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Dragons Den,correct decisions?

Do the Dragons always make the right decisions?Would you have made the same decisions and why?

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15th Sep 2011 09:02

Split

It seems that there's either businesses that will never make much money or profitable businesses that want the publicity and not any investment.

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15th Sep 2011 09:11

Not all need investment

Many businesses applying for Dragons Dens just want 'doors' to be opened for them to large markets. Hard work and research can help a lot towards getting to meet the 'right' people but a Dragon on the board is a quick shortcut. And to be realistic, 51% profit from world sales with a Dragon on board is much better than 100% of 'not very much' sales, going it alone.

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Hilary

Has she invested yet?

Seems she doesnt make many offers and when she does - another Dragon matches it or betters it so she doesnt get it anyway?

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Turn it round -

Looking at the "Dragons" I think the first question should be would YOU trust them anywhere near your business. There are certainly a couple that I wouldnt trust within a 100 miles of my business.

 

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By hfc1875
15th Sep 2011 09:52

dragon on

......so you want 100k for 10% of your business...so that values your business at £1m.....erm no....it values the "business" at a lot more...  the dragon just wants as much as they can get for nowt....still a good laugh though!

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15th Sep 2011 11:00

We never get to see the contracts!

However much money I had I wouldn't invest less than 51% in a company unless there were some pretty solid provisions in there to safeguard my money.  The ones that HAVE flourished are proof, though, that it CAN be beneficial.

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15th Sep 2011 11:22

Cherry picking

The dragons seem to cherry pick the best investors - they want the best chance of success for the minimum investment of their time.  I can understand that, they are busy people.  I think when you work on that basis, they make the right decisions, but perhaps they miss a few higher risk opportunities. 

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15th Sep 2011 13:04

You cannot be serious

All about the ego's of the dragons rather than providing proper insight into business.

Also good exposure for those who say they are looking for investment.

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By Old Greying Accountant
15th Sep 2011 13:10

In my opinion ...

... this was the best ever presentation to the "Dragons"

http://www.youtube.com/watch?v=eUEemQeInjE 

 

 

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15th Sep 2011 14:10

Mwahahahah!  That's cheered

Mwahahahah!  That's cheered my afternoon up!!!!

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By lizzit
16th Sep 2011 12:39

Invest

They want high return at low risk.  Their definition of low risk isn't the industry standard definition. Their definition is a company with an opportunity for a high profit margin without a lot of time invested.  This is generally a company with proven sales and turnover combined with owners who have the ability to accept instruction that gets costs under control.

You go in knowing that you are effectively giving away a chunk of your business for circus peanuts in exchange for having a partial share in a more profitable venture.  Typically the dragons get 40% of your business.  They bring contacts to the table - don't make the mistake of thinking they'll be investing much time; it's mostly the contacts, which they'll likely keep as cards hidden from view so you can't later strike out on your own without them. 

60% of a big number is a lot more than 100% of a small one.  You win, they win.

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16th Sep 2011 12:39

Most businesses...

I think a lot of the people who go on Dragon's Den could actually make it big on their own but they don't know how to publicise so they go on T.V.

Also, I've noticed before that sometimes the Dragons don't invest in a great product purely because of a slip up in the product owner's pitch. It also works the other way round where I've seen investments made on less than great products that came with a great pitch.

 

Still. The best investment was Reggae Reggae Sauce. Levi Roots had the PR, had the product, he literally just needed the money and it worked for him. He now has a whole empire of other products that are somewhat related!

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16th Sep 2011 12:39

Life's too full

However they try and dress it up, it's just a stoopid TV programme, and not really about proper business practice

 

Owain_Glyndwr is spot on. I've worked for one of the previous Dragons and would fear for anyone who let that person anywhere near their business. Worst time of my life. Stories abound amongst those who know that particular person about how, after appearing on the programme, people expecting rock solid guidance and inward investment have been completely stitched up.

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16th Sep 2011 17:26

Dragons Den

FazerJett wrote:

However they try and dress it up, it's just a stoopid TV programme, and not really about proper business practice

 

Owain_Glyndwr is spot on. I've worked for one of the previous Dragons and would fear for anyone who let that person anywhere near their business. Worst time of my life. Stories abound amongst those who know that particular person about how, after appearing on the programme, people expecting rock solid guidance and inward investment have been completely stitched up.

Im with you on this,,,, its just one step away from X factor in my opinion, its nearly cringeworthy. Just like X factor and the like, how is it that the absolute dross ideas, and the absolute best make it on there, and the middle of the road ones dont get a look in ?

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16th Sep 2011 17:50

A client of ours was invited onto the show

A client of ours likes inventing things and there was an article in our local paper about him which the show producers spotted. He was invited onto the show with all travel & hotel costs paid so he went on, even though he never actually applied for the show. Sadly, he didn't get any investment from the Dragons but he thought the publicity would be helpful.

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By charco
16th Sep 2011 20:05

Teddy Bears

The British Dragons are like teddy bears compared to the Sharks of the American version.

They always want a high percentage and bad mouth each other

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