Sugar Coating

Back in March whilst having an exchange with a friend, I predicted, that Sir Alan Sugar would have to sell his company Amstrad. Today, Tuesday 31st July 2007, it was announced that he has decided to sell the company to BSkyB for £125 Million. I am surprised about the price tag and whether it is a good move for BSkyB. But the fact that BSkyB was Amstrad's biggest customer, contributing to 30% of their business meant that he would have been left holding a dodo if Sky* had pulled the plug on that relationship. I also think Sir Alan would have got a better price from a Private Equity firm or a good shareholder stake from a venture capitalist. But maybe that is what drove Sky's fear and prompted them to act.

For those who do not know, Sir Alan is the UK host of The Apprentice. I have only watched a few episodes of the show but generally I am not a huge fan of the show, but this is purely because of the fact that I do not own a TV. (So leave me alone you TV license people, I plead once more)

Anyway "Sir Alan Sugar once remarked that to be a success in business you needed to know everything about your operations, right down to the nuts and bolts that held everything together."

It is easy for such comments to be taken as good advice but the comments on nuts and bolts is evident of the entrepreneur speak. When a business grows beyond a certain point, one needs to bring in the people who know the nuts; and those who know the bolts; and ultimately what the CEO/Chairman/Founder has to do is know and entrust those people to perform. Otherwise you will be left man managing.

Depending on the industry within which you operate, the rate of growth can vary but based on the industry life cycle, it is only pragmatic for one to do what Sir Alan is alluding to at the introduction and part growth stage of a business. At some stage during the growth phase, he/she will have to step aside and handover the reins otherwise all sorts of dilemmas (such as Inventors Dilemma) and paradoxes (to do with control and focus of the business) begin to emerge.

Of course I could be wrong and there is the fact that Sir Alan is RICH and I am not.