Special Feature

FemaleFranchise.co.uk exclusive follow up interview with Rachel Elnaugh

14th January 2010

FemaleFranchise.co.uk initially spoke with Rachel Elnaugh, high profile business women and mother of 5, in late 2007 before the birth of her fifth child. Today we catch up with her to find out how she is managing the balancing act of business and family and what new projects she has been working on.

Rachel Elnaugh is one of Britain's highest profile female entrepreneurs.

Having started her working life as an office junior, at the age of 24 she created the market leading experiences brand Red Letter Days on a shoestring budget from the front room of her home. Red Letter Days went on to generate over £100million in turnover in the 16 years that she ran it, and in doing so pioneered the UK's £250 million experiences sector.

Then, in early 2005, Rachel was asked to become one of the original Dragons in BBC’s cult business show Dragons’ Den.

After the well-publicised crash of Red Letter Days in 2005, which followed the ill-advised expansion of the business three years earlier, Rachel stepped away from the media spotlight and has been working in the small business sector ever since, inspiring, motivating and empowering entrepreneurs on their journey towards success.

With 5 children, husband and a house to run, how do you manage the delicate juggling act of also managing a successful business?

To be honest, not very well! So I would like to explode the myth that I am a ‘superwoman’. During the past few years I have spent a lot of time away from my home in Bakewell, on the ‘road’ speaking at events and doing lots of London-centric work. To achieve that I do have some great support – a brilliant nanny who often stays over while I am away plus helpful relatives – but it is also very emotionally draining on both my children and myself. So in 2010 I have decided to make my life more Bakewell-centric and be around for my kids a lot more this year.

When we last spoke you had only recently started to get involved with businesses in the franchise industry, how have these developed and are you still involved in any aspects of franchising?

My experience of the Franchise sector to date has shocked me, in that so many people view it as so far removed from enterprise and entrepreneurship. I still think franchising is a dirty word for many and if I even suggest franchising in any form to an entrepreneur I often get an extreme reaction. Not just if I suggest that someone considers acquiring a franchise, I also get negative reactions even if I suggest it as a way of quickly growing their proven business concept.

How has the recession affected your own business, and how have you adapted your business to ensure continued success in such a climate?

The Enterprise Sector is booming as a result of the recession! The government is pouring money into training and events and enterprise initiatives and entrepreneurs are also much more open to help and advice. As an entrepreneur who has experienced and survived a business meltdown, as well as having written the book ‘Business Nightmares’ about problems entrepreneurs face I have been in great demand! To paraphrase Napoleon Hill: ‘In every adversity lie the seeds of opportunity’.

Two years ago you said that “The Future is Female” and more companies are moving towards a Zeta female approach. How do you think business has developed since then to support your statement?

I did alter that statement to ‘The Future is Feminine’ as I found it raised the hackles of all the men! What I was saying is that business is moving towards a more ‘feminine’ way of operating; enterprises created through passion for helping others, run with openness, honesty, ethics and in collaboration with others. Personally I think it was quite prophetic, as one by one we are seeing all the old ‘Alpha’ run masculine companies falling (or dramatically morphing) – starting with the banks. In my view, businesses that continue to run under the old style money/greed/power/ego/winning at all costs will soon be a thing of the past.

How do you think technology in business will evolve and what impact do you see such changes having on working practices for women (i.e. flexible working times and home-working)?

As someone who now operates an almost completely virtual business I can’t understand why anyone would want to create a Head Office and have everyone commute in for 9am anymore! When you run a virtual business your view completely changes. You become interested only in results delivered and you really don’t care how they are achieved! It makes for a much leaner, more efficient operation. Such a difference from the old ‘command & control’ way of running things. Obviously not all businesses can become completely virtual but I think there is a lot to be said for creating results based cultures.

Do you see such changes being a positive influence on women starting their own businesses?

Now is a brilliant time for women to be in business. There’s so much flexibility to build an enterprise around family commitments, there’s lots of government encouragement and support for female entrepreneurs - plus consumers love dealing with and buying from ‘zeta’ style businesses.

There are far more franchise opportunities available today for women.

In my experience, entrepreneurs who create a business from scratch totally underestimate just how much investment in branding and marketing plus sheer input of energy it takes to get a new concept off the ground. I would say this is the #1 reason for business failure for women – they can end up exhausted and depressed very quickly. When you buy into a franchise someone has already gone through that pain for you so what you’re buying is existing momentum. That has tremendous value and it is also the reason why franchises are so low risk. I really would recommend that women thinking of creating a business also explore franchise options.

Tell us a bit about you as “Entrepreneur in Residence” at The British Library Business and IP Centre.

 I was extremely honoured to be asked to ‘step into the shoes’ of the late Anita Roddick after she died and become Entrepreneur in Residence at the British Library’s fabulous Business and IP Centre. It’s such a brilliant facility which exists to help entrepreneurs start into business and yet not nearly enough people know of its existence. As well as free access to every market research and business report ever written they run brilliant training workshops and conferences. I give six one-hour free advice sessions every month as part of my involvement, and I also run all my own workshops and one day conferences there.

A survey we undertook in November 2009 resulted in 50% of responders saying they felt more confident about starting a business now than they did 12 months ago, do you agree that now could be the right time to start a new business?

‘Now’ is always the right time to start a new business - as there are always opportunities no matter what is happening in the market. My first business Red Letter Days did not really take off until the last recession, because what we actually offered was a low cost marketing service to the venues whose experiences we were offering - who were finding that bookings were falling. By packaging their experiences as wonderful escapist gifts we helped open a whole new market for them. I would say to anyone thinking of going into business, just go for it! But remember, you will have far more chance of success if you give it 100% of your energy, commitment and determination.

What next for Rachel Elnaugh?

I am becoming increasingly interested in energy and personal empowerment, and much of my work is now around transformational coaching. So, on my Vision Board for 2010 is an international best-selling book on personal empowerment, international speaking engagements (to which I will bring my children on holiday with me), plus more of my own events, workshops and training products. All of which will increase my ability to help many more people on their journey towards personal fulfilment and success.

For more information on Rachel’s events, workshops and business mentoring, visit her website

To view Rachel's previous interview click here

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