If you’re seeking investment to transform your business, and you know you’re going to pitch to investors with a ferocious reputation, then doing your homework should be your top priority. As an entrepreneur, you should know your business inside out – the proposition, the figures, the projections – and you should do some research on the personalities and preferences of the panel you’ll be facing, or you risk being eaten alive.

This is exactly what happened on Dragons Den episode eight.

Deborah Meaden was right to put the young guys under pressure. Companies going for investment need to be prepared for intensive scrutiny and intrusive due diligence. It is the most uncomfortable process, and if unprepared you will be caught out and exposed.

However, I believe that Duncan Bannatyne took advantage of the youth and inexperience of the RKA Records entrepreneurs. High risk? Possibly. A punt? Maybe. But grabbing 79% is, in my view, wrong. It has helped Duncan hit the headlines for securing a record stake (pun intended!) in the company. He is quoted as saying: “With my investment and hands-on involvement, we can really take the business forward and achieve their ambitions.” Some may argue that being left with 21% equity in a potentially huge business is better than 100% of a tiny one, but I can’t help feeling that the teenagers have been ripped off.

The estate agent guys had not prepared, and I think they missed an opportunity to review and revamp the way homes are sold. A flat-fee approach would be more attractive for example. The whole model the guys presented was flawed, in my opinion, and again their lack of preparation let them down. And it was the same for the hotdog guy, who had not thought through his proposition.

We spend our working days with early-stage businesses, preparing them for investment. We have years of experience on mentoring and coaching entrepreneurs, working with them to put a robust plan in place in anticipation of those testing and sometimes awkward questions when they come to face investors.

Don’t let your brilliant idea go up in smoke because you haven’t done your research. Call us on 01235 831777 or email info@conduitpartners.co.uk to discover how to put fire into your pitch.