Originally Posted by thenetworkbabe:
“If outward appearances are true, from her website Susan has been very successful, and from her CV was verging on that when she appeared. She seems to be picking up awards for her products, and, if sales match, looks a big success. They seemed to turn her down because they had no proof of that at the time and she may have looked a bigger risk. There was zero risk with Tom. He had the product. And a patent. He had shown it could be sold to trade, it was low cost and, as it existed, he was needed to do very little - so other areas of competence didn't matter if it could be provided to him. A follow on product may have been a bonus.
It looks as if the winning proposal has to be in something that interests Lord Sugar, has decent figures, low risk, people he can stand and trust, and political and popular acceptability. He's also yet to go for something thats geographically distant. I think an awful lot of good proposals just don't make it to the end, or he's not interested in what they do, or he's already picked another winner for doing that. Looking at what they do, and websites at face value I suspect candidates like Laura, Uzma, Francesca or Zoe might be a good bet too for ayone who just wanted to invest money in anything.”
You make a good point that Sugar tends to prefer low-risk investments. As I've said on another thread, one of the reasons for him rejecting Tom Gearing's wine hedge fund proposal last year was that he was concerned about the damage to his reputation if the fund failed and his name - which would have been a key marketing component for attracting investors - was attached to losing other people's money. That's fair enough. He's essentially a private investor, not a venture capitalist, and he wants a return - both financial and reputational - on his investment.
I doubt Tom Pellereau's Styl-Files are pulling up trees in terms of generating a stellar return - he doesn't have wide enough retail distribution for them - but I imagine it's producing steady gains which will eventually net Sugar a handy return. Susan's business has, I believe, a better chance of being a big success, but also a bigger chance of bombing spectacularly after some initial gains.
It's a basic rule of financial investment, really: if you want a bigger return, you have to accept a bigger risk. That's why keeping your money in the bank (safe) earns you a low rate of interest, whereas investing in the stock market (medium to high risk, depending) is more likely to return more in the long run, but you also run the risk of spectacularly bombing out. You spend your money, you make your choice.