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Dragons Den - How to get that investment  

by Matt Hawkins, 30/10/2012
Categories : General

I love Dragon's Den. It is amazing how many people mess up their pitch and they seem to make the same mistakes over and over again. If you want an investment don't break these golden rules.

Know your numbers
The Dragons always ask about certain numbers. Income, costs, wages, rent, supplies, profit. Make sure you understand how money flows through your business. If you make a product please make sure you know how much it costs to make, ship, store and retail.

Know your market
Do some market research. The Dragons need to know who you think you are selling to. If your product makes £1 profit per item and you are going to sell 10,000 per year they are not going to give you £50,000.

Know the Dragons
Find out whose money you are trying to acquire. Know what their interests are and what their experience is.

Don't insult the Dragons
They are capitalists. Please don't make a stand against capitalism while at the same time asking for their money. Don't insult their ethnic origins.

Don't overvalue your business
The money you ask for and the percentage you offer values your business. Don't overvalue your business especially if you have sold nothing.

Don't ignore staff costs
Just because you might work for free doesn't mean everyone else will. If you want to expand your business you have to consider actually paying for staff.

Love money
If you aren't interested in getting rich stay out of the Den. The Dragons are not usually interested in someone who is not motived by money. If you are in it for some other reason you probably aren't going to get rich. Therefore they aren't going to get a decent return. Therefore they aren't going to give you their money.

They want their money back
The Dragons want their money back. If they give you £50,000 they want that back in a few years. If you are not generating enough profit to do that then you are wasting your time.

Other thoughts
- Don't claim your product is unique when it isn't
- Ask for the correct amount of money
- Know what you are going to spend the money on

These tips are about getting investment in the Den. They are not a moral blueprint by which to live. You don't need to follow any of them to be successful ... but if you want their money you need to play their game.

Author : Matt Hawkins  Last Edit By : Matt Hawkins
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