Is this just some fun view for an hour to see 5 multi-millionaires through their money around – maybe, but for any business person or entrepreneur there are some wonder business lessons that can be learnt. One of the things the dragons get real cross about is people not knowing their figures. OK not all their figures but the basic ones any business owner should know and should know if they are going to pitch for money.

At times you can see the look of fear, shock on their faces when people have said they have invested hundreds of thousands of pounds and not got a business plan. These rules are the rules I have seen the dragon’s look for when they want to invest.

Rule 1 - Of the den is have a business plan………………….. But, I have seen one of the Dragons invest in a business where there was no business plan, but James Cann saw the potential and the drive in the two men, and he invested in them and then helped them to develop a plan and a business.

Rule 2 – Is know those numbers, Know the difference between profit and loss, Net and gross profits, Drawings and salary, By knowing these you have the finger on the pulse. In a recent episode Peter Jones was desperate to invest in a business but the guy had all the talk and how he had all these orders but no paperwork, and it looked like the deal was not happening, all the dragons had dropped out, and Peter Jones kept saying if only you had bought that fax in. Then suddenly Peter said You are definite about the fax, the reply was yes. He said Ok you want £100,000 for x % of the business. I want 100% of the business………………………silence and shock on all the faces, and on the orders coming through we will drop down to the agreed percentage.
You could here a pin-drop, seconds later the man said you have a deal. Peter Jones saw the numbers and business potential, but through this 100% of the business out there, knowing that if the man was bluffing he would just say no thanks. So know those figures and back them up with facts.

Rule 3 - Keep the business together, In this past series I have noticed time after the time the Dragon’s asking the business “Why have you split this business ?” Why not keep them together ?” And thinking about I can see the logic behind their questions. So next time you start a new venture is their a real need to go out and spend days forming a new business when it can fit inside your original one. Ok at times you do have to form a new one due to the ranges being so different and logistics just call for it.

Rule 4 – Have a product that will roll out around the world and is in demand - Another thing you start to notice, the dragons like products or services that can be scaled up and rolled out around the world.

Rule 5 – Have a passion – This works on both sides, you will often hear the dragons say what a lovely product they have, what a great business idea they have, but as a dragon they have no knowledge of this area so for that reason they are out, and will not invest. And as a business owner we should keep this in mind when looking for products and services to invest in.

 In closing I hope you watch these businesses and learn from the pitches and from the dragons interaction with them, and in the one I saw today and who got an investment from two dragons, he did not really want the money he wanted the input of two dragons who could take his business further and give him the guidance he needed.

So as you watch Dragons Den, have a note pad by you and make notes to help you in your business.