In one respect, it was a very different way to spend a morning. I learned much about the approach taken by the start-up businesses we met. But in another way, I realised it represented some of the conversations I have with potential new clients who have gone ahead and started a business without enough prior preparation and thought.
Our brief that day was to imagine ourselves as the Dragons on the TV programme, with a large pile of money on the desk in front of us. Which business would we invest in? The start-ups we were seeing had been briefed to use the time with us as a useful opportunity to practice what they might well have to do in the real world later on, but in a safe and 'friendly' environment.
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| Photo source: Thameside Media |
First of all, it was particularly interesting to see that none of the start-ups actually asked for an investment. If you don't ask, you don't get, right? Will there be investors lining up to contact the start-ups, begging them to let them invest? Unlikely.
Secondly, each was incredibly emotionally involved in their businesses which is perfectly natural, but there needs to be a reality check which can't take place if you can't disassociate yourself from your business persona.
My next observation was that some of the candidates had taken a perfectly good hobby and thought they could make a business out of it. Whether they'd read something in a magazine which said it was easy to do so or not, I don't know, but there had been little or no market research (professional or not) to see if there was a need for the product/service nor any real life experience or consideration of sourcing products, manufacturing, distribution, business management or marketing.
At some point, our role as potential investors turned into 'critical friends', and our feedback became as realistic as it had to be. Some must go back to the drawing board; some did have a sound business idea but needed a rethink on their strategic direction and some should go get a job working for someone else.
Did we feel we could 'invest' in any of those start-ups? Sadly not, but let's hope the start-ups took on board our advice and will come back to us another time to wow us into handing over our imaginary dosh.
