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Avoid blunders from 'The Apprentice', advises ICAEW

The ICAEW (Institute of Chartered Accountants in England and Wales) is aiming to highlight best commercial practice by offering business advice based on the boardroom blunders witnessed over the past 11 series of hit BBC TV show The Apprentice.

As the class of 2015 apprentices prepare to begin their mission to prove their insight and business acumen in Lord Sugar’s reality TV boardroom, the ICAEW has looked back at judgment errors throughout previous series, examining how these mistakes are often replicated by businesses on a larger scale.

During series 10, ‘tour guide’, Jemma Bird, demonstrated the importance preparation by attempting, and failing, to ‘blag’ her way out of situation when she couldn’t provide any basic facts about Anne Boleyn, even pointing to a ‘photo’ of Henry VIII, who died almost 300 years before photography was invented. The ICAEW advises that ‘blagging’ is a poor substitute for careful research, which shows potential clients that you are prepared and adds to your confidence.

The pitfalls of over stocking were highlighted in series 2 by Syed Ahmed, who ordered 100 chickens with the intention of making 100 pizzas. According to the ICAEW, the business howler showed the need for sound financial management and planning. Businesses should make sure they only order what they need, it added.

Knowing your customer is another doctrine businesses should adopt, the ICAEW advises. In series 10, James Hill failed to secure a hot tub deal at a country fair after repeatedly calling the vendor “Derek” (his name was, in fact, Anthony). By getting to know your customer, and determining what, when and how customers buy, you can use this to improve your service or product, adds the ICAEW.

In series 6, Shibby Robati failed to impress after falling short of his promise to deliver 1,000 breakfast bread rolls to a London hotel, providing just 16. The ICAEW stresses that integrity is important if you are to succeed in business, and customer care should be central to your business strategy. Failing to deliver on promises will damage customer relationships, it warns.

The ICAEW also advises businesses to be passionate about products, but never to be blinded by an idea. In series 3, Rory Laing came up with the idea of a ‘pooch pouch’ which was ridiculed by the rest of his group, yet he still went ahead with the product. The ICAEW warns that there is more to business than the “eureka” moment of an idea, and urges businesses to also consider practical elements, such as financial costs and unique selling points.

Finally, the ICAEW advises never to ignore the detail. In series 5, Yasmina Siadatan confuses cedarwood with the more expensive sandalwood and blows the budget. Always double check pricing, as making a mistake can seriously impact your margins. Accountants can assist with these finer details, suggests the ICAEW.

Colin Gillespie, President of the Manchester Society of Chartered Accountants, said: “While it is great to be excited by a product or an idea, always approach a new business venture with care. Very often, mistakes are made because of a failure to prepare. Always do your research, know your product and make sure you have a clear target. Mistakes are inevitable, however reacting to them quickly will prevent simple errors from snowballing into a disaster.”

Further advice for small businesses can be found at http://www.businessadviceservice.com/

This was posted in Bdaily's Members' News section by James Welton .