David Brassington of CMC Partners, who works with small business owners to achieve their objectives, is not surprised that people have this reaction: “The programmes deliver a distorted impression of business success by suggesting that to succeed as an entrepreneur necessitates aggressive and arrogant behaviour and raising finance will require you to make a hasty decision and give away a large proportion of the equity.”
It is unfortunate, says David, if this is putting people off. “These programmes are produced for entertainment rather than education. Whilst the reality would not have the mass entertainment value of the programmes, a well planned and executed business venture can bring rewards in terms of satisfaction and financial rewards – and very often significant tension and excitement along the way.”
David’s advice for those who have been put off by these TV shows is:-
Competition: Success does require understanding and enhancing the offering of your business compared with alternatives that are available to your customers. However, businesses that adopt the positive attitude of maximising benefits for their customers will outperform those who seek to undermine or disparage their competitors!
Attitude to colleagues: Most business operations rely upon the contributions of a number of people. Successful businesses ensure the credit for their achievements is not claimed by one individual but allocated appropriately amongst their staff, and that everyone shares in the rewards.
Planning: Quickly made, “bold” decisions can deliver a good result, but are just as likely to end up in disaster. Planning, research, consideration and consultation are important contributions to good decision making – but not an excuse for being indecisive!
Financial support: Any individual or organisation considering providing finance to a business will require a good understanding of the business and its plans to enable them to evaluate the potential risks and rewards. Adopting casino style “punts” is only likely to result in the investor losing their assets! The business seeking investment will need to be able to convince the investor that the business and financial proposition are sound, and potential risks have been considered and minimised. There are also many, possibly more appropriate, forms of funding other than equity.
Adds David: “Perhaps the real message from this survey is that small business owners are not always aware of all the options available to them, and where to go to access other skills and advice. It can be a lonely existence being a business owner, and they are often so totally immersed in their business that they lose the ability to be objective and a sense of perspective. Perhaps what business owners need is not a Dragon but an Owl!”
The YouGov poll found that 88% of small business leaders surveyed believed that shows such as The Apprentice and Dragons' Den put people off starting their own businesses.
David Brassington is an experienced Managing Director and senior manager who works as an adviser or non-executive director with owner-managed businesses throughout Cambridgeshire. He has a practical approach to helping owners enhance and, if appropriate, realise the value in their company. He assists owners to improve business performance or develop succession and exit plans. He also has experience of raising finance, company sales and has led a successful Management Buy-Out.
CMC Partners are experienced business advisers, helping small business owner-managers throughout their business journey, with a personal touch. Established in 1989, we work in partnership with owners to grow and increase their business value, in preparation for their eventual exit. We care about the owner and their business. Your Success is everything!
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