How Important is Help to the Self-made Entrepreneur?

Receiving help doesn’t take away the “self-made” from the self-made millionaire. A certain dedication and strength is required to create a business from the ground up regardless, let alone, generate millions in the process.

Shows like Dragons’ Den have proven to be a major source of help to many entrepreneurs and aspiring millionaires. But is the help offered always in the best interests for those in the grime?

Tea for a tat?

Atomic Tea, a specialty teashop, was started up in Calgary by siblings Jessica and Russel Bohroson. They approached the Dragons in 2007 “determined to do for tea what Starbucks do for coffee.” While reluctant at first, the brother sister duo eventually accepted the offer made by Dragons, relinquishing majority control by giving them 50.1% of shares for a hefty $120,000 investment and the involvement of all five of the savvy venture capitalists.

“Everybody was really happy for us” said Jessica on the matter. “We received hundreds and hundreds of emails from family, friends and customers showing their support.” Russel also stated that “we got overwhelming feedback from new customers and old customers” following their appearance on the show.

Yet some argue that the deal wasn’t made in the best interest of the Bohrosons, as the episode was met with controversy by much of “the audience and Dragons’ Den forum community.” Many of who claim that the deal highlighted a greedy side to the Dragons.’ Some even claiming that Atomic Tea “had been robbed.”

How the deal went down:

The Bohrosons original proposal was $120,000 for 25% of the business. After much negotiating, four of the five dragons countered with an offer of $225,000 for 50.1%. While the teashop founders went outside to think about the offer, the fifth dragon Kevin O’Learly jumped in the opportunity to manipulate the situation. “What are you bidding each other up for?” he asked. “You guys are bozos!”

O’Learly concocted a new deal with the other Dragons, putting Jessica and Russel on the spot with a new deal right out of the gate. $120,000 for 50.1% – with a take it or leave it attitude. Even going as far as rejecting the previous offer of $225,000 for 50.1% on behalf of the other dragons.

While ruthless business deals are regular in the boardroom, incessant fast paced deal switching and the seemingly unquenchable desire of the Dragons to obtain majority stake, at times, can serve as an easy way for many entrepreneurs to lose ownership in their company. “It’s got to be 50%” has become a common saying on the show. “If you don’t take this offer you’re insane” is another quote, said by now notorious Kevin O’Learly, which can often push many entrepreneurs over the edge and perhaps give up majority share despite their obvious reluctance.

Yet it is essential to remember that the entrepreneurs on the show always have the power to reject any of the deals thrown at them. It’s also important to note that Atomic Tea’s founders, Jessica and Ressell, have continually stated that they have no regrets about the deal they made. As they believe the decision made was best for the business. And in many ways, it has been.

While it is important to entertain both sides of the argument, Dragons’ Den, Shark Tank and the other countless forms of help that self-made business owners receive, have elevated many to success. As Jerry Fiddler, self-made millionaire and founder of Winder River, simply put it, “You just don’t do it on your own.”

Just remember that when you are on your own respective business ventures, making the right choices are imperative. Even when taking help. As said best by Dragon Robert Herjavec, “Be so careful. It’s so hard to get ahead.”

Image provided by Chrisd

Hyder Owainati is a student at the University of Toronto, who loves to write short stories, read books and collect comics. You can follow his work at http://the-three-muses.tumblr.com/