Why “I didn’t know” is no excuse
Naomi Simson
B.Comm GAICD Non Exec Director, Entrepreneur, Business Owner, Keynote Speaker, Author
I was always getting into trouble as a child and breaking the rules. At the time I knew what I was doing was wrong, but I didn’t think anyone would notice. I was trying to ‘get away with it’.
One thing I have found fascinating through my experience on TEN’s Shark Tank, is that some people pitching somehow still think they are in the schoolyard, and that cutting corners is OK. But let me tell you this – there’s no ‘getting away with it’ in business, especially not if you’re asking for investment.
If you want to own, run or scale a business you have to do the work. It’s as simple as that. And saying, “I didn’t know” is no excuse. The title of founder, owner or director comes with significant responsibilities.
Some weeks ago we saw Anne pitch her business to us, Simply Moreish Marinades. It became apparent after a discussion on the word ‘moreish’ that Anne was unaware of the difference between registering a business and having that business name trademarked. You too may not have known that there is a difference; my plea is that if you want to start a business, you need to find out about all the regulations and tax obligations, including which legal structure is best for the type of operation you intend to run.
IP Australia is writing about what they see as the faults in each of the pitches on Shark Tank, and offering great advice on what business founders need to do to protect themselves.
And this is the advice from IP Australia, which would have been very helpful to Anne:
Sadly, a simple search of the Trade Mark Register before she started her business may have saved Anne Barclay a lot of hassle. Alternatively, she could have lodged a TM Headstart application for $120 and had Trade Mark examiner do a check on her behalf. If she runs into legal trouble, she may have to take down her website and dump her branded packaging - a costly exercise that could be avoided. This is a useful lesson and practical example for all in business. Simple IP mistakes like these don't make your business very attractive to investors.
If you’re going to start a business, you simply MUST take care of the detail. If this isn’t your area of expertise that’s fine, just find someone who will help you. Business.gov.au has a great checklist to get you started.
You also need to take into account that the industry you choose to work in may well be regulated. There were a number of food and drink pitches on Shark Tank and the first question we asked every time was, “Do you comply with the regulations? Are product trials required? Is your product approved? Is your product properly labeled?”
Even initial research into food safety will give you an idea of what will be involved in starting a food business – as you may have seen in a more recent episode regarding the "relaxation drink."
I found the AICD Company Directors Course very useful in learning to understand my responsibilities as an employer and director.
What I have outlined above is not an exhaustive list on what you need to do when starting a business, but it gives you a starting point. One thing I do implore you is that you take the responsibility to find out what’s needed and that you always do the right thing – it could save you not only embarrassment, later but a lot of money.
Who knows what we’ll learn next Sunday at 7.30pm on TEN. And this time you can ask yourself if the person pitching has done the necessary work. Join me live @naomisimson during the program.
Naomi Simson is the founding director of Australian online tech success story RedBalloon and Redii. She has written more than 950 blog posts at NaomiSimson.com, is a professional speaker, author of Live What You Love & Ready To Soar and is one of five “Sharks” on TEN’s business reality show Shark Tank 9.00pm. Follow her on Instagram, Twitter, and Facebook
Trustee, Aashwasan Foundation and Chief Innovator, Vice Chairman Epiance
9 年I agree with Nail Kumar. We all are ignorant about some crucial aspects. The worst thing is to cover up our ignorance with a pretense of knowledge. The second worst thing is to be ok not knowing something that is significant for our business. Admitting ignorance and making efforts to know is probably the most noble thing to do.
Savills- Associate Director | Hotels & Hospitality Real Estate | Masters of Property Investment & Development | Licenced Real Estate Broker (NSW,VIC,ACT,WA)
9 年For someone who constantly harps on about "investing in the person" i find it strange that Naomi would not want the honest answer. "I didn't know" is perfectly acceptable as long as the person is willing to use it as an indicator that they need to turn around and find out quick smart. The alternative to saying " I didn't know" would be the classic BS story or evasion technique that so many people use, and it ends up getting them into trouble down the track.
Health Sciences Instructional Designer | Learning & Development Programs | Capacity-Building, Professional Development, CME/CEC Education & Online Course Designs | HealthTech Research Writer
9 年That's a great article... as a new business launch myself helping others with their launches, this is the first thing I tell them to look into. The headstart app for Trademarking is brilliant - IPAustralia was fantastic.
Programmer at MTS Systems
9 年At one time I thought I wanted to be eaten by the sharks; thanks to God, no shark would bite; I had the feeding frenzy on sharks instead. Keep in mind that it is the sharks who make the obtuse and obscured regulations; it does help to feed off the sharks when one knows their regulations. Thanks for the informative post!
Hotel & Hospitality specialist
9 年thats great