Gym chain tycoon Mr Bannatyne shared his entrepreneurial secrets with pupils at Beacon Hill Business and Enterprise College as he opened the new school shop.

The star of BBC series Dragon's Den was also in town to launch Lancashire's first Young Chamber of Commerce.

At the opening of the shop, Mr Bannatyne was quick to quiz year 11 student retailers about their bottom line.

Jacob Long, 13, was challenged to work out the profit margin on the stationery and Beacon Hill-branded clothing range.

He said: "I expected him to be really moody and aggressive because of the way he is on the television but he was really nice and cheerful.

"I asked him questions about tax and he said not to worry about the tax until I had some profit to be taxed."

The store, a former boys' toilet, is a working shop where students can buy and sell their own goods for a profit, learning important skills about running a business.

It will also provide a retail outlet for student members of the young chamber, who will put their business ideas into practice over the coming year.

Mr Bannatyne, who left school at 15 and joined the Navy before being kicked out and starting his own ice-cream van business, waived his usual appearance fee and drove down from his home in the North East yesterday morning.

He believes it is important to act as a role model for youngsters.

He said: "There is a limit to the number of footballers and pop stars but there is no limit to the number of entrepreneurs. Anybody can be an entrepreneur, all they have to do is believe in themself and put in the hard work.

"It's great to come here and see the school putting so much effort into encouraging children. I'm happy to do what I can. People see Richard Branson and think they could never do what he did but they see me and realise I did it from nothing and they could do the same.

"I was impressed with the shop, I don't think they'll make enough to retire but it will certainly teach them some important lessons about business."

Following a tour of the school's business centre, the notoriously blunt judge hosted a lively question and answer session.

Budding businesswoman Samantha Kennedy grabbed a few words with him. She said: "I asked him for advice about a business I want to start called Hairtastic. He said I should get my qualifications and work hard and that I could do anything if I believed in myself.

"He was really nice and I'm glad he came to our school because it makes us feel quite important that he came."