
     
RICHARD BRANSON: When small-business owners think big
     Question: How can a small-business owner go about laying the foundation for a corporate culture like Virgin’s?                   | 
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            |            Published:           2011/02/14 08:25:44 AM          | 
   
               
Q: How can a small-business owner go about laying the foundation for a corporate culture like Virgin’s? 
                 
     
            
A: Whether you’re launching a new business or preparing to  expand your existing one, laying a solid foundation for the future is  critically important – bringing in investors, getting your contracts  right, hiring your core team members, choosing the right suppliers. The  fact that you are thinking about this question shows that you already  have a sense of where your priorities should lie and you’re ready to  follow through. 
                 
     
            
To be honest, when my friends and I started the first  Virgin business 40 years ago, we had no master plan – especially not one  for a group of companies that by 2011 would number more than 400  businesses around the world and employ 50,000 people. Had we tried to  plan for such a future, we would certainly have messed it up. 
                 
     
            
If there is a "right" way to develop your company’s  culture, our experience shows that it should evolve organically. In  1970, my friends and I weren’t planning to do anything other than make  some money and have a good time while doing something we loved. We loved  listening to music, so we tried to sell records to other kids who  wanted a fun place to hang out while deciding which ones to buy. We had  no marketing plan or budget – our goals were simply to make enough money  to pay the rent and our suppliers, and to have some cash left over at  the end of the month. 
                 
     
            
Our launch was really no different from that of most small  companies, since few entrepreneurs start thinking about their business’s  culture until it is already well established. If I think back to what  we did right, it was in our planning process, when we made sure we were  having fun working together and that everyone who had a good idea was  included in our decision-making process. We had accidentally stumbled on  the core elements of a culture dedicated to delivering great customer  service! It turned out that people who work in a friendly environment  that is tolerant of mistakes, and who are empowered to make decisions  about how they do their jobs, arrive at the best possible solutions for  serving customers. 
                 
     
            
When you’re sorting out what your front-line colleagues’  priorities should be, remember that how you treat the customer will form  the basis of your corporate culture. Put your staff first, listen to  them, and follow up on their ideas and suggestions. 
                 
     
            
Because you can be sure that every person on your staff  already has deep insights into what your customers want and what  employees need in order to deliver it. Should they focus on delivering  solutions tailored to each customer’s needs? Or on building lasting  customer relationships? Or should they quickly deliver the goods or  services your company offers? Listen carefully and find ways to empower  each person to do a great job. One of my mentors, the late Sir Freddie  Laker, was famous for his standard response to any staffer who came to  him to whine about something: "Don’t bring me problems, bring 
                 
     
            
me solutions!" (He could certainly never be accused of running an autocracy.) 
                 
     
            
Small-business owners often find it tough to learn how to  handle success. When a business does well, many chief executives start  to focus solely on increasing profits, no matter what the cost – leaving  behind everything that originally made the business special. The  founder usually moves to a big corner office on the top floor and never  again sets foot in the factory. Employees who were integral to the  company’s early success suddenly find they are the last to know what is  happening, and their views are no longer valued or sought. 
                 
     
            
So try to ensure your company grows at a comfortable pace  and, whenever possible, involve your employees in the company’s  evolution. If you are a small-business owner mulling over an expansion,  tell all your employees about your plan – include everyone from the  truck driver to your senior team – and ask for their input. If you can,  it would be best to work out the details of the expansion plan together,  taking into account the challenges faced by your employees, and  incorporating improvements they would like to make. The ultimate winners  will be your customers and the bottom line. 
                 
     
            
At Virgin, we have never had to struggle with the typical  problems of big corporations, probably because we never really got big –  we just diversified. Our growth was once described as "vertical  disintegration" because our new businesses frequently appear to be  tangential or even completely unrelated to our core mission. When Virgin  was known for producing and selling records, for instance, we started  up an airline. 
                 
     
            
The traditional corporate response to our typical plan for a  new business would be, "I’m sorry, but we’re a ____ company. This  business not within our core competency." But we see a uniting factor in  our dedication to customer service. Instead of becoming a huge, bloated  entity locked into a single sector, these tangential forays have kept  our company fresh and different – we are always learning new businesses  and recruiting smart new people. Each Virgin company is run by its own  largely autonomous management team that relies on the same  small-business principles we’ve employed since the very beginning. 
                 
     
            
Whatever route you decide to take as you expand your  business, make sure that it builds on your company’s past successes, and  that it fits with the corporate culture and the vision for the future  that you and your team have created. If someone says, "That’s not the  way a big company would do it," take it as a compliment! ©2010 Richard  Branson. Distributed by The New York Times Syndicate 
                 
     
            
• Branson is the founder of the Virgin Group. He maintains a  blog at www.virgin.com/richard-branson/blog. You can follow him on  Twitter at http://twitter.com/richard branson. Questions from readers  will be answered in future columns. Please send them to  branson@bdfm.co.za and include your name, country, e-mail address and  the publication where you read the column.