Nearly 65% of small businesses say that they would turn down an offer from TV programme Dragons’ Den if they didn’t think it represented good value for money.
According to a survey of just under 750 business owners, accounting software company Kashflow found that businesses would prefer to turn to banks or private backers for a more reasonable rate or split of the business.
Of those who would accept, 36% said it was because of the experience the dragon could bring to the company, while 27% said they would use it to try and grow their company.
A further 24% said they would only accept for the positive public relations opportunities.
Ling Valentine, owner of LINGsCARS.com, is a small business owner who decided to turn down the Dragon’s offers of investment.
She said: “I had two joint offers from dragons Bannatyne and Farleigh, but they wanted too much [of my business.] I refused both of their offers.
“LINGsCARS.com has more than doubled turnover to £28m in 2007 and I am really glad I walked away.”
“Businesses who jump at their first offer must be desperate or barmy,” she added.
Duane Jackson, managing director at Kashflow, advised:
“Many business owners don’t realise that if they kept a better eye on their business expense they would probably not need to approach television shows for funding and could get a much better offer either from a private financial backer or the banks.”
© Crimson Business Ltd. 2008
