to success by signing controversial and cutting-edge bands. They signed the Sex Pistols and later signed groups from Genesis to Culture Club.
Richard Branson was in touch with his generation and had already begun a strategy of operating a business successfully as an underdog. This is now as much a hallmark of his business model as his high-profile image.
With Virgin Records, Branson’s early success was assured, and his image as an extraordinary entrepreneur was already solidified. Richard Branson had made a name for himself by the time he was 20 years old. His meteoric rise, and his fame, has not flagged since. He has spent more of his life in the spotlight than out of it.
In 1984, Virgin took another turn, unexpected and, in the opinion of many, doomed to fail. Not that such opinions have ever stopped Branson. Virgin Atlantic Airways was launched out of a simple (or simple-sounding) wish to live to the fullest and to overcome big challenges.
“…never again
to put himself
in the power
of bankers.”
Branson’s foray from the entertainment world into the realm of transportation might seem nonsensical from the outside, but to Branson it made sense. He is a man who quite simply makes things happen.
“My interest in life comes from setting myself huge, apparently unachievable challenges and trying to rise above them…. I felt that I had to attempt it.”
Attempt it he did, and the rest is history. Virgin Atlantic was the nucleus of an empire. Branson expanded his transportation companies to include airlines worldwide. He eventually sold Virgin Records to keep the planes flying, much as it pained him.
This story illustrates the way in which Branson will do whatever it takes to succeed. Virgin Records had been the cornerstone of his empire and the original smash success. But, when it was struggling, Branson made the difficult decision to let it go.
Actually, Branson was pushed into this decision by bank managers to whom he was indebted for the airline. He claims that this taught him never again to put himself in the power of bankers.
The result of the painful personal and corporate decision was a one billion-dollar US deal with THORN EMI. After the 1992 sale, it is said that Branson cried over the loss of his label. He was not to stay out of the music business for long, however. He loves the business. He founded the Virgin Radio station the next year.
By 1996, V2, Branson’s next label, was founded. He was back in his beloved music industry.
The continued success of Virgin Atlantic allowed Branson to further expand the Virgin trademark. He went into telecommunications, and expanded to hundreds of companies. These range from a brand of vodka to a stem cell bank.
Most of Branson’s ventures are concentrated in the entertainment, transportation and communication industries. After launching his airline in 1983, Virgin expanded into an early satellite music station with Virgin Vision’s “Music Box”. Virgin Records expanded to the United States in 1984. By 1987, the Virgin Group, with some partners, founded British Satellite Broadcasting with five satellite channels in the United Kingdom.
Other production companies, games companies and travel companies were launched throughout the 1980s. During the 1990s, Virgin continued to expand with new entertainment companies. He also expanded his travel ventures with Virgin Trains. This decade also saw Branson’s expansion into telecommunications, financial services, beverages like vodka and soft drinks, a rugby team, a cosmetics company, and a bridal store. He also launched Virgin. Net in 1996.
During the 2000s, Virgin went into the energy business, as a result of Branson’s interest in alternative fuels. He expanded into a health bank, other media and cars. He is interested in running trains and cars with energy-efficient fuels, and runs a Formula One race car on this principle.
What started as a student newspaper is now a multi-billion pound media, transportation and lifestyle empire. Branson is one of the most recognisable entrepreneurs in the world.
In fact, the world might not be big enough for Sir Richard. He dared to begin the company Virgin Galactic. This company aims to do no less than carry paying passengers into space.
Ambition and risk are only part of the Branson style. He has preserved his entrepreneurial spirit through decades of doing business. His style comes from his understanding of and talent for reaching people.
Branson is closely involved with the management of only his record and airline companies. Typically, though, he is a very hands-off man when it comes to running a company. He famously enters into realms in which he has no expertise. He buys a company and sometimes retains the controlling interest. He is far from controlling, however.
Instead, he tends to look for the right person for the job and his acumen and judgment in this area is where his real expertise lies. Branson says that he finds someone who has a passion, interest, and talent for any particular company, and then instructs that person to run the company as if it were his or her own.
While he does not directly manage the operations of all of these companies, he is accessible. He writes (literally writes, since he does not use computers) monthly letters to his employees, keeping the tone chatty and informal. He also encourages all of his employees to come to him with concerns or ideas, which he then might decide to back up with his support. When he makes a decision of this kind, he really does back it up. Every employee of a company with Branson in an executive chair has his phone number and home address.
One of his employees, a flight attendant on Virgin Airlines, was planning her wedding. The well-known difficulties involved in planning such an event gave her an idea for a business. She approached Branson with her idea for a wedding planning business.
Branson gave this business the green light and then some. Virgin Bride was launched in 1996, with Branson, complete with wedding dress, posing for promotional pictures. Virgin is now Europe’s largest bridal shop.
This story illustrates another aspect of the Branson style. Admirers and critics alike know about his splashy and outrageous tactics for promotion. He has been compared to P.T. Barnum for his wildly high-visibility promotions. He does not shy away from either controversy or downright tackiness. This attitude makes him loved by some and hated by others, but he is noticed by all, and that’s how he likes it.
People can criticise him all they like, Branson is laughing his big toothy laugh all the way to the bank.
Achievements and Foundations
Branson has published his autobiography; Losing My Virginity: How I’ve Survived, Had Fun, and Made a Fortune Doing Business My Way was published in 1998. His book, Screw It, Let’s Do It: Lessons In Life is a short book that outlines his personal lessons for business and personal success. His lessons here outline the simple principles that have guided him throughout life, many of which were learned from his mother and grandmother. Business Stripped Bare: Adventures of a Global Entrepreneur outlines four decades of business success and failure.
His books are a way to share his insights with a wide audience. Branson is known for candour, brashness and openness, and he has no problem sharing his ideas. Branson is a rich source of insight and inspiration.
He became Sir Richard Branson in 1999, knighted for “services to entrepreneurship”. Earlier, in 1993, he was awarded an honorary Doctor of Technology degree from Loughborough University.
