James Reed: All About Business – Episode 16: Sir Alec Reed at 91: A British Business Legend

Released on February 24, 2025

Introduction

In the 16th episode of "James Reed: All About Business," host James Reed engages in a profound and heartfelt conversation with his father, Sir Alec Reed, to celebrate Alec's 91st birthday. As the Chairman and CEO of Reed Group, James provides listeners with an intimate look into the life, achievements, and philosophies of one of Britain's most revered entrepreneurs and philanthropists. The episode delves into Sir Alec's 65-year journey in business, the foundations of his entrepreneurial spirit, his pivotal role in philanthropy, and his enduring legacy.

Early Entrepreneurial Spirit

James Reed begins the conversation by highlighting Sir Alec's humble beginnings and remarkable achievements despite leaving school at the age of 16 with merely five O-levels.

[00:00] James Reed: "Businessman, philanthropist, a maverick at turning strange ideas into success."

Sir Alec attributes his early success to a combination of innate drive and supportive family influences.

[02:05] Sir Alec Reed: "Obviously, started with the business and what I was doing became obvious. I had the means to do it, I had the income that I could support charitable activities. And I think one brick built on another and seemed to take the direction of education."

First Ventures: Lead Soldiers and Printing Business

As a child, Sir Alec, alongside his brother, ventured into small-scale businesses. Their first notable endeavor was manufacturing lead soldiers during the post-World War II era when toy shortages were prevalent.

[03:37] James Reed: "You've always liked ideas."

[03:40] Sir Alec Reed: "Lead soldiers. There was a lot of spare lead around from bomb sites..."

They sold these handcrafted toys through their mother's distribution network, demonstrating early business acumen by identifying and filling market gaps.

Subsequently, the brothers founded Reed Brothers Printing, a venture that operated without owning printing equipment. Instead, they acted as intermediaries, passing orders to established printers—an innovative approach that underscored their resourcefulness.

[04:45] James Reed: "So it didn't deter you, having no printing equipment, you could still be Reed Brothers Printing."

[04:56] Sir Alec Reed: "Yeah, because we knew where to get it."

Motivation to Branch Out: The Urge for Self-Employment

Despite a stable position at Gillette, Sir Alec harbored a strong desire for self-employment, driven by the need for creative freedom and the frustration of having his ideas sidelined.

[06:26] Sir Alec Reed: "I had a tremendous urge to be self-employed. It's almost a sickness that I desperately wanted to be self-employed."

This internal drive led him to establish his own employment agency, Reed, capitalizing on the burgeoning demand for skilled labor during the construction of London Airport.

[07:07] Sir Alec Reed: "Charging more than anybody else."
[08:00] Sir Alec Reed: "We were at the heart of the labor boom with the Great West Road..."

Challenges in Financing and Going Public

As Reed grew, Sir Alec faced significant challenges with traditional banking institutions, notably Midland Bank, which withdrew support despite the company's profitability.

[14:24] James Reed: "Banks that aren't necessarily all they're cut out to be..."

To overcome financial constraints, Sir Alec initially approached 3i for investment, which was declined. This setback ultimately compelled Reed to go public, a decision he later considered his biggest mistake but acknowledged as a necessary step that facilitated the establishment of the Reed Business School.

[15:07] Sir Alec Reed: "I had to float it. South Leisure was growing initially."

[15:36] Sir Alec Reed: "I used to say that was my biggest mistake, going public."

Perspectives on Family Business

The conversation segues into the intricacies of family-run businesses. Sir Alec expresses mixed feelings about the model, highlighting potential conflicts and the challenges of ensuring fairness among family members.

[17:08] Sir Alec Reed: "I like the sound of family business, but I wonder who prospers from it, who benefits from it?"

He emphasizes the importance of talent and passion among family members to sustain the business across generations, reflecting on his own experience where only one of his three children was keen on the business.

[21:35] Sir Alec Reed: "I had three children, one interested in business and good at business..."

Transition to Philanthropy

After selling his business, especially during a personal health crisis, Sir Alec redirected his focus towards philanthropy. His philanthropic journey began with the establishment of the Reid Foundation and later expanded to various other charitable endeavors.

[27:04] Sir Alec Reed: "And that gave me 5 million tax free with inheritance tax hanging over me."

[23:06] Sir Alec Reed: "After the first thing was drug addicts in Soho..."

He founded several charities addressing diverse issues, including Womankind and Ethiopia, showcasing his commitment to social innovation and addressing unmet needs.

[29:06] Sir Alec Reed: "Why isn't there a woman's charity... So there ought to be a charity based on women."

The Big Give Initiative

One of Sir Alec's most impactful ideas is The Big Give, a charity match-funding platform that has successfully raised over £300 million for thousands of charities globally.

[31:33] Sir Alec Reed: "Yeah, that's an idea of fundraising. That started with me starting a website to attract big donors. That was the first solution and that failed."

The concept evolved when Sir Alec leveraged his own funds to initiate a matching grant, which garnered immediate and substantial support.

[31:42] James Reed: "It's currently raised over 300 million for thousands of charities..."

This initiative highlights Sir Alec's strategic thinking in philanthropy, focusing on harnessing the potential of major donors to amplify charitable impact.

Ideas and Creativity

Sir Alec champions the generation and implementation of ideas as fundamental to business and societal progress. He advocates for the practice of generating an idea a day, viewing ideas as a form of currency that drives innovation.

[37:48] Sir Alec Reed: "I promote the idea of an idea a day."

He encourages critical observation and continuous ideation, suggesting that even seemingly trivial ideas can lead to significant breakthroughs.

[38:05] Sir Alec Reed: "Ideas come in all shapes and sizes and some of them are insignificant, but they're still worth having..."

Perspective on Failure

A recurring theme in the discussion is Sir Alec's constructive view of failure. Rather than seeing failure as a setback, he interprets it as a directional signpost guiding entrepreneurs toward more viable paths.

[35:07] Sir Alec Reed: "Failure as an indication. Detractive."

This mindset fosters resilience and adaptability, essential traits for sustained success in business endeavors.

[35:28] Sir Alec Reed: "Yeah, quite."

Final Advice and Closing Remarks

In concluding the episode, Sir Alec imparts valuable lessons on entrepreneurship, the importance of ideas, and the nuanced dynamics of family businesses. He emphasizes the significance of innovation, adaptability, and the ethical considerations inherent in business and philanthropy.

[40:03] Sir Alec Reed: "We didn't raise any more money. We didn't need to, but we just had to abide by their regulations."

James Reed expresses gratitude for his father's insights, underscoring the enduring influence Sir Alec has had on both his personal life and professional trajectory.

[43:05] Sir Alec Reed: "They ought to be more important."

Notable Quotes

• James Reed [00:00]: "Businessman, philanthropist, a maverick at turning strange ideas into success."

• Sir Alec Reed [02:05]: "I had a tremendous urge to be self-employed. It's almost a sickness that I desperately wanted to be self-employed."

• Sir Alec Reed [31:42]: "They're untackled, really, they're neglected."

• Sir Alec Reed [35:07]: "Failure as an indication. Detractive."

• James Reed [38:05]: "Ideas come in all shapes and sizes and some of them are insignificant, but they're still worth having."

Conclusion

This episode serves as a remarkable tribute to Sir Alec Reed's enduring legacy in both business and philanthropy. Through his candid reflections, listeners gain invaluable insights into the principles that have guided his successful ventures and charitable initiatives. Sir Alec's journey underscores the importance of resilience, innovation, and a steadfast commitment to societal betterment, offering actionable advice for aspiring entrepreneurs and philanthropists alike.

Thank you for tuning into "James Reed: All About Business." Stay tuned for more inspiring conversations with industry leaders and visionaries.