National Post (National Edition)
BEARS & DRAGONS
Entrepreneurs deserve carnivorous imagery.
Last week, I took part in a business event in Peterborough, Ont., called Bears’ Lair. As you might guess, it’s a Dragons’ Den- type format where entrepreneurs compete to win prizes for making the most compelling pitch for their business.
Sponsored by the local Workforce Development Board and organized by three dynamic women entrepreneurs, Bears’ Lair was done right. The competition started in January with 25 entrepreneurs entering on Facebook, and ended in April with four finalists facing off in front of a panel of four judges and 150 boisterous fans.
The winner received $5,000 in cash and $20,000 in products and services from various sponsors, which included office equipment, advertising credits, Web development, Internet marketing coaching, accounting services and even fashion consultation. That the runners-up also won a number of free services showed the generosity of Peterborough’s business community.
But this event got me thinking: Why bears? Why dragons? Why do we associate entrepreneur pitch-offs with such violent concepts? “If you don’t win, you’ll be eaten by bears. Or consumed in dragon fire.” This doesn’t happen to aspiring singers (they become “Idols”) or apprentices (after being fired by Donald, they go home in a limo).
Still, I think there’s good reason for adopting this car- nivorous imagery. Entrepreneurs deserve it.
The names of these programs imply consequences. And facing the consequences has become a rare concept these days. Society today too often protect us from consequences — even mild criticism. (Look at the mealy-mouthed report cards that eschew the word “Fail.” Or consider the word “non-judgmental, which is now generally perceived to be a good thing.) Everyone must be encouraged; no interest, direction or pursuit can be judged “wrong.”
But business doesn’t work this way. When you run a company, and your products or services don’t meet the market’s needs, the consequences are severe: You don’t get paid. If you don’t fix it fast, your children don’t eat. It’s epically Darwinian.
Which is why entrepreneurs should embrace these dragons and bears. Most startups get overly friendly feedback from friends, family and business acquaintances, when what they need is tooth and claw. “Great cookies,” say your friends. Knowing nothing of the expense of starting a business, they suggest, “You should sell these.” “I love this prototype,” others say. “You should manufacture these and sell them.” Yes, entrepreneurs need positivity, but not mindless encouragement. If they’re going to invest their life savings into a venture, they deserve caring criticism and provocative probing.
This is why dragons and bears are your best friends. They ask the tough questions no one else will. Kevin O’Leary, of CBC’s Dragons’ Den, has become the poster boy of abusing entrepreneurs, for the excessive delight he takes in ripping apart their business plans. But in the end, he’s usually right.
The judges in last week’s Bears’ Lair event weren’t as critical as the dragons tend to be; in a city the size of Peterborough, you may meet that entrepreneur tomorrow in the checkout line at Costco. Even so, they asked strong, challenging questions of the four finalist pitchers:
Asked of an entrepreneur planning a video-production company aimed at seniors: How did you come up with your price point? Do you have additional services you can sell? Where will you find more professional expertise when
The names of these programs imply consequences
you get too busy to do all the work yourself?
To the creators of a new consumer product: How are you protecting your product idea? Does the uniqueness of this product really justify the expense of getting a patent? Would you consider licensing your product rather than taking on the burden of manufacturing it yourself?
To an artist launching a creative product geared to seniors suffering from dementia: How do you plan to acquire customers? How will you encourage repeat sales? How will you keep users from photocopying your product rather than buying more?
To an aesthetician starting a spa: Have you really looked at your business plan? You’re not making enough money! How could you get that profit higher?
The entrepreneurs had good answers to only some of these questions. More often, they were taken aback, and took notes for future reference. While it’s no fun to be called out on stage for your mistakes, it’s far better to get this feedback now than to be socked by these problems down the road, when the stakes are higher and other problems are coming at you fast and thick. Feedback, says management guru Ken Blanchard, is the breakfast of champions.
Most entrepreneurs will never be lucky enough to be exposed to the withering cross-examination of bears and dragons. So you must proactively seek that out. Share your business plan widely. Build a network of business experts and ask for their objective comments and probing questions. Don’t fear the fire.
Congratulations to Janet Howse of Work of Art, who won first prize in the Bears’ Lair. If you’re lucky, the tough questions are just beginning.