This week we are looking at another success story, Richard Branson. Learning how someone else found success, might provide you with some inspiration on how you can make your fortune. Watch now!
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Richard Branson is one of the most famous entrepreneurs in the world.
- His net worth is $5.1B
- One of Times 100 most influential people in the World.
- Virgin Group has over 60 companies around the world
- Virgin is one of the most recognized brands
He has grown a massive company with huge success. The question you are all asking is how did he do it?
The good thing about studying Richard Branson is he has done a lot of media interviews that we can pull information from. There is one interview in particular that has always stood out to me, as highlighting one of Branson’s strongest traits. In this interview he tells the story of a difficult time at his company. Here is the story he told.
This took place right when he started his airline company, Virgin Atlantic, that flew planes from London to New York. This was rapid growth for his company. He returned home from the first flight, and his banker was waiting at his doorstep. His bank was calling all his bank loans to be paid immediately.
Let me give you some background. It is fairly common in a business loan for the bank to include a clause that says if something changes significantly about your business, they have the right to call the loan and require you to pay it back immediately. That is what happened here. They said the new Virgin Atlantic business venture was too risky, and they want to pull their investment out of the business, effectively shutting it down.
I do not blame the bankers here. Bankers have their own responsibilities. Bankers are trying to achieve a certain risk profile in the portfolio of their bank. And this was not a good fit for them anymore. But that really put Richard Branson in a difficult position. Can you imagine his situation? You are rapidly growing the business and overnight you lose all the company’s funding. This was an impossible situation.
So what did Richard Branson do? He did not give up. He figured out how to stretch his cash, and within one week, found a new bank that replaced the funding on even better terms. The key takeaway from all of this is Don’t Give Up. If you look at Branson’s career, this is a theme that comes up again and again that drives his success.
Let us talk about you for a second, because there is a reason this is so important. As a business person, your responsibility is to seek out profit. What is profit? Profit occurs in a market when value is created. Value is created by solving problems for customers. Problems come from uncommon situations. The root of all of this is uncommon situations.
Let me give you an example of this. If I was going to open up a dirt shop, no one is going to pay me for the dirt, because dirt is everywhere. You could go out to the front of your house and dig up some dirt, so you are not going to come to my shop. If something is really common, no one is going to pay you for it. Profit exists at the edge of markets. You make the most money when you are taking existing systems and pushing them a step further, innovating, and pushing the boundaries. That is the true core of what business is about. Business is about making people’s lives BETTER, not staying the same.
If that is what business is about, let me tell you something… You are going to have some difficult days. When you are pushing the boundaries and heading into the unknown, you are going to make people uncomfortable. There is going to be uncertainty. There is going to be stress. It might even be a bit scary. You are going to find yourself in those soul crushing moments where it feels like you are running smack into a brick wall. That is the moment that you need to tell yourself “Don’t Give Up.” Because that is the moment you are there for as a business person.
In Richard Branson’s situation, he had two options. He could have given up, said “this situation is impossible,” and shut down his company. But he did not do that. He didn’t give up. And he figured out a solution. The reason he did not give up, is that Richard Branson understood that creating value is important. It is worth not giving up. I do not care what business you work for, you are creating value in somebody’s life and that is a noble endeavor that is worth not giving up.
If you are struggling with something in your life, if you are having a difficult time, if you are scared, remember this: Don’t Give Up. This is why Richard Branson has been so successful. This is part of your role as a business person. This is how you find p rofit. But it is more than that. This is how you make everyone’s life around you just a little bit better.
Richard Branson’s interview:
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Neither Zach De Gregorio or Wolves and Finance Inc. shall be liable for any damages related to information in this video. It is recommended you contact a CPA in your area for business advice.