Deborah Meaden: The questions you need to ask about money
Deborah Meaden is a living legend in this country. Famous from her nearly two decades on Dragons’ Den, she became an entrepreneur at 19 years old. Her family didn’t have much money when she was growing up so she figured out how to get it - and grafted. Deborah explains how you should think about money, what she looks for in a business and how to teach kids about it so you can equip them to achieve their dreams.
What you should remember from this episode
Money is just a tool
Deborah loves seeing people in their ‘right life’, i.e. people doing what they love (and money helps you do that).
As money has become less visible (as it’s been digitised), it’s become less ‘real’ which affects our behaviour - e.g. people spend less if their money is in cash. Studies have shown that if a restaurant removes the £ sign from their menu, people spend 8% more. This is called money priming.
Remember why you work - is it making your life better? Are you working too hard? Do you have balance?
Deborah doesn’t have a computer in her house in Somerset. She has created a bubble around her personal life, a sanctuary. Obviously this isn’t as easy for most people but consider what you can do to separate work from life.
Deborah’s definition of a a good business idea is:
Something people need
It’s a big enough/common enough problem
You can solve it at a price that people will pay for it (at a cost that will generate a good profit)
The key business numbers Deborah (don’t call her Debs) likes to see on Dragons’ Den are:
Turnover
Gross profit
Net profit
What you should do after this episode
If you want to teach children about money, check out Deborah’s book Why Money Matters
Consider what you want from life, not how much money you want. Then work backwards to figure out how to get that life (and what money you’d need).
Celebrate your moments of success, otherwise what’s the point?
