YOUR BUSINESS SUMMER 2018 - 29

Interview

and softening house prices have given
people the option of going out on their
own. They also see other entrepreneurs
demonstrating it can be an amazing
alternative to a corporate career.

Which sectors are thriving
when it comes to start-ups?

Start-ups go from one end of the
spectrum to the other - they aren't
just in the field of technology, as
everyone thinks. Although lots of
people are starting their own websites
and tech businesses, there are also
people setting up hairdressing salons
and window-cleaning companies. I
come across people starting estate
agencies and pop-up shops -
businesses can be created in any field.

How do you think Brexit is
affecting UK business?

The worst thing you can experience
in the economy is uncertainty - and
that's what we have today. While that
exists, it's terrible for business, even
though it doesn't seem to be affecting
new businesses at the moment.

What makes a business
idea good - or even great?

INTERVIEW BY GEORGINA MARIC

Thousands of people come up with
ideas, but sometimes they think that
in itself is the business. But it's just an
idea and only 5% of the success of any
business. What makes a good business
is the ability to execute that idea.
You've got to get a team, the
funding, get the product tested
and recognise whether there's a
genuine demand for your idea. Ask
yourself, are you solving a problem
that doesn't exist? Are customers
willing to pay for the service you've
identified? You can have a great idea,
the team and money, but are people
willing to pay for that service?

What are the most common
mistakes you see made
by entrepreneurs?

One is to underestimate the
complexity of taking the idea and
turning it into a business. Some
entrepreneurs think they can launch
a business on their own, but running

a business requires
many different skills
and you can't take
shortcuts. Others
think they can set up
a business part-time,
but there's no such
thing as a part-time
entrepreneur.
They can also
overvalue their idea
and not research the
potential audience
to test if people will
pay for it. Often
they go too far down
the line before
testing - if you're
going to fail, it's
better to make sure
it happens quickly.
There's no point
spending a year developing something
when you could have tested it in the
first four weeks and discovered then
that people aren't willing to buy it.

"There's no point
spending a year
developing a
product only to
discover that
people don't
want to buy it"

Where should entrepreneurs
look for investment?

When I started my first business, in
1985, there was no internet, let alone
the investment opportunities available
today. Now, the government has Start
Up Loans, there are angel investors,
crowdfunding, venture capital...
There are hundreds of investment
firms out there. Banks will lend too,
but because they're designed for
secured lending and entrepreneurs
don't tend to have security to
offer, they're usually ruled out.
Good ideas generally don't struggle
to raise money. If it's compelling and
you can demonstrate it has commercial
viability, you'll get investment. If
it doesn't attract capital, it isn't
because the money isn't out there -
it's because there isn't the demand
or interest for your proposition.

You've invested in many
start-ups. What excites you
enough to part with money?
Normally, it's the individual - I
get excited when I meet someone
who demonstrates their passion,

commitment and desire. They also
need to have done their research
and be knowledgeable about their
business. I like backing people.

Which of the companies
you've invested in are
you most proud?

The business that genuinely excites
is my first investment, Alexander
Mann. I'm really proud that it
recently sold again for £800m.
How proud would you feel if you
saw a company you started from a
small broom cupboard sold for that
much? It is regarded as one of the
most successful businesses in the
world and I conceived that idea and
launched it. The fact that someone
is prepared to pay that amount for
it is amazing. I sold it many years
ago, but the business continues
to go from strength to strength.

Looking back, what do you
wish you'd known about
business when you started?

How difficult it would be! I
underestimated the complexity of
the business and how many people
I'd need. Like a lot of entrepreneurs,
I thought I could do it on my own.
I struggled for many years before I
realised that I needed other people.

29
YOUR BUSINESS SUMMER 2018

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