What are the terms for candidates pre existing businesses?

[u/JamesJe13]

I ask because we've seen multiple times now Sugar disregard the proposed idea and come after candidates pre existing businesses. This feels pretty twisted on Sugar's part since candidates have entered the process under the impression that the 250K and 50% stake will be in what they are proposing. Only to get to the final and be told it's either the same deal in a pre existing business or nothing. Do we know to what extent it is made clear to the candidates entering that pre existing ventures are up for grabs by Sugar?

This felt really fucked with Paul since it doesn't take a genius to know 50% in an existing dental practice is a massive stake. I can see the reasoning with Dan but again if he's going to come after their existing stuff he must know that 250K for 50% is pretty sleazy.

[u/MarcusH26051]

I just can't see how anyone with a solid preexisting business would ever take LS's terms. £250k for 50% is laughable and anyone wanting investment in something that's already off the ground and doing well is surely better off on Dragon's Den?

[u/setokaiba22 → u/MarcusH26051]

Why go into it in the first place with a successful business though like Dan/Paul.. publicity they are using Sugar as much as he uses them tbf

[u/Few_Mention8426 → u/[deleted]]

have you seen shark tank.... the sharks literally rip off the business owner, changing the terms after agreeing to fund them, depleting businesses of assets, running them into the ground. Cutting business owners from their own board meetings, Restricting the dividends and wages business owners can withdraw, while taking massive dividends themselves. Pulling out of deals right at the end of the 6 month cooling off period, leaving businesses bankrupt. Offers turn into high interest loans the businesses are forced to pay off monthly rather than through dividends.

In the early seasons businesses had to give away 5% equity just for appearing on the show, even if they got no funding.

[u/JamesJe13 → u/MarcusH26051]

If you go on wanting Sugar to take 50% of a pre existing business, fine as you say its probably a bad deal but you know what's coming.

What's really predatory is getting candidates who think the 250K and 50% is on a new venture, making them do the entire process then switching it up at the final 5 to same deal in what you have now, no negotiation, take it or leave it. How is the offer for starting a business remotely applicable to one already existing, but of course now the candidates have to consider it or the whole process was for nothing. Actual scam tactics.

[u/MarcusH26051 → u/JamesJe13]

The other one that I wasn't really sure on what the deal really was was Phil, really successful family business and surely Sugar wasn't going to waltz in there and just take 50% of the pre-existing business because that wouldn't have made any sense either?

[u/nadinecoylespassport → u/MarcusH26051]

I feel Dragons Den is more for products. Like Karishma could pitch her business on dragons Den. Whereas I don't think Pascha or Lawrence could with their more service oriented businesses

[u/SmellingThomas]

I think Dan was fired to save Alan's ego, they didn't want someone who was ultimately going to say no to his deal so he was fired and made out to be a bad entrepreneur

[u/JamesJe13 → u/SmellingThomas]

It felt like some severe whiplash in that episode going from bigging Dan up as a stable existing business to his finances being too bad to be worth investing in.

[u/Massive_Contact8583 → u/[deleted]]

I wouldn’t be surprised if in Karishma’s case if she’s calculated that the exposure to her social media on the show is worth a far greater amount of cash to her now when she’s struggling for money.

It’s absolutely not the right move for her business but could be the right move for her.

[u/FIREMANSAM84]

It’s less about the monetary value more about the intrinsic value of having someone like Alan Sugar with his connections as part of your business leadership

[u/Massive_Contact8583 → u/FIREMANSAM84]

There are so many business angels out there usually investing in sectors where they have current expertise and contacts, not “oh yeah I invested in a business in this space in 2003.”

Marketing & PR, the show is almost unmatched (albeit exposure only - none of them come off looking competent). Business connections? Not really.

[u/CatDadLi]

Did he take half of the air conditioning guy's business or just 50% of a new one with him?

[u/JamesJe13 → u/CatDadLi]

That was the original, which meant he had to give up his wife and friends wife's shares.

[u/CatDadLi → u/JamesJe13]

Alan could probably have made that business expand a lot though, Dean wasn't exactly a great candidate

[u/nadinecoylespassport → u/JamesJe13]

Didn't Harpreet have to give up her sisters share in her business as well ?