Deborah Meaden reveals mind-boggling reason dozens of hopefuls are rejected AFTER securing deals on Dragons’ Den
DEBORAH Meaden has revealed that even making it to the final stages of Dragon's Den may not be enough for hopeful entrepreneurs.
During the course of the show participants are given a chance to present their business ideas to UK moguls in the hope of securing an investment in exchange for offering the board member a stake in their company.
According to the successful businesswoman, even after making a deal, one crucial mistake can cause contestants to fumble the bag.
The Dragon shared that many entrepreneurs claim to have patented their idea when in reality they have only secured the paperwork for the process.
She added: "It's not always them not telling the truth. Some people don't understand the difference between applying for a patent and having a patent.
"So 'I've got a patent' turns into 'I've got the form that you fill in to send off for a patent'.
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"That type of thing, that's a bit annoying. Sometimes I think it's just misunderstanding."
A patent grants a creator exclusive rights to their idea, meaning no one else can action their project.
This gives entrepreneurs with a great business idea time to secure funding without the fear that someone else will have the same idea and create a similar company or product in the meantime.
Deborah went on to share another mistake that catches many Dragon's Den participants out.
The multi-millionaire said: "A really common one is, are there any loans in the business? 'No.'
"You come straight out and there's a director's loan for quarter of a million pounds.
"So you said there were no loans in the business. 'Yes but that's a loan from me to the business.'
"It's still a loan. This business still owes you £250,000. Sometimes it's just not really understanding the business."