Why Sir Richard Branson Doesn't Need Accountants?
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Why Sir Richard Branson Doesn't Need Accountants?

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  • First, the question will be divided into 3 sub questions, to make easier to present our points
  • The attention grabber of the presentation. Start by making a controversial statement that “This is the reason why Richard Branson don’t want any accountants involved in start up businesses”. Then, taking his decision to pose for this picture as an example, we will highlight the fact that Richard Branson is a “risk taker” in his character, and willing to do un-conventional things.
  • This slide will make the background for the answer, as supporting facts from Sir Richard Branson’s own words
  • This slide will make the background for the answer, as supporting facts from Sir Richard Branson’s own words
  • Answer to the first sub question. Mainly summarized points above 2 slides of SRB’s interviews
  • Answer to the second sub question. What is he looking for?
  • Elaborating the answer to the second sub question. Talks about how relevant the “Virgin” brand, to his approach of investment appraisals.
  • Answer to the 3 rd sub question. Since our subject is Financial Management, the success is measured in money terms. Highlight the fact that, even though SRB doesn’t take financial management techniques to investment decisions; most of his decisions were proven right by financial figures as outcomes.

Why Sir Richard Branson Doesn't Need Accountants? Why Sir Richard Branson Doesn't Need Accountants? Presentation Transcript

  • “ I never get the accountants in, before I start up a business”
    • Why is he saying so?
    • If not accountants’ recommendations; what else he’s looking at before pursuing a new business venture?
    • How successful was/is this policy?
    - Sir Richard Branson
  • Dare Enough to Pose for This Picture! Having enough “guts” to make controversial decisions
  • Question: You’ve said you never get the accountants in before you start a business and that “it’s done on gut feeling.” Can you describe that feeling ? “ My gut feeling was if I could create the kind of airline that I’d like to fly on, other people would like to fly on it, too. If I had gotten the accountants in, they would have almost definitely told me all the reasons why it wasn’t going to work . But my gut feeling was that if I could create the best airline in the world, there would be a market for it We’ve set up 300 companies and almost all of them have been based on personal experience . I’ve been frustrated by the way something has been done by other people and if I can do it better, hopefully the bills will be able to be paid” Interview with Jeff Burger; “Business Jet Traveler”, April/May 2008
  • Question: Speaking of Google, why is it that Virgin, which seems to get involved in every thing imaginable, has never surfed the start-up internet wave ? “ I don’t know how to use the internet – it’s not something my generation is too familiar with. And when I don’t understand an industry, I leave it alone ” Interview with Arnaud Bouillin; “The New York Times”, 2008
    • Why is he saying so?
    • Accountants will tell you reasons for ”not starting the business”
    • Accounting analysis is possible for the existing business. Totally new ventures may not get evaluated reasonably by accountants
    • Accountants always are profit oriented and social benefits are ignored
    • Non financials plays a vital role
    • High risk – High return
    • What is he looking at before pursuing a new business venture?
    • Looking at…
    • Creating unexplored market spaces
    • Based on…
    • Gut feeling
    • Intuition
    • Personal experience
    • Not looking at…
    • Financial viability of the project
    • Based on…
    • Pay Back Time
    • Net Present Value
    • Internal Rate of Return
    • What is he looking at before pursuing a new business venture?
    Create unexplored market spaces – The Blue Ocean Strategy (W. Chan Kim and Renée Mauborgne ) In this strategy, “Blue oceans” denote all the industries not in existence today The market space, untainted by competition. In blue oceans, demand is created rather than fought over. virgin He is looking for the Virginity of the market!
    • How successful was/is this policy?
    • Sir Richard Branson - Current net worth hoovers around £2.2 billion . Forbes ranking, 236 th richest person on Earth
    • Virgin Group - Over 360 companies under Virgin umbrella; Over £10 billion revenue (2006 figures). Net worth = £5 billion
    • Virgin Atlantic Airlines – In the year to February 2007, Virgin Atlantic carried 5.1 million passengers and made an annual profit of £46.8 million on turnover of £2.1 billion
    • Virgin Media Broadband – First broadband service to offer 50mbps ultra fast internet (9 times the average UK speed); 12 million household users in UK. £8.25 billion revenue in 2008
    Source: www.wikipedia.org
  • Thank You!
    • www.amisampath.com