Dragon’s Den – 2007
It’s taken a few series to get into the minds of the Dragon’s, and there are still occasions where I sit and scratch my head at their decisions, but I take comfort from the fact that on occasion, they are completely at odds with another, so there’s no ‘Right’ or ‘Wrong’ answer, just the Right or Wrong one for a given Dragon to be involved in.
That said, while I don’t fully subscribe to the general belief that a sale can be made or broken in the first few seconds of a pitch, Dragon’s Den proves that if the scheme, or its promoter is crazy, then that will come to light in the first few minutes, especially if you leave the promoter to ramble on unchecked, and then start to pick at the bits that just sound too good to be true.
Overselling seems to be biggest sin, and the one that the Dragon’s can pick out of the dross, regardless of how well the ‘victim’ tries to phrase it. Once you learn the signs, it’s a pleasure to wait for the pitch to end, and the Dragon’s home on the flawed logic of business that are worth less than a burst balloon, but are being sold to the Dragons with valuations of between one and two million pounds.
One of the depressing things about the show is that the Dragon’s are able to buy into companies worth a few million (assuming they succeed, which is relatively safe, given the smarts the Dragon’s have), AND are able to command anything from 30% to 50% for that amount. Like any business, it is a risk, but as I noted at the start, now that I’ve got a feel for their criteria, fo r the potential return, there’s not many of their choices that I wouldn’t want to match.
Ok, never going to happen, since I couldn’t bring their business infrastructures and contacts, just the dosh 😉