I watched a cringe-worthy episode of the new mini-‘Dragons Den’, Dragons Den Online, on BBC Two last night and nearly turned off the TV in disgust. Dragons Den Online asks inventors, oddballs and small business owners to post ideas online. The successful candidates are then invited to pitch directly to the two dragons – Shaf Rasul who made his money in IT and Julie Meyer, a venture capital investor who founded VC-firm, Ariadne Capital.The mini-show made me realise that this format is tired and well past its ‘sell-by’ date. The main series has certainly brought attention to business and entrepreneurship and made stars of its Dragons –Peter Jones, Theo Paphitis, Deborah Meaden, Duncan Bannantyne and James Caan. We’ll gloss over what happened to Rachel Elnaugh, founder of Red Letter Days, although she’s written a very interesting book on the subject. But Dragons Den has also brought out of the woodwork every crackpot inventor with a hare-brained product idea to come and make complete fools of themselves in front of millions of TV viewers.
What the show has not done is encourage small business entrepreneurship - a sort “Angels Den” versus the “Dragons Den” is what I’d like to watch - a positive version of the excellent TV series ‘Blood on the Carpet’, ‘Troubleshooter’ and ‘Trouble At the Top’ rolled into one.
What small business owners need is clear advice, a small investments (usually under £50,000) and strong marketing skills, which could be supplied via local providers like Business Link, Chambers of commerce and a host of trade bodies.
What they get on Dragons Den Online is patronising claptrap. Last night Julie told entrepreneur Gill Goodchild, who wanted £35,000 for a dancewear/costume design business that she didn’t like the fact the Gill was “thinking small”. Well hang on a minute, Gill was only selling a twenty per cent stake to help her launch an ecommerce operation and hire more sewing and admin help. This isn’t your stellar VC-funded, IPO-in-two-years type of business!And yet, if you are a mother looking to buy or rent costume for a children’s show - Gill Goodchild’s business might be just what you need. Take it from someone who has spent hundreds on children’s costumes! The market sector is clearly defined – you can rent lists of theatre and dance schools and let’s not forget primary and secondary schools – and steadily growing. Similarly a low-tech catalogue (mail order) business might have been ‘just the ticket’ for Gill who confessed to being IT-illiterate.
Shaf Rasul eventually snagged 40% of Gill’s company for £35,000 and the promise to find her a mentor from a fashion-design expert that he know. Gill, you should have run away – your bank manager would have loaned you the money for setting up a website and one or two orders for ‘shows’ would have given you ample working capital to grow the business. You don’t need a fashion design expert – you just need access to the ready-made market place. You also needed some sound business advice from the two dragons, which you did not get.
Dragon’s Den Online, Episode 2
Broadcast on BBC Two 9:30pm Wednesday 23rd September 2009
Duration: 30 minutes
Available until: 8:59pm Monday 26th October 2009
http://www.bbc.co.uk/iplayer/episode/b00mztqw/Dragons_Den_Online_Episode_2/
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