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One thing is certain in business: things will go wrong. So, when you first start a business, one of your priorities should be emergency planning. Put a disaster plan in place that fits your situation—in case supply lines are cut, a hurricane hits, or other natural catastrophe looms—because if disaster strikes, a lot of people will look to you for answers.

On February 23, 2007, at around 8.15 pm, one of Virgin Trains’ new Pendolino tilting trains jumped over a set of points in Cumbria in the northwest of England, on a remote part of the West Coast Main Line. Margaret Masson, an elderly woman traveling to her home, was thrown around in the coach as the train careened down a steep embankment.
For 10 years, Virgin Trains had safely carried millions of passengers. That night, life changed for all of us. Margaret Masson was dead. Several others were also seriously hurt that day.

I was on a ski trip in Switzerland, when I received a message about the rail accident. I hired a car and drove through the night to Zurich, where I got the first flight out at 6.30 am.

When I arrived in Manchester, the BBC was reporting that the train was intact, and that had helped to save many lives. That was heartening: all our new trains had been built like tanks for this very reason. A later report confirmed a track failure was responsible for the accident.

I met Margaret Masson’s family at the Royal Preston Hospital in Lancashire. I offered them my condolences. We found ourselves hugging each other. Soon I was facing TV cameras and journalists who wanted answers. I thought I was going to choke up. I came close, but kept it together and stuck to the facts.

I expressed my gratitude to the train operator, Iain Black, who did everything he could to save his passengers, and in the process sustained serious injuries. Our other employees on board had all behaved in an exemplary fashion, ignoring their own minor injuries to lead customers to safety.

Why were we able to react so quickly? When Virgin Trains was putting its emergency procedures in place, we had analyzed a number of serious rail incidents, and had been appalled by the length of time it took before anyone in charge spoke to the press.

So our disaster planning had prepared us to accomplish three goals: get to the scene fast; be efficient in dealing with passengers, staff and media; and be honest about what was happening. We knew those first steps would get communications established so that everyone would obtain the information they needed.

Beyond disasters and accidents, as you forge ahead, it’s inevitable that you and your team will make mistakes. It is important to recognize this and ensure everyone is prepared.

Which brings me to the difficult balance that all entrepreneurs need to learn how to maintain: always protect your reputation, yet don’t be afraid of making mistakes. Don’t be afraid to ask the senior figures in your circle for advice and help. Distinguished people will advocate for you; their reputations will help yours to recover. There are other things you must remember.

Investigate the matter thoroughly; pinpoint where your internal processes failed. Communicate openly with the press. Next, apologize. Explain what happened, describe the steps you have taken to correct the situation. Then people will realize that your company knows how to deal with its problems and will trust you.

©Entrepreneur July 2011
©Entrepreneur Inc. All rights reserved.

RICHARD BRANSON is the founder of the Virgin brand, which houses over 360 companies. If you have a question for him, you can e-mail him at BransonQuestions@Entrepreneur.com. Please include your name and country with the question.

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business, customer, Richard Branson, trust, Virgin