Editor's Note: Entrepreneur Richard Branson regularly shares his business experience and advice with readers. What follows is the latest edited round of insightful responses. Ask him a question and your query might be the inspiration for a future column.
Q: I am a first-time entrepreneur entering the business arena. When I am asked what previous experience I have in this field, how should I answer? -- Jeyanth Krishnan, India
A: Virgin's history shows that a lack of experience does not have to be a liability -- it can be an asset. It is something you should play up when you discuss your ideas with prospective investors, partners and employees, rather than directing the conversation toward your other strengths.
From the first days of my career as an entrepreneur, I have always used my own and my team's lack of experience to our advantage. In fact, at our first venture, Student magazine, we used our newcomer status to secure great interviews and generate publicity -- people were excited about our new project and wanted to get involved. Our inexperience fed our restless enthusiasm for trying new things, which became part of our core mission.
No matter which industry you are planning to enter, you will almost certainly find that the same holds true for you.
Since our Student days, we have started hundreds of new businesses, in most cases knowing next to nothing about the industries we were moving into. And our inexperience has always allowed us to focus on how we can do things differently, rather than on the reasons we cannot. This gives us freedoms that other businesses don't have, constrained as they are by past lessons and industry history.
Related: Richard Branson on How to Avoid Common Startup Mistakes
The key to turning inexperience into an asset is to pitch what is new about your product or service. How does your approach differ from that of other businesses? How will you reach out to target markets? Why should people choose your products and services over your competitors'? Present prospective partners with a fresh take on a tired industry, and you will grab their attention.
Our group's history has taught us to target new industries and markets where we feel we can add something new, improve the customer's experience and carve out a successful position. Our move from publishing into music retailing is a case in point. When we sensed that Student magazine's circulation was reaching its peak, we looked for more ways to make money, and decided to start selling records by mail order. A postal strike stopped the business in its tracks, but we had caught the music bug. Instead we set up our first record store. So our inexperience did cause us a near-miss, and it's likely that if people are asking you about your lack of experience, your ability to spot problems is on their minds. But many startups fail each year; a founder's background has little correlation with success. A couple of failures on a beginning entrepreneur's record should not be considered an issue. Indeed, investors need to become better at accepting that as our dynamic, innovative economy constantly reinvents itself, businesses will inevitably become obsolete. A young entrepreneur who has dusted himself off and started again, learning from his mistakes, has proved that he has what it takes.
Constrained by a lack of capital after the strike, we found a former shoe shop on Oxford Street in London, and we talked the owner into letting us use the empty space. We were not trained retailers, but we liked music and wanted to create a cool hangout for young people. Instead of building displays designed to move merchandise quickly, with huge racks of records and no place to sit down, we brought in big, comfy cushions and built listening booths -- it was a place where you could chat about music with your friends and share your favorites with them.
Related: Richard Branson on Investing in Clean Energy for a Greener Future
Our Oxford Street store quickly became popular with Londoners, which meant we soon had the cash to open our second and third stores. We stuck to our original winning formula, making sure to open stores on busy streets, especially looking at spaces that needed smartening up, since we could get a few months rent-free. This usually gave us some time to establish a local following. Soon we had stores in almost every large town in Britain.
From music retailing we moved into the recording industry, but it was our move into the airline business that underlined for me the advantage of inexperience. When we leased our first 747 jumbo jet in 1984, I knew very little about the airline business, beyond the fact that I had flown a lot as a record executive and disliked it. The food was poor, the entertainment was bad, the seats were uncomfortable and the service was lackluster. Surely all this could be changed -- it was just common sense.
Virgin Atlantic's early years were all about breaking conventions. I hated being stuck in one place for eight hours at a time, so we created a bar where Upper Class passengers could meet and talk during the flight. We brought massage therapists on board to relieve the tedium and ensured that all passengers had better seat-back entertainment. Continuing this tradition, Virgin America, our newest airline, has similarly revolutionized the industry in the United States.
So when you are dealing with prospective partners, suppliers or employees, turn their questions about your inexperience to your advantage. Explain that it frees you and your team to follow your vision for the industry. And if you make adjustments along the way -- not just to correct for problems you've noticed, but for contributions from your employees as well -- you will forge a new path to success.
Related: Richard Branson on the Business of Sustainability
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Comments:
Inexperience was my greatest fear, it constrained me,thanks to this article, it was great, i'm ready for take off now.
Inexperience can also mean that inexperienced youngers (primarily) are afraid to be flexible, or inquire higher up the management chain in customer service situations, than what is written in their training manuals. The same goes for the next level of management. All customer service stops with the written manual "regulations". Now, when it comes to hiring a "seasoned" or older individual, who is new to a industry area, or product line, it probably will serve the company to hire older, experienced people, who can take their other industry experience to task and see where it might apply in another market sector. What do you think.
Mr.Branson, ther's an other side for all the points that youn arose please see through it, and please take it into vision that inexperience can be beneficial only, at times regards, HacKer
Joesph, I you understand that I am not implying anything but the way I read your reply was that you "took" what seemingly was trade secret information from a previous employer and brought it to another company. If I read this correctly that would be wrong, however, if I misunderstood the context of what you wrote I apologize. Being a first-time entrepreneur always brings forth pros and cons. A fresh set of eyes that shares their vision of how things can be different and without restrictions of corporate hierarchy can be signficant advantage. However, beng a first-time entrepreneur also brings about the revealing of project management, budgeting, cost projections, marketing, collateral and an overwhelming number of responsibilities that may drive them into an abyss of ineffective and inefficient habits/approaches.
Mr. Branson, if you are so concerned about keeping clients on your airline why has it been such an issue and dispute in regards to the terrible discrimination I faced when flying? It appears that inexperience is not always a benefit. Your airline staff was so unknowledgable when it came to working with the disabled. I was injured during your flight and endured many appauling comments and awful treatment towards me before even checking in. It was the worst discrimination I had ever faced in the last 9 years since I had become a paralyzed individual. Currently I am still disputing with your airline in regards to compensation which, in my opinion, is what a top businessman should offer. Lack of training did not serve you well. Kimberly Dwyer
Thank you, Richard. One of the unspoken tenants of what you have done, is to put the customer experience first. This by looking for opportunities to enjoy your own experiences better than the way in which the status quo were providing them at the time. More than inexperience on your own part, but a lackluster experience with someone else's concept. Enjoyed yesterday's interview with Matt Laurer.
Joseph Garcia - www.linkedin.com/in/josephgarcia3 After reading this article, I believe inexperience in certain cases can be a genuine asset, if it is complemented with the wisdom gained from other areas that can be leveraged, applied or could be inspiring new visions and ideas. During my transition from the energy industry to real estate development, I leveraged my financial spreadsheet and model development experience, gained from a top Fortune 500 Company, to improve the real estate financial model used by my new employer, which calculated the lease rate, allowance, and other variables to break even. The Company used a financial model with more than 50 different related variables and several different spreadsheets years before I joined the company. The model took a senior financial analyst more than seven minutes to balance and compute all of the sheets for a single variable change. After observing this, felt this was a waste of time and I created a macro that reduced the time to just seconds. The Finance Department incorporated the macro in all of its analyses from that time forward. Many Company Owners hire consultants who may not be very knowledgeable of the Owner’s industry or the Owner’s company processes and procedures. However, the consultant brings new technology, Owner’s customer based knowledge, and/or other expertise an Owner finds valuable, if the Owner can incorporate it into the Owner’s organizational strategy. The consultant’s inexperience could prevent predisposition to usual and purposeful processes, thereby allowing consultant to freely explore, question and suggest methods that are more effective; technologies that more advanced; and requirements that are more current.
like that
Maybe inexperience is an advantage when you are lucky :)
Interesting insight into the entrepreneurial mind of Sir Richard. I do agree wholeheartedly with his views on inexperience being an advantage.Sometimes an entrepreneur has no choice but to laud his inexperience and indeed present it as an advantage. As an inventor who, like a bolt out of the blue, suddenly finds himself with 4 fascinating inventions to take to the market and distribute worldwide, the attitude is akin to that of a pregnant woman expecting her first child, and who has never been a mother before, or an adventurer boldly going where few have gone before. There are no textbooks, and as for maps detailing directions...one simply has to go with one's intuitive feeing, and with confidence too, as one feels that such confidence, conviction and enthusiasm in the enterprise are the qualities what will inevitably persuade a potential investor.Symeon OnipedeBO2BO Limitedwww.bo2bo.co.uk
Thanks Richard, and you also have the coolest hair
Richard Branson's ability to continuously stretch boundaries and think outside of the box for new business ideas is a constant inspiration to me. He does everything entrepreneurs "aren't supposed to do," and he's been wildly successful. Thanks for a great article -- wide-eyed enthusiasm is great, but it's important to temper that with good decision-making tactics and thinking things through.
He is today's most prominent entrprenör. How can he be in so many different industries?
the new ways to help the World is coming.. complete change to Innovation Creativity and Success for all... adding and creating value all the way through... http://www.google.com/search?q=koshysamuel
Break your Conventions.. Change from Traditional Ways Virgin Atlantic's early years were all about breaking conventions. I hated being stuck in one place for eight hours at a time, so we created a bar where Upper Class passengers could meet and talk during the flight. We brought massage therapists on board to relieve the tedium and ensured that all passengers had better seat-back entertainment. Continuing this tradition, Virgin America, our newest airline, has similarly revolutionized the industry in the United States.
I agree that a little bit of self-deprecation is helpful within the context of influencing people but I think the problem that many inexperienced people (especially recent graduates) have is getting in touch with decision makers. There are many barriers to connecting with people in business and you have to be pretty creative to reach people. I think the elevator pitch has had it's day as well. People are fed up of others telling them - even if they have a great idea - but I've also found that a lot of business "grown ups" don't use social networks at all - not even LinkedIn, so you need a mixed strategy of networking and marketing to reach the people that can help you. Perhaps the key message here is to crack on regardless of whatever barriers you face and hold to your vision - or intense burning desire as some would have it. Where there's a will, there's a way.
Great post, super relevant to what I've been trying to do lately contacting different companies that are hiring in the industry I want to break into. Looking for a little related feedback on the "how to" aspect though: It seems most of the good ideas (for example, trying to get a company to let an ambitious albeit inexperienced kid to run a start up division or project) require an understanding of the company's strengths, positioning, etc., I've been contacting a lot of these guys and having trouble getting a foot in the door with "hey i have an idea" or "could we discuss a partnership about bringing your web product to China?" Any thoughts related to leveraging "inexperience" would be great.
Yes. Well said. Inexperienced person may share his new & latest feelings and ideas which would be more helpful to get good growth in the business. I like this post.
Can't agree more. Mr Market is everchanging especially with Gen Y and Z playing a significant role. Past paradigms needs a revamp with fresh ideas.
Absolutelly agree, inexperienced or new person in ndustry may provide you with more unique ideas or see the gaps which you wasn't able to recognize for years!!!
So true, make it work for you in with a "can do" attitude. We often see these things as obstacles and try to manage the "what can go wrongs" instead of focusing on how we can use it to create excitement and energy.
Thank you for this post, and many people can learn from each other through internet without any difficult and share exprace in a short period of time.!
Love you work !
Great article Richard. There still can be passion in well established firms when a new set of eyes comes on board. 11 years ago I bought a moving and storage company in Vancouver Canada that is now 95 years old. We made a lot of positive changes. Currently we have a new manager that also has come in with a fresh set of eyes and is making even more changes. The growth is exciting and in our case it couldn't happen from scratch. But by building constantly, we are making waves. www.fergusonmoving.com
What a co incidence I just wrote my blog on the subject on 25th Can Do > Have Done at http://www.aanekant.blogspot.com/2011/11/go-for-thinking-people-experience-can.htmlHappy to note similar views from stalwarts like Richard Branson.
Thanks Richard for the post, read it twice, don't know why I did it :) - but it somehow relates to what I'm doing now and I'm diving into a totally new industry but utilizing my web skills to do it. Cross my fingers and hoping for the best! After reading through this article, it gives me a little more confidence. Take care.
I really like Richard Branson because he does not follow the rules and still manages to succeed. It really does pay when we listen to our intuition in life.
One can learn anew or follow others Lead?? Open to new ideas is a Plus. To experiment Yes.
I loved this piece! Inexperience brings fresh perspective. Veterans, although they have tremendous value, often lose sight of the basic need that created the opportunity in the first place.
Passion is key as well as believing in your project and the team that is working hard to achieve success. Focus on the long term goal and keep all eyes on the trophy...you will get it!
Everyone was inexperienced at one time and it can be a distinct advantage because as such the inexperienced person will conduct fresh research on the given market segment and more likely than not be up to speed with the latest technologies within the industry where as an old pro may be relying on things they learned when they were new.
Richard, contact me. I have something that you might want to use...it has Virgin written all over it - patented encryption more robust than anything out there, as in >10 million bit. I can think of so many applications for this that Virgin can still get licensing for. Cellular security, banking, documents, remember 4G/LTE = IP and internet security is the next billion dollar business.
So many times you're expected to follow rules and tout your "experience". But that doesn't really take everybody to a new dimension of solving new problems. In the current economy, you're expected to have a pumped-up resume with "great' experience but is that what's going to successfully create new solutions and innovations for the economy? New thinking, new minds should be what is sought.
I totally agree with Richard because being a novice allows you to dream and dream differently because you don't know what does and does not work. The same as being childlike in your approach to businesses it allows you to think out of the box. Either way you can be childlike and a novice and hire those or seek the advice of those that have the business sense to balance everything out. Awesome article.
Agree 110% - often being new to an industry gives you new insights into challenges, frustrations or wants people have and an ability to look past the status quo in coming up with a solution that adds to what is on the market already. The ability to find problems, challenges and desires and match them with unique solutions is the lifeblood of the entrepreneur. Great advivce!
i have found many inexpirienced emplyes who actually drive innovation as a part of the learning process
Just a quick comment, if you do have the experience to some degree or not, rest assured that declaring your self a beginner can also be a valuable piece. And truly being OK with not knowing everything or not having the answers, a lot times people get hung up on that piece and it can become an enemy of learning and moving forward. (In work and LIfe)
I think the huge thing is to build a flexible gameplan and stubbornly add to it and adjust it when need be.
It is always good to enter an industry open to new ideas and new niches.
Thanks for sharing your (in)experience(lol)with us.I agree with you,i stepped into the printing industry with no experience,just after my graduate studies.i don't know how i have managed to succeed,the only thing i am sure of,is that i consider myself as a businessman(in a general sense) and as a matter of fact,i am ready to do any kind of (legal) business. So i don't need experience,i know what i want and i manage to follow a line of conduct that can lead to success(which would then be the achievement of what i want,of my objectives).i know things can turn out to be more difficult in practice but since i love doing business i can handle the difficulties.i have started other businesses in other areas and so far,so good. That's why i understand Sir Richard Branson and i am looking forward to achieving as much as he has or maybe more.wish me good luck.Thanks for your help!
Thanks Richard, Thanks so much for this post! As a female founder of Halifax Finance Inc. there have been many barriers to entry - in fact, I founded Halifax Finance Inc. to level out the playing field in investment. There have been many times I have felt like I am a female - the only female playing on a male football team! All over the world women have a harder time to get financed to open or grow a business. This is why Halifax Finance was founded! The passion of my team and the uniqueness of HF Inc. are assets - we're innovative, risk takers, partnership makers and believe in entrepreneurs! I applaud you for helping forward female leaders with your female CEO in the UK for Virgin Money! Congrats Richard for making the playing field in the financial industry move forward! Best Lana
Great article! Lots of nuggets to take away. Like Richard I've seen many startups fail within their first year. I've had start ups and established companies go out of business on me.The sad thing though is some potentially great start ups are still not going to get the opportunity to prove themselves in the marketplace. Some of the successful established companies we see today were started by inexperienced people.
Richard, this is excellent and informative content! I'd like to invite you to share your content on our free B2B knowledgebase platform, Convey! www.conveycontent.com
Great article! Lack of experience in a certain industry is often considered as a barrier to entry for entrepreneurs and can make a lot of them feel discouraged about starting a new company. However, this article helped me understand how to give unexperience an attractive twist and consider it an asset, rather than a liability. At the end, innovation is about doing things *differently* and a fresh vision of an industry can be really useful to develop new approaches to the same problems :)
What he is say not coherent with this: (from the article avoid 10 start up mistakes) Step 3: Hire the People You Need, Not the People You Like As tempting as it may be to staff your new business with friends and relatives, this is likely to be a serious mistake. If they don't work out, asking them to leave will be very tough.When Virgin starts any new business, we always hire a core team of smart people who already know the industry and its inherent risks.
Can Do > Have Done My post dt 25/11. http://aanekant.blogspot.com/2011/11/go-for-thinking-people-experience-can.html
Starting with a fresh, unjaded and enthusiastic state of mind makes for many winning results. Virgin have shown this as have Southwest airlines, Apple, PadPivot and Symbid amongst others. Remembering ...bus tickets to Afghanistan (an early Virgin story). Good business, Roger
With a changing economy and marketplace ways of the past will become obsolete and will not be able to produce quality performance as the world continues to evolve. Experience may mean a mindset that operates on the past will inexperience may be a mindset that creates for the future. Entrepreneurialambitions.com
I can't agree more - I've been successful at many things that I didn't have the experience to do. However, it is the wise employer who sees this as an asset. Many employers want experience over attitude and fail to hire people who can turn their business around because of the new vision that these employees can bring. I feel it's easier to teach someone about the business than to teach determination, drive and hot to fail.
I've moved 37 times in my life, always embracing new experiences which Sir Richard has taken to new heights, ,literally! It's refreshing to see visionaries whom aren't afraid to think out of the box- I think they call this progress!
I totally admire Richard Branson and his nontraditional way of doing business. Watching someone like him lets me know that anything is possible if you work hard and believe you can do it.
I also can see how inexperience can be an advantage. I think it is most important to be comfortable in your inexperienced skin, as opposed to trying to hide it. I think the best answer to the experience question is a confident " I am inexperienced yes, but that means I have a fresh look and a different perspective."
I can certainly resonate with the points here. I have moved around a lot and have always found it intriguing, exciting when I enter a field I know little about. I get to ask all the "why" questions. It also talks a special partner or employer to let me in! Thank you for this post.