Q A friend of mine wants to invest in my business. He has a considerable amount of capital to bring to the table, which I'm sure will be a welcome boost to the business, but I'm not so sure that it will have a positive effect on our friendship. What do you think?

A I am a great believer that if you can go it alone, then you should do so. You need to ask yourself, do you really need the investment?

And do you really want to relinquish the control you have had so far making the business what it is? It is always preferable to have control, however, I do appreciate that all businesses need investment if they are to expand.

You should be prepared to lose this friendship, as very few friendships survive once they are mixed with business, but you could, of course, be the exception.

Q I am leaving the rat race to be my own boss. I have the idea and the skills to make it a fantastic opportunity - unfortunately, I have a very small budget to get the business off the ground. Do you have any suggestions to help me?

A I am glad you are after advice and not investment considering the many e-mails and letters I have received since appearing on Dragons' Den.

I will start by saying welcome to the world of the entrepreneur - where the tough survive and the weak go back to nine-to-five.

Starting up a business on a shoestring seems like an impossible task, conjuring up visions of compromises and cutting corners that will ultimately undermine your best efforts. But it doesn't have to be that way.

It is inevitable that you will have to put 120 per cent into the business at first - and quite rightly so. As long as you understand the returns will not be immediate and you cannot pay yourself a massive salary straight away, you will be on the right track.

I would suggest that you try to become competent in as many tasks as possible. It will save you money if you can cope with things such as basic desktop publishing and accounting and you will have a better understanding of the day-to-day running of the business.

The most obvious costs in the early days are premises and staffing. If you start from home then your office space or workshop budget can go elsewhere. This is easy if you are in a desk-bound profession. But if it does not matter where you are based, rents on out of town premises or those in unfashionable areas will keep costs down.

If you do not have the money for staff immediately, do not forget friends and family. Providing that you do not abuse their goodwill, most will be prepared to help you out on the odd occasion.

Successful entrepreneurs are a breed apart and I hope you have what it takes to turn your dream into a money making reality.

Q I would like to own my own hair salon. No one takes me seriously because I have bad credit and no money. Many people think it is a joke, but I have thought very hard about owning a salon and it is something that I would like to do.

On the positive side, I have been told I am quite talented and have a decent number of regular clients at the hairdressers where I work at now. Can you please advise me of ways of raising the money or of gaining a foothold in the industry that can lead to starting my own business?

A Hairdressing is one of those areas where if you are good, you can actually open a business anywhere within reason and your clientele will follow you.

As for having no money and bad credit, this may well be a difficult hurdle to overcome.

Have you thought of perhaps starting up as a mobile hairdresser first and building your client base? This is a cheaper alternative than taking a shop unit.

You could then try hard to save some money to show people that you are serious.

A lender will always take a more favourable view if you have some money of your own to put into your business.

Q I have instigated a mobile phone ban in my office, which has caused some problems with my staff. The myriad of ring tones have been driving me mad - if it's not the theme from Mission Impossible or that excruciatingly annoying Crazy Frog, it's some chart tune that I don't even recognise. They are saying they have a right to receive calls as long as it doesn't affect their work, but I think work is work and social life is separate. What do you think?

A I absolutely and totally agree with you. As much as mobile phones can be a godsend in certain situations - there is a time and a place.

If it was just the ring tones that were the problem, you could get staff to put their phones on silent or vibrate.

The issue is, as you say, staff using their phones for social reasons at work. It is quite simple for me; if someone has a genuine reason for calling one of your employees, then they should call through the switchboard.

Q I am expanding my small business and need to take on more staff, but the people I have interviewed are completely unsuitable. Some of them have the skills and experience, but in other ways they are terrible. For example, poor attitude or terrible appearance. I don't know if it is them or my interview techniques. Could you give me some pointers on how to interview people to find the right candidate - I am exasperated.

A It is always difficult to find good staff and, to be honest, you never get someone who is 100 per cent correct for the role.

I would say don't be put off by bad dress if a person is the best candidate for the job. Poor attitude, though, is a different matter because if it comes across in an interview that person is obviously not suitable.

You should make a list of questions prior to interview and ask each candidate the same questions, making notes of answers to compare. Always have a second person present for interview as people can view potential employees totally differently to you.

Remember, people are always nervous at interview and you should try to make the person feel at ease.

Published: 15/03/2005