“I never get the accountants in, before I start up a business”

Why is he saying so?Why is he saying so?

If not accountants’ If not accountants’ recommendations; what recommendations; what else he’s looking at before else he’s looking at before pursuing a new business pursuing a new business venture?venture?

How successful was/is How successful was/is this policy?this policy?

- Sir Richard Branson

Dare Enough to

Pose fo

r This

Dare Enough to

Pose fo

r This

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Picture

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Having enough “guts” to make controversial decisionsHaving enough “guts” to make controversial decisions

Question:

You’ve said you never get the accountants in before you start a business and that “it’s done on gut feeling.” Can you describe that feeling?

“My gut feeling was if I could create the kind of airline that I’d like to fly on, other people would like to fly on it, too. If I had gotten the accountants in, they would have almost definitely told me all the reasons why it wasn’t going to work. But my gut feeling was that if I could create the best airline in the world, there would be a market for it

We’ve set up 300 companies and almost all of them have been based on personal experience. I’ve been frustrated by the way something has been done by other people and if I can do it better, hopefully the bills will be able to be paid”

Interview with Jeff Burger; “Business Jet Traveler”, April/May 2008

Question:

Speaking of Google, why is it that Virgin, which seems to get involved in every thing imaginable, has never surfed the start-up internet wave?

“I don’t know how to use the internet – it’s not something my generation is too familiar with. And when I don’t understand an industry, I leave it alone”

Interview with Arnaud Bouillin; “The New York Times”, 2008

Why is he saying so?Why is he saying so?

Accountants will tell you reasons for ”not starting Accountants will tell you reasons for ”not starting the business”the business”

Accounting analysis is possible for the existing Accounting analysis is possible for the existing business. Totally new ventures may not get business. Totally new ventures may not get evaluated reasonably by accountantsevaluated reasonably by accountants

Accountants always are profit oriented and social Accountants always are profit oriented and social benefits are ignoredbenefits are ignored

Non financials plays a vital roleNon financials plays a vital role

High risk – High returnHigh risk – High return

What is he looking at before What is he looking at before pursuing a new business venture?pursuing a new business venture?

Looking at…Creating unexplored market spacesBased on…

Gut feeling Intuition Personal experience

Not looking at…Financial viability of the projectBased on…

Pay Back Time Net Present Value Internal Rate of Return

What is he looking at before What is he looking at before pursuing a new business venture?pursuing a new business venture?

Create unexplored market spaces – The Blue Ocean Strategy (W. Chan Kim and Renée Mauborgne )

In this strategy, “Blue oceans” denote all the industries not in existence today

The market space, untainted by competition. In blue oceans, demand is created rather than fought over.

virgin

He is looking for the Virginity of the market!

How successful was/is this policy?How successful was/is this policy?

Sir Richard Branson - Current net worth hoovers around £2.2 billion. Forbes ranking, 236th richest person on Earth

Virgin Group - Over 360 companies under Virgin umbrella; Over £10 billion revenue (2006 figures). Net worth = £5 billion

Virgin Atlantic Airlines – In the year to February 2007, Virgin Atlantic carried 5.1 million passengers and made an annual profit of £46.8 million on turnover of £2.1 billion

Virgin Media Broadband – First broadband service to offer 50mbps ultra fast internet (9 times the average UK speed); 12 million household users in UK. £8.25 billion revenue in 2008

Source: www.wikipedia.org

Thank You!Thank You!

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