Lessons Learned – Be Your Own Boss
Be Your Own Boss
The new entrepreneur TV series “Be Your Own Boss” started a couple of weeks ago on the BBC. This is an extension to the BBC’s portfolio of pop-business productions that includes Dragons Den and The Apprentice.
These shows are definitely pitched at the mainstream and simplify aspects of starting a business. The X-Factor style delivery can easily be criticised. Nevertheless Be Your Own Boss proves to offer some real nuggets to aspiring entrepreneurs. It preaches the freedom and satisfaction that can come from building your own business. Noble aspirations in times the current climate of high unemployment and declining opportunities for young people.
The show follows Innocent Drinks co-founder Richard Reed and his search for bright minds with great ideas to invest in. Richard’s own story is inspiring.
+ Innocent was founded by three graduates – Richard Reed, Adam Balon and Jon Wright.
+ In 1998, after spending six months working on smoothie recipes and £500 on fruit, the trio sold their drinks from a stall at a music festival in London.
+ People were asked to put their empty bottles in a ‘yes’ or ‘no’ bin depending on whether they thought the three should quit their jobs to make smoothies. At the end of the festival the ‘YES’ bin was full, with only three cups in the ‘NO’ bin, so they went to their work the next day and resigned.
+ Had a lucky break when Maurice Pinto, a wealthy American businessman decided to invest £250,000.
+ In total, it took fifteen months from the initial idea to taking the product to market.
+ In 2009 the company sold a small stake of between 10 and 20% to The Coca-Cola Company, with the three founders retaining all operational control for £30 million.
+ In 2010 Coca-Cola increased its stake in the company to 58% from 18% for about £65 million.
+ The three founders continue to retain full operational control.
Lessons from the Boss
Richard is brutally honest to hopeful candidates and rightly so. How can people seriously ask to use someone’s money to “conduct market research” or “advertise”?
In a way he is the typical angel investor seeking to reapply their recipe of success to others. Richard is constantly talking about the virtues of aiming big and getting into supermarkets; and knocking on doors of retailers to know if the product has any demand.
He also dismisses some ideas he is not passionate about. Rightly so given it will be his time and money he is investing. However occasionally he seems a little too quick to dismiss a pitch. Maybe some of the detail is lost in the editing.
The key points that stand out:
+ Validate your idea and product immediately. Determine if a market and demand exist.
+ Speak to people and potential customers.
+ Forget social media. You need to knock on doors and speak to people.
+ Get orders. The ultimate sign of a good idea is selling (even it is pre-selling before the product is available).
+ Be serious and take advise. Don’t expect investment if you’re closed or not at the right stage for investment.
+ Know your strategy.
There are many more, but the message of getting outside the building and conducting customer development is clear.
The series is entertaining and even features the occasional cameo from business legend Richard Branson. So far Richard Reed (not Branson) has invested in a couple of clever ideas. Let’s see if they reap him as much reward as Innocent.
Some of the Ventures so far (more here):
Image Credit: BBC
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+ The Startup Dictionary – Learning the Lingo #3
+ Learning From Other Startups – 6 Real Life Stories
+ Startup Myths – I shall not be fooled again by gurus
+ The Bootstrap Challenge – Walking the Talk
Where to next? Check out a random article.
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