Richard Branson regularly shares his business experience and advice with readers. What follows is the latest edited response. Ask him a question and your query might be the inspiration for a future column.
Q: How can a small-business owner go about laying the foundation for a corporate culture like Virgin's?
A: Whether you're launching a new business or preparing to expand your existing one, laying a solid foundation for the future is critically important – bringing in investors, getting your contracts right, hiring your core team members, choosing the right suppliers.
When my friends and I started the first Virgin business 40 years ago, we had no master plan – especially not one for a group of companies that by 2011 would number more than 400 businesses around the world and employ 50,000 people. Had we tried to plan for such a future, we would certainly have messed it up.
If there is a "right" way to develop your company's culture, our experience shows that it should evolve organically. In 1970, my friends and I weren't planning to do anything other than make some money and have a good time while doing something we loved. We loved listening to music, so we tried to sell records to other kids who wanted a fun place to hang out while deciding which ones to buy. We had no marketing plan or budget – our goals were simply to make enough money to pay the rent and our suppliers, and to have some cash left over at the end of the month. Our launch was really no different from that of most small companies, since few entrepreneurs start thinking about their business's culture until it is already well established.
Related: Finding Success by Putting Company Culture First
If I think back to what we did right, it was in our planning process, when we made sure we were having fun working together and that everyone who had a good idea was included in our decision-making process.
We had accidentally stumbled on the core elements of a culture dedicated to delivering great customer service! It turned out that people who work in a friendly environment that is tolerant of mistakes, and who are empowered to make decisions about how they do their jobs, arrive at the best possible solutions for serving customers.
Remember that how you treat the customer will form the basis of your corporate culture. Put your staff first, listen to them, and follow up on their ideas and suggestions.
Small-business owners often find it tough to learn how to handle success. When a business does well, many chief executives start to focus solely on increasing profits, no matter what the cost – leaving behind everything that originally made the business special. The founder usually moves to a big corner office on the top floor and never again sets foot in the factory. Employees who were integral to the company's early success suddenly find they are the last to know what is happening, and their views are no longer valued or sought.
So try to ensure your company grows at a comfortable pace and, whenever possible, involve your employees in the company's evolution. If you are a small-business owner mulling over an expansion, tell all your employees about your plan – include everyone from the truck driver to your senior team – and ask for their input. If you can, it would be best to work out the details of the expansion plan together, taking into account the challenges faced by your employees, and incorporating improvements they would like to make. The ultimate winners will be your customers and the bottom line.
Related: How to Inspire an Ownership Spirit Among Employees
At Virgin, we have never had to struggle with the typical problems of big corporations, probably because we never really got big – we just diversified. Our growth was once described as "vertical disintegration" because our new businesses frequently appear to be tangential or even completely unrelated to our core mission. When Virgin was known for producing and selling records, for instance, we started up an airline.
We see a uniting factor in our dedication to customer service. Instead of becoming a huge, bloated entity locked into a single sector, these tangential forays have kept our company fresh and different – we are always learning new businesses and recruiting smart new people. Each Virgin company is run by its own largely autonomous management team that relies on the same small-business principles we've employed since the very beginning.
Whatever route you decide to take as you expand your business, make sure that it builds on your company's past successes, and that it fits with the corporate culture and the vision for the future that you and your team have created. If someone says, "That's not the way a big company would do it," take it as a compliment!
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Comments:
Thank you Richard for keeping it simple for us to get it. When you get the buy in from your stuff they will take your business to a level you could never imagine. People always like to be part of something not just passengers. I would like to meet you because you look relaxed and i bet people love to work with you.
You should have a good plan and strong tactics for your business. I am totally agree to your point of culture, if an organization have a good cultured in which all employees have a right to express their thinking, this will gives more chance to make good decision. Every person should be motivated because every person has his own value and experienced.
I love to read your articles. I am completely impressed by you. You explain everything in such a pleasant way that it can be understood easily. By reading your articles it´s clear that behind your success there is your core quality that is leadership. I am sure your empowerment and motivation towards your employees give a strong pillar to your all businesses. Thanks for sharing such a nice article.
Thx a lot Sir! I can relate to every thing you said here.. specially the part about " Employees who were integral to the company's early success suddenly find they are the last to know what is happening, and their views are no longer valued or sought."
Awesome Sir !!! great experiences form you and I can recollect some of my past experiences which lead to some failures. This article is really helpful. Thanks a lot for sharing this.
Superb!Thanks a million Mr.Richard for sharing these simply yet very insightful and to the point things which have empowered me much to act with more courage and determination!
What is so great about this approach to entrepreneurship is that you might almost seem to fall into good fortune by accident, but behind the bright smile and love for adventure lies of course a brilliant calculating business mind. You seem to be as serious about having fun and make good deeds with your money as you are about making more and more of it. There is something very liberating to see someone actually care about looking and acting as successful as they are! My question/concern is if that approach actually can be taught to young entrepreneurs - and what personal characteristics one needs to develop in order to do so? The entrepreneurial style (that I call The Playboy archetype) is very attractive but might it not also be the hardest to teach? Almost like you have to have the right characteristics from start to have this approach to entrepreneurship? /Anthony Crowdwell
Thanks alot Sir Richard Branson for your wonderful council you really change my life and my ways of seeing things
Great teaching,especially from someone who has been there!! am really inspired!
Greatly inspired.
Thanks for these great tips Mr. Branson! It's always important to do what you love and have fun in the process of building your business.
Great topic to think and awesome teacher to learn from! Thanks!
Mr. Branson, you really inspire me. I love reading your articles. Its good to learn that you do what you love and really treasure your staff. Am looking forward to opening a restaurant one day and i would not mind calling it The Branson Tavern (TbT).
Insightful advice from one of my personal heros. I hope to have the same success in building multiple "tangential" companies. - Bronson Laureiro
I read a book entitled "The magic of thinking Big" and quite honestly, Richad's article is a true reflection of how the "Magic" of empowering employees should be practiced! Remarkable Sir Richard.
Mr. Branson ur book Losing my Virginity..was awsum...i wish i could have adventures in life like u have had..U r the best :)
I've always wondered how hands on Mr Branson is now to his huge Empire. He must have very good managers that report back to him so he can make the 'eagle eye' decisions at the board meetings. Respect!
I love reading Richard Branson's articles
Great article but way too many ads! I couldn't read the article because there were too many pop-ups distracting me. Not pleasant while you're trying to read an article that interests you.
Great article. Completely agree that it is easy to lose touch with your employees as you scale. We have grown from 4 to 250 employees in the last four years and have experienced this issue first hand. To keep close relations we run brown bag lunches, feature birthdays and employee anniversaries in a company newsletter, and use a company wiki to keep transparency and innovation at a high. Other ideas? Thank you Sir Branson. I spent a summer at Vigin mobile. Great culture!
this is something that is really required in todays business world..
He's so right about taking care of your employees. Afterall they're the ones that are spending the most time with your customers. If they enjoy what they do and where they work, they'll pass that feeling on and your customers will enjoy spending money with you. For more information on starting a business check out my site at: www.milehighbusinessplans.com
I just got back from a meeting where my colleague is working on his marketing tools for his own software training business. He is working on understanding his customers in order to be targeted in the way he communicates with them. He was finding this rather overwhelming and none of his good work was getting to market... my advice is to break the big tasks into small ones. List some prioritoes then focus on the small tasks. This isn't rocket science, he knows this too. But the point is we don't get anywhere if we only work in the theoretical. Take some risks, try some things... everything doesn't have to be 100% or even 80%. I know Richard made some misstakes too, but look at him now.
And don't be afraid to surround yourself with specialists who do some things better than you can. It's ok to make yourself seem redundant. Perhaps then you"ll have more time to engage with your team as a leader. Inspiring article.
It's definitely true that when people enjoy what they do they are better at what they do. Enjoyed this article. Thank you.
Thanks for the advice! look forward for new ideas to use in my businesses www.stakgear.com and www.alistfamilyservices.org Thanks again!
Hi Michael, We've tried both. You have to do both at the same time. What is certainly not king is profits or arbitrary process. But treating employees badly and expecting them to treat customers well ranks is awfully foolish.
I love reading Richard Branson's articles, because what he shares is very basic & simple. People forget the basic elements because they get too involved in complicating things.
Excellent article many current Australian Ceo's should take note of!
Richard probably doesn't remember this, but my son and daughter taught him how to chuck himself out of a plane and land safely! Now he's showing their mother how to launch herself into the business world, even though I know my flight will be short. Thank you, Richard, for taking the time to share your knowledge and experience. Which is only a demonstration of my favourite word - positively! Good luck with all your ventures.
I worked for Virgin from 1973-76 as an assistant manager in one of the original 14 UK stores and I don't remember being included in any decision making. All I remember is a succession of Area Managers telling us what to do and an occasional visit from the smiling man himself in the Marble Arch flagship store. Interesting times though and great to have it behind us as a 'Hippy' culture rite of passage.
And what a brand!!!... Pure genius and a marketers dream!
Some pointers that I pick-up from here: 1. "make some money and have a good time while doing something we loved" - "make some" NOT "lots of money" and something you "loved" 2. "Put your staff first, listen to them, and follow up on their ideas and suggestions" - Putting your most expensive resources 1st not profit 1st. Common mistake to most company to focus on revenue and profit. 3. "tell all your employees about your plan – include everyone from the truck driver to your senior team – and ask for their input" - COMMUNICATION to ALL the LEVEL of staff, this seem to be a missing for most big co-operation. And is 2 way communications. Great Article..
I think flexibility is the key. To adapt and not get caught up in corporate "red tape". You need to constantly learn from mistakes and improve.
Great information.I saw your photo in shopingbynet.com.Great work.And Thanks for your useful information about internet marketing.
Brilliant thing. I too believe in Corporate Culture. Having recently started on my own I feel that the step to success lies when you value your people
Great article and makes for compelling reading, thanks !
Pity that I am on the age verge that ideas takes long to fulfill, otherwise I must say that this R.B. is one of the legends among the entrepreneurs.
I can fully agree to what Richard Branson mentioned. Too many businesses went down after the "company culture" changed and too many people do not have any fun on their jobs anymore which in my opinion is the best driver besides making money.
Great anti-corporate advice on how to run a business. It makes me want to work for Virgin.
I think that the employees are King and they will ensure you have customers...remember, without employees, who can deliver the experience to the customer?
Exellent article for any small business wishing to grow and expand. I personally would like to read more articles by Richard Branson. Robert F. Cruise, EA www.cruise-associates.com
this apply' s to you employees if they like what they are doing they will make you money
Superb piece. Richard Branson is a true leader that walks the walk. So inspiring. And this advice is critical: "If you are a small-business owner mulling over an expansion, tell all your employees about your plan – include everyone from the truck driver to your senior team – and ask for their input."
Sir Richard was also at the National Achievers Congress yesterday - here is my summary: http://www.iankaye.com/2011/07/05/sir-richard-branson-interview-on-leadership/
He makes a really good point that shouldn't be overlooked and that is, you start a business that you love and do something you enjoy, not because you think that it will make you a lot of money. If you enjoy the business then you will put more energy into it and make it better for the customer which will in turn bring in more money.
Really great simple ideas that hold the bigger picture in mind.
Great piece, thanks. The one key fundamental in business is that the customer is king! Without the customer you have no business. Building a culture of "customer first" is the hallmark of every single LASTING successful business, large or small.
There is a ton of deep knowledge in this - thanks for sharing - problem is its a little like Buddhism (or any religious philosophy), sounds simple until you do it - but getting there...
Jodi (www.NoMoreNylons.com) and I were "just" talking about Sir Richard Branson - saw/heard him speak last October here in California. My favorite part, "...everyone who had a good idea was included in our decision-making process." I've found this is a critical component, including everyone in the process. Thanks for "re-minding" us in this article!
Interesting article and very good advice that so many managers ignore. It'd be enlightening to learn how Virgin handles functions like IT, HR etc that are often centralized in big companies to control costs. Do they have a central 'shared services group?
Richard Branson has a nice business and nice hair as well
Fantastic Sir. Richard! We have been investing in the core foundations of our business and we are just about to reap the rewards. I believe when you seriously structure your business, passion and culture most likely will follow. Since accredited with ISO 9001/14001/18001 and many other accreditations we have been more determined to win and to do things with desire to excell and that is why I totally believe in what Sir. Richard just said. Regards