THE PRECOCIOUS CHILD

Alan Michael Sugar was born in Hackney, east London, to Nathan and Fay Sugar in March 1947. He was the youngest of four with an eleven-year gap between him and the nearest siblings, the twins, Derek and Daphne. His mother recalled that, right from the beginning, he was a bossy and noisy baby, which doesn’t seem surprising given his character.

However, despite early signs of obstreperousness, Sugar was a rather quiet child who kept himself to himself and maintained a distance from the other children who played among the blocks of flats that made up the Northwold estate where he lived. It appeared that from a very young age, childish games were not for him, and he preferred to spend his time alone.

Money was always short in the Sugar household. Nathan Sugar was a struggling tailor who worked in the garment trade. Jobs were not easy to come by in post-war Britain and Nathan often spent weeks looking for work.

Alan Sugar learned from an early age that if he wanted pocket money, he would have to get it himself. As a small child, he would go around the flats, knocking on neighbours’ doors asking if he could collect their empty pop bottles. He would then return his quarry to the shop, receiving a few pennies in return. In his early teens, he was given a gift of a ginger beer plant. He learned how to make ginger beer out of it, bottled the contents, and sold it to his classmates at school. This was Sugar’s first experience of manufacturing; already he had come up with a business formula that worked time and again within the company he would later found: look for a product that was in demand; produce that product cheaply; undercut competitors (Coca-Cola was far more expensive for his schoolmates to buy than his homemade ginger beer); and sell the cheaper product to those that could not afford the brands.

But his extra-curricular activities didn’t stop there. The teenage Alan Sugar boiled raw beetroot for the local greengrocer, helped out on a market stall, took photos of neighbours and their children and sold them to the families, sold photographic films that he cut into camera-sized rolls to schoolmates, and worked in a department store selling shoes.

Although he was showing promise as an entrepreneur and businessman, Sugar was underwhelmed by school and academic learning. He failed his 11+ exam and attended a technical secondary school where he was most interested in metalwork and technical drawing. He also had an interest in science that would be put to good use later on in his business. A distinctly average student, Sugar stayed in school long enough to earn himself a few O-levels and left his academic life for good at the age of 16. By that time, he was making more money than his father from his various sidelines.

The young Alan Sugar was very much influenced by his father’s fruitless efforts to earn money for the family, and decided very early on that he would never follow in his father’s footsteps: ‘I didn’t want to have to live that way. While I was at school, I was making more money, selling bits and pieces, than my father was earning.’¹

THE WHEELER-DEALER

After he left school, Sugar spent a year in an ill-fated role in the Civil Service, working in the statistics department of the Ministry of Education and Science. Instantly bored by the 9 to 5 office job, Sugar left the Ministry, but ended up in another white-collar role. He soon realized that he got more of a kick out of his Saturday sidelines than he did in his uninspiring desk job, and decided to explore his entrepreneurial skills full-time.

A venture selling reconditioned televisions with a friend followed, before accepting a sales role with Robuk Electrical. The young Sugar had finally found his niche: sales was exactly the area he wanted to be in. He quickly excelled in his role but, in a way, was a victim of his own success. Although he made great deals for Robuk, he was stinted on his commission, and he walked away from that job.

A similar role at the electrical wholesaler Henson followed and it was during that time that Sugar really began to see the potential of setting up on his own. He bought a van and started to sell electrical goods to retailers. Being self-employed suited the restless Sugar but he soon realized that he would need to grow his business in order to make it a real success.

THE ENTREPRENEUR

In 1968, two life-changing events occurred for the 21-year-old Alan Sugar. He founded his own company called Amstrad, which was created out of the initials of his full name: Alan Michael Sugar Trading; and he married his teenage sweetheart, Ann Simons. Sugar had first spotted his bride-to-be at the tender age of 17 and from the outset was determined to make her his.

At first, Simons’ family were a little sceptical of the match, believing that the young hairdresser could do better, so Sugar set out to prove them wrong. He worked hard to build up his business and to prove to his future in-laws that he would be able to provide for their daughter. A few years later, they relented and Sugar and Simons were finally married, a union that continues to last 40 years on.

At first, Amstrad was strictly about buying and selling electrical goods, much of it imported. Sugar would import cigarette lighters and intercoms, and badge them: the first items to bear the Amstrad brand. Sugar spent the first couple of years of his new business making contacts with retailers and outlets with a view to selling his imported goods to them further down the line. He also invested in a retail store with a partner called Global Audio, which sold audio supplies, but soon opted out of the venture: he had bigger fish to fry.

By 1970, Sugar realized that a pure buying and selling operation had its limitations. He decided to take his business to a new level and so turned his attention to the hi-fi market. At the time, the parts that made up the hi-fi were sold separately and each part was sold at quite a high price. Through research, Sugar realized he could manufacture at least one part cheaply: the plastic covers that were used to keep the dust off the turntable. By investing in an injection-moulding tool, he was soon making dust covers more cheaply than any of his competitors. By keeping his prices low, margins large and volumes high, the product was an instant hit with wholesalers, retailers and, in particular, customers. Amstrad’s first foray into manufacturing was a resounding success.

Amstrad soon began to manufacture a range of all sorts of electronic goods: amplifiers, an all-in-one hi-fi called the Tower System, tuners, tape decks and speakers all hit the market to huge success. For the first time, a company was designing products for the mass market, and retailers and consumers alike couldn’t get enough of them. Huge retailers like Comet, Rumbelows, Currys and Woolworths were clamouring to do business with the young entrepreneur, and he soon had a range of suppliers all over the world to meet the demand.

However, the Amstrad fan club did not just consist of consumers and retailers - top executives in the City were beginning to sit up and take notice. There were murmurings about Sugar’s golden touch and his talent for bringing innovative products to market. The Amstrad effect, as it soon became known, had taken over the electronic market, and the financiers knew that Sugar was a man who was going places. Baffled at first by this plain-speaking, scruffy-looking young man, the stockbrokers soon saw the potential in Sugar and his company’s meteoric rise to success. They were proved right. When Amstrad was floated on the London Stock Exchange in 1980, it doubled its profits each year during the early 1980s.

Although Sugar was becoming one of the wealthiest men in Britain, he didn’t see this as a reason to rest on his laurels. Ignoring all warnings from his City advisers, he decided to enter the home computer market. Again, Amstrad’s philosophy was applied to this new product: find a way to manufacture them cheaply, sell at a lower price thus undercutting competitors, and target the mass market. Once more, Sugar had chosen a winning product and successfully managed to steer his company in an entirely new direction. More computer models were produced, followed by the first mass-market dedicated word processor. At its peak, Amstrad was worth a staggering £1.2 billion, and its founder was named the fifteenth richest man in Britain in 1989.

However, by the late 1980s, Amstrad’s star was beginning to wane. The 1987 stock market crash, the rising price of computer components, labour shortages and faulty products all contributed to Amstrad’s financial losses. Sugar admits that Amstrad expanded too fast to meet the growing demand and had started to make mistakes from which it would never recover. During the 1990s Amstrad had some success with some of its products, but not on the same scale as before. However, a lucrative deal with Sky to manufacture satellite receivers put Amstrad firmly back on the map.

In 2007, Alan Sugar sold his life’s work to BSkyB and stepped down as Chairman and CEO of Amstrad, fully resigning in July 2009. However, his business career is far from over. Sugar keeps himself occupied with investing in property, and two other companies run by his sons, Daniel and Simon.

THE FOOTBALL CHAIRMAN

In 1991, Sugar, as unpredictable as ever, took a surprising interest in the football club Tottenham Hotspur. For 10 years he used his position as chairman to save the club from financial ruin. However, it was not an easy time for the businessman, who fell out of favour with Tottenham fans for firing their beloved former player and manager, Terry Venables. Sugar battled through court cases, physical attacks and threats from fans, and a media onslaught so vicious that it would furnish a life-long suspicion of journalists.

Although his decade at Tottenham was one of the bleakest periods of his life, he stuck it out, determined to finish what he started - and thanks to him, the club is still thriving today.

THE POLITICAL ACTIVIST

Hailed by many as Thatcher’s darling, Sugar was a shining light in the business world and proved that someone who came from nothing could make it with a good dose of common sense, hard work, grit and determination.

Sugar didn’t just break through class barriers - he shattered them and, in doing so, inspired young people all over the country to follow his example. Although a keen admirer of the Iron Lady, Sugar believed that the Conservative Party lost their way after the departure of their leader, and later chose to support Labour, to which he has donated generously.

A staunch patriot, Sugar has remained one of the Labour party’s most loyal supporters and has taken part in many campaigns and government schemes set up to help small businesses and graduates, and to inspire youth enterprise. Sugar’s involvement with the British government reached new heights in 2000 when he received a knighthood for services to business and for his charity work. In 2009, he was offered a peerage and made an official adviser to the government to share his business expertise and help struggling businesses.

The boy from Hackney now goes by three rather grand-sounding titles: Sir Alan Sugar (by which he is most popularly known), Lord Sugar and Baron Sugar of Clapton, in the London Borough of Hackney.

THE MEDIA STAR

These days, Alan Sugar is best known for his down-to-earth nature and cutting wit as hard-hitting boss ‘Sir Alan’ in The Apprentice. Over the course of 12 weeks, Sugar puts 14 applicants through their paces in order to find his next apprentice. Each week, the candidates must work within their teams to win the assigned task. The losing team must face the wrath of Sugar in the boardroom, who ends up firing one or more of them, usually for incompetence, carelessness, unprofessionalism, poor leadership abilities and a general lack of the qualities he expects from his employees. The process continues until only the strongest are left standing, and the battle is on to see who will become Sugar’s next apprentice. Many of the winning apprentices from the show are still working in one of Sugar’s various businesses today.

There is no play-acting where Alan Sugar is concerned; what you see is what you get, and he can’t abide people who try and imitate his style or attempt to mirror his body language in order to ingratiate themselves to him. He prefers people who ‘get to the point as quickly as possible, are logical, honest and straightforward.’² That is the real Alan Sugar; he may be gruff but he is always honest and straight down the line, so it is not surprising that he values those same qualities in others.

It is clear that Sugar’s ability to stay true to himself has not only gained the respect and admiration from his peers in the business world, but has successfully won over a sizeable audience as a TV personality. A record eight million viewers tuned into the launch of the fifth series of The Apprentice, aired in March 2009 - the highest ratings yet. Thus, it seems like Sugar is growing in popularity year upon year.

Even high-profile celebrities are getting in on the act. Comic Relief Does The Apprentice has proved highly successful, with well-known figures like Jonathan Ross, Cheryl Cole and Piers Morgan lining up to win the approval of the no-nonsense entrepreneur. Not only has the special version of the show attracted an even larger following, but it has raised a substantial amount for Comic Relief.

A sophisticated reality show, The Apprentice is educational as well as sensational. There is no other show on television that provides such an entertaining insight into the way business is conducted, or teaches people how to behave in a professional manner. It has met with huge success since it was launched in 2004, and Sugar has attracted a massive following as a result. It is clear that his no-nonsense, common-sense approach appeals to a wide demographic, and he has grown even more popular than ever with both young and old over the last few years.

KEY ACHIEVEMENTS

• 1970-1980: Major success with first foray into manufacturing. Amstrad severely undercuts competitors by manufacturing low cost hi-fi turntable covers by using an injection-moulding machine rather than the more expensive vacuuming method. Products such as audio amplifiers and tuners soon follow, with similar success.

• 1980-1990: Amstrad is listed on the London Stock Exchange and doubles in size every year during the early part of the 1980s. Amstrad launches the first affordable Home Computer for the mass market, followed by a Word Processor. In 1989, Sky TV commissions Amstrad to manufacture a satellite receiver/dish package in a highly lucrative deal. Amstrad also launches a new product: a combined fax, telephone and answering machine, which captures 52% of the personal fax market.

• 1990-2000: On behalf of Sky TV, Amstrad launches the first integrated satellite receiver/decoder. Amstrad purchases shares in Betacom, a UK-based domestic telephone supplier, and acquires the Danish telecommunications manufacturer Dancall Telecom for £6.4 million. In 1997, Amstrad sells Dancall Telecom to Bosch for £95 million. Amstrad also acquires Viglen Technology, one of Britain’s largest manufacturers of personal computers. When Viglen is floated separately on the London Stock Exchange in 1997, it returns some £200 million to Amstrad shareholders.

• 2000-present: Amstrad launches the e-m@iler, a combined telephone, internet and emailing device, followed two years later with the e-m@ilerplus. Amstrad signs more deals with BSkyB to manufacture set-top boxes and agrees to supply a high definition (HD) set-top box for Sky Italia. In 2007, BSkyB acquires Amstrad, which is then delisted from the London Stock Exchange. A year later, Sugar steps down as Chairman and CEO of Amstrad, and resigns from Amstrad in July 2009.

CURRENT BUSINESS INTERESTS

It is a popular belief that Sugar spends most of his time pointing at the quivering Apprentice candidates, and uttering his immortal catchphrase, ‘You’re fired’. However, outside his role as media presenter, he has a number of other interests. He is the owner of Amsprop, an investment company that develops and owns property all over the UK. Recently, Amsprop branched out to secure a lucrative deal in Spain, where Sugar snapped up a £35 million five-star hotel for the bargain price of just £2.5 million. Other business interests include Amscreen, a digital advertising company, and Amsair Executive Aviation, which offers business and executive jet charters.

CHARITY WORK

Deservedly proud of his charitable activities, Alan Sugar willingly gives his own free time to support government schemes and tours the country to make public appearances and give speeches. He is also a patron of the Hackney Empire theatre and generous benefactor of Great Ormond Street children’s hospital. The Alan Sugar Foundation was set up in 1986 and continues to donate to charitable concerns.

HOBBIES

A true advocate of working hard and playing hard, Sugar has a number of pursuits in which he likes to engage during his time off. He is a keen pilot and owner of a four-seat Cirrus SR20 aircraft. He also enjoys collecting classic Rolls-Royce and Bentley motorcars. A fitness fanatic, he plays tennis regularly, and thinks nothing of cycling 50 miles through the Essex countryside at least twice a week. When he is not flying his plane or chalking up the miles on his bike, he can be found relaxing at his luxurious holiday homes in Spain and Florida.

DON’T PUSH OR SHOVE

‘What you see on screen is me, there’s no question of that … It’s a one-way portrayal, not the whole of me.’¹

- Alan Sugar

As the hard-nosed taskmaster on The Apprentice Alan Sugar has a reputation for being gruff, tough and notoriously intolerant of fools. His no-nonsense approach has earned him admiration from his legions of followers, but also criticism from several quarters. It appears that Sugar’s style has the capacity to divide public opinion: there are those that love him for his forthrightness and ability to tell it like it is, versus others who feel his tough-talking approach falls into bullying territory. Then there are those who just find him plain scary.

Indeed, in a 2007 Radio Times poll consisting of 5000 people, Sugar was ranked seventh out of the Top 10 scariest TV celebrities in the UK, with Gordon Ramsay leading the pack. Although most viewers are aware that many of Sugar’s reprimands are meted out with a firm twinkle in his eye, his management style has caused controversy among other groups, some of whom have branded him a bully.

The late Sir John Harvey-Jones, former chairman of ICI and presenter of business shows such as Troubleshooter, spoke out publicly against Sugar’s fondness for plain-speaking. In an interview with Management Today in 2006, Harvey-Jones stated: ‘I watch his programme with horror. If I had behaved that way for one day at ICI, I’d have been hot-stuffed and rightly.’²

Similarly, the charity Kidscape, set up to protect children from bullying and sexual abuse, believe that The Apprentice ‘contributes to the problem of bullying’. However, Sugar, himself, has also voiced his concerns about how he has been portrayed in The Apprentice: ‘It’s frustrating for people who really know me - friends and family - who know I’m not really like that. To keep a team of loyal staff like I have for 30 years you can’t go around being a bully.’³

Surely Sugar has a point. Bullies alienate people; they don’t tend to attract a loyal following or feel motivated enough to provide help and support to others. Sugar did not build up his business empire all by himself, but created a vast network of advisers and friends, and has a list of business contacts that would make the eyes of any aspiring entrepreneur water. It is doubtful that so many people would have stood by him all these years if he was considered a bully, and he certainly would not have been chosen as a role model for youth enterprise by the government.

There is a
major difference
between bullying and
assertiveness, and
Sugar has the latter
in spades.

It is true that Sugar has a unique personality and unconventional business style that has come into conflict, more than once, with the more conservative City business types - who in the past have been quite vocal in their suspicions about the level of Sugar’s business acumen. However, his sharp business mind and uncanny ability to make good decisions has won the respect of his contemporaries (albeit sometimes grudgingly).

But just because he doesn’t pull any punches when it comes to his communication style, doesn’t mean he throws any, either. There is a major difference between bullying and assertiveness, and Sugar has the latter in spades.

SPEAK YOUR MIND

‘I try to leave out the parts that people skip.’

Elmore Leonard