When those who have made it can help give back

The start of the year is always a good time for reflection and for setting personal resolutions and goals. In that spirit, I want to encourage people who have founded businesses or who are in more established positions in their companies to resolve to help at least one budding entrepreneur in 2017.

As I’ve written before, the hardest part of founding a business is just keeping it alive in the first year. Research shows that this is when a majority of companies fail. After all, in the first few months cash is tight and experience is light.

Throughout the years, I’ve found that one of the best ways to prevent this from happening is by pairing energetic founders with knowledgeable mentors who can offer advice and experience. Too often, the same two mistakes are made when new businesses are launched: underestimating the cost of starting up, and overestimating the speed at which your enterprise will take off.

I have often cited the late Sir Freddie Laker, founder of Laker Airways, for his guidance when I started Virgin Atlantic in the 1980s. It was his idea to use myself to promote the airline, and that pushed Virgin onto the front pages of newspapers. But his advice not only helped put Virgin Atlantic on the map, it lowered our marketing costs and inspired the adventurous and fun-loving spirit that has served us so well for more than 30 years.

Today, the same quality of advice and experience that Sir Freddie provided to me is needed by thousands of start-ups being created all over the world. In the UK, Virgin has gotten behind the government-backed Start-Up Loans programme with our own team, Virgin Start-Up, to provide guidance on everything from writing business plans to hiring employees to exporting and selling products to larger businesses.

The team at Virgin StartUp spends a lot of time matching our fledgling companies to suitable mentors to help them survive and thrive. To date, we have helped more than 1,550 new companies receive government-backed loans and the majority of them had a helpful mentor on board. The pace of activity is not slowing in the UK, and we are well on our way to reaching the 2,000 mark in 2017.

US practices

In the US, however, there is no such governmentsponsored programme for start-ups. Once outside of established cities such as San Francisco, Boston and New York, many young companies are reliant on local city hubs to gain access to finance and a network of supporters. Here, you are seeing more experienced businesses step up to provide the initial spark and sometimes even the capital.

In Detroit, Dan Gilbert, who founded Quicken Loans, has invested heavily in the downtown area, revitalising and modernising buildings to create workspaces and loft living areas for the young and entrepreneurial. His vision has breathed life back into the city and has helped curb the long decline in the urban population, which is starting to grow again.

But Gilbert is not alone. My friend Kevin Plank, who founded Under Armour, has an equally ambitious vision for Baltimore and its harbour. He has put together a partnership with the city to invest billions of dollars in rebuilding an area called Port Covington, where large businesses such as Proctor & Gamble once had their offices.

Plank’s plan is to lure companies into Baltimore to create new jobs and new communities. He has already turned an old bus depot into a bustling start-up hub called City Garage. It’s now home to an aspiring company that makes some of the best skateboards in the world, and another that’s developing augmented reality displays, among other companies.

Next to City Garage, Plank has created The Foundery, which teaches people metalworking, laser engraving, blacksmithing and woodworking using state-of-the-art tools. This also will allow start-ups to test and manufacture prototypes.

Around all of these initiatives, we are seeing companies grow and encourage others to travel that tough but rewarding road to success. As they build their businesses, all of them will need advice, experience and a sounding board. If you have that experience, make it one of your goals for 2017 to find an entrepreneur or fledgling business that you can help! If you’re an entrepreneur, you know how tough starting a business can be. In 2017, let’s pledge to help a fledgling business succeed by offering:

Advice: Mentorship:

Be available to offer tips and share your experiences. I believe that mentorship is immensely valuable, and it’s easy to connect online with budding entrepreneurs who could use some guidance. Invest in local businesses, purchase products and services or promote them on social media.

Encouragement: