It is vital to be able to clearly define how your investors will make money from your venture - remember this is an investment, not a loan. Potential investors will want to see profit quickly so you need to be clear about the consequences of investment: what it can do for your business, what the drawbacks might be and precisely how much equity you are prepared to give away.
Business owners must match their pitch to the potential investors and know what they are prepared to give away. Before going on Dragons' Den I wanted £50,000 and was willing to give away 20% of my business for it. The banks had refused to lend me any money and I had exhausted all other avenues of help, so it was a pivotal decision to pitch on the show.
Of course, I ended up giving away double the amount of equity I had initially planned but I attracted the partnership of two respected businessmen, so for me personally it was a win-win situation.
Business owners must match their pitch to the potential investors and know what they are prepared to give away
It is normal for business owners to be nervous before they pitch for investment. Everyone I spoke to told me not to go on Dragons' Den and my kids told me the Dragons' would tear me apart! So I was more than a little apprehensive, but something inside me was compelling me to go ahead and on the actual day I could not have felt more prepared.
It is also extremely important that all entrepreneurs know their numbers. I infamously fluffed my numbers on the show but thankfully the Dragon's saw me - Levi Roots - the personality and not my calculations as the winning formula and took a chance on me. But not everyone will be so lucky. It could easily have cost me the opportunity and it is not a mistake I am ever likely to make again.
I was very lucky as not only did I receive investment but I also got a business mentor. Having a mentor is as much an important part of business success as having a good product and business strategy. It is always constructive to have experienced second opinions to consult - whether or not you follow the advice is a personal choice but at least you'll be making an informed decision.
Everyone needs a mentor and Peter Jones is mine. Through him I have learnt so much more about business. Whilst I bought back Richard Farleigh's shares, I want Peter to be a part of the business forever. The best advice Peter has given me is just to be myself.
I regularly visit schools to speak to their students and I feel blessed to have the many opportunities I get to work with the youth, schools and universities. Today's young people will be our leaders tomorrow so it is vital to provide strong role models and good advice.
I'm working towards my own foundation, which will open up more opportunities in the future to work very closely with young people. I'm excited about the possibilities this will bring for our next generation of talent and entrepreneurs.
Established entrepreneurs should pass on their business advice and expertise as in life none of us would be anywhere without the advice and examples of those that have gone before us. If you are fortunate to have a lot of experience then it is only right to share it around. Entrepreneurs looking for funding must ensure they get their figures right and can offer return on investment.