I love Dragons’ Den because of the stories you hear from some amazing Canadian entrepreneurs. But I also love the show because it’s great tv: dramatic, funny, occasionally over-the-top, sometimes sensationalistic. The stories on the show also happen to be true. Like the best reality tv, you couldn’t make this stuff up if you tried.
It would be easy to make the focus of this recap about Cris Rowan because it was the most dramatic story of the night. But it’s also reflective of what many entrepreneurs face. An occupational therapist from BC, Rowan started her company, Zone In Programs, to help kids unplug from their electronic devices – a noble idea on the surface. But when the Dragons’ dug a little deeper, they learned that Rowan has invested almost $500k to get her business off the ground. To date, she has had some sales, but currently stands about $400k in debt. To bring her business this far, she has refinanced her house four times. She is at risk of losing her home.
Sound like a stretch?
I’m afraid not. Danielle and I have met real women facing situations just like this.
While we would never judge another woman’s motivations for going into business for herself, we do put our feet down here: Do not put your major financial assets at risk for your business. As we discuss in Mom Inc., starting a business as a mom is not the same as starting a business when you’re not one. The demands inherent in motherhood mean you need to look at your business in a different way. Whether or not the business works out you still need to have a roof over your children’s heads, and food on the table. When kids are in the picture the stakes are just greater.
On the show, dragon Jim Treliving said he learned a lesson from his father a long time ago. To paraphrase, he said, “Never take the biggest asset you have – your household – and put it in jeopardy. There isn’t a product or a service in the world that should potentially destroy your family.”
Dragons’ Den is great tv, but it’s also reality. We’re with Jim on this one. Every business has an element of risk, but keep the family home out of it.
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