Dec 12, 2022, 1:00 AM ETInterview, Fireside Chat

Richard Branson: How A Dyslexic Drop-out Build A Billion Dollar Empire!

Branson challenges the conventional business school dogma of "focus," stating that if Virgin had remained focused on a single business (e.g., record stores), the company likely would not exist today due to market shifts like the rise of the iPod.
He advocates for a strategy of diversification to survive crises, noting that during the COVID-19 pandemic, revenue from Virgin Galactic shares and other ventures helped save Virgin Atlantic.
Branson identifies the ability to delegate as his primary strength, preferring to trust talented teams to execute while he focuses on vision, people, and ensuring the product makes employees proud.
He admits to specific weaknesses in financial literacy, such as historically confusing "gross" and "net" profit until a director used a visual analogy involving fish in a net to explain the concept.
Branson describes dyslexia as a "superpower" that forced him to delegate tasks he couldn't master and concentrate on his strengths, a trait he says helps him excel in areas that interest him.

Branson launched Virgin Atlantic in 1984 out of frustration with poor service on British Airways, specifically the lack of entertainment and the "cattle truck" experience of air travel.
To mitigate risk, he leased a second-hand Boeing 747 with an option to return the aircraft after 12 months if the venture failed.
Virgin Atlantic pioneered industry innovations including the first seat-back videos, sleeper seats for business class, and collecting charity donations at the door.
The airline survived a famous "dirty tricks" campaign by British Airways, which included a staff member hacking into Virgin's customer database; Virgin sued and won the largest libel damages in British history.
Branson emphasizes that getting "the little details right" (e.g., staff training, customer service) is the differentiator that transforms an average company into an exceptional one.

The decision to pursue space travel was catalyzed by a rejected offer from Mikhail Gorbachev to take Branson to space for $60 million, prompting him to build his own vehicle instead.
Following the death of a pilot during a Virgin Galactic test flight, Branson convened with engineers, families, and customers who unanimously agreed to continue the mission, citing the necessity of progress despite risks.
Branson successfully flew to space, an experience he describes as a "dream come true," observing the Earth from orbit and noting the early stage of commercial space travel involves inherent dangers.
He named his spacecraft's mothership "Eve" after his mother, who passed away from COVID-19 shortly before the flight, leaving him unable to share the experience with her.

Branson credits his mother, Eve, as his primary entrepreneurial influence, citing her habit of creating things from scratch (e.g., turning magazine cutouts into products) and her relentless drive to "make a better life."
His mother instilled strict principles of courtesy and empathy, including the practice of making him stand in front of a mirror if he spoke ill of others to reflect on how his words impacted him.
He chose to leave boarding school at age 15 to start a student magazine after the headmaster refused to allow him to run the publication from within the school system.
Branson views the magazine as his true education, as it exposed him to real-world issues including mental health, sexuality, and crime, leading him to set up a student advisory center.
His wife, Joan Branson, is described as his stabilizing force and "rock," providing unreserved love and grounding for their family while he pursues high-risk adventures.
Branson advises his children to follow their own dreams rather than being pushed by his legacy, noting his daughter became a doctor and his son a musician.

Branson describes the six-week period during the early COVID-19 pandemic as his most vulnerable moment, where he felt "depressed" as the business empire he built appeared to be collapsing.
He recalls a period in prison for one night related to tax evasion issues with his record business, after which he was forced to rapidly expand the company to 30 record stores to pay off fines.
In 1992, he made the difficult decision to sell Virgin Records to raise a "war chest" to combat British Airways' competitive aggression, a move he likens to "selling a group of children."
Branson rejects the notion of regret in his life, stating that having regrets would make him a "sad person" and that he values the adventure and twists of his journey regardless of the outcomes.
He suggests that high-risk adventures allow individuals to confront mortality, prompting them to write farewell letters to family and ensure their affairs are in order.

Branson pioneered the use of "personal branding," where his own extreme adventures (e.g., hot air balloons, speedboat records) directly served as marketing for the Virgin brand.
He notes that the sinking of his Atlantic record-breaking boat was a pivotal marketing moment, allowing Virgin to run a cheeky advertisement that increased brand visibility more than any traditional campaign.
He argues that competition drives improvement for both small startups and large incumbents, with Virgin Atlantic's presence forcing rivals like British Airways to innovate and become better companies.
The Virgin brand leverages a "halo effect," where trust built in one sector (e.g., trains, airlines) allows new ventures (e.g., cruise lines, health clubs) to succeed without heavy initial advertising.