MANAGING THE LAUNCH

When the tough get going

Q: As much as I agree with you and think of you as a role model, I find some of your recommendations rather unrealistic, especially for businesses just starting up.

I would like to keep my employees happy but find it a great challenge due to limited resources. I’m unable to pay my employees well, as my priority is to make money and turn this business into a reality. On the other hand, my employees want good salaries and to work in a slick environment.

All these conflicting priorities force me to micromanage my staff to get results. Please advise what I should do to make my employees happy.

—Emily Bosco, Kenya

A: Emily brings up an interesting and challenging dilemma for entrepreneurs: during a business’s precarious launch stage, can one truly afford to be generous, foster an atmosphere of fun and caring and give employees freedom?

It is not only realistic, but vital to your new business’s long-term success.

When I look back at our early days at Student magazine, I had hardly any money to pay my staff or improve our premises. In fact, we worked in a basement flat, with the furniture limited to a few beanbags and some desks and phones. But the thrill and promise of possible success united us and ensured that we all worked long hours in cramped conditions. Despite the low pay, no one complained-everyone was intent on making the magazine work.

The same was true of our first Virgin companies-a mail-order business selling records, and later, a few record stores. Again, we tried to keep the vibe relaxed, maintaining small, uncomplicated and friendly offices. This decision paid off, attracting great team members who were drawn by the flexible working conditions, and the fact we were all having fun doing it.

We always tried to create an atmosphere of team spirit and mutual appreciation. At Student, we had a party or at least a few drinks whenever a staffer brought in an important new advertising account, and we celebrated the publication of every edition. We tried to make sure everyone had a great time at work, which generated great loyalty.

My philosophy has not changed since then: do something you enjoy and your enthusiasm will rub off on others, ensuring that you have a committed and spirited team. In fact, for more than forty years I have felt that one of my most important jobs is to attract and motivate great people who genuinely seem to feel that their job is more important than just money.

Emily’s concerns about micromanaging her team are valid. Employees will not take responsibility for their own actions if they feel the boss is looking over their shoulders all the time. They will not take the initiative to work that extra hour, make that extra call or squeeze that little bit more out of a negotiation.

The credit for Virgin’s enduring and varied success is often attributed to me, but it’s actually due to the people who piloted those businesses and the employees themselves. My biggest contribution has always been my willingness to give our people autonomy, responsibility and encouragement to take risks and just get it done.

And when our music business was becoming too big and top-heavy in terms of management, we split it in two, to ensure everyone focused on music and not internal politics. We kept doing this until we had nine or ten companies each in its own building. This helped us sign great acts during the seventies and eighties, such as the Sex Pistols and Culture Club.

When things do go wrong, you must teach yourself to listen to your employees and encourage them to find solutions. If you’re worried by the business’s finances, share this with your team and then listen to their suggestions for improving the situation. Your employees should never feel like hired hands, but fellow entrepreneurs.

Finally, it sounds as though some employees are not working out at Emily’s business. If you find yourself in this situation, take a long, hard look at yourself and how you are treating your employees. Then look at your senior team (the rot starts at the top) to determine if they are effective team leaders. Letting people go should be your very last lever but if you have someone who is de-motivating the team, you may well have to bite the bullet.

Managers should never rule by fear. I find enthusiasm, genuine openness and camaraderie with your people are far better. Successful entrepreneurs usually have excellent people skills that exponentially increase their ability to make things happen.

So remember: encourage, enthuse, try to make work fun. Practise these skills at your small business; work on them every day. If you do, perhaps you will someday have the opportunity to continue practising-at your large business!

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