Deborah Meaden Speaks On What Makes A Good Entrepreneur

The Dragon and multi millionairess Deborah Meaden has spoken to Management Today about what she looks for in an entrepreneur. Deborah isnt just a career entrepreneur; she also spends her working life listening to other entrepreneurs, in the Dragons Den. So shes better qualified than most to tell us what makes a good one - and what's guaranteed to raise her hackles.

Deborah is convinced theres definitely a type: Theyre all very different, but there are some key common elements: theyre perceptive, competitive, able to take risks... But good judgement is one of the most important elements. Its no good getting passionate about the wrong thing. No surprise then that common sense is the theme of her new book, which she defines as good judgement without specialist knowledge.

She is also a big believer in good timing. Not only in terms of whether your business will work in the current climate, but also whether the entrepreneur's personla situation is right. Youve got to think: am I fighting fit? Am I in a position to give this business what it needs to get it off the ground?

In her book, Common Sense Rules: What you really need to know about business, Deborah talks about Britain being a nation of potting shed entrepreneurs. So does she think were better inventors than businesspeople? An inventor is someone wholl think I need something that does that, and Im going to come up with the answer. The entrepreneur is the person who says, hmm thats good, Im going to make that, heres the market and Im going to sell it. Sometimes that can be the same person, but its quite rare. So a clearer understanding of the difference is very important. But she still thinks that British public have some great new ideas: I get sent 100 ideas a week; some of them are crazy, some of them are brilliant. But theyre ideas, and thats fantastic.

The good news for entrepreneurs with a workable idea is that they should find plenty of business angels keen to invest, given the relatively measly rate of return theyre getting if they leave their cash in the bank. Since bank loans are hard to come by, its perhaps no surprise that business has been brisk in the latest series of Dragons Den (which she's currently filming). Im seeing better business opportunities than I have for a long time, says Deborha.

So what's the key to a successful Den pitch? Well, to impress Deborah, go easy on the snake oil. I dont like over-slick pitches what Im seeing is a good salesman. Im looking for someone who can convince me that they know so much about their business that theres not a question I can throw at them that they cant answer. Predictably, that means Deborah is distinctly unimpressed by people who are hazy about their numbers. You dont have to be brilliant at numbers, but you have to understand the basics, or you wont have a clue whats going on in your business. And your answer will almost certainly be followed by a prompt and slightly irate: 'I'm out'.