Marvin Reid
Photo by John Nassari Photography
As the global economy meanders through a period of transformation, businesses of all sizes are facing uncertain challenges and opportunities. Inflationary pressures, ripple effects from post lockdown supply chain disruptions, and shifting consumer behaviours continue to test the resilience worldwide.
Small businesses are at the forefront of these economic trials and tribulations, finding themselves in need of innovative solutions and support to survive. Yet, there is a palpable sense of optimism and ingenuity among entrepreneurs who are leveraging technology and community networks to adapt and grow. In this season of change, the role of mentorship and strategic guidance has never been more crucial.
Working with NatWest Bank to mentor UK business owners as part of their Accelerator Programme has always been a priority for me. However, in challenging times like these, the support of more prominent and influential figures is crucial.
It is against this backdrop that we look to an industry leader who has devoted himself to championing small businesses.
As part of National Entrepreneurship Month, I am excited to be interviewing Theo Paphitis. Theo is a renowned business magnate and former star of the BBC’s Dragons’ Den, the UK version of Emmy Award winning Shark Tank, an American business reality television series where entrepreneurs make business presentations to a panel of investors. The venture capitalists then decide whether to invest in their companies.
His remarkable journey from a young immigrant in the UK to owning a formidable business empire is inspiring.
With over 40 years of experience in retail, his business acumen has led to the revival and flourishing of iconic brands such as Ryman, Boux Avenue, and Robert Dyas, but Theo is also a passionate advocate for small businesses. Through his Small Business Sunday initiative, he has created a vibrant network of over 3,500 entrepreneurs who benefit from his expertise and extensive reach.
As the Chancellor of Solent University and a committed philanthropist, Theo’s influence extends beyond the boardroom as he empowers and supports the next generation of innovators, particularly through initiatives for dyslexia awareness and support.
Welcome Theo Paphitis.
Many of our readers will either be established founders or c level directors who are considering taking the leap to start their own business. You took the leap from a great role at Legal and General in your twenties and said goodbye to the company car and the creature comforts.
If you were starting again today, what sectors would you look at, and what advice would you give yourself, based on key lessons you learned from early business failures that shaped your journey to where you are today?
“If I was able to turn back the clocks and give some advice to my 22-year-old self, it would be to follow your passion. It’s all well and good looking for those high-growth sectors to take a dip in, but if you’re really looking to achieve success, you have to be passionate about what you do.
Business can be fun, but there can be times when the water is more than a little bit choppy, and your passion will be the thing that gets you through those tough times. You’re only on this incredible journey that we call life for a nanosecond in the grand scheme of things, so all the more you spend your time doing something that truly gives you satisfaction!
It’s okay to jump around until you get to that point when you realise, you’re bouncing out of bed in the morning, not just for the money, but because you love what you do! I’m thankful I did follow my passion!”
So, with that being said, how do you balance risk-taking with entrepreneurial caution, particularly with new business ventures or new opportunities to scale up?
“I am a great believer that the risk should reflect the reward. My whole business philosophy is based on a risk-reward ratio. But it’s got to stack up. If it doesn’t, don’t do it.
You might as well go to a casino. If you think you’ve come up with the business idea to end all business ideas, there are just two things you’ve got to ask yourself: what are the risks, and what are the rewards? Any risk must be a calculated one.
One thing I do know is that you can mitigate the risk and stack the cards in your favour by doing your homework and finding out as much as you can before you take the leap!”
That’s so true, the reward can be extremely attractive at times that we don’t spend enough time evaluating the risk! One of your quotes that I really like is “Failures in business are like scars and we should wear them with pride”
Most people want to try and hide failures, especially in today’s social media where everything is portrayed as perfect. I’d love to speak about the grit and determination in your journey, especially as someone who struggled with Dyslexia.
What are some of the biggest challenges you faced and what strategies did you employ to ensure the scalability and sustainability of your businesses?
“One of the biggest challenges I faced on my entrepreneurial journey was actually when I left school. Because I’d always had a part-time job of one sort or another, I thought it would be relatively straightforward to get a ‘proper job’ – and I remember quickly being brought down to earth with a bump!
I must have sent out hundreds of job applications, and to add to the challenge, my Dyslexia made the simple act of filling out an application form a Herculean task. I’d rarely receive a response, and to the few that bothered to respond, it wouldn’t be the response I was hoping for.
At the time it really did begin to feel like a hopeless situation, but I knew that I had to persevere, and one thing that this period of my life taught me was to take something away from every experience, and what I took away from this episode was also life changing. Rather than throw in the towel when the going gets tough, you have to be able to pick yourself up, roll up your sleeves again, adapt your plan and get stuck back in.
That determination and unwillingness to give up in the face of adversity is a strategy that has, and continues, to keep me in good stead!”
You have indeed achieved a massive amount of success in business, despite those challenges. Another area where you lead the way, is with support for SMEs and small businesses. From your involvement in Dragons Den, to your own personal community “Small Business Sunday” or hashtag #SBS on Twitter created in October 2010.
I’m in awe of what you have created with this community, as the network has organically grown to over 3,500 small businesses. As a winner myself I’ve been to your annual event which is hugely impressive. I left feeling energised and made some amazing connections.
So I’m keen to know what’s next? How do you take this to the next level?
“When I started #SBS Small Business Sunday from my kitchen table in 2010, I had no idea that it would grow and grow to become one of the UK’s largest small business networks.
Today, the network is partnered with titans of industry such as Google and NatWest. And, it’s partnerships like these that send a resounding message of support to UK small businesses! #SBS is all about providing small business owners with opportunities to upskill and take their passion to the next level, so the natural next step is to keep finding new ways of doing just that.
Every year we have the annual #SBSEvent, an event attended by over 1000 business owners, and one thing they are always looking for is more events to attend as they get so much out of the day.
Well, last year I’m absolutely delighted that we were able to deepen our existing relationship with NatWest Business to offer fantastic regional Bootcamps, offering yet another opportunity for small businesses across the UK to turbocharge their success.”
SBS must fill you with immense pride, but also some frustration; If you can achieve this level of support for other entrepreneurs as one individual, then what should others be doing?
Furthermore, knowing the statistics of businesses that fail within the first 5 years; what should the government be doing to support UK businesses? Can we do more at grass roots level in schools for example?
“I am a wholehearted believer that entrepreneurship should be taught in schools. If we prepare youngsters to consider entrepreneurship as a serious profession and educate them to take into account all the hazards and risks before setting up shop, I am convinced that the success rate of businesses in the UK will grow leaps and bounds.
Whether it be providing greater access to funding, stripping away outdated policies or even just upskilling our nation of great entrepreneurs – there’s a raft of measures that can be taken to support small businesses.
Achieving growth is important whether big or small and we all have a role to play in that, whether a business community or policymakers.”
This glimpse into the mindset of Theo Paphitis and highlights the transformative impact he has had on small businesses across the UK.
However, there’s more to uncover. In part two of our interview, we dive deeper into Theo’s personal strategies for building a business, his time on Dragons Den, his insights on navigating challenges in today’s economy, and what’s next for #SBS and its thriving community.
Stay tuned for more expert advice and inspiration from one of the UK’s most influential business leaders, you won’t want to miss it!