Richard Branson has faced highs and lows at the helm of one of the world’s biggest conglomerates—but over the course of five decades, his business acumen has helped him build a multibillion-dollar empire and a personal fortune of $3 billion.
In a LinkedIn post on Wednesday, the billionaire Virgin founder, who spends most of his time on his private 74-acre Caribbean island, responded to a question about the most useful skills for entrepreneurs.
He shared his top tips for budding entrepreneurs—as well as a reminder to remember that “every business should be launched to solve a problem.”
Listen
“Listen deeply and always act with empathy,” Branson urged anyone thinking about running their own business. “I can’t underestimate the power of listening.”
He added that simply being receptive to others, and listening more than he speaks, has helped him come up with all kinds of ideas. To maximize on this, Branson said, he is constantly taking notes wherever he goes, which helps inspire new ways of doing things.
“Being a good listener and an empathetic person is the only way to put yourself in the shoes of your customers, which is the best way to run a business,” he advised. “You can’t solve a problem unless you really understand it.”
Take risks—and look on the bright side
Anyone starting a company needs to “embrace optimism” and say yes as much as they can, according to Branson.
“Entrepreneurship is often a ‘no risk, no reward’ arena, so you’ve got to take calculated risks and realize it’s okay if it doesn’t always work out,” he said.
Earlier this month, Branson’s rocket company, Virgin Orbit, shut down after filing for bankruptcy and selling its assets and equipment. The firm, founded in 2017, flew numerous missions but had difficulty raising funds and never made a profit as a public company.
Questions have also been raised about whether some of the British entrepreneur’s other high-risk bets—like investments in space tourism and hyperloop travel—will pay off.
In a recent interview with the BBC, Branson said he feared he would “lose everything” during the pandemic. He personally lost $1.5 billion trying to save his companies as COVID-19 bit into businesses around the world.
Despite troubling times alongside the positive ones, however, Branson insisted that risk-taking is a necessity for any founder.
“I often say that every risk is worth taking as long as it’s for a good cause and contributes to a good life,” he noted in Wednesday’s blog post.
The Virgin founder said he lives by the mantra: “The brave may not live forever, but the cautious do not live at all.”
“Your career and life will be so much more exciting if you’re taught how to take smart risks, lean into your fears, and see the glass half-full in life,” Branson added. “This is innately linked to trusting your instinct, which is certainly something that can be learnt and should be regularly exercised.”
Utilize your team
Branson—who received a knighthood for services to entrepreneurship in 2000—noted that it was vital for entrepreneurs to get the best out of their team. That meant managing people effectively, but also being a great teammate.
“Delegate and collaborate effectively,” he wrote. “The truth is that Virgin could never have evolved from a student magazine to a global brand if I hadn’t learnt how to trust people, collaborate, and delegate.”
For young people dreaming of leading a business, he said, it was important to learn the power of delegating and bringing out the best in others as early as possible.
“Everyone brings such different skills to the table, and you really can’t do it alone,” Branson noted.
Be creative
Creativity should be used to solve problems, according to Branson, who said that as a person with dyslexia, thinking differently is “all I’ve ever known.”
“You can’t innovate without lateral thinking and using creativity to solve problems,” he said. “Giving people the permission to dream big, bring radical ideas to the table, and draw outside of the lines is so important.”
“It makes life a lot more exciting, too,” he added.
