So the Apprentice is back on our TV screens and with it the usual lessons in how not do do business! The first episode saw the teams challenged to buy fish at Billingsgate market and to sell it at a profit, the group that made the biggest profit would win. This is a basic business principle that every would be entrepreneur should be able to master but one group failed miserably. I think there are three key lessons that every business owner needs to remember:
- Buy at the right price
- Control costs
- Be where the customers are
Buy at the right price
We saw the losing team manager buy a significant amount of fish from the first supplier they spoke to at the price the vendor wanted to charge! We should always shop around or at least know the market rate and then haggle. If you know what others are charging for an equivalent product you have a good starting point for your negotiations.
Having bought their fish at an inflated price our losers then went on to make the most enormous fishcakes ‘because that’s what the specification said’. This meant that they couldn’t keep their costs down to the level where they could make a profit. It’s a mistake I often see in start-up businesses. Every time you add a little extra this or that your profit margin is compromised unless there is scope to put up your prices to cover the additional costs.
Be where your customers are.
Probably the biggest mistake that our hapless losers made was taking too long to prepare their dishes so that they missed the lunchtime trade. You can’t make money when no-one wants to buy. Could you be guilty of taking too long to get to market with your idea because you want it to be perfect or because you aren’t prepared to invest in the help that will get your product or service out there? It’s an easy mistake to make but a good product delivered on time will make more money than a perfect product launched when the market has already been satisfied.
Did you spot any more lessons in this episode? Why not share them here?
I’m sure I’ll be returning to the Apprentice for more blog posts in the coming weeks that is if they don’t drive me to mad first!