Originally Posted by george.millman:
“No, don't think of yourself as dull! It's great to have some intellectual business analysis on here.
I find some of this a little hard to understand, but I do recall Claude telling Leah that her numbers didn't stack up, and she corrected him, launched into a very clear explanation about how her numbers would work, and proved him wrong. Who's to say that couldn't happen with Charleine?”
Don't get me wrong, it could.
But - with my business hat on - I could see how Leah's numbers could stack up far more easily than I can see with Charleine's. Different industries are inherently different in terms of their attractiveness to investors. As an investor, the perfect business plan for Sugar would have a unique proposition, high value (in terms of both sales and profit margin potential), be relatively easy and low-cost to set up (or exit if it all goes wrong), scaleable, in a high growth space, short-term payback (5 years or less, ideally) and so on. And, of course, a credible front-person and business plan.
Last year, Mark ticked all those boxes, with the unique proposition being him and his 'fame' of being on the show, rather than the business being particularly unique. Despite being unpopular, he was clearly a credible candidate from the early stages in terms of his selling skills.
Leah ticked almost all of the boxes. Unique? Arguable. But certainly high value and margin, a bit on the high side in terms of set-up cost but scaleable and in a huge growth area. And the business plan was excellent - as well as being vastly superior to Luisa's.
With Charleine, my initial assessment is less positive (based on admittedly limited info so far). It's a very crowded and competitive market space, sales and profit margins are okay but not spectacular. Unique? I remain to be convinced. High growth? Absolutely not. Payback period? I don't see how any hair salon type business can return a £250k investment that quickly unless it's fronted by a 'name' from the industry, which Charleine isn't.
In many ways, I think it's too safe a plan. It would be a decent proposition for someone seeking a bank loan. But as an investor-type investment, I'm in the 'dubious' camp for now.
Every instinct I have says this one's just not interesting enough for Sugar, even though it could easily be a viable business and Charleine herself could prove to be an excellent candidate (although I don't see it yet). There's a world of difference between a good plan and an attractive, investable one.