Sir Richard Branson: A Business Success Story (Part 3)
Richard Branson‘s success story is one of the musts reads for any aspiring entrepreneur. His life is an amazing and profitable adventure that entrepreneurs should learn from especially for encouragement. Sir Richard Charles Branson is currently in the Forbes list of top richest people in the world. He has a net worth of five billion dollars.
Sir Richard is renowned for being the founder and manager of the Virgin Group Ltd. This venture capital company has its base in Great Britain. It has more than four hundred different businesses from across the world.
The Beginning of Entrepreneurship
You must have heard that Branson decided to quit school at the age of 16. Well, this is not a hoax! He quit school to begin his first successful entrepreneurial activity. Notably, the first business he established was a youth culture magazine dubbed The Student. The fascinating thing about the publication is that students ran it. For its first edition, the magazine sold $8000 worth of advertising that was launched in 1966. After a successful collection of advertising fees, Branson disseminated about 50,000 copies free.
In 1969, Branson was living in a London commune surrounded by British music and drug environment. From the scene, Branson developed an idea to begin a mail-order record company. He opened the company that expanded the business venture that consequently enabled him to open a record shop in Oxford Street, London. By 1972, he had already established a recording studio in Oxfordshire, England. The recording studio was branded Virgin Records.
The Virgin Records was the first company in the vast Virgin Empire that rules the business world today. Mike Oldfield was the first artist to record his single “Tubular Bells” in 1973. This song became an instant hit, staying on the UK charts for a whopping 247 weeks. Using the momentum gained from the success of Oldfield’s hit single, Branson signed other musical individuals and groups including Sex Pistols, Culture Club, the Rolling Stones, and Genesis.
The Start of Virgin Atlantic Airways
1984 is the year Branson made an establishment that he is mainly known for in the contemporary entrepreneurial space. The ‘Virgin Atlantic Airways’ was birthed! In his autography, Branson wrote about what inspired him to start the Virgin Airline.
Interestingly, he stated that his interest in the airline industry started during a trip to Puerto Rico with his wife. During the travel, their flight was canceled, and they were among the hundreds of passengers stranded at a small island airport. Luckily, Branson tracked down a chartered plane and divided the cost of the aircraft among the stranded passengers. That allowed the passengers to reach Puerto Rico for $39 only.
Few months after the Puerto Rico incident, a colleague approached him and offered him the idea of starting a transatlantic airline company. Nonetheless, there was one thing that was standing between Branson and his dream to establish the Virgin Atlantic. That was British Airways! However, Richard remained optimistic and believed that he would beat existing major airlines to satisfy the needs of the customers. Branson believed that his brand would be the best in the industry. He would make flying an enjoyable and affordable experience that could beat British Airways.
Initial Success and Challenges
Initially, Virgin Atlantic proved to have grown into a tremendous success. The airline always went the extra mile to offer lavish services such as hydrotherapy baths and in-flight messages. Besides, the airline had backseat video screens in every class and free ice cream during movies. In 1990, Virgin Airlines faced a turbulent period because British Airline enhanced its services to measure up to the competition.
After a rough time trying to keep the airline company on track, Branson sold the Virgin record business to EMI for one million dollars. Branson recalls that he wept after closing the sale because the record business had been the very start of the Virgin Empire. Remarkably, Branson did not give up his passion for music. In 1996, he created V2 Records to re-enter the music industry.
Expansion of Business
Through his undying passion to become the best in business, Branson has successfully expanded Virgin Group. The group now holds more than 400 companies in more than 30 countries. Currently, the Virgin Group has subsidiaries in the United Kingdom, the United States, Australia, Canada, Asia, Europe, and South Africa. Branson has expanded his scope in business to include a train company, a mobile phone company, a luxury game preserve, and a space-tourism company.
The latest venture in the Virgin Group is Virgin Fuels that is set to respond to global warming issues. This company will exploit the recent spike in fuel costs by offering a revolutionary and cheaper fuel for automobiles. There are also insights that the company will also look into aircraft fuels in the near future.
