Sir Richard Branson’s Top 10 Keys for Success

Over the years, I have studied the Branson way of “Virgin” business and here is the top 10 list that he, so far, has never released as to why he has become such a successful entrepreneur.

10. Keep things small

Keep the size of the companies small, his average is about 60 employees per company, if they get too big, break them up into smaller pieces. This does a number of things, first, it keeps the company nimble and still personalized as everybody knows everybody else on a first hand basis. Secondly, it keeps things manageable, if there is a problem, the risks are minimal for the entire “Virgin Group” both financially and in reputability. Like Sir Richard Branson says, he always pays off the debts of defunct Virgin companies should things go bust which is difficult if you have one huge company with billions in receivership and tens of thousands made redundant.

9. Be ethical

Don’t participate in underhanded business activities such as kickbacks, bribes and sabotage. As a businessperson, the only thing you have to stand on is your business ethics and reputation, once this is tarnished, it’s an uphill battle to regain it. People tend to remember the dramatic and negative about people even if they represent but a small portion of a positive image.

8. Give others a vested interest

Sir Richard Branson has a unique method of building up his conglomerate of companies, he creates partnerships on usually a 50/50 basis. As such, each party has a direct interest in success of the new Virgin brand. This works in several ways for the entrepreneur who wishes to buy into this type of arrangement. Firstly, Virgin has a lot of companies so you may instantly have a customer with another part of the conglomerate, for instance, the in-flight entertainment for Virgin Atlantic may also be used for Virgin Trains. Secondly, Virgin has huge cash reserve, so getting additional funding (seeking it from Angels, Vcs and banks) is far easier when you can say “Oh, by the way, you do know Virgin is a partner in this company right?” Lastly, people work harder when they have a direct vested interest in something, an employee will work 40 hours a week but the founder behind the company has no problem pulling in twice those hours off the clock. This internal motivation usually makes the difference between boom or bust.

7. Follow your gut

Businesses must evolve to stay competitive, if you have a gut feeling to do something that doesn’t show up in the numbers yet, well, DO IT! Nobody knows a company like the founder or executive committee that was there since it all began, competitors, segways and even the market demands are in a constant state of flux. If you want to run a company strictly by the numbers, become an accountant, otherwise, follow your gut more often then not, it will prove right.

6. “Sue the Bastards” - Sir Richard Branson

If somebody is being unfair, tainting your image and reputation or simply not paying their bills after multiple tries to solve a problem, sue them. A friend told me once that there is business and there is personal, you may be great friends with a person who may be one of your suppliers or providers but don’t let that get in the way of running your business. If somebody isn’t treating you right, solve it before things get worse, and yes, they will get worse. I have taken my fair share of people to court, I think it’s a great way towards dispute resolution.

5. Mistakes aren’t a BIG deal

No matter what type of business, there will be some mistakes made, you simply cannot afford to go through the world of business walking on egg shells. No matter the size of the mistake or who it affects, admit to it and move on. Trying to push a mistake under the rug will simply allow it to grow into a bigger problem and eventually, it may get legs of it’s own. I liken the role of an entrepreneur to that of a fireman, you spend your day putting out fires before they become unmanageable, whether this is kicking the sales force back into shape or making sure internal politics don’t get out of hand.

4. Think long term

If you are starting a business with a quick payout then you should stick to your job at McDonald’s flipping burgers. Businesses need to be run for the long term, this is the only way you can attract investment and maintain your sanity through the years. Decisions are a lot easier to make when you can envision their effect a few years down the road then how they will immediately impact your bottom line. Todays investment will result in tomorrows revenue.

3. Don’t cash-out!

Your company just made a huge profit this year, what do you do? No… don’t go on a vacation splurging all this away, look at areas in your company that would benefit from additional investment or even better, consider acquisitions or new areas you wish to create change into. The bottom line is that profits are great mechanisms to further boost future influence, don’t take this cash out and waste it! This is a gift to be taken seriously and shared, not to be squandered at the casino

2. Customers come first

Let’s face it, a business without customers is a dead business. It’s tough to get new customers and even tougher to get repeated business from them, always appreciate them! There is something very wrong when a company begins to take it’s customer base for granted and begins exploiting them. I have seen this time and again, most of the time, the company goes under once all these under-handed activities either become known or the staff themselves get tired of becoming the customers punching bag. Let me repeat, if you want a successful business, you must appreciate each and every customer who ultimately buys into your idea. EVERY ONE!

1. Have Fun!

Life is about having fun, and business shouldn’t be any different, if you don’t enjoy your position in life, change it before it changes you. We are all very lucky to be given the gift of life by our parents, we need to show that appreciation by learning and exploring the world around us. You run a business, great! This is a tool to give you more freedom then the average worker, but be sure to get as much learnings out of it as you possibly can.

The Bottom Line

There is much we can all learn from Sir Richard Branson, hopefully this glimpse into his keys of management opens the doors of possibility for you.