Advice Line with Richard Branson of Virgin

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2:53Hello and welcome to the advice line on how I built this lab. I'm Guy Raz. This is the place where we help try to solve your business challenges. Each week, I'm joined by a legendary founder, a former guest on the show who will help me try to help you. And if you're building something and you need advice, give us a call and you just might be the next guest on the show. Our number is 1-800-433-1298. Send us a one minute message that tells us about your business and the issues or questions that you'd like help with. You can also send us a voice memo at hibt at id.wondery.com and make sure to tell us how to reach you.

3:35And also, don't forget to sign up for my newsletter. It's full of insights and ideas from the world's greatest entrepreneurs. You can sign up for free at GuyRoz.com. And we'll put all this info in the podcast description. All right, let's get to it. Joining me this week is a legendary entrepreneur, Sir Richard Branson, founder of Virgin Group. Sir Richard, it's great to have you back on the show. It's always good to be on your show. So thank you. You were a guest on the show back in 2017. It is an incredible episode. If you guys have not heard it, we will put a link in the episode description.

4:10Of course, Virgin is such an iconic brand. It is really well worth going back and listening. The story about how you started a student magazine in the 70s, I think you went and interviewed James Baldwin in his hotel room. Then you started a mail order record business when you were 20. And then you turn that into Virgin into, wow, an empire of record stores, cinemas, a record label, cola, vodka, airlines, trains, phones, banks, hotels, space tourism, like more than 200 businesses over the past 50 years. It's just an incredible story. And just a few years ago, after we talked, you blasted off to the edge of space in your own rocket ship.

4:50Yeah, that was quite a ride. And it had been a dream come true. I dreamt of going to space ever since I saw the moon landing. And then, you know, the last 20 years, we're trying to build our own spaceship and our own mothership and our own rockets. And finally, we got to space. So it was definitely a pinchy moment. It's amazing. Richard, before we get to today's callers, I want to ask you a couple of questions. When you started Virgin, right? And you started record store and you gave it this name, Virgin, at what point did you think, you know, this could be a brand that goes way beyond record stores?

5:35It's a good question. I mean, I've never really been interested in building companies with the money motive, and I've never really thought of myself as being a business person. And I never really thought of myself as building a brand. I just was having a lot of fun doing things that I thought could make a difference. And it sort of turned out that I think because we were enjoying what we were doing, we were sticking our neck out, doing it in a fun way, that suddenly we had a brand that was perceived as one of the top, maybe top 10 brands in the world. But it wasn't something that we planned. It was just something that happened over time.

6:21As somebody who is such an important brand builder, what do you think a brand, what are some of the elements that a great brand needs to have, needs to develop? I think maybe the most important thing is that you must, first of all, never let people down. And so every new venture that Virgin's done over the years, we make sure that it's brand enhancing and it's better than what we did before. I mean, if I take our latest venture, Virgin Voyages, we've now got four beautiful cruise ships out there on the seas. You know, every single little detail the team got right. It's Virgin through and through.

7:05Adults only, you know, really fun experience. and people who go on it get off singing its praises. And so that then makes it that much more easy for us to then launch the next Virgin product and will make it that much more likely that somebody who's been on a Virgin voyage will want to try a Virgin Atlantic plane or a Virgin Active Health Club. And so the key thing is just to make sure you're the best in your field. So if you launch a cruise company, it's got to be the best cruise company. But if you launch an airline, it's got to be the best airline. And you mustn't compromise at all along the way.

7:45I mean, there's virtually no other brand on earth that is in so many different categories. It's quite remarkable. I'm curious. I mean, today, obviously, there are thousands of employees all around the world involved with Virgin Group. And so there are people who can telegraph and transmit what it means to be a Virgin brand. But when you have to do that, how have you been able to really make sure that people understand what Virgin means to you so that they can take that idea and that meaning and translate it into a great product or service? Well, we have an advantage, and that is that because we're involved in so many different ventures around the world, if we set up a new Virgin company, I can pull in people from our trains company, I can pull in people from our airline company, and they already know what it is like to work for a Virgin company.

8:43So, for instance, we're just looking at maybe taking on Eurostar through the channel tunnel. And the designer that I've got to look at designing trains that will, you know, make Eurostar look like old trains is the designer that created the Heathrow Clubhouse in London, which, you know, has been there for many years. But anybody who flies with Virgin will talk about the Virgin Heathrow Clubhouse. And she did a magnificent job there. So, you know, she'll do a magnificent job for our trains. What we're trying to create is completely fresh ideas with anything we do. So our team have to always go a little bit above themselves.

9:29I mean, you've taken really big swings and you have had some very public failures. We talked about them when you were on the show back in 2017, I remember. But you keep trying out new ideas, new businesses, even now? And I imagine you will do this until the day you breathe your last breath. What drives you to keep at it, to keep starting new things all the time? You know, you only live once. And I think, you know, I've had 55 years of building businesses, but also building not-for-profit organizations to try to tackle the problems of the world. And, And apart from our businesses, we have 20 global organizations that we run on a not-for-profit basis, looking at all issues from climate change through to the state of the planetary boundaries, to conflict resolution issues, to drug reform and so on.

10:26And it would be, I think, such a waste of a life if you find yourself in a position where you can pick up the phone to pretty well anybody in the world and get through. and by getting through, hopefully get things done, get change made. So I don't want to waste the position I'm in. I will continue working day and night, most likely until I drop, and want to be proud of what our wonderful teams are creating. And I can sort of, you know, like I'm in Canada today, launching flights from Toronto to the UK, and I've just ziplined down the Niagara Falls as you do. It helps to have somebody who's the head of a company to be the icing on the cake.

11:13Everybody else has done all the hard work in getting the airline up and going and getting the check-ins desk sorted and the lounges built and the cabin crew trained and the pilots trained. And then I can come in and try to make sure that people know that we've launched London to Toronto or Toronto to London. And then it gives it a better chance of succeeding. Richard, having you on the advice line is kind of like having Michael Jordan at a sports clinic. So I'm super excited for the entrepreneurs today. Why don't we go ahead and take some calls? Are you ready? I am as ready as ever. All right, let's do it.

11:48Let's bring our first caller. Please introduce yourself. Tell us your name, where you're calling from, and just a little bit about your business. Yes. Hi, Guy. Hi, Sir Richard and everyone listening. Lovely to talk to you. Great to be here. It's truly an honor. My name is Lola Banjo, and I'm calling from lovely New York City. I am the founder of Silver & Riley, an ethical luxury brand that makes travel and fashion accessories. We handcraft Italian-made bags that blend gorgeous style, heritage, craftsmanship with modern innovation and functionality, all designed to elevate your journey. All right.

12:22Awesome. Lola, thank you for calling in and welcome to the show. So Silver and Riley, you make travel gear, like purses, bags. Tell me a little bit more about what you make. Yeah. So we make travel and fashion bags, which include duffel bags. We have women's handbags. We have men's messenger bags. We also have small leather accessories like passport holders, wallets, card holders, things like that. Yeah. And I heard the story of how you were on a flight one day, and it wasn't a Virgin flight, I hastened out. It was not a Virgin flight. What's the story? She wanted a blanket, and the stewardess said, I'm sorry, but that's just for the business class passengers.

13:05Exactly. So that experience inspired you to start a brand? That inspired me to start a brand? Wow. Sir Richard, I'm so honored that you actually know that story. I was traveling weekly as a management consultant, right? So that's one of the reasons I was on that flight that was really freezing. And I was just like, you know, Sir Richard, you always talk about your best ideas are born out of frustration. And I was so frustrated during that flight. Like, everyone needs to have these travel conveniences. And why aren't they these travel conveniences? And that's what inspired me to start the brand.

13:38Well, Richard was inspired to start an airline because he couldn't get a flight back from the Caribbean, I think, right? Exactly. Tell me a little bit about how the business is doing so far. Yeah, the business is doing great. So we launched five years ago, and we are a seven-figure brand. We're still a young brand. But I'm very proud that we have clients across 27 different countries. We have nearly 50 % repeat customers. 14 % of our customers own five or more products from us. And that's an average AOV of around$600. Wow. Yeah, we're primarily direct-to-customer, but we're also partnered with major retailers.

14:14Where are you selling your – so you're direct-to-consumer mainly, but where else are you selling? Yeah, we also partner with Nordstrom, Stacks, and the Summer Macy's, Bloomingdale's as well. So definitely building. And we just launched five years ago. So I'm proud of where we are, even though we still have a lot of work to do. All right. Before we get to, before we ask you more questions, what is your question that you brought for us today? Yeah, absolutely. So I grew up with humble beginnings, and it's been really, there's been real challenges, real tradeoffs, rejections, and failures along the way.

14:47The space is not necessarily built for someone like me to thrive in. So my question is, Sir Richard, you have built an incredible purpose-led global empire in some of the most competitive and capital-intensive industries. What helped you stake bold and mission-driven when the odds were stacked against you and resources were tight? And, Guy, I'd love to hear from your vantage point as well. What advice would you give a founder like me that's building with deep purpose in an industry where those values can be at odds and where the lack of capital remains our biggest challenge? All right, we'll get to them.

15:23Richard, I want to bring you in because clearly some parallels in the early part of your career. So thoughts for Lola? Well, look, first of all, you've got bundles of personality. You should be able to sell, go in and sell anybody anything. Thank you so much. Yeah, so, I mean, in the early days of Virgin, you know, we were doing something we passionately believed in, which was we had a magazine and there was the Vietnamese war going on. We thought it was an unjust war. And so we were campaigning very strongly against the war. So we were we were we very much had a purpose and we surrounded ourselves with other people who believed in our purpose.

16:10And so people worked enormously hard to day and night to make the magazine succeed. So, I mean, I think, you know, that with your company, you have your you have a purpose. And if you can inspire your team to embrace that purpose, I feel absolutely sure that you'll succeed. As to the second half of the question, over to you, sir. Yeah, Lola, a quick question for you is how, I mean, with a brand like yours, I know you've broken through seven figures in sales, which is awesome. You know, you're five, six years in. I'm looking at your website and your products are beautiful. Just very briefly, how are you connecting with customers?

16:53How are you making this a personalized experience? Yeah, we actually, we probably over anchor in personalization down to handwritten notes and, you know, just how our CRM personalizes the experience as well. Our clients, our family, we address them as part of the Silver and Riley family, and I really see them as such. and I think that's why they keep coming back, you know, almost a half, 50 % repeat customer rate and, you know, just making sure that they all feel like they're part of the story. You know, we, I personally do outreach and I know that's not necessarily scalable, but in the early stages, that's something that, you know, I have really leaned into.

17:34Is it true that you wish them a happy birthday on their birthday? Yes, we do. We actually have CRM that does that. So I know that's the great thing about about the many of these things are scalable, right? Like, I mean, you look at great brands like Virgin, right? When you go on to a Virgin plane or train, you know, or use a Virgin product or hotel, you're going to get a level of personalization. You look at brands like Zappos or Nordstrom where, you know, you're working with them. I mean, they are one of the reasons why those brands are so successful is because they've leaned in on customer service.

18:10and customer experience. And so to me, the question isn't, how can we continue to do that? It's how can we not, right? Like that's really the value proposition here. And so when you build that into the mission and sort of the culture of the organization, that's gonna inform every decision you make, right? I mean, I think that's sort of the way you guys operated Virgin, Richard. Yeah, and now just thinking, I mean, if somebody has a problem in one of the Virgin companies, generally speaking I'll ask the companies to make sure I know about it and if we deal with it you know properly I mean if I do a handwritten note and you know really take a bit of trouble over it that customer will be your friend for life and they'll tell another 30 or 40 people you know and so you know with the birthdays the more personal one can make make some of these things, the better and the more genuine, the better.

19:10Yeah, I couldn't agree more. I think that's also what drives a really high referral rate for us as well. 17 % of our new clients come from existing customers. I learned this also from my mother. She passed away, but when I was younger, she had a bakery. And I remember every single person that would walk through the bakery doors, she remember very little details about them that made them feel good. And I always took that away from that. And so the handwritten notes, which of course is not scalable, but I still do them. You know, during Christmas time, I'm writing hundreds of handwritten notes every day.

19:45And my team is like, just get it printed. And I'm like, I get the feedback from our clients that say, that makes me feel seen and valuable. I do worry about when we're scaling globally, how I can still maintain that. So that's something that I am watchful for. But, you know, it's something that really, really means something valuable to the brand. And so I'm grateful to be able to continue that and personalize that just like Virgin. I remember my first Virgin flight. I was just like, this is the best airline ever. Like, you know, I didn't even have status in Virgin and they still treated me amazing.

20:16And I just felt really great. And I felt like, you know what, I want every Silver and Ride client to feel like that as well. Another company that we started when I was very young was a recording studio in the countryside in Oxford and you know we'd have artists coming every two or three days and in time you're just not going to remember all the little things about those artists so like say Frank Zappa comes to the manor you know and you have a conversation I would after dinner go and write a few things down like you know the name of his wife and then you know the name of his children you know his mother may have been ill or something you know just little things so that you know a year or two later or five years later they come again and you you can actually remember one or two of these personal things which just makes such a difference um so i mean if you're going to a big chain of retail shops and you you have a chat with the you know with the head of the retail it's worth going to the loo afterwards and just taking a note of some of the things the person said because it's so good to be able to drop it into the conversation the next time you see them.

21:30That is great advice. Reminds me about how Bill Clinton used to keep index cards of everyone he met. And then of course, paid back in spades when he ran for president. Lola Banjo, the brand is called Silver and Riley. Thanks so much for calling and good luck. We're cheering you on. Yeah, very much. Good luck. Thank you, Guy. And thank you, Sir Richard. Guy, I have to say how I built this has just gotten me through some of the toughest times. So you're doing amazing work. So I just want to say Thank you for everything you do. Great having you on. Yeah, that's such good advice. I mean, this idea of remembering details.

22:01When you see somebody, you know, even a year later or two years later, and you remember something, the name of their spouse or a kid, like people are just blown away by that. It really stays with them. Yeah, it really, really is important. All right, we're going to take a quick break, but we'll be right back with another caller and another round of advice. Stay with us. I'm Guy Raz, and you're listening to The Advice Line. right here on How I Built This Lab.

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25:49Welcome back to The Advice Line on How I Built This Lab. I'm Guy Raz, and my guest today is Virgin founder Richard Branson, the legendary Richard Branson. Richard, let's bring in our next caller. Yeah. Hello, welcome to The Advice Line. You are on with Sir Richard Branson. Please tell us your name, where you're calling from, and just a little bit about your business. Yeah. Hi, Guy and Sir Richard. I'm Ross Novotny from Phoenix, Arizona. I am co-founder of Now Pools. Now Pools is the world's first and only on-demand pool and spa company. So think pools as a subscription. I love this idea. Ross, thanks for calling in.

26:27I was just in Tucson during the middle of a heat wave and it was really hot. So I can imagine a lot of people might be really interested in a temporary pool. So these are temporary pools. You could basically can rent a pool and you go and put it in someone's backyard. That's right. Yeah, we take care of all the headaches of owning a pool. So you can subscribe to our service. We go out and we set up an above ground pool. Then we take care of weekly cleaning and maintenance and chemicals, any warranty issues. And then we remove the pool when you're done with the subscription. So you get your yard back.

27:00Well, how did you come up with this idea? So my wife and I adopted our kids when they were a little bit older and having sort of young rambunctious kids wanting to send them outside in the middle of the summer in Phoenix seems like cruel and unusual punishment. So we, you know, I wanted a pool, but didn't want to spend the money. and didn't want to lose our yard. So I thought there had to be some sort of temporary way to make all this happen. And thus the Now Pools was born in that sort of crisis moment as a parent. I love it. And just briefly, Ross, tell me a little bit about how the business is doing.