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Richard Branson's approach to business defies conventional wisdom, particularly the emphasis on focus that is often taught in business schools. Instead of concentrating on a single venture, Branson has built an empire by diversifying and exploring multiple industries. This strategy not only keeps his entrepreneurial spirit alive but also acts as a safety net during turbulent times.
Photo: Virgin.com
"I really have been interested in creating things I can be proud of and a lot of those things come out of personal frustration. I've ended up, you know, trying a lot of things and I just found it great fun."
Branson's journey began with Virgin Records, but he didn't stop there. His ventures span from music to airlines, telecommunications, space travel, and more. Each new business emerged from a personal frustration or a desire to create something better. This passion-driven approach allowed Branson to innovate continually and stay ahead of the curve. When the digital revolution disrupted the music industry, Virgin's diversification into other sectors ensured the company's survival.
"If we'd stayed still and only done, only focused on one business, let's say record stores, we wouldn't have a business today because the iPod and free music really put them out of business."
The COVID-19 pandemic further underscored the importance of diversification. While Virgin Atlantic faced severe challenges, the ability to sell shares of Virgin Galactic provided crucial financial support. This flexibility illustrates how a broad portfolio can provide stability and opportunities for growth, even in the face of unforeseen crises.
Other successful entrepreneurs have echoed the importance of adaptability and diversification. Elon Musk, for example, is known for his ventures in diverse fields such as electric vehicles (Tesla), space exploration (SpaceX), and renewable energy (SolarCity). Musk's willingness to tackle different industries stems from his vision of a sustainable future and the belief that bold moves can lead to significant advancements.
Similarly, Steve Jobs once said, "Innovation distinguishes between a leader and a follower." Jobs himself ventured beyond computers, leading Apple into new realms with products like the iPod, iPhone, and iPad. Each innovation opened new markets and transformed industries, demonstrating the power of looking beyond a single focus.
Another relevant story comes from the early days of Amazon. Jeff Bezos started with an online bookstore, but his vision quickly expanded. By diversifying into various product categories and services, Amazon became the "everything store." This broad approach helped Amazon dominate e-commerce and venture into cloud computing, artificial intelligence, and even entertainment.
In conclusion, while traditional business advice often emphasizes focus, the experiences of Richard Branson and other successful entrepreneurs highlight the benefits of diversification. By exploring multiple industries and staying adaptable, businesses can not only survive but thrive in an ever-changing world. Diversification fosters innovation, provides learning opportunities, and offers a safety net during crises. As Branson's story shows, breaking the rules of focus can lead to long-term success and resilience.
Listen to Richard: