James Caan is the newest dragon on the BBC television show Dragons’ Den. He
is chief executive of the private-equity firm Hamilton Bradshaw and has been
building and selling businesses since 1985 in various sectors.
TODAY in Britain it is pretty cool to be an entrepreneur. Programmes such as
The Apprentice and Dragons’ Den regularly attract more than 5m viewers. The
number of men and women opting to run their own businesses is increasing,
and the rewards of following your own vision can be seen in the lifestyles
of those who become extremely wealthy through their own endeavours - which
in turn inspires the next apparently limitless generation of aspiring
entrepreneurs.
Not everyone is programmed to be an entrepreneur, however, and there is
certainly more to it than a strong desire to make money. Whatever your
starting point, no businessman or woman is an island capable of building a
successful company alone.
Turning your dream into reality inevitably means creating a strong team,
engaging them with your vision for the business and developing an
environment that fosters the concept of ‘intrepreneurship’ - encouraging a
creative approach to problem solving within a company and retaining valuable
intellectual property.
Because you are at the centre of the organisation it is vital that staff are
able to tell you about any issues and ideas they might have. Too many
businesses fail because the leader stamps his or her personality and
authority on the whole operation rather than listening to people working in
the component parts of the organisation.
At a time when the highly competitive global market is depressed, it is even
more crucial to listen to them and, especially, your customer-facing staff.
If your working environment promotes the sharing of good ideas and early
identification of potential threats then the probability of success is
increased and the risks to your business reduced. To achieve this it is
important to be visible - so talk to people. This simple interaction boosts
confidence, which in turn helps staff take important strategic decisions.
Instead of being at the heart of your business in an “ivory tower”, share
the heart and passion of your vision with your employees.
So, while everyone cannot be an entrepreneur and not every entrepreneur will
be successful, let’s postulate that the correct skills have been employed,
the huge effort made and the risks overcome, and you have “made it”. The
rewards can be fabulous. Okay, you’ve earned it, are entitled to love it
and, indeed, people will expect you to have the trappings of success – but
is that it?
For all the successful entrepreneurs that I know there is definitely more to
it. Without exception, each of these dynamic people is an entrepreneur at
heart with a desire to make a significant difference - in business, in their
communities, in their environment and, in fact, in almost anything they can.
Their successful journeys have not just been about profiteering but have
become focused on what they can give back - and by this I don’t mean simply
outbidding each other at charity auctions without the ability to influence
and maximise the benefits derived from their donations.
A recent survey revealed that more people would now like to work for the Red
Cross than the Virgin brand. There is a growing groundswell of sympathy for
those around the world who need help as a consequence of economic
circumstances or disaster, either natural or man-made. By looking for
long-term projects that their organisation can fund, the successful
entrepreneur can give a great deal back to a community - valuable work that
can be shared with their employees.
To me there is definitely more satisfaction to be gained from giving than from
receiving, so I have just such a project that is a lifelong commitment. In
response to the need to educate boys and girls in rural Pakistan and to try
to break the cycle of poverty that traps so many, I have built and staffed a
school for 428 pupils. Each of these pupils needs books, uniforms, shoes,
food, milk - the list goes on. For me this is the “real deal” - the title of
my forthcoming biography, incidentally - and all my media earnings help fund
this school, my passion project.
The important point is that my employees at Hamilton Bradshaw have embarked on
this endeavour with me. Together we built and now staff a primary school and
supply it with everything the pupils need. We also provide transport for
teachers and pupils wherever necessary, and we are now building a secondary
school.
When an employee of Hamilton Bradshaw visits the school for a week, the
pupils, as well as the employee, benefit from the experience. As a
consequence, my staff are very highly motivated by the survival and success
of the school - which in turn creates a strong focus for my business that
is, like all businesses, run for profit.
And so we come back to profit and the starting point of most entrepreneurs’
journeys. My mantra when looking to invest profits in a business is:
“People, people, people”. While the dynamics of the business - the operating
systems, the product or service and even the location - can be changed, you
cannot fundamentally change people. In effect, my entrepreneurial aspiration
is to invest in and nurture people.
I think this philosophy works. Being an entrepreneur at heart, I haven’t
retired on past successes but have now developed a number of profitable
businesses, created employment for many people and shared this good fortune
with those who most need our help.
If your employees are fully behind your vision and have joined you on your
journey you will have minimised the risk of not reaching your destination.
And if you can achieve this, you will not just be at the heart of a successful
organisation - you will truly be an entrepreneur with heart.
To read all five parts of James Caan’s series for The Sunday Times go to www.timesonline.co.uk/entrepreneur
Well said James, I always get worked up when I hear people say 'money is the route of all evil' - in my view greed and the need to suppress others to succeed is. Profit is the reward for a successful enterprise, a good salary a reflection of the value you bring to your employer.
Michael Evans, Cambridge, Cambridgeshire