NEWSLETTER JUNE 2016

BREAKING MOULDS

“It’s a great idea to work with your loved ones”

Richard Branson, CEO

“Although the Virgin brand has expanded into many sectors and dozens of countries, we have always remained a family business. This is where we get our strength, purpose and focus.” These words from one of ’s best known entrepreneurs may come as a surprise to some, mainly because the space travel and music industries are not traditionally linked to family businesses. But Branson’s words do define the motivation, ideas and values that underpin the businesses he has created and steered over the last five decades.

What began as an on-demand company back in the late sixties has evolved into a group of more than 200 companies in over 30 countries. Throughout this period characterised by countless dramatic and unexpected twists, he has expanded his businesses to include a train company, a luxury game reserve, a mobile phone company and a space-tourism company, .

“If you rent it to me, I’ll open a and crowds of young people will pass by your shop. Many of them will need shoes.” This was the argument that convinced the owner of the premises that caught the young ’s eye while searching for somewhere to set up his first record shop. The owner of the premises was also the owner of the shoe shop next door.

Branson managed to rent the shop just as he was “The best way to disrupt successful in most of his future challenges by markets is to draw on values being bold and smart and, above all, having a from the family business powerful, contagious vision. Ever since Virgin model” Records was established, first in the UK and shortly afterwards globally, it has been synonym of disruption to inflexible market rules. The entire business was underpinned by Branson: a unique, risk-taking entrepreneur constantly pushing back limits and expanding horizons.

He is unlike the traditional head of a family business but proudly emphasises the strong family culture of his company. This is where he finds the “strength, purpose and focus” to carry on. But he also regards it as a powerful source of inspiration because, as he said recently, “the best way to disrupt markets is to draw on values from the family business model.”

Turning challenges into opportunities

The many exploits in his colourful biography range from signing the , , , and ; to fighting the attempt to take over and successfully suing that pillar of the British business establishment; swimming two miles to safety during a violent storm off the coast of Mexico; losing control of a Zeppelin whilst trying to cross the North Pacific; and staging a rescue flight into Baghdad before the start of the Gulf War, to name but a few.

The dyslexia that marked Branson’s childhood caused him to have a hard time at school and finally he dropped out at of 16. Following this he moved to where his hard work, bold spirit and fresh ideas enabled him to expand his business enterprises to include the Voyager Group travel company in 1980, the Virgin Atlantic airline in 1984, and a string of .

NEWSLETTER JUNE 2016

The biggest challenge of his career was possibly “Most people spend more time when he had to sell the company in 1992. But he with their colleagues than soon bounced back with new projects in the anyone else, so it’s a great . In addition, he is constantly idea to work with your loved pushing back boundaries and the last in a long ones” list of challenges happened in March this year when he announced a jet able to fly from London to New York in around 3 hours 20 minutes, before the year 2020. Taken in a wider perspective, this challenge offers solace and satisfaction to the man forced to take the toughest decision of his career in the early 90s: the sale of to save Virgin Atlantic.

Richard Branson has certainly been a role model for many young entrepreneurs and in 1999 the British Crown acknowledged his contribution to entrepreneurship with a knighthood.

His success was partly due to his ability to create and manage strong and committed teams. “Most people spend more time with their colleagues than anyone else, so it’s a great idea to work with your loved ones”, Branson said recently.

Despite the ups and downs since he sold Virgin Records all those years ago, he has managed to maintain the innocence reflected in the company’s name. Above all, he has been a leading light for many entrepreneurs as revealed by the inspiring words he wrote in My letter to 25 year-old me:

“By turning challenges into opportunities, you will find success you never realized you were capable of achieving. But you won’t always succeed. In fact, you will fail time and time again. That’s ok though, because failure is an inevitable part of every personal and entrepreneurial journey. It’s important to pick yourself up, retrace your steps, look at what went wrong, and learn from your mistakes.”

Boris Matijas, co-editor

FAMILY BUSINESS TRANSFORMATION