TV personality and retail entrepreneur Theo Paphitis on the success story that took him from High Street to Dragon’s Den

Theo Paphitis is best known as one of the investment Dragons on BBC TV’s Dragons’ Den series but, from his humble beginnings as a tea boy to becoming one of the most influential figures in the UK retail industry, his journey has seen him transform struggling businesses into household names, mentor aspiring entrepreneurs and leave a lasting imprint on the High Street.

Speaking from London, he recently shared the story of his success with GOLD magazine, also revealing legacy he aspires to leave behind one day.

You began your career as a tea boy before rising to the top of the retail industry, turning around struggling businesses and building household brands. What initially attracted you to the retail sector and which qualities or attributes do you consider the most crucial in navigating this industry and achieving sustained success?

Looking back, I always loved the customer service side of retail and delighting those customers. Even when I was 14 and at secondary school, I took up a challenge that a supportive teacher set me and opened its first tuck shop. The shopkeeper in me was born and I learned huge lessons from that experience. Week one, sales were booming and I thought ‘this is great’ but in week two, I hit problems – litter from week one sales in the playground, health and safety issues as I was blocking a fire exit, stock problems, cashflow – all massive lessons for week two of the tuck shop, and I took them through to my later career. You have to be able to pivot in business and adapt as challenges present themselves. Being a salesman at Watches of Switzerland also showed me the importance of attention to detail and I have taken this with me in every single aspect of how I do business now. We don’t say ‘retail is detail’ for nothing because the success is always in the detail.

You left school at 16 with no formal qualifications, partly due to your dyslexia. How did you overcome the challenges of entering the workforce in a world that heavily values academic credentials? Do you believe dyslexia shaped the way you would later think and operate as an entrepreneur?

I struggled at school because of my dyslexia but I would credit it with being the making of me. It is very much part of my identity, my success and how I approach the world of work now. I was always ambitious and had confidence but I knew I needed to remove those barriers of how I learnt things and adapt them. Those workarounds have stood me in good stead throughout my working life and, when you find something you’re passionate about, you find a way to do it. As mentioned earlier, my first proper job was at Lloyds of London, where I was assistant tea boy to the filing clerk. I quickly realised that being dyslexic and in charge of filing wasn’t a good mix, so I then turned to retail, where I discovered my passion, and I never looked back. Today, I am also the Dyslexia Empowerment Patron for the British Dyslexia Association, which recognises how opportunities exist for those who have dyslexia and shows them that there are many workarounds. Many entrepreneurs are dyslexic or neurodiverse but were creative in the way they entered the world of work. Many, myself included, wouldn’t want to work for someone else, so you become the driver of your own success.

The High Street has come under immense pressure in recent years, with e-commerce and digital transformation reshaping the landscape. How do you see technology transforming the sector over the next decade?

There’s no doubt about it: COVID-19 accelerated everything by at least five years in a period of about 18 months. It created a bit of a rebirth and transformation for retail and AI will take that even further now. From personalised recommendations to inventory management and customer service, it is already transforming both the online and offline shopping experience. Retail has always been seen as a traditional industry but with AI that perception will inevitably change.

You have invested in and mentored numerous entrepreneurs, as well as successfully reviving struggling brands. What are the key factors you consider when assessing whether a failing retail business is worth saving? Likewise, what qualities do you look for in an entrepreneur before deciding that they are worth investing in?

Timing is everything in business and fine margins will often define a business and its future. The most important thing to consider when looking to inject new life into a struggling brand is whether that business has a reason to exist and how it sits in its competitive set. Does it still have a USP? From my time in Dragons’ Den, I learnt very early on that investing in a good business or product with a great entrepreneur driving it was much better than a great product with an average entrepreneur. The person will often be the difference between success and failure. Hard work, an open mind and the ability to pivot are always worth investing in.

Your business empire spans retail, property, finance, sports and consumer goods. Work-life balance is a challenge for many entrepreneurs, so how do you manage your time and priorities while overseeing multiple businesses?

I have great teams in place, which is important as you can’t be looking after everything at the same time when you have multiple interests. So, trusted and capable teams are a must. I am very hands-on, though, and I like to be inside the detail. Running a business is hard graft and not for the faint-hearted. It requires bucket-loads of passion and determination and, more often than not, success demands a bit of blood, sweat and tears. Anyone who tells you otherwise has either been astonishingly lucky or has never been in a position where they’ve had to make a decision.

Having grown up as an immigrant in the UK, how has your background shaped your approach to business and leadership? Additionally, how has your relationship with Cyprus evolved over the years and what role do you see it playing in your future?

My parents, my brother and I were the first of our immediate family to emigrate to the UK from Cyprus, when I was six years old and we moved to Gorton, just outside Manchester before moving to London. Over the years, our relatives have enabled us to maintain close ties with Cyprus and I visit as often as I can. I am a great anglophile but the Cypriot in me was never – and will never be – diluted. It will always play a huge part in my life.

Reaching the pinnacle of any industry inevitably comes with sacrifices. What have been the biggest personal trade-offs you’ve had to make in building your career?

I am very fortunate to love the work I do, so much so, that it rarely feels like work and if you enjoy what you do and are truly passionate about it most of the time, this is what it should feel like. There are always tricky times but I don’t see work as a trade-off; it is very much a part of life’s rich tapestry and blends in with the other side of life. I enjoy my work and I have established wonderful friendships with many of the people I have worked with over the years. This gives me a huge amount of satisfaction. It has provided well for my family and me and enabled me to help others through employment or philanthropy. I always advise people to do something they enjoy and then the ‘trade offs’ are very much kept to the minimum.

Looking ahead 20 or 30 years, what do you hope people will say about Theo Paphitis? What legacy do you aspire to leave behind?

“He was a humble shopkeeper who just wanted to make a difference.”

This interview first appeared in the March edition of GOLD magazine. Click here to view it.