leaders working together for peace and human
rights".
Obviously because of his interest in humanitarian and ecological issues, Branson also lists
Al Gore's best-selling book, An Inconvenient Truth, and The Revenge of Gaia by James Lovelock
among his favorites.
2 – Don’t forget to have fun The other thing that Branson knows very well
how to do other than just business is fun.
Branson will be the first to admit he didn’t go into his first business to make money,
but more as something fun to do.
Even nowadays, Branson’s main criterion for entering a new market or industry is that
it be ‘fun’ and exciting.
For example, ‘Virgin Galactic’ is on track to be the first company to offer commercial
passenger flights into space.
This enterprise fulfils Branson’s business criterion of only going into fields that are
fun and exciting, yet where obviously there’s also money to be made.
Branson also has a number of achievements that have nothing to do with business and
are related to his various efforts to break world hot air ballooning and ocean powerboat
records.
Branson says that things like that add another dimension to his existence and make him feel
alive.
Branson is also known for his preference of casual clothing both at home and the workplace.
He has a distinct dislike of ties and there’s been his lifelong campaign to quote “say
bye to the tie.”
He often carries a pair of scissors with him at all times, ready to cut off a tie of anyone
at his company.
What’s even funnier is the fact, that he even owns a pillow on Necker Island completely
made up of some of the ties he’s cut!
According to Branson, most people in business dress the same and that contributes to them
acting the same.
Wearing a tie restricts new ideas and innovative thoughts.
Although I don’t have the same hate for ties, what I can agree on is the fact that
business people need to embrace change.
1 – Do it right
Branson’s march to riches did begin with a somewhat less benign and fun-loving version
of failure: a youthful foray into tax fraud, in which he was caught red-handed.
Though his chain of record shops was growing, it was actually losing money.
In the spring of 1971, Virgin was losing money as a discount music retailer.
Its record shop on London’s Oxford Street was popular and its mail-order business was
growing, but thanks in part to its rock-bottom prices, the company was burning cash and digging
itself deeply into debt.
Branson accidentally found a solution to the problems that would almost fulfil the other
part of his headmaster’s prophecy.
The scheme was simple.
Virgin would avoid paying purchase taxes on its merchandise by pretending to export albums
that it actually sold in England.
In Britain at the time, music retailers paid a heavy 33 percent tax on records they planned
to sell domestically.
But the tax didn’t apply to vinyl destined for abroad.
While attempting to drive a large shipment to Belgium, Branson discovered that he could
stop at customs in Dover, get his export paperwork stamped, then bring the cargo back to sell
at home, where he could pocket the tax savings.
He figured that after a few such profitable trips Virgin would be debt-free.
However, after three trips of taking records across the English Channel to imaginary buyers,
his activities were discovered by Customs.
To escape jail he had to pay back three times the amount not paid in taxes.
Under tremendous pressure, he somehow met the payments from store earnings, but the
experience burned him, and at the age of 21, he resolved to never do anything approaching
illegality again.
Branson learned at that moment, if you’re gonna do something, do
it right.
Here’s what’s next!