Calling all Ostriches!

Speciality Bites with

Paul Hargreaves

Chief executive of Cotswold Fayre

• Becoming a B Corp
• Top trend predictions for Christmas 2021
• Self-sacrifice: The importance of building a leadership legacy centred on others
• Undercover Boss
• Can/should bosses really be close friends with their staff?

I am sure you are aware that the latest successful series of Dragon’s Den started again recently, although Sunday evening seems to be a strange time to have it on air

Is it just me or is the series getting more and more difficult to watch?  Seeing business owners struggle under a very basic level of questioning not seeming to have a clue whether businesses are making any money or not makes difficult viewing and has me squirming on the sofa.  Some of these people seem to be on the programme for a quick fix for their business rather than a serious investible opportunity.

I would have loved to survey the exhibitors at Speciality & Fine Food Fair and see how many were running at a loss and how many were making profit.  As I have said in this space previously I suspect many who look outwardly successful brands may not be in reality.  Whilst it would be rude to ask in many ways, it is essential for us as we look for new suppliers for 2013 in our own version of “Dragon’s Den” that we know there is some money to spend on marketing.  If there isn’t, as I alluded to last week, it can be a real struggle launching a brand into what is a very crowded market in many sectors within speciality food.  Maybe we should ask them to bring their latest accounts with them to the den.  It is a British thing not to talk about money, and I wonder whether in other parts of the world businesses are a little more candid in these situations.

Having said all that, honesty covers a lot – and we would much rather some transparency than people glossing over the cracks.  There is nothing worse than ostriches who carry on regardless of what is really going on in their business and sometimes can take other people with them.  This is the case with a farm shop, who I won’t name at present (as they still owe us a lot of money), but has been heralded as a successful new farm shop in the Home Counties and a model for others to follow, even presenting at the FARMA conference at least once.  It has come to light recently that despite having great footfall and plenty of cash through the tills, they were completely out of control of their overheads and losing money every month of the year.  I have just checked their credit-worthiness on-line and the business was valued at a very large minus figure, which is concerning for all creditors.

Time to get our heads out of the sand and start running!