How Important is Help to the Self-made Entrepreneur?

How are shows like Dragons’ Den and Shark Tank helping the struggling entrepreneur in their journey from self-made to self-made millionaire?

By Hyder Owainati, Staff Writer

Being a self-made millionaire is a goal for some, a fantasy for others, and a reality for the select few. While we are constantly reminded that money doesn’t equate to happiness, achieving wealth and success through hard work, perseverance and good business savvy would surely warrant a genuine smile on anyone’s face.

The notion of starting from nothing and attaining millions through one’s own volition is highly sought after. So much so that there are countless books, articles and top-ten lists promising to reveal the hidden secrets to millionaire success. Now even television shows, such as Dragons’ Den, have gained mainstream popularity by providing the average TV viewer an insight into the world of aspiring entrepreneurs. Apart from their obvious entertainment value, these shows represent a platform to success for many struggling business people searching for financial support and solid advice. So how important is such help to the making of self-made millionaires? And can they help you in your journey?

The “Helpless” self-made Millionaire

The self-made millionaire is perhaps most admired for their independence. Remaining diligent through struggles and tribulations to unprecedented triumphs, credited to no one but themselves. Yet no one’s success is absolutely self-determining – as help, advice and support remain crucial components in the arsenal for business success. Even for the self- made millionaire.

Paul LeJoy, revered real estate investor and top business expert, put it best, by saying, “Do not forget your humble beginnings and all those who helped you to get to the top of the hill.” Even going as far as stating, “ There is no such a thing as a self-made millionaire. People get there because others helped them get there.”

While not trying to take away anything from the self-made millionaire, Lejoy does an effective job of highlighting that help to the self-made millionaire is important.

Help exists in various forms. Even inspiration serves as a form of help, whereby the successes of others can serve to motivate you to achieve what you may have previously thought impossible. More palpable forms of help, such as financial assistance and increased investor support, are also out there.

That’s where shows like Dragons’ Den and Shark Tank come in.

Dragons’ Den originated in Japan. Its popularity spawned duplicates around the world, such as the Canadian, British, and Australian versions. The show even sparked the US counterpart “Shark Tank”.

These reality television programs have a premise that we’ve all come to know and love. Every episode, a handful of entrepreneurs approach a panel of potential investors with one goal in mind. Selling their pitch. Hoping that in turn, these high-end clientele will provide the necessary help that could launch them to self-made millionaire status.

The panels are composed of the ultra successful. From those who made billions for the tech industry, such as Mark Cuban of Shark Tank, to Canadian tycoon, Jim Treliving – owner of the Boston Pizza and Mr. Lube franchises.

Bearing the appellation “Dragons” or “Sharks” respectively, these venture capitalists have become infamous for being brutally honest, and in many times ruthless. Shutting down questionable business ideas and annihilating the hopes of many aspiring self made millionaires.

On the flip side, these super rich financiers, who are justified in their convictions as they are using their own money to invest, have helped propel many to success.

Lending a helping…scale

Prior to making their appearance on Dragons’ Den Canada, married couple Tonia and Hatem Jahshan had already established themselves as successful self-made businesspeople. From their humble beginnings in Tonia’s basement, the Hamilton based company had generated $1.3 million in sales. All this before even appearing on the show.

Their success is attributed to their product – steeped tea. Regarded as a better alternative to the traditional bag teas we’ve all become familiar with.

Yet, despite their previous accomplishments, it was their deal with Dragons David Chiltonand and Jim Treliving that helped balloon profits. The company “has

grown five times over and achieved multi-million dollar status” since the life changing partnership was made over the show.

The injection of $250,000 from the two Dragons, in addition to Jim Treliving’s American business connections, was also key to realizing the company’s goal of transitioning to the US market. This was one of Tonia’s and Hatem’s earliest goals for the company.

The couple has had only positive things to say about the help they received from the show, stressing how the Dragons have been “instrumental and amazing” to their success. Tonia even attesting that “David calls my husband Hatem every other day,” reflecting that the support they received was far from financially centered or officious in tone. Instead, proving that the help from the Dragons has been largely based from genuine and heartfelt intentions of making the deserving self-made businessman achieve the millionaire status that they so duly earned.

Deal or no Deal? It doesn’t really matter

Turns out you don’t even have to accept an offer from the Dragons to reap the benefits of the show. Just ask Raul Rupsingh and Stephen Beath, the founders of SoftShell.

While their software, which allows seniors and disabled people to use the Internet and email through a simplified computer interface, enticed offers from many of the Dragons, they chose to reject them (small business). Why? Well the offers came at a price of 50% of the company’s share. Too large of a sacrifice for the two entrepreneur duo, as they were not willing to part with majority control.

Regardless, the company still achieved success, as the show served as a major source of advertising. Helping attract alternative investors, close new deals with 50 nursing homes across Ontario as well as allowing for the possibility of US expansion in the future.

GrowZorb serves as another example of where closing the deal wasn’t important. After the partnership deal with dragons fell through, David Koetsch’s creation (an improved growing medium for hydroponic greenhouses), has received various propositions from European investors. Something that David credits to his exposure from the show.

For many struggling entrepreneurs, lack of promotion and mainstream exposure are colossal weaknesses. At times, it’s the missing link to realizing success. Yet, advertising is expensive. Especially when done on television. Consequently, shows like Dragons’ Den help in the making of self-made millionaires by publicizing their ideas, their businesses and the qualities of the entrepreneurs themselves.

Dragons’ Den help goes as far as encouraging viewers interested in any of the pitches to “get in contact with the entrepreneur directly to make any business deals with them.” They even created the website shopdragonsden.com, which allows viewers to purchase many of the products pitched on the show including those that “got burnt.”

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/