An interview with the Dragon of La Senza, Theo Paphitis

On the 24^th November 2011, Emma Armitage and Lorna Salmon from GU2 met up with major business mogul Theo Paphitis at the opening of his eighth lingerie store, Boux Avenue, in Guildford’s own Friary Centre. Here, he talks about his retail experience and shares some of his valuable business wisdom.

GU2: You’ve previously been involved with lingerie brands La Senza and Contessa, so you’re obviously interested in this sector – why?

Theo Paphitis: First of all, it’s dominated by one big player in the UK, which is good and bad in business: you’ve got a really big monster competitor out there, but also you’ve got opportunities because you can spot where some of the market is dropping the ball. Also, lingerie is very special. For me, it’s a product that’s very personal and exciting. Whether you’re a boy buying it for a girl or a girl buying it for herself, it’s about more than just the product - it’s the experience of buying it. Men from the UK are appalling at buying lingerie for their partners. Compared to the rest of Europe, they buy something like ten per cent of what the rest of continent’s men buy – which is ridiculous! You can just imagine them waffling through the Marks & Spencer lingerie department. I hope, with Boux Avenue, we’ve given people the opportunity to be more relaxed.

GU2: So you’ve been involved in retail, property, finance and football – where does your heart lie and where does your business mind lie?

TP: My heart and my business mind lie in exactly the same place. When young people come to me and say that they don’t know what to do, with A-Levels or a degree that they don’t even like, all I can say is to follow your passion. It’s a long, but very short life out there. Don’t waste it by doing something you’re not passionate about. I’m very passionate about retailing, so I’m very fortunate to be doing something that I really care about, and as it happens, I make a few bob on the way…

GU2: What’s the best business tip you’ve ever received?

TP: It was exactly that – follow your dreams and passions. There’s so much pressure from your peers and from family to do different things. I say stop and think: “What turns you on?” And if the answer to that is “I don’t know”, you’re not ready. If you’re a round peg, don’t try and force yourself into a square hole. Don’t just do something just because you think it might make you some money, because being driven by money is actually not the ideal situation. Go out there, open your eyes, and even if you have to try four or five jobs first – do it while you’re young, and then get onto that ladder afterwards. But don’t just sit there in the bath, playing with your rubber duck, waiting for that “Eureka!” moment to come along – you’ll get very shrivelled waiting!

GU2: Here at Surrey University, we’re planning to open up a facility (where the bookshop used to be) which allows students to build their business from the ground, and get their foot in the door. What tips can you give to the men and women of Surrey in relation to setting up a business?

TP: There are two major tips. One I’ve already spoken about – passion. But the one that comes before that in business is something that’s really, really boring: homework. Do your homework. Get your facts right, because that’ll help you make the right decisions for your new business. Fifty per cent of all small businesses fail in the first two years. That’s a huge figure, and it’s because people go into them without getting all the facts, and doing all the research first. And for young people, this is the best time for it. As frustrating and as boring as it may seem, because you just want to get on with it, this is the absolute best time to do good homework. Then, you’ll be ready to hit the ground running.