Power For The People

By Patrick Hanna

Entrepreneurs often have difficulty finding sponsors for their companies; Many people cannot find support but still start a company only to later run out of cash. Others find investors who promise funding but often go back on their word when things get tough or don't pour in money as quickly as they expected. Ideally, you should be able to fund

• Language: English
• Publisher: Patrick Hanna
• Release date: Oct 3, 2023
• ISBN: 9798868952890

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Power For The People

Power For The People

Copyright © 2023 by Patrick Hanna

All rights reserved

TABLE OF CONTENTS

CHAPTER 1 : CHOOSE A PARTNER

CHAPTER 2 : THAT'S BECAUSE DOCTORS DIAGNOSE

CHAPTER 3 : DECENTRALIZATION AND DEMOCRACY IN PRACTICE

CHAPTER 4 : WHY ARE TAXES BAD?

CHAPTER 5 : BUSINESS ACTIVITIES ARE DIRECTLY LINKED TO VALUE

CHAPTER 1 : CHOOSE A PARTNER

Take the investor's path

MOne of the common questions I get related to starting a company is how to find investors and choose the right partners.

Entrepreneurs often have difficulty finding sponsors for their companies; Many people cannot find support but still start a company only to later run out of cash. Others find investors who promise funding but often go back on their word when things get tough or don't pour in money as quickly as they expected. Ideally, you should be able to fund yourself, otherwise, finding a reliable source of startup capital is important to your company's ability to succeed.

In the early stages of my startup, I tried not to bring on any financial associates because I wanted to hold all the shares in my companies. My friends and I worked hard to keep our companies afloat solely on the amount of cash they generated. For our first company, Student magazine, we did everything we could to sell front-page ads to pay the bills, and when we started Virgin Records, we put out leaflets inviting people to join us. record buyers.

This means our growth is a little slower than we would like, but it also means I can reward shareholders in the company. I am free to steer my business in any direction I want without having to waste time on distractions like begging or waiting for shareholder approval.

The adventures of the early years captivated employees and associates who enjoyed our work ethic and fun. When I think back to how I chose my collaborators in the music industry, I remember that they were chosen for very practical reasons. One person has the largest record collection I know; The other person always seemed to be able to answer all my stupid questions.

Over the years, my professional and corporate relationships have become more complex. Since then, Virgin has partnered with many different types of organizations, from large multinational companies to professional investors, to the management of companies that want to use the Virgin brand when they join. a market. Our experience has shown that, while a potential associate's ability to sponsor is important, it is not an essential quality that will sustain the relationship and the firm's business over the long term. .

When evaluating an investor or a partner, don't just look at the capital you need to start your business. Ask yourself: Will this person or team give us the space and time we need to build a great company? Remember that a dictatorial finance partner can quickly drain the spirit and enthusiasm of a new company, extinguishing the fire that motivated you to launch the project – the fire that differentiates your company from your competitors. .

I've found that the relationships at Virgin work best when we find investors who take the smallest stake in the company while providing capital, support, and letting us run the company. operate the company as well as hire key management.

We have created some great partnerships through the Virgin mobile phone companies. In the majority of cases, we find a mobile telecommunications operator that wants to leverage the strong appeal of the Virgin brand to enter a new market segment. The telecommunications service operator will provide the mobile network and, in some cases, capital; We provide the expertise, branding and human resources needed to get new businesses up and running.

Where the situation was reversed, where Virgin partnered with a smaller management team willing to enter a new market sector, I think we stood by our principles, and for our associates. us the space, time and capital they need to build their businesses.

Virgin Active, our health club business, is built on a partnership with the founding management team of Frank Read and Matthew Bucknall. Over the past twelve years, we have completed several acquisitions together and expanded across six countries. Virgin Active is currently an industry-leading business and Matthew is its CEO. Virgin provides the brand, reputation and sometimes even the capital that businesses need; Management provides industry knowledge, local knowledge and above all the passion and commitment to make things run well.

In general, you need to ensure that your people are inspired and given creative freedom. After all, the success of your new business depends on the most important partnership: the one between you and your employees.

If you have the right kind of collaborative relationships, your chances of success will be much higher. Just as you need the freedom to build the business according to your vision, they also need the freedom to develop their own areas according to the needs of customers and other employees. Whether or not they have this independence, which is indispensable to the future success of the business, depends on how you choose your finance associate.

So remember: a financial partner is helpful, but a strategic partner who can give you and your team the space, time, and freedom you need to build your business is a friend. authentic – and one that will likely stand the test of time.

INVEST IN EMPLOYEES

And they will invest in you

CHow a new company treats its customers is often the deciding factor in its success or failure. Great companies – but the ones that do it well – are masters at turning customers into advocates. This means their marketing efforts are supported by customer referrals as well as positive reviews on social media channels and review sites – important influencer channels. especially to people's buying habits today.

Many companies around the world succeed by providing excellent customer service. The fondness that some of Apple's loyal customers have for the brand and its products is not just a result of the company's groundbreaking innovations; Those products are also backed by excellent customer service. Apple's frontline employees are known for being passionate and knowledgeable, thereby ensuring that almost no customer has a bad experience at Apple's store system, and most will return to buy again. the latest devices.

Customer retention is important for any company; After all, retaining customers is much better than constantly chasing after new ones. In the travel industry, companies must value customer service if they want to be successful, because a great flight, train or trip to space always begins and ends with service. Great. While a company may seek to improve the interior of a plane or train, installing more comfortable seats, serving better meals, expensive technology, and luxurious design will not What's the point of poor customer service?

Consider how many times you have had to complain about how poorly you were treated by a large company, when in reality you were just talking about a bad experience you had with an employee of the company. that company. I was recently reminded of the importance of customer service for every company, new or established, when I visited Virgin America to officially establish a training model in Burlingame, just outside San Francisco. At Virgin, where our brand is built on the promise of great customer service, our cabin crew are our most important asset – without them we'd be just another airline. normal aviation. This new $1 million model is critical to our expansion plans.

Not every business needs to build a training facility; Indeed, many companies do not need high-tech solutions. But after reconnecting with the team at Virgin America and seeing how they train new people, I discovered three important lessons.

1. Investing in employees is investing in the company

Every airline must ensure that everyone, from pilots to ground staff, receives rigorous training in operations, safety, security and even medical care, but at Virgin America, that's just the beginning. Our employees are also instilled with brand values through an annual two-day branding course, which the company calls Refresh. During these training sessions, they focus on improving customer service across the entire airline.

Cabin crew will gather with colleagues from other departments and receive training in conflict resolution, hospitality and emotional intelligence. The program is designed to help employees truly understand the customer's perspective; solve problems instead of pushing them to higher levels.

As an entrepreneur, what can you do to rally your team, solve problems together, and build trust within the team? At a small company or a startup, this can be done in a simple way, like starting a tradition of having lunch together every Friday and reviewing the past work week.

2. Lead from the front line

During Refresh training, David Cush, CEO of Virgin America, often holds Q&A sessions with employees to ensure that he is the one addressing their concerns. This is the first step in building a strong relationship between frontline employees and senior managers, thereby making communication more open and easier.

Directors and managers who want to learn how to improve operations must get out of their cubicles to learn about their employees. If your company is so large that it's difficult to meet regularly, spending a few hours personally handling customer complaints or working on the factory floor will help you understand what's going on.

3. Make sure employees have the tools they need to succeed

The Refresh training helps Virgin America employees learn how to solve problems on their own – the secret to great customer service. This is an unusual approach; Most companies impose limits on employees regarding the types of problems they can solve and the authority they have. But our experience shows that the best solution is to give people the skills and confidence they need to solve problems themselves, rather than sticking to a script or following a diagram. process (or putting responsibility on someone else).

Usually what is missing is information. If during a meeting with an employee or during your time at the factory, you see that the employee is groping for answers, it's time to take action. Get rid of database access limitations; invest in new information technology; Do whatever is necessary to ensure they can take their own initiative.

In tough times, when competitors are cutting costs, you may be tempted to do the same when it comes to customer service. But remember that discounts are not the only solution. Every customer is valuable; In the long term, a successful company is built on relationships; not just mere profit.

THE DAY THAT MUSIC WAS NOT DEAD

From vinyl to CD to digital to…

TIn business, change sometimes happens faster than you would like – revolutionary technologies suddenly appear on the market, tastes change and economies shift. Asking employees to embrace change and be creative is all well and good, but it won't quell their (or your) fear. The truth is that change is always a threat – it threatens to end your company's existence.

Let's face it: no company lasts forever. But technological advances are happening to the music industry at a dizzying speed.

Given Virgin's long experience in the music industry, I often receive questions from readers about the future of the industry. What will happen next? How can anyone establish a successful business in this space when revolutionary changes are upsetting even the smartest players?

Our experience shows that there is always opportunity in times of transition. Those pundits who for the past 10 years have been predicting the end of the record industry should remember the last time it was in crisis: 1982. The economic downturn has had far-reaching effects. At the time, Virgin Retail had more than 100 record stores across the UK. On Saturdays, they are packed; on weekdays they are deserted and on Sundays they are closed. Then the CD appeared.

The advantages of this new format immediately became apparent. They are much smaller than vinyl records and do not wear, distort or create surface noise. My notebooks during that period were filled with questions about its potential impact on our company. I wrote: What will happen to record collecting across the country – will people replace vinyl records with CDs?

Initially, the only way we could survive the CD threat was to start clearing out our warehouses to make room for new merchandise, and we started reducing the price of vinyl records. We were successful in shifting the company's business to CDs, something that none of our competitors were able to do.

We can also see that another new retail phenomenon is taking shape. Two years after personal computers were introduced to the market in 1980, there were almost 500,000 video game consoles in use in the UK. Very quickly, selling games and then DVDs became a worthwhile side activity in our stores.

By 1986, even Virgin Megastores were in danger. Our biggest rival, HMV, is following suit by opening huge stores, some of which are close to our key locations. Undeterred, we opened a store in Dublin and it was the largest store in the world at the time. The store not only sells rare music records in the genres of rock, folk, jazz, or classical music, but also sells music videos, games, and computer software. This is where I can see the future of the company.

And we competed very strongly with old-school retailers, such as Woolworths, Dixons and Currys. The windows and interiors of our stores are exciting and vibrant. We bring bands in to perform and sign autographs. These events help us sell more records and get more attention from the public.

In short, thanks to the disruptive change that took place, we changed our business model and were very successful in the 1980s and 1990s. Virgin Records' music captivated listeners. around the world, many of whom went to the Virgin Megastore to buy the disc.

Will all this work protect us in the future? Of course not. The truth is, from the start, our smaller Virgin Records stores made very little