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Wendies Weekly Diary – Leadership

Monday 13 September


Is it me or are the people that enter the Dragons’ Den more deluded than the contestants on X-Factor?

  • My name is Brian. I’m looking for £100k for a 10% stake in my business. I have invented a cup, which you can fill with tea. And drink from.
  • Hmmm. So you value your business at £1 million. How many of these cups have you sold?
  • Four. One to my mum. One to my dad and 2 to my Uncle Harry who drinks a lot of tea and doesn’t have a dishwasher. And they all really love them.
  • This is a tough market. What makes your cup so special when there are thousand out there already?
  • Mine is blue. I expect to sell 2 million in the next 6 weeks and they retail at £1.99 each.
  • Blue cups, eh? Novel. How much do they cost you to make?
  • Err.. I don’t know. I think it’s about £3 per unit.
  • Let me tell you where I am, Brian. I’m out.

Mad. The Dragons are often prone to quote the old adage “Turnover is vanity. Profit is sanity.”  And they’re right. Well, they would be. They are all multi-millionaires.

Many companies do not pay enough attention to the acquisition cost of their business. It’s easy to increase your top line when you chuck a load of money at it but it’s bottom line profit that counts.

There are only two ways to influence this; Reduce your costs and grow your income. Sometimes easier said than done.

If you want some help, give us a call. We are currently offering business strategy sessions that will help you redefine your customer proposition, routes to market and the skills required to get you there.

Posted by admin,
13th September 2010, 6:11pm

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