From ice cream van to Dragon's Den - Duncan Bannatyne
A Bannatyne case study

Page 1: Introduction

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Every year thousands of entrepreneurs decide to set up their own business, anticipating great financial rewards. However, over half of new business start-ups fail in their first year. So what makes the difference between those and profitable business ventures? What makes an entrepreneur extraordinary? This case study focuses on Duncan Bannatyne, one of the UK's best-known entrepreneurs. His...
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Page 2: Starting a business

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What makes an idea grow into a business? Duncan's ventures into the ice cream business, bedsits, nursing homes, day nurseries, health clubs, hotels and spas highlight many of the key elements: Identify a gap in the market do research. What do people need, what is missing from the market? Proving there was demand for a paper round enabled Duncan to get a job. Many of Duncan's business...
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Page 3: Sources of finance

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Choosing the most appropriate source of finance for the size and needs of the enterprise is important: Sole traders: Duncan's first ice cream van was an example of this type of business - owned and run by just one person who takes all responsibility and all the profit. The small investment for the van was covered by personal funds. This is typical of many start-up businesses. Partnership: This...
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Page 4: External sources of finance

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Banks are a major source of finance for all businesses, providing finance for starting up, running the business and for expansion:  loans can be short-term, medium-term or long-term, depending on need. mortgages are long-term loans for the purpose of buying fixed assets such as buildings and equipment. overdraftsare short-term loans with limited duration which can help the day-to-day...
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Page 5: Investors

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There are different types of investor funding available to businesses. These are from:  shares - Duncan raised funds from shareholders by floating his Quality Care Home business as a public limited company on the stock exchange. Shares are especially relevant to large projects needing several million pounds of investment. venture capital - Venture capitalists invest in businesses by...
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Page 6: Conclusion

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Over the past 30 years Duncan Bannatyne has used his drive, ambition and skills to develop a business empire worth £310 million. The move from ice cream to care homes to the Bannatyne Health and Leisure chain reflects this entrepreneurial drive. He saw the potential for profits in each sector. He was willing to take risks, for example, by exiting profitable businesses like the care homes...
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Related: Institution of Engineering and Technology
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