Dragon’s Den is a television programme that is based on the concept of pitching a business idea to a group of successful entrepreneurs. The prize is combination of financial investment and mentoring/business support from an already successful ‘Dragon’. Choices of which ideas to support are usually based on having a sound business plan, the business model being used and how the individuals present themselves.
In essence what the Dragon’s are looking for is how saleable your idea is, how much thought and planning has gone into your business and what the future projections are likely to be. At first glance meeting this criteria may seem simple – however, putting it into practice is a different story.
Most people have a plan that they are following, whether that’s a formally written business plan, something scribbled on the back of an envelope, or just a rough guide in their head. The majority of these plans focus on improving the product, getting more sales or growing the business.
Frequently a missing component of a business plan relates to what would happen to the business if something happened to you. It is possible that there may not be a business without you. Taking the time to think about a continuation or exit plan is vital for every business.
Food for Thought
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What measures could you take to ensure your business can exist independently of you?
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What processes and procedures are initiated in order to deliver products or services?
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What are the quality checks within your business?
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If you employ staff are they aware of what their roles and responsibilities are?
Some of the answers given to these questions will form the base of an action plan that can be used to create a business that is independent of you. Creating a business that is independent of an individual also offers more avenues for investment, growth and sustainability. Ensuring that there is someone to take the reigns if needs be will make your business more attractive to prospective investors.
Preparation is Key
If you are planning to tender or bid for contracts or specific pieces of work you will need to demonstrate that thought and planning has gone into this area of your business plan. You are unlikely to be successful in your endeavours to secure new or larger contracts if your business is entirely dependent on you.
Taking a step back to look at your business through the eyes of possible investors can be a valuable experience and a good learning curve. What would happen to your business if you fell ill or were unable to work for awhile – could your business exist without you?
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