Marvin Reid
Photo by John Nassari Photography
Welcome back to part two of our exclusive interview with Theo Paphitis. In this segment, we delve deeper into the mind of the celebrated entrepreneur to explore the principles that have shaped his success.
From overcoming challenges to the strategies that fuel #SBS’s growth. We pick up the conversation discussing a possible return the Den. Another thing people would love, is a return to Dragons Den! I know that I would personally like to see you back on the panel.
After leaving in 2012 you returned briefly in 2019 & 2021, are there any plans to return on a more permanent basis or would you be open to creating your own #SBS version (copyrights withholding obviously)
“I’ve had more comebacks than Frank Sinatra in the Den and am always inspired by being with the other brilliant Dragons.
I left because the time felt right to give up my seat, stop breathing fire and allow someone else the wonderful opportunity of being a Dragon, so there are no plans to see me back on the Den in a permanent capacity.
In 2023 I launched #SBS Invest, a competition that offers business within my #SBS network to pitch for investment from the Investor Panel and it was a resounding success. I’m delighted that MBP CEO Mark Blundell and CEO of TinyBox Company Rachel Watkyn are joining me on the #SBS Investor Panel this year!”
What influences your decision-making process when considering investments on Dragons’ Den? What tips could you give an organisation looking for investment?
“I realised quite quickly in the Den that it was much better to invest in a great person with a potentially average idea than a bad person with a great idea. If you’re looking to invest in a business, the person leading it is just as important because you’re going to have to be able to work with them and do business with them in the future! Without great people, you won’t have a great business!”
Staying with Dragons Den, a story I heard you share some time ago was in relation to an investment that didn’t go particularly well. Through no fault of your own, it turned out that the funds were mismanaged for a social enterprise.
I’m sure that’s an extreme example, however, how do you identify the right people to invest in, what advice can you share in respect to the traits you are specifically looking for?
“It’s never just one trait that guarantees success, but if an entrepreneur has passion, tenacity, bucket loads of determination, and a willingness to learn, then they are definitely the kind of people you want to do business with. Ultimately, from the perspective of an investor, there is nothing more refreshing than an entrepreneur who lives and breathes their business. For them, it’s more than just a business; it’s a passion that they love and are willing to go the extra mile to achieve success.”
Last couple of questions on Dragons Den, more about the success of joint ventures as we see more and more mergers and partnerships happening in business.
Red Letter Days was an investment partnership between yourself and Peter Jones. After saving it from collapse and increasing its value substantially, you later sold the gift experience company to rival SmartBox.
In your opinion when is the right time to get out of a business, do you have a specific formula when it comes to an exit strategy?
“Every entrepreneur is slightly different in how they approach business. Personally, I don’t believe in exit strategies. When I buy a business, I’m not thinking about how to get out – I’m thinking about how to make it brilliant! In football, if you go into a tackle half-heartedly at worst you’re going to get hurt and at best you don’t get the ball – it’s the same in business.
You’ve got to invest in a venture as if you’re going to own it forever, because if you go in with an exit date in mind, you’re less likely to run it to the best of your abilities. So, what is the best exit strategy? Focus on building a cracking business, and if you do a good enough job, the opportunities will come knocking on their own!”
You seem to have a great relationship with Peter, are there any other Dragons from the Den that you have worked well with?
At a time when there is a lot of movement in the marketplace, what opportunities do you see for partnerships or mergers, taking into consideration the current retail landscape and the ever-evolving consumer behaviours?
“I have many fond memories of my time in the Den, and shared businesses with Peter, Deborah and many others. Peter and I bought and developed Red Letter Days and sold it a few years ago, and I catch up with Deborah and Sara as regularly as we can – always time well spent.
No Dragon is in the Den by mistake, they all bring their expertise and ambition into the Den, and as much as there are positive relationships there, when we’re all competing for the same business, we all take no prisoners in getting what we want.
Marketplaces can change rapidly as we know from recent years, and they are inevitably tricky beasts to predict. It’s difficult for businesses to plan 1 year in advance at the moment, let alone 5 so making sweeping longer-term claims on what will work is not as helpful as it used to be.
One thing is certain though, there is always power in partnerships, whether short or longer-term, and that is the basis on which most good and productive business is done”.
I was going to ask you for an example or an instance where you had to pivot significantly or evolve in respect to a traditional business model, however, I think this would be a great opportunity to talk about how Rymans has changed.
Can you talk about your decision to merge a 130-year-old brand with modern online tech venturing into the online card store space? How did that decision come about? What were some of the challenges you encountered and what sort of success have you seen so far?
“I’m a firm believer that in business, if you’re standing still then you’re falling behind. We are living in and witnessing an era of monumental change – there’s no doubt about it – and this is especially apparent in the retail sector. Shopkeepers like myself have been, and continue to be, witnessing the fundamental transformation in shopping habits brought about by the rise of online shopping.
So, when pondering this, rather than accepting that this is our lot, I thought that there must be a way to make the new kid on the block look even better by tapping into the heritage of the high street, with its strength in numbers and reliability, and adapting a great idea – and so, the Ryman app was born! Just by combining clicks and bricks, we’ve created something that harnesses the reliability of the high street with the accessibility of online.”
From the innovative evolution of Ryman to another brand that is in a totally different sector. I would love to hear the story of ‘Boux Avenue’, and more importantly, hear your vision for the future of the brand in the competitive market that is lingerie and retail fashion?
“When I launched Boux Avenue in 2011, we built the brand from the ground up and it was an online business with stores. That hasn’t changed and Boux is now in its 14th year with almost 30 stores across the UK. The brand has gone from strength to strength, and now has a design-led focus, with over 2,000 lingerie sets being designed in-house every year, offering our customers more choice that is on trend and new.
Like any retailer and busy we do a huge amount of work behind the scenes on who the customer is and that helps us steer the business regarding focus and planning”.
After tapping into the mind and motivations of this extraordinary leader, exploring his vision and insights that continue to shape the business landscape, I was left humbled by the work he does to support entrepreneurs despite being in the position that he is. His final words in the interview further underlined this feeling.
“My final words to anyone reading this who is looking to dip their toes into the world of entrepreneurship are simple: just go for it!
If you’ve done your homework, you’re passionate and are willing to make a few mistakes along the way then just go for it, even if it all goes wrong at the very least you can say you gave it your best shot.”
It’s no doubt that Theo’s contributions have not only empowered countless small businesses but have also reinforced his status as a leading figure in the world of business and investment, both financial and physical.
Marvin Reid
Founder / CEO – Volume 2
Business Strategist
Marvin Reid is a business strategist, coach and speaker who has had experience creating strategic business roadmaps and brand development for some of the biggest enterprise organisations including Bentley, Johnson & Johnson and Deloitte. He has also interviewed some of the most well-known figures in the world of entrepreneurship, bringing a different insight into their back stories.