Richard Branson: Advice for Entrepreneurs | Big Think

Summary

Richard Branson reflects on key lessons he's learned running Virgin, emphasizing the importance of praising employees, being a good listener as a leader, and giving teams freedom. He recounts an early crisis when his bank threatened to shut Virgin down and how he swiftly changed banks and got funding to survive. While Branson acknowledges he built the Virgin brand initially, he has focused on delegation so it can thrive without him. He believes as long as you treat people well and give them room to make some mistakes, a brand and business can flourish.

Takeaways

• 😊 Remember that a company is a group of people - be a great listener, motivator and praiser
• 💡 The line between success and failure is very thin - be prepared and don't give up
• ✈️ Had a bad experience as an airline customer - decided to start an airline
• 😨 Bank went into panic when the airline struggled at first - had to change banks quickly
• 👍 Got support from music distributors to get temporary financing
• 🏦 Don't be beholden to any one bank - be willing to switch when needed
• 🌟 Built the Virgin brand through my own efforts initially
• 🤝 Learnt the art of delegation - now have a great team running Virgin companies
• 😎 Give Virgin companies freedom as if they were their own
• 💪 Virgin brand now strong enough to survive without me

Q & A

What does Branson say is the most important thing to remember when running a company?

Branson says the most important thing is to remember that a company is a group of people, and as a leader you need to be a great listener, motivator, and praiser to help people flourish.

What example does Branson give regarding the thin line between success and failure in business?

Branson gives the example of when he started an airline and his bank went into a panic, threatening to close Virgin down. He had to quickly get loans from music distributors to survive.

What happened when Branson returned from the inaugural Virgin Atlantic flight?

When Branson returned, he found his bank manager at his house saying the bank would close down Virgin that Monday unless he paid back his loans in 2 days.

How did Branson manage to keep Virgin Atlantic operating after the bank threatened to shut it down?

Branson spent the weekend ringing music distributors globally to ask for temporary loans to get through the following week, which they provided. This allowed Virgin to change banks and get a larger overdraft facility.

What lesson did Branson learn from his experience with the banks?

Branson learned not to think of your bank as something you're beholden to. Sometimes you need to be willing to change banks, just as you'd change doctors.

How is Virgin able to operate without Branson's day-to-day involvement now?

Branson has built an excellent team and delegates responsibility, giving them freedom as if they own the companies themselves. This allows the Virgin brand to flourish even without his direct oversight.

What does Branson say his role has been regarding the Virgin brand?

Branson says he used himself to build the Virgin brand and companies initially, but has since focused more on delegation and marketing while leaders run the companies day-to-day.

What makes Virgin resilient even without Branson according to him?

Branson says Virgin is now a top global brand that is well-respected. So even without him personally, Virgin can live on healthfully with his team running operations.

How does Branson describe his current role in Virgin?

Branson says now he mainly just provides some "icing on the cake" in terms of extra marketing budget, but Virgin operates fine without his daily oversight.

What analogy does Branson use regarding employees and leadership?

Branson compares employees to flowers - he says if you water flowers, they flourish. Similarly, if you praise people, they flourish under good leadership.