Sir Richard Branson, 63, entrepreneur, adventurer, and businessman, is best known for founding the Virgin Group, comprising of more than 400 companies and has earned him approximately £3 billion.* He once famously said: “When you’re first thinking through an idea, it’s important not to get bogged down in complexity. Thinking simply and clearly is hard to do.”

Sir Richard spoke exclusively to the Sage Business Community to share his experiences of building the Virgin brand and offer his words of business wisdom…

Richard, how crucial are entrepreneurs to the UK economy? And what steps would you like to see the government take to aid them?

With staggering youth unemployment figures today I believe we need to encourage all young people to consider an alternative to the traditional career path, and I think entrepreneurship offers some hope. I identify with these young people - as a young businessman, I faced my fair share of difficulties when I was starting up.

In my experience, many young people have in them an entrepreneurial spirit and they display exceptional drive. But each of them will need support on their journey. Large enterprises and government can and must do more to help these young entrepreneurs. This means adapting policy and taking practical steps to ensure the opportunities are there for those brave enough to take them.

Businesses don’t need much money to start and a student loan is enough money to get those that can grow into multinational businesses to get going. Virgin Media Pioneers have seen recent successes with Control Shift: The Rise of Young Entrepreneurs – a campaign that gives a voice to young, aspiring entrepreneurs and puts them at the centre of the conversation about the obstacles they face and their ideas on the best ways to overcome them.  After months of tireless campaigning by Virgin Money the UK Government launched a Start-Up Loan programme in September 2012. It’s available for 18-30 year olds looking to start their own business.

What are the personal qualities that you feel have helped you most? And the ones that aren’t so helpful? What makes a successful entrepreneur?

My ability to listen to other people and not having too much of an ego not to know when other people’s suggestions are better than yours! I’m never too proud to admit I’m wrong and action other people’s suggestions. Acting quickly and not getting caught up in red tape, refusing to believe it when other people tell us we can’t do thing just because it’s been the accepted way to do something in the past. Never being afraid to take on the big boys!

What tips would you give to SMEs on securing financing?

You must do your research on the market you want to enter and think carefully about the service or product and how it will improve people’s lives. It is very important to really work on how your product or service will be different and stand out. At Virgin we have always made sure our customers get great value for money and a transparent product that’s marketed in a language everyone can understand.  

Employ staff who believe in what they are selling and who would buy the product themselves. That knowledge and passion helps to sell your business far better than any advertising campaign.

Don’t be afraid of taking risks. Come up with loads of ideas and encourage your team to do the same – doesn’t matter if some do not work – the very process of challenging the status quo will help you hone your product and improve your sales.

Virgin is one of the world’s most famous brands. What advice would you give to someone building a brand?

Companies need to think about what is at the core of their service and how they portray and maintain that difference. It could be price, service or range. Whatever it is – you have to ensure you market and promote it. This should help you keep ahead of the market.

To build a successful brand, you have to appreciate what the customer wants and always deliver an extremely high standard of product and service. I’ve mentioned how important it is to have staff who believe in what they are selling and who would buy the product themselves and it’s worth repeating because it makes such a difference. Never do anything that brings your brand in to disrepute – so your reputation for best practise always goes before you. Adopt local culture but stay true to the core of what the brand stands for. At Virgin that is: quality, value for money, innovation, competitive challenge and fun.

What advice would you give to Richard Branson in 1972?

My advice would be - never be afraid of taking risks, remember it’s alright to have fun whilst working hard and never let go of your dreams.

What was the biggest lesson you learned during the early years of Virgin Records?

I think one of the biggest lessons I learnt as a young businessman was the power of delegation. It has allowed me to bring in strong managers to build the Virgin companies while I can focus on new ideas and finding the next business to start up.

How much of a hands-on role do you play in your business today, and how does that contrast to when you first started out?

I do still spend a lot time on our companies, looking for new markets and new opportunities but I am also fortunate that over 40 years I have built a strong, capable and very independent management team. This frees up my time to focus on working on issues that I am particularly passionate about. For example, our not for profit arm of the group, Virgin Unite, pursuing new philanthropic ventures aimed at tackling climate change or promoting reconciliation through the Elders (an independent group of global world leaders, brought together by Nelson Mandela, who work together for world peace).

What part of your career/business empire are you most proud of?

It’s difficult to pick just one, as we have had many successes to be proud of over the years! For me, the triumphs that stand out the most are the moments when, despite a lot of doubt and criticism, Virgin has entered a sector and truly turned it on its head in a positive way. Watching the joy on my staffs’ faces, whether that be at Virgin Atlantic when we first launched in 1984 or at Virgin Trains in 1997, when the doubters and the critics who said we’d never do it, we’d never turn an industry around, we’d fall flat on our backsides, were proved wrong. There’s no better satisfaction than watching the people around you, who have worked day and night to get something right, realising that dream.

Over the years, your businesses have covered a large scope. What factors influence your moves into new areas?

I am constantly looking for new challenges and still very much love learning about everything there is to learn about life. Whether it is how the airline business works, how the music industry has changed or how to build a commercial spacecraft, I just find life absolutely fascinating.  This enthusiasm for life means I am always on the lookout for new - and I hope - smart ideas.

There are many different reasons for entering new businesses. It can be as simple as the fact that a business sector really interests me. Alternatively, we may see areas in a sector where our brand can make a real difference to the consumer.

What is the biggest change in the world of business you’ve witnessed over the past 40 years?

The music business has changed a great deal in the last 40 years. The advent of the iPod and digital downloading has really speeded that up. I must say I loved going to the record shop and buying a good Vinyl or cassette. Now you just log on and download what you want. Quite a change!

In your book, Screw Business As Usual, you highlight the fact that business success should be about more than just making money. How important is it that successful businesses give something back to society?

Business leaders should not focus solely on earning money. They must remember that a healthy profit means that a community supports and appreciates the products and services a business offers, and also how that business is managed.

My initiatives fostered by our non-profit foundation, Virgin Unite, such as The Elders and The Branson Centres of Entrepreneurship, have given me a different outlook. I have a broader perspective than I did in the 1970s, when my focus was mostly on our local community and our customers, but as Virgin grew and our efforts expanded, I began working on philanthropy projects alongside inspirational figures such as Nelson Mandela and Archbishop Desmond Tutu. And then the types of projects expanded, taking on everything from urging world leaders to end the drug wars, to providing mentoring opportunities to young entrepreneurs, so that now I also tend to think in terms of the global community.

Our work with Virgin Unite has given our companies a fantastic boost. Customers want to know that the company they're dealing with has a moral compass and takes a socially responsible approach to doing business.

Have you any more big projects in the pipeline – after Virgin Galactic – that you can tell us about?

Virgin Oceanic is a submarine that we are developing capable of withstanding incredible pressures, in which to explore parts of the sea that no one has ever been to. By exploring the Oceans with we can learn a lot from the deep seas, hopefully we will find new species and better understand the makeup of the deep-level waters. I’m very interested in finding ways to protect and to preserve our planet - we must understand how our actions affect the oceans and how we can protect them. 

Finally, you’ve done ballooning, sailing, kite-surfing and climbed Mt Blanc, what’s your next personal challenge?

I like challenges in life and pushing myself out of my comfort zone. I just think you need to spice up life every now and then with a bit of adventure and excitement. After all – life is not a dress rehearsal!  I was very impressed and must say a little jealous of Felix Baumgartner’s record for the highest and fastest ever skydive jump from space. I am yet to decide what my next big challenge will be …but watch this space.

Have your say: What do you think of Sir Richard Branson's approach to business? Does he inspire you?