Have you run your own business?
After launching hundreds of ventures across four decades, I know first-hand that there isn’t anything like hands-on experience when it comes to running a business. When starting out, the learning curve is steep, since you have to master a variety of fields all at once – from supply-chain management to marketing, to accounting, to customer service. I don’t think any course of study can truly prepare an entrepreneur to successfully handle all of these important aspects of an enterprise. So as a consultant, unless you are an expert in a niche field relevant to a very specific consulting need, I would expect you to have an abundance of entrepreneurial experience. And this sort of experience doesn’t come down to merely understanding the nuts and bolts of the business world – it’s also about having fundamental people skills. Show me that you understand how to inspire, motivate, and lead others; this is the single most important factor for success in business.
Have you experienced failure?
Failure is simply indispensable to the entrepreneurial experience. At the Virgin group, I don’t think we’d be where we are today if it hadn’t been for the many small and large ventures that didn’t do as well as we had hoped. Remember Virgin Brides? Or Virgin Clothes? These ventures feature prominently on our list of epic failures – yet they helped us to build better businesses. The reason is a simple one: There is more to learn from mistakes than from successes. Understanding what went wrong, where instincts failed, or what international and external factors were responsible for taking an enterprise, of course, are all vital lessons in business. Understanding the failures of the past is key to having success in the future.
Do you know a bad idea when you see one?
In the case of Virgin Brides, our failed entry into the wedding and bridal wear sector in the 1990s, we jumped into a highly competitive, crowded market that we knew little about, and our product failed to attract customers in the same way that other Virgin brands had managed to. We learned that when people are in the market for a wedding dress, tradition prevails over Virgin-style, red-hot disruption, so we weren’t the right fit (so to speak). In many ways, we hadn’t done our homework – and we also allowed our overblown expectations to get the better of us.
Are you hungry for knowledge?
Businesses, markets, and societies are constantly evolving. When we started Virgin Records in the early 1970s, we were living in an analog, fragmented world, selling vinyl records that catered to niche musical interests. Fast-forward four decades, and we are in a globalized, interconnected business environment that has very little in common with the world that Virgin was born into. Global supply chains, electronic commerce, the arrival of social media, and changing demographics have radically transformed the way that we do business. For a consultant to be successful in this quickly evolving world, he needs the ability to adapt frequently, a zeal for lifelong learning and a willingness to embrace an even greater degree of specialization than ever before. Just think about the armies of consultants who have found ways to make a living by working in search-engine optimization, social-risk assessment or stakeholder management, to name just a few of the options.
Thank you, Richard Branson, for allowing us to print this article. It was originally published on www.virgin.com.