Richard Branson's partner model, and the Virgin Brides lesson
In his opening remarks at Family Office Club's 2023 Super Summit, Richard described how Richard Branson built so many companies. He also pointed out one that did not work.
The partner model
As Richard tells it, Branson finds a good partner, gives them 50 percent of the upside and has them run a division. Richard says that is how Branson has grown more than 500 companies.
Virgin Brides
Richard notes that not all of Branson's companies succeeded. He mentions Virgin Brides, which he says could not find customers and had to close.
The takeaway
Richard told this right after the Jobs and Gates story about mistakes. The pattern is similar. Builders at this level make mistakes, close what fails and back what works.
In Richard's words
"He'll find a good partner give him 50 % upside Have him run a division and that's how he's grown so many companies" (Richard C. Wilson, Super Summit 2023 opening remarks)
"He had one called Virgin Brides, they couldn't find any customers, and they had to close down." (Super Summit 2023 opening remarks)
How to use this
- Give strong operators real upside so they act like owners.
- Let each partner run a clear division.
- Close what fails quickly and move on.
- Expect some ventures to miss, even with a strong brand.
Questions and answers
How does Richard Branson grow companies?
Per Richard, he finds a good partner, gives them 50 percent of the upside and has them run a division.
How many companies has Branson started?
Richard says more than 500.
What was Virgin Brides?
A Branson business Richard says could not find customers and closed.
What is the lesson?
Even serial founders have failures. Back winners and close what does not work.