Peter Jones CBE
Entrepreneur and Founder, Peter Jones Foundation
Since the first episode of Dragons’ Den aired back in 2005, Peter Jones – the one remainingpanellistfrom theprogramme’soriginal line-up – has invested in more than15companies.
He’sbackedsuccessfulventuresspecialising inproductsfrom low-carb noodlesand garden equipmentto consumer foodsand fashion magazines. Perhaps most memorable, though,was his punt onLevi Roots’ReggaeReggaeSauce – his faith repaid with an enormousreturnonhisinitial contribution of£25,000.Today the business is worth multi-millions.Couple this withan extremelylucrative portfolioof companiesnot linked with the showandit’s fair to say thatJones knowsa thing or two about what to look for in a new business.
Advice for start-ups
So with more and more people launchingtheir owncompaniesall the time,whatwould he sayto ambitious entrepreneurssearching forthemoneyto kick their start-ups into gear?
“Things arerapidlychanging with regards to funding,” he says.“Thereareall sorts of options available toanyonesetting up a business, but there are anumber ofimportantbasicsthatwillalways stay the same.
“First andforemost,before you approach anyone with anidea, you must do the research. You need to have an excitingvision and a thoroughactionplan that maps out exactly how you are a going touse the money toachieve your goals. Any investor is going to need serious convincingandif you can outline indetaila promisingreturn on investment,you’ll have their attention.”
The Peter Jones Foundation
In 2005 he launched the Peter Jones Foundation, which works to raise the profile of enterprise education in the UK. The charity runs the Peter Jones Enterprise Academy – a network ofFEcolleges that deliver specialist courses in business.
“A big part of the academy’s missionis togive young peoplevaluable practicalexperience of what’s required to run a profitable business,” he says.“We put strong emphasison the ability topitch viable ideaswell– without that, fundingisvery hard to come by.
We are doing everything we can to bridge the gap between education and industryso that when our students enter theworld of work, they are equippedwith the skills and knowledgethat willgetthem ahead of the game.”
Thoseenrolled with theacademytake part in a variety of competitionseachyear, many of which offer fundingto the most promisingcompanies. Students are currently competing to be crowned the organisation’s National Entrepreneur of the Year, for which six finalists will be invited to present their ideas to Jones in the hope of securing up to £5,000 investment.
Made a CBE in 2009 for services to business, enterprise and young people,Jones is a firm believerthat entrepreneurs are made,not born.
“The quality of theproposals and the delivery has been outstanding in recent years.Seeing17 and 18 year oldsconfidentlypitching promising ventures confirms to mejust how important thiskind ofeducationis.
As an investor, when I meetanambitious young personwho presentshim or herselfwell and communicatesclearly, I am engaged. It’s important to remember that investors are backing the people behind the ideaas well asthe idea itself, so never turn up to a meeting in scruffy jeans and a t-shirt.”
In addition tostressing the roleof knowledge and preparation, Jones believes thatthe internetcan do a huge amountfor a new business,thanks, in part, tothe rise of alternative funding methods.
Alternative funding
“Things likecrowdfundingandpeer-to-peer loans are exciting developments,” he says. “Not only can they be quick and relatively straightforward, but theyare great ways to get people talking about your business. By putting your proposal out there you’ll getuseful feedback, clarity on your ideasand some free marketing.
Making use of what the internet has to offer a business – likevarioussocial mediaplatformsand the Cloud, for example – canalsoreduce the amount of funding that you’ll need to get going. Knowing how to cut your outlaysfrom the wordgois a very valuable skill.”
With lending from high-street banks becoming less common, Jones isenthusiastic about alternative funding…
“Using friends and family for anything less than £50,000 is an ideal option–as it’s the cheapest way to borrow – andthat grants now come in all shapes and sizes.” He emphasises the need to research the availableavenues andbe absolutely clear on which is the right optionforany givenbusiness.
“If you are in asituation where you need contacts, lots ofguidanceand lots of money,thenventure capitalistsmight bethechoicefor you,depending onthe level of risk involvedand the size of the company. But if you want toholdon toyourequityand don’t need quite as muchmoney, a business angelmight be right.Regardless, itall comes down to yourown researchandknowing exactly what you need.”
He goes on: “The most important part of securing fundingreallyis what you do prior toapproaching anybody.Before you go to a bank for a term loan or lay out your ideas online, youhaveto havesupporting evidence and long-term business and financial plans –investors aregoing to want to know time frames as well.A large number ofnew businesses fail, so if you canshow genuinescale-up potential, you’re tickinga major box.”
His appetite forsupporting fresh and innovative ideasis as invigorating as ever and is one of the reasons he’s created the PJ Investment Group – a personally backed private equity group that looks to invest, create and build businesses that have the chance to become highly successful.
