Episode 9

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0:00:27 > 0:00:29These are the Dragons.

0:00:29 > 0:00:31Wealthy...

0:00:31 > 0:00:33well-connected...

0:00:33 > 0:00:34innovative...

0:00:34 > 0:00:35and influential.

0:00:36 > 0:00:39Each week, they make or break

0:00:39 > 0:00:42the dreams of dozens of budding entrepreneurs.

0:00:43 > 0:00:46Tell me what the numbers are and I'll tell you if they're modest.

0:00:46 > 0:00:49- Uh, about 395.- Sorry, you're looking at your hand!

0:00:49 > 0:00:51No! No, that's a tattoo, that is!

0:00:51 > 0:00:54I'm the type of guy that would go for something like this...

0:00:54 > 0:00:57..cos I think you're onto something.

0:00:57 > 0:00:59There's two things that have been discussed that wind me up.

0:00:59 > 0:01:02"You know, this is the way it's done and that's the way the market is..."

0:01:02 > 0:01:04It's just nonsense.

0:01:04 > 0:01:05With all the PR that you've had,

0:01:05 > 0:01:08I would have thought that you would have had a much more

0:01:08 > 0:01:10successful business by now.

0:01:10 > 0:01:12Calm down. Settle.

0:01:16 > 0:01:19Leisure and marketing expert Deborah Meaden...

0:01:20 > 0:01:22telecoms giant Peter Jones...

0:01:24 > 0:01:28and hotel and health club owner Duncan Bannatyne,

0:01:28 > 0:01:30have, between them, struck deals

0:01:30 > 0:01:32worth more than £7 million in the Den.

0:01:34 > 0:01:38But, ready to fight for the next shrewd investment is the creator of

0:01:38 > 0:01:42her own world-renowned interior design brand, Kelly Hoppen.

0:01:43 > 0:01:46And cloud computing pioneer Piers Linney.

0:01:49 > 0:01:52The multi-millionaires will give each entrepreneur just three minutes

0:01:52 > 0:01:55to pitch their idea and then interrogate them

0:01:55 > 0:01:57on every aspect of their business.

0:01:58 > 0:02:01To face them takes nerve and vision.

0:02:01 > 0:02:03So, who will leave with the Dragons' money?

0:02:11 > 0:02:16Welcome to Dragons' Den, where five self-made millionaires decide

0:02:16 > 0:02:18whether to invest in the business dreams

0:02:18 > 0:02:20of promising entrepreneurs.

0:02:21 > 0:02:24Now, Banksy might be the only graffiti artist that you or I

0:02:24 > 0:02:28have heard of, but, our first entrepreneur David Brown

0:02:28 > 0:02:31is convinced there's real money to be made by bringing

0:02:31 > 0:02:34urban street art right into our homes.

0:02:57 > 0:03:00Right. My name's David Brown.

0:03:00 > 0:03:07Uh...I'm here to ask for £70,000 investment for my brand

0:03:07 > 0:03:09and business idea, Graffiti Artist.

0:03:09 > 0:03:11So, I know it's a little bit weird,

0:03:11 > 0:03:15but if you wouldn't mind closing your eyes and watch that money as well.

0:03:15 > 0:03:18Yeah, I'd stash it, mate. Two minutes, yeah. You ready?

0:03:27 > 0:03:28HE SIGHS

0:03:30 > 0:03:32HE SHAKES CAN There you go, mate.

0:03:32 > 0:03:36So, what this is, is my product, stick 'em ups.

0:03:36 > 0:03:39So, it's a piece of graffiti art which has been

0:03:39 > 0:03:40generated from a computer.

0:03:40 > 0:03:45Some of the investment that I'm asking for is towards an app

0:03:45 > 0:03:48and a computer programme

0:03:48 > 0:03:50so that you could put your name or your kids' name

0:03:50 > 0:03:54or your kids can put their name into a programme

0:03:54 > 0:03:57and then they can manipulate it and colour it however they want

0:03:57 > 0:04:00and then they can order it and get it printed out.

0:04:00 > 0:04:05And what it is, like, it's using my alphabets at the moment,

0:04:05 > 0:04:08but what I hope to do is maybe use alphabets

0:04:08 > 0:04:12and artwork from other graffiti artists who haven't been as lucky as me,

0:04:12 > 0:04:15haven't had the chance to, you know, be able to sell it to

0:04:15 > 0:04:16the masses - hopefully.

0:04:16 > 0:04:19That's the feel-good factor about graffiti artists as well,

0:04:19 > 0:04:22so it's my idea of giving something back.

0:04:22 > 0:04:26So, hopefully, you can help that happen by giving me some money.

0:04:26 > 0:04:27Cheers! Thank you.

0:04:30 > 0:04:34A charismatic pitch from the Birmingham-based entrepreneur.

0:04:34 > 0:04:38David's looking for a £70,000 investment for his

0:04:38 > 0:04:41online design-at-home graffiti art business.

0:04:41 > 0:04:45But, despite his charm, he's missed something out.

0:04:47 > 0:04:50Um, you asked for £70,000. What was the percentage you...?

0:04:50 > 0:04:53Um, to get it back over the three years, with 20%...

0:04:53 > 0:05:00I can't remember what the word is. Mark up, or whatever.

0:05:00 > 0:05:02Um, I mean, I think it's a great idea.

0:05:02 > 0:05:04I mean, wallpaper is a huge industry today.

0:05:05 > 0:05:10I have wallpaper, it's risen over the last 15 years uncontrollably,

0:05:10 > 0:05:13but, the idea of graffiti...

0:05:13 > 0:05:15I just don't... I don't know how marketable it is.

0:05:15 > 0:05:17Well, the sort of target, I think,

0:05:17 > 0:05:22for this is like from about seven up until about 13 or 14.

0:05:22 > 0:05:26Kids seeing their beds, you know, like, "Oh, I want a Spider-Man room.

0:05:26 > 0:05:29"I want a Hulk bedroom. I want a Hello Kitty bedroom," or something.

0:05:29 > 0:05:32Now, there's a chance that they could have a graffiti art bedroom.

0:05:32 > 0:05:35I totally get it and I've actually employed graffiti artists to

0:05:35 > 0:05:37do graffiti in kids' bedrooms.

0:05:37 > 0:05:39I mean, I know that kids love it.

0:05:39 > 0:05:4270 grand and we can do it, man, I'm telling you.

0:05:45 > 0:05:48There may be untapped demand for graffiti wallpaper.

0:05:49 > 0:05:52But Piers Linney's unconvinced this entrepreneur can scale up

0:05:52 > 0:05:54his skills to the mass market.

0:05:56 > 0:06:00David, to me, what you've put on the wall there is still quite artistic.

0:06:00 > 0:06:03You've done this, you can see your creative juices flowing there,

0:06:03 > 0:06:07but to replicate that to an app as you know is very difficult,

0:06:07 > 0:06:10so, if I was to try and create something for my daughter's

0:06:10 > 0:06:12wall, what would it look like?

0:06:12 > 0:06:16- And I'm pretty sure it wouldn't look anything like that.- No, it's...

0:06:16 > 0:06:18It'd probably look like my daughter did it.

0:06:18 > 0:06:20Yeah, I can see your point, definitely.

0:06:20 > 0:06:22Like, uh, it's not as hard as you think.

0:06:22 > 0:06:24I mean, you'd be surprised at how...

0:06:24 > 0:06:27people...if you sit down and do it, especially on a tablet,

0:06:27 > 0:06:30that you can sit down and take your time and mess about with it.

0:06:30 > 0:06:34So, there's no-one at your end designing it, no-one employed,

0:06:34 > 0:06:37- no-one involved, and they do it themselves?- Yeah.- That's really what

0:06:37 > 0:06:39- you're trying to do?- Exactly what I'm after, yeah.

0:06:41 > 0:06:44David's style might be unorthodox,

0:06:44 > 0:06:47but so far his idea is standing up to scrutiny.

0:06:47 > 0:06:52But Duncan Bannatyne still wants to know how urban art can be

0:06:52 > 0:06:54turned into pounds, shillings and pence.

0:06:55 > 0:06:58- Once they've designed it, say something that size...- Yeah.

0:06:58 > 0:07:02- What does it cost me?- Yeah, £99. - Just for something that size?

0:07:03 > 0:07:06So, this is a lot of money, £70,000. How do you intend to pay that back

0:07:06 > 0:07:08or give the investor a return?

0:07:08 > 0:07:14Uh, yeah, by selling loads of these and doing the brand as well,

0:07:14 > 0:07:19cos my sort of figures that I've got, um, are quite modest as well.

0:07:19 > 0:07:23Whether...I don't know. Modest-ish, anyway. Um, but, like, they're not...

0:07:23 > 0:07:26Tell me what the numbers are and I'll tell you if they're modest.

0:07:26 > 0:07:27Uh...uh...

0:07:27 > 0:07:29I mean, gross profit, first year, I mean,

0:07:29 > 0:07:32it makes a loss of ten grand in the first year.

0:07:32 > 0:07:36But, on the second one, looking at gross profit of about 237

0:07:36 > 0:07:39- and then, like, with a... - What do you mean, 237?

0:07:39 > 0:07:41- Sorry, you're looking at your hand! - No, no, that's a tattoo!

0:07:41 > 0:07:44You have definitely got it tattooed on your hand!

0:07:44 > 0:07:48- What's the chance of that! - Is it £2.37? £23.70?

0:07:48 > 0:07:50- 237,000.- 237,000?!

0:07:50 > 0:07:54- Yeah, yeah.- In the second year from a £10,000 loss?

0:07:54 > 0:07:56- That's turnover sort of thing. - Turnover?!

0:07:56 > 0:08:00- Yeah.- So, remind us - 10, is that a turnover or profit?

0:08:00 > 0:08:03No, no, no...the turnover...the gross profit is about £71,000

0:08:03 > 0:08:08- and then a minus 10...- OK, so, in the first year, 71K and you lose 10,000.

0:08:08 > 0:08:13- Yeah.- In the second year, your turnover's £237,000.- Yeah.

0:08:13 > 0:08:18- How much do you make?- Uh, 37. - 37,000.- Yeah.- And in the third year?

0:08:18 > 0:08:20About 395.

0:08:21 > 0:08:22Turnover.

0:08:22 > 0:08:24- Uh...- Do you want to just come over here with your arm

0:08:24 > 0:08:27and show Duncan what you've got tattooed on it?!

0:08:27 > 0:08:29Then 219,000.

0:08:30 > 0:08:33Huh! So, you're going to increase your turnover on the third year by

0:08:33 > 0:08:38100,000 and increase your profit by 180,000 or 190,000.

0:08:38 > 0:08:41Yeah, cos it's not just the stick 'em ups that I'm doing, I'm going to...

0:08:41 > 0:08:44I think what I need to do is give you a job as my finance director.

0:08:44 > 0:08:46You're going to make a lot of money!

0:08:46 > 0:08:48THEY LAUGH

0:08:48 > 0:08:50- David.- Yeah.

0:08:50 > 0:08:51- Do you know who I am?- Yeah.

0:08:52 > 0:08:54Peter someone...

0:08:54 > 0:08:56DUNCAN ROARS WITH LAUGHTER

0:08:56 > 0:09:00- That's good. - Hold on, I've got it written down.

0:09:00 > 0:09:02Yeah, Peter Jones, yeah, how are you, mate?

0:09:02 > 0:09:05I'm very good, David, thank you. Um...

0:09:05 > 0:09:07..just going into the detail, you said earlier that

0:09:07 > 0:09:11what's really important to you is about giving back.

0:09:12 > 0:09:16- What do you think's really important to me?- Getting back.

0:09:16 > 0:09:20- So, if I gave you £70,000...- Yeah.

0:09:20 > 0:09:24..if your most fundamental thing in your life is to prove

0:09:24 > 0:09:27that you can help others and give it back...

0:09:27 > 0:09:32What use is that to me to finance this philanthropic little vision

0:09:32 > 0:09:35that you've got of your life to make yourself feel better?

0:09:35 > 0:09:38Well, you're invested...I don't want it as a gift or anything like that,

0:09:38 > 0:09:41but honestly, I mean, we can make a difference and do it in a good way

0:09:41 > 0:09:45and still make money out of it, but I didn't want to come in here, first of

0:09:45 > 0:09:47all and say, "I'm going to make you a load of money."

0:09:47 > 0:09:50- That'd be a bit rude, so... - It doesn't sound rude to me.

0:09:50 > 0:09:54Trust me, it's not rude. It's not rude, that's exactly what we want.

0:09:54 > 0:09:56No, it is. I get your point though.

0:09:58 > 0:10:02Peter Jones is showing patience with the entrepreneur

0:10:02 > 0:10:04and his social conscience.

0:10:04 > 0:10:08But Deborah Meaden wants to refocus the pitch back onto business.

0:10:08 > 0:10:13I want to get serious, because you're very charming,

0:10:13 > 0:10:17I have to tell you, and, when you deliver, you're very likeable.

0:10:17 > 0:10:20What I'm not getting is a business proposition at all and I'm about

0:10:20 > 0:10:25to lose my interest unless you can deliver that to me really quickly.

0:10:25 > 0:10:27Yeah.

0:10:27 > 0:10:32I mean, um, it's...the exciting bit is being able to, um...

0:10:33 > 0:10:37..uh, empower other artists who can't...you know, who struggle,

0:10:37 > 0:10:40and don't want to waste that talent that they've got.

0:10:40 > 0:10:41Trying to put them on the right track

0:10:41 > 0:10:43so they keep away from illegal stuff...

0:10:43 > 0:10:48David, that's lovely, but that's not the business proposition.

0:10:48 > 0:10:51Yeah, I understand, yeah, definitely.

0:10:51 > 0:10:55I mean, I'm confident that there's enough people out there,

0:10:55 > 0:10:57young people or old people...

0:10:57 > 0:11:00You can be confident, but you've got to make me confident.

0:11:00 > 0:11:02In the Den, it's your job, David,

0:11:02 > 0:11:05and I'm saying this cos it's important that you get this right,

0:11:05 > 0:11:08otherwise you'll walk out of here certainly without

0:11:08 > 0:11:09an investment from me.

0:11:09 > 0:11:12Now, right now I see a lovely guy with a lot of talent

0:11:12 > 0:11:17and a great idea, but I don't see a business proposition.

0:11:17 > 0:11:19That includes numbers, that tells me...

0:11:19 > 0:11:21You tell me that I've been to see the guy,

0:11:21 > 0:11:23it's going to cost me that much to develop the app,

0:11:23 > 0:11:26the next phase on is to do that, then I'm going to need to

0:11:26 > 0:11:28employ people...is there anything like that?

0:11:29 > 0:11:34Uh, I haven't approached and sat down with an app producer

0:11:34 > 0:11:37and said, "This is what I'm after, how much is this going to cost?" I...

0:11:37 > 0:11:38Stop.

0:11:39 > 0:11:41I've done it...

0:11:41 > 0:11:44Do you know, you haven't done the most fundamental,

0:11:44 > 0:11:48basic thing, which is to sit down with somebody and say,

0:11:48 > 0:11:51"Can this be done?" This is not my failure to understand, this is

0:11:51 > 0:11:54- your failure to present me with a business proposition.- Yeah.

0:11:55 > 0:11:58I'm just left with no reason to invest,

0:11:58 > 0:12:00so, I'm really sorry, David, but I'm out.

0:12:04 > 0:12:07The joking's over and the entrepreneur is

0:12:07 > 0:12:11reminded of the potential brutality of the Den in the starkest terms.

0:12:13 > 0:12:16Have the other Dragons also lost their patience?

0:12:18 > 0:12:21David, thank you very much. It was a very entertaining pitch.

0:12:21 > 0:12:24But I'm not going to invest in this. I can't, so I'm out.

0:12:24 > 0:12:26- OK, no worries.- Thank you very much.

0:12:27 > 0:12:30Well, I think there's something in it that's quite interesting,

0:12:30 > 0:12:34but a lot of your target market probably can't afford this, so,

0:12:34 > 0:12:38I think, for that reason, I can't invest in your company, so I'm out.

0:12:39 > 0:12:44David, I mean, I have to say, the longer I sit here, there is

0:12:44 > 0:12:45a side of me that would love to invest

0:12:45 > 0:12:49because I can see the potential, but it's too risky.

0:12:49 > 0:12:53What you should do is go and take some of these graffiti artists

0:12:53 > 0:12:57and become almost like an agent and produce these, sell them on a

0:12:57 > 0:12:59website and see what volume you're going to get,

0:12:59 > 0:13:02because that will give you an indication of

0:13:02 > 0:13:05whether it's actually what people want to put in their homes.

0:13:05 > 0:13:09I just don't feel that I want to invest £70,000 on something,

0:13:09 > 0:13:13which just...you haven't come in with enough information.

0:13:13 > 0:13:16Um...and so, for that reason, I'm sorry, but I'm out.

0:13:22 > 0:13:24Only one dragon remains...

0:13:26 > 0:13:30..the tycoon whose name David struggled to remember.

0:13:30 > 0:13:32But Peter Jones has, in the past,

0:13:32 > 0:13:36taken a gamble with entrepreneurs brave enough to show personality.

0:13:41 > 0:13:42You are David Brown, aren't you?

0:13:42 > 0:13:46- Yeah, a graffiti artist, that's the brand.- You're not Banksy.

0:13:46 > 0:13:48I knew this was going to come up!

0:13:48 > 0:13:51If you were, seriously, if Banksy had come in the Den ten years ago...

0:13:51 > 0:13:56- Yeah.- And pitched the way you've pitched today, I would literally...

0:13:56 > 0:13:58put a flea in his ear and tell him to get out

0:13:58 > 0:14:00and think he's being an absolute idiot.

0:14:01 > 0:14:03And...

0:14:03 > 0:14:04I would have made...

0:14:04 > 0:14:06the biggest mistake of my life.

0:14:08 > 0:14:11I'm the type of guy that would go for something like this...

0:14:13 > 0:14:15..cos I think you're onto something.

0:14:20 > 0:14:22But...

0:14:22 > 0:14:25I hate to say, because you are an incredibly nice bloke,

0:14:25 > 0:14:29I wish you'd come in here with just one or two little bits of research.

0:14:29 > 0:14:33So I'm going to say good luck to you, but I'm not going to invest.

0:14:33 > 0:14:36- I'm out.- Thank you very much for... - No, I wish you every bit of luck,

0:14:36 > 0:14:39but don't spray anything in our lift on your way out, will you?

0:14:39 > 0:14:42No, no, I won't! No, officer, there's no cameras out there anyway.

0:14:42 > 0:14:43We'll be watching.

0:14:46 > 0:14:49So near, yet so far for David.

0:14:49 > 0:14:52He leaves the Den without the investment he wanted to create

0:14:52 > 0:14:57a business that takes his graffiti art into bedrooms across the country.

0:14:59 > 0:15:02People like that, though, that I'd love to find ways to invest in.

0:15:02 > 0:15:04I liked him. I liked him a lot.

0:15:05 > 0:15:07I really don't think...

0:15:07 > 0:15:12they were that interested and I can't wait for them to go home

0:15:12 > 0:15:14and their kids to say to them,

0:15:14 > 0:15:17"I can't believe you didn't invest in the graffiti geezer!"

0:15:17 > 0:15:19So, oh, well. That's their fault.

0:15:22 > 0:15:26While some entrepreneurs haven't the foggiest who the Dragons are...

0:15:26 > 0:15:28- Do you know who I am?- Peter someone.

0:15:28 > 0:15:33..there are others who come into the Den with one Dragon on their mind...

0:15:33 > 0:15:37You're the Dragon that I wished, because of your expertise in the law.

0:15:37 > 0:15:38Don't tell me somebody's suing you!

0:15:38 > 0:15:42..like this Australian-based duo who want to want to launch

0:15:42 > 0:15:44a new fitness gadget.

0:15:44 > 0:15:47The product itself is designed with a special waxy plastic that

0:15:47 > 0:15:50enables smooth movement in almost all surfaces.

0:15:51 > 0:15:53And they had in their sights Duncan Bannatyne

0:15:53 > 0:15:55with his chain of health clubs.

0:15:55 > 0:15:58I suppose, really, I'll have to do this at a trial, won't I?

0:15:58 > 0:16:01- But I don't really know if I want to.- Go on, Duncan.

0:16:01 > 0:16:04Also, it would demonstrate whether old people can use it as well.

0:16:04 > 0:16:05Go for it, man!

0:16:05 > 0:16:06Come on, Duncy!

0:16:06 > 0:16:12- Go for it?- Yeah, go for it. Back together.- Oh. Oh!- Ten more, Duncan.

0:16:14 > 0:16:17Or this Cornish entrepreneur who's devised a new take

0:16:17 > 0:16:19on the horse blanket.

0:16:19 > 0:16:22Our rugs are specifically designed to stop horses going through

0:16:22 > 0:16:23electrified fencing.

0:16:23 > 0:16:27There was only one Dragon she wanted to saddle up with.

0:16:27 > 0:16:30I don't have horses and every time I ask you a question,

0:16:30 > 0:16:33- you look to Deborah when you're giving the answer.- I'm sorry.

0:16:33 > 0:16:36So, I'll wait till Deborah's asked you some questions before I see

0:16:36 > 0:16:38- if I want to ask you any more. - Or, alternatively,

0:16:38 > 0:16:40she knows I've got horses and knows that I actually get

0:16:40 > 0:16:43- when you say 1,200 deniers. - Yeah, that's it.

0:16:43 > 0:16:46Put on your goggles, please, for the next part of the presentation.

0:16:46 > 0:16:50For this mature student, who's invented a twist on a popular toy,

0:16:50 > 0:16:54there is no doubting which Dragon could make his invention take off.

0:16:56 > 0:16:58- Do you know Bladez Toyz?- Yes.

0:16:58 > 0:16:59That's my company.

0:17:01 > 0:17:05Targeting one Dragon does run the risk of alienating others.

0:17:05 > 0:17:09This is very boys' toys, I can't sort of get excited about it.

0:17:09 > 0:17:13When you do a side lunge you start activating the adductors...

0:17:13 > 0:17:15Sorry, are you speaking English? I'm just double-checking.

0:17:15 > 0:17:17I thought you'd dropped into Klingon then.

0:17:17 > 0:17:20I'm as excited about this as I would be to invest in

0:17:20 > 0:17:22an ejector seat in a helicopter.

0:17:22 > 0:17:26The Dragons who are not the focus of the entrepreneur's attention

0:17:26 > 0:17:29can get helpful hints from the Dragons that are.

0:17:29 > 0:17:34Sometimes you have to sit back and listen to some of the other Dragons.

0:17:34 > 0:17:37I personally would really like to hear from Duncan.

0:17:37 > 0:17:40It is clear that you want Deborah as your chosen investor.

0:17:40 > 0:17:43Hmm. I'm going to wait and see what Peter Jones says.

0:17:43 > 0:17:46- He's waiting for me?- I'm waiting for Duncan, I'm being absolutely clear.

0:17:46 > 0:17:48If you think it's good, I think it's good.

0:17:48 > 0:17:52Sadly, seeking out a particular Dragon doesn't always pay off.

0:17:52 > 0:17:55- I really think you won't regret it. - Um...

0:17:55 > 0:17:56no.

0:17:56 > 0:18:00I'm finding it difficult to see the market, so, I'm out.

0:18:00 > 0:18:04But at least, in one case, there was a result of sorts.

0:18:04 > 0:18:06I'm going to do something very un-Dragon-like.

0:18:06 > 0:18:09I'm not going to take advantage of you today, however,

0:18:09 > 0:18:12I will give you all the advice and mentoring you need for nothing.

0:18:12 > 0:18:14OK. Thank you.

0:18:14 > 0:18:17I'm not going to compete with that, so, I'm out.

0:18:22 > 0:18:26Our national taste for coffee has gone upmarket in recent years, but

0:18:26 > 0:18:30we still spend over a billion pounds a year on the instant variety.

0:18:30 > 0:18:33The convenience is, obviously, highly valued and

0:18:33 > 0:18:36our next entrepreneur, Carrie Bates, thinks she can cash in on that.

0:18:36 > 0:18:40Forget the tea bag - she wants to infuse new life into the coffee bag.

0:18:48 > 0:18:49DING

0:19:01 > 0:19:05My name is Carrie and I'm the founder of has The Little Coffee Bag Company.

0:19:05 > 0:19:10I'm here today to ask for £100,000 in exchange for 25% of my business.

0:19:11 > 0:19:15I first had my business idea in the summer of 2011

0:19:15 > 0:19:18when my husband was taking our son out camping.

0:19:18 > 0:19:21I was trying to think of a way that he could enjoy coffee

0:19:21 > 0:19:24in the middle of a field without the need of a cafetiere

0:19:24 > 0:19:27or a filter machine, and decided that he needed something like

0:19:27 > 0:19:30a tea bag, but with ground coffee in.

0:19:30 > 0:19:34I did find coffee bags available, but was so disappointed with them

0:19:34 > 0:19:36I decided that I could do a better job myself.

0:19:38 > 0:19:41For the following 12 months, I designed my packaging

0:19:41 > 0:19:44and invested in the machinery to be able to manufacture the coffee bags

0:19:44 > 0:19:46from our small holding in Shropshire

0:19:46 > 0:19:51and we launched our product two weeks later in Harvey Nichols.

0:19:51 > 0:19:55I also supply a small number of high-end hotels

0:19:55 > 0:19:59and I've also been approached by an investment company in Dubai that

0:19:59 > 0:20:03would like exclusive distribution rights to the United Arab Emirates.

0:20:03 > 0:20:05Thank you.

0:20:05 > 0:20:07How would you like your coffee?

0:20:07 > 0:20:10- Milk, no sugar, please.- Same.- Same.

0:20:14 > 0:20:16A polite, if not slightly nervous,

0:20:16 > 0:20:20pitch from this Shropshire-based entrepreneur.

0:20:21 > 0:20:25She's looking for £100,000 for a 25% stake in her business.

0:20:29 > 0:20:32Peter Jones is first to question the entrepreneur.

0:20:34 > 0:20:37- Is it Carrie?- Yes. - Carrie, hi.- Hello.

0:20:37 > 0:20:40I was just very intrigued cos I kept on looking at the table

0:20:40 > 0:20:43while you're pouring the coffee... And I can see my book on the table.

0:20:43 > 0:20:46Yeah. There's a quote in this book...

0:20:47 > 0:20:51I've picked this book up and there was a quote...I opened the book

0:20:51 > 0:20:53and it fell to this page and I read it.

0:20:55 > 0:21:00"The secret is to take an existing product, service or concept and

0:21:00 > 0:21:05"then take it up a level by applying your own vision and creativity."

0:21:05 > 0:21:08- And that, I feel, is what I've done with this.- Amen.- Wow.

0:21:08 > 0:21:12- So, thank you, Peter.- Did you write that, Peter?- I did.- He did.

0:21:12 > 0:21:14There's quite a good few facts in there.

0:21:16 > 0:21:17Thank you.

0:21:20 > 0:21:23A rare moment of modesty for Peter Jones.

0:21:23 > 0:21:26And while Carrie might have earned herself some Brownie points,

0:21:26 > 0:21:29Piers Linney wants to understand more about the potential

0:21:29 > 0:21:32for this business to grow.

0:21:33 > 0:21:36If we look at your sort of...look at hotels, for example,

0:21:36 > 0:21:40and that high-end market, as you begin to segment as you come down.

0:21:40 > 0:21:43There are certain hotels that wouldn't care.

0:21:43 > 0:21:45How big does your business get? That's my question, really.

0:21:45 > 0:21:50Well, for every 1,200 rooms, there would be just over £100,000 turnover.

0:21:50 > 0:21:54So, for 1,200 rooms, it would be just over £1 million turnover

0:21:54 > 0:21:57and the 1,200 rooms would still be less than 1% of the rooms

0:21:57 > 0:21:58available in this country.

0:22:02 > 0:22:05Carrie, what's the price point for the coffee bags you're

0:22:05 > 0:22:07selling into hotels?

0:22:07 > 0:22:09The price point is 16 pence per sachet

0:22:09 > 0:22:13and they cost 9.6 pence to make and that's including the labour.

0:22:13 > 0:22:15Are you not getting any resistance from hotels at that price?

0:22:15 > 0:22:20- Ah, well, I can see it would be prohibitive for some hotels...- Yeah.

0:22:24 > 0:22:28Doubts from Duncan Bannatyne over Carrie's ambitious plans

0:22:28 > 0:22:31to see her coffee bags in hotel chains across the UK.

0:22:32 > 0:22:35Now, Kelly Hoppen wants to get to grips with

0:22:35 > 0:22:37the retail side of the business.

0:22:40 > 0:22:43What does it cost you to make a box like this?

0:22:43 > 0:22:47It costs me £4.55 to put the box together like that

0:22:47 > 0:22:51and I sell to Harvey Nichols at £7.50.

0:22:51 > 0:22:56- And they retail for £14.95.- OK, and have Harvey Nichols reordered?

0:22:57 > 0:22:59Not at the moment, but we're exclusive with

0:22:59 > 0:23:01Harvey Nicols until July.

0:23:01 > 0:23:04So, how many do you sell online at £14.95?

0:23:05 > 0:23:10- I think I've sold around £400 worth, which isn't enormous.- Yeah.

0:23:21 > 0:23:23I'll tell you where I am, Carrie.

0:23:24 > 0:23:27Um...I think you're fantastic. I think what you've done is absolutely

0:23:27 > 0:23:31fantastic and it just shows how anyone can build a business and

0:23:31 > 0:23:32create a business if they really work hard

0:23:32 > 0:23:34and really get excited about it.

0:23:39 > 0:23:41But I'm not convinced that this business

0:23:41 > 0:23:42would ever make enough money...

0:23:44 > 0:23:45..really, to give me a return.

0:23:48 > 0:23:49I've got to say, I'm out.

0:23:51 > 0:23:54Carrie, um, the first thing I wrote on my pad, actually,

0:23:54 > 0:23:58when you showed what, you know, what it was, I said, "Simple idea."

0:23:58 > 0:24:01Simple idea, it's a great idea, but I'm not sure

0:24:01 > 0:24:06I would make the return that I want, so I wish you well, but I'm out.

0:24:09 > 0:24:14Two Dragons have declared themselves out in quick succession.

0:24:14 > 0:24:18Will the other multi-millionaire investors find a taste

0:24:18 > 0:24:19for her coffee business?

0:24:19 > 0:24:21Carrie...

0:24:21 > 0:24:23this isn't new.

0:24:23 > 0:24:26It's something that you've adapted.

0:24:26 > 0:24:27You've taken this to a new level

0:24:27 > 0:24:30and I think you've actually gone even further.

0:24:30 > 0:24:33Um...and I think you've got a business that...

0:24:35 > 0:24:37..could be very, very big, actually.

0:24:37 > 0:24:39And I don't want to say probably too much,

0:24:39 > 0:24:42because I might be doing myself an injustice here, cos,

0:24:42 > 0:24:44I'm sitting here and I'm thinking,

0:24:44 > 0:24:46"You are more than just investable." I think the business,

0:24:46 > 0:24:49the brand is fantastic, you've got some amazing ideas.

0:24:49 > 0:24:52I think it's very exciting. So, I'm not going to waste any time.

0:24:52 > 0:24:56I'm going to get the ball rolling. So, I'm going to make you an offer.

0:24:56 > 0:25:00I'm going to offer you all of the money, £100,000,

0:25:00 > 0:25:04and I'd like 33.3%.

0:25:04 > 0:25:08OK, thank you. Thank you very much.

0:25:08 > 0:25:10Do you want to accept now, or do you want to see

0:25:10 > 0:25:11what the others have to say?

0:25:13 > 0:25:18- I...I feel that it would not be correct...- Fair enough.- Quite right.

0:25:20 > 0:25:25Carrie, this is an interesting one, Carrie, cos, um, you present...

0:25:25 > 0:25:27really well. You come across really well.

0:25:27 > 0:25:29You actually reflect the product really well.

0:25:29 > 0:25:33You know, I can see how this came from you, which I love.

0:25:33 > 0:25:35Um, so I'm also going to make you an offer.

0:25:37 > 0:25:41At the risk of mirroring Peter, I'm going to make you the same offer,

0:25:41 > 0:25:46which is all of the money for 33.3%, which is one third of the business.

0:25:46 > 0:25:49Thank you very much. Thank you.

0:25:53 > 0:25:54Please may...

0:25:56 > 0:25:57OK, I'll make you an offer.

0:25:59 > 0:26:01for all the money...

0:26:01 > 0:26:04for a third of the company, so 33.3%.

0:26:07 > 0:26:08Thank you.

0:26:10 > 0:26:12Now, what are you going to do?

0:26:14 > 0:26:17It's a rare occurrence in the Den.

0:26:17 > 0:26:20Three competing offers and they're all asking for exactly

0:26:20 > 0:26:22the same equity in exchange for investment.

0:26:24 > 0:26:28The tables have turned and Carrie now has to make a decision.

0:26:31 > 0:26:32I...

0:26:33 > 0:26:35I just don't know what to do.

0:26:35 > 0:26:42Um, where do you see me pushing my product forward, Deborah?

0:26:42 > 0:26:47- Do you have routes to market in mind, or...?- Hotels, certainly.

0:26:47 > 0:26:49Now, once you've owned that market,

0:26:49 > 0:26:52- then you can start bringing out other products...- Yes.

0:26:52 > 0:26:56- And then filter out.- Mm-hm.- And then make lots of money and sell it.

0:26:58 > 0:26:59So, I think what you're doing is right,

0:26:59 > 0:27:02so you've gone in at the right place in the market.

0:27:02 > 0:27:04I think the hotels...you need to establish this brand.

0:27:04 > 0:27:07I think you're doing that quite well and I think any of us

0:27:07 > 0:27:10here can really get you into conversations with

0:27:10 > 0:27:12the retailers you need and those kind of contacts.

0:27:12 > 0:27:14I know a board director for M&S

0:27:14 > 0:27:16and they would take this with your brand.

0:27:18 > 0:27:20- Would you mind talking to me about your thoughts?- No, I don't.

0:27:20 > 0:27:23I...I mean, I instantly loved it,

0:27:23 > 0:27:26but one thing that really struck me also was the fact...I think,

0:27:26 > 0:27:30that one area that could be huge for this business is the hamper market.

0:27:30 > 0:27:33I have been approached by a couple of London hamper companies.

0:27:33 > 0:27:37Well, I own Red Letter Days and, in there, as you probably know,

0:27:37 > 0:27:41we're extremely large in hamper sales and I think that the

0:27:41 > 0:27:44international marketplace is an area to also explore as well.

0:27:47 > 0:27:51I am erring towards Deborah and Peter at the moment,

0:27:51 > 0:27:56and wonder whether you would like to have a joint input together?

0:27:56 > 0:27:59It's becoming a bit of a habit, actually, Peter.

0:27:59 > 0:28:00HE CLEARS HIS THROAT

0:28:00 > 0:28:02- There's me in the middle again. - Sorry.

0:28:07 > 0:28:10I'd be more than happy to split my investment with Deborah,

0:28:10 > 0:28:11if she's willing to split it.

0:28:11 > 0:28:15Absolutely. Absolutely. And I think it would work very well.

0:28:15 > 0:28:20- I'd like to accept both of your offers, please.- Excellent.- Thank you.

0:28:20 > 0:28:24- Excellent.- Thank you. So, where do I start? Thank you.

0:28:24 > 0:28:29The entrepreneur who took a leaf out of Peter Jones' book, now walks away

0:28:29 > 0:28:32with his money and that of another

0:28:32 > 0:28:34highly experienced Dragon in Deborah Meaden.

0:28:37 > 0:28:39Woo-hoo!

0:28:40 > 0:28:45'I didn't have a brilliant education. My brother passed away when I was 15.

0:28:45 > 0:28:48'It really affected my education terribly.'

0:28:48 > 0:28:51And it feels that everything that I've gone through led to this moment.

0:28:51 > 0:28:54'Deborah and Peter can see the hard work that I've put in

0:28:54 > 0:28:56'and that means the world.'

0:29:00 > 0:29:02There's been a lot of good will in the Den so far...

0:29:02 > 0:29:05I'm going to do something very un-Dragon-like.

0:29:05 > 0:29:06I'm not going to take advantage of you today.

0:29:06 > 0:29:09..with one investment already made.

0:29:09 > 0:29:12- Thank you very much.- Well done.

0:29:12 > 0:29:14Coming up, will any of these entrepreneurs

0:29:14 > 0:29:15benefit from the Dragons' good mood?

0:29:15 > 0:29:18- No. - That's devastating.- It would be.

0:29:18 > 0:29:20Or will they fail to get the capital they need?

0:29:20 > 0:29:23I don't think £50,000 is nearly enough money.

0:29:23 > 0:29:26I don't think it's a good product, I don't think it will sell.

0:29:26 > 0:29:28Just try and keep calm.

0:29:31 > 0:29:34There are normally about three weeks a year in this country with

0:29:34 > 0:29:37ideal conditions for camping.

0:29:37 > 0:29:41But what about the on-trend option of glamorous camping? Glamping.

0:29:41 > 0:29:45Christian and Carolyn van Outersterp are already successful

0:29:45 > 0:29:48glamping entrepreneurs and they now hope to turn their

0:29:48 > 0:29:51Yorkshire business into a year-round operation.

0:30:19 > 0:30:21Hello, I'm Christian van Outersterp.

0:30:21 > 0:30:23And I'm Carolyn van Outersterp

0:30:23 > 0:30:27and our business is Jolly Days Luxury Camping.

0:30:28 > 0:30:30We want to take this business further, faster,

0:30:30 > 0:30:36so we're here to ask for £200,000 in exchange for 20% of our business.

0:30:36 > 0:30:39Jolly Days is a multi-award winning business established four

0:30:39 > 0:30:43and a half years ago and has revolutionised UK glamping.

0:30:43 > 0:30:47We currently have one tented camp of 22 accommodation units

0:30:47 > 0:30:51in a beautiful 200-acre woodland close to York.

0:30:51 > 0:30:54Our huge vintage style tents have four-poster beds,

0:30:54 > 0:30:59roll-top baths, en suite showers, kitchens and wood burners.

0:30:59 > 0:31:01We currently operate nine months of the year

0:31:01 > 0:31:04and have been profitable since day one.

0:31:04 > 0:31:06To expand the business,

0:31:06 > 0:31:09we have obtained planning permission for 50 wooden accommodation

0:31:09 > 0:31:11suites in a 400-acre woodland in the Yorkshire Wolds.

0:31:11 > 0:31:14This will operate 12 months of the year

0:31:14 > 0:31:17and will centre around a luxurious clubhouse where you'll be

0:31:17 > 0:31:20able to eat delicious local food or curl up with

0:31:20 > 0:31:22a hot toddy in front of the fire.

0:31:22 > 0:31:26The 50 private woodland suites are more akin to a luxurious

0:31:26 > 0:31:29hotel suite in the woods and will feature wood burners,

0:31:29 > 0:31:32four-poster beds and spacious spa-style bathrooms.

0:31:32 > 0:31:35Our short-term aim is to have 100 accommodation units over

0:31:35 > 0:31:39two camps generating £4 million profit.

0:31:39 > 0:31:42This is a winning proposition and one of the UK's most exciting

0:31:42 > 0:31:47new hospitality ventures and we'd love you to be involved.

0:31:47 > 0:31:48Thank you.

0:31:51 > 0:31:55A practiced pitch from these glamping entrepreneurs from York.

0:31:55 > 0:32:00They're asking for £200,000 for 20% of an established business

0:32:00 > 0:32:01they want to expand.

0:32:02 > 0:32:05And with Deborah Meaden having made millions running a

0:32:05 > 0:32:09holiday business, the Den will be keen to hear her thoughts first.

0:32:11 > 0:32:14I like this, you know, it interests me.

0:32:14 > 0:32:17And, not surprisingly, I've been in this industry

0:32:17 > 0:32:19and I watch it very carefully.

0:32:19 > 0:32:23I know of you and I also know of the many other businesses that

0:32:23 > 0:32:27have sprung up individually cos that's proliferated, hasn't it?

0:32:27 > 0:32:30Glamping's absolutely been the latest thing for people to

0:32:30 > 0:32:34get into, so my only question on that would be, what's

0:32:34 > 0:32:36occupancy doing in terms of glamping?

0:32:36 > 0:32:39- So, how long have you been running? - Four and a half years.

0:32:39 > 0:32:40And, last year,

0:32:40 > 0:32:43how was your occupancy compared to the year before?

0:32:43 > 0:32:49- It was 57% and I think we grew by about 20%.- You grew?- Yes.- Yes.

0:32:52 > 0:32:55So far, so good, for the entrepreneurs, but are their

0:32:55 > 0:32:58revenue figures as healthy as the number of tents they're filling?

0:33:01 > 0:33:04The turnover of the business to date?

0:33:04 > 0:33:07Last year was 365 net.

0:33:07 > 0:33:09And 102,000 net profit.

0:33:10 > 0:33:14Talk me through how you get to £4 million's profit...

0:33:14 > 0:33:16post £200,000 investment.

0:33:19 > 0:33:23What we're looking to do is, the £200,000 investment

0:33:23 > 0:33:26and bank loan and set up the clubhouse and 15...

0:33:26 > 0:33:29- What's the bank loan? - The bank loan's 300,000.

0:33:29 > 0:33:31So, the key thing is, what's the total cost

0:33:31 > 0:33:32of doing this new venture?

0:33:32 > 0:33:38For the stage one, we're saying half a million, for the clubhouse

0:33:38 > 0:33:42and 15 units, and, thereafter, it's generating cash to grow.

0:33:42 > 0:33:47- Have you bought the land?- No, we lease it off an estate.- For how long?

0:33:47 > 0:33:5015 years with a three-year option

0:33:50 > 0:33:53- on top of that.- 15 years?- Yeah.

0:33:55 > 0:33:56That's not very long, is it?

0:33:56 > 0:34:00In what way have you protected the business from a landlord saying,

0:34:00 > 0:34:03"Thank you very much, Christian, and Caroline,

0:34:03 > 0:34:06"you've now invested £3 million, you've had a good run at it,

0:34:06 > 0:34:10"you've made a little bit of money, but I'm now taking it back...

0:34:10 > 0:34:12"And I'm going to run it as my own business?"

0:34:12 > 0:34:16There wouldn't be anything there for him to run, because we don't own everything.

0:34:16 > 0:34:20- Because you own everything? - It would revert back to just woodland if we went.

0:34:20 > 0:34:23So, you've now got to go in and clear the site?

0:34:23 > 0:34:25Yes, that would be...

0:34:25 > 0:34:27That's devastating.

0:34:28 > 0:34:29It would be.

0:34:32 > 0:34:34A game-changing piece of information

0:34:34 > 0:34:37in what to date had been a convincing pitch.

0:34:38 > 0:34:42And Duncan Bannatyne is not ready to let it lie.

0:34:44 > 0:34:46Who decided on 15 years?

0:34:46 > 0:34:50I think the land agent of the estate. I think we pushed for more, but for some reason...

0:34:50 > 0:34:53Yes, because I think tenants have more rights.

0:34:53 > 0:34:55Why didn't you negotiate a 40 year lease

0:34:55 > 0:34:58with a 15 year tenant only break?

0:34:58 > 0:35:01Yes, I mean, I think the reality of it is

0:35:01 > 0:35:04the two landowners that we worked with are both estate landowners.

0:35:04 > 0:35:07- Is it a very well known estate?- No.

0:35:07 > 0:35:10- It's a family owned...- Yes, they're both family...- Family owners.

0:35:10 > 0:35:15- Local posh landowners.- And it's been in the family for a long time?- Yes.

0:35:15 > 0:35:18I've rented off the Blenheim estate.

0:35:18 > 0:35:20You know, when you rent off a family

0:35:20 > 0:35:22and it's been in a family for a long time,

0:35:22 > 0:35:24it's always going to be in that family.

0:35:24 > 0:35:27And I would think it would be unlikely that they would rent,

0:35:27 > 0:35:30rent you the land for 40 years.

0:35:30 > 0:35:34Couldn't you just lift your model into some land you can buy?

0:35:34 > 0:35:39- Is it something particular about these woods?- I suppose, I mean...

0:35:39 > 0:35:44Most of the beautiful woods are on, sort of landed estates.

0:35:44 > 0:35:47And also, I mean, our woodland is not plantation woodland.

0:35:47 > 0:35:50It is beautiful, natural English woodland.

0:35:50 > 0:35:54It's about that kind of aspect of something that is magical

0:35:54 > 0:35:56and is romantic and it's incredibly well placed

0:35:56 > 0:35:59and this site is between York and Beverley.

0:35:59 > 0:36:02So, it's very well-placed, in terms of tourism,

0:36:02 > 0:36:04it's a sort of tourism hotspot, really.

0:36:07 > 0:36:10The entrepreneurs are hanging on by their fingertips.

0:36:11 > 0:36:15So, is Duncan Bannatyne ready to give them a lifeline?

0:36:17 > 0:36:21I've just bought a lodge in a park in the banks of Lake Windermere,

0:36:21 > 0:36:24which I love. I spend all my time there.

0:36:24 > 0:36:28And I think it's fantastic, the concept you have at the moment.

0:36:28 > 0:36:33It's almost worth investing £200,000 in your business as it is.

0:36:33 > 0:36:35You're doing very well, you're making a lot of money.

0:36:35 > 0:36:38But that's not what you want, you want to go ahead with this.

0:36:38 > 0:36:41There is a huge risk because you don't own the land.

0:36:41 > 0:36:46And the fact that you get kicked off after 15 years worries me too much.

0:36:46 > 0:36:49So, I can't make an investment. Otherwise I'd have loved to.

0:36:49 > 0:36:51I'm sorry, but I have to say I'm out.

0:36:51 > 0:36:52(Thank you.)

0:36:55 > 0:36:59A blow for Christian and Caroline, as their first Dragon bows out

0:36:59 > 0:37:05on account of what could be a fatal flaw in their expansion plan,

0:37:05 > 0:37:07the thorny issue of the 15 year lease.

0:37:08 > 0:37:12Has it convinced the other dragons to walk away from a deal?

0:37:15 > 0:37:18As you approach the end of your lease,

0:37:18 > 0:37:20and you want to sell the business,

0:37:20 > 0:37:24the buyer will have to negotiate a new lease with the landlord

0:37:24 > 0:37:28and your negotiating position will just evaporate

0:37:28 > 0:37:30and so will the value of your business.

0:37:30 > 0:37:33So, for me, because of that one issue, really,

0:37:33 > 0:37:37it wouldn't work. So, fantastic, well done, but I'm afraid I'm out.

0:37:38 > 0:37:42Guys, I do think you have an issue that you don't own the land.

0:37:42 > 0:37:44I think that your business plan is flawed,

0:37:44 > 0:37:49I think you should retreat and think about what you've got

0:37:49 > 0:37:51and make that better.

0:37:51 > 0:37:53And as everybody said, when it comes to the end of 15 years,

0:37:53 > 0:37:57you actually don't own anything and you've spent millions of pounds.

0:37:57 > 0:38:01So, I wish you luck, but I'm afraid I'm out.

0:38:01 > 0:38:03I would urge you not even to contemplate

0:38:03 > 0:38:05doing this project at all. It's flawed.

0:38:05 > 0:38:10You always end up over-budget, you always end up under-resourcing

0:38:10 > 0:38:12and you always end up with a position where

0:38:12 > 0:38:15this occupancy rate doesn't quite happen.

0:38:15 > 0:38:16And one or two bad seasons

0:38:16 > 0:38:18and all of a sudden you're chasing your tail.

0:38:18 > 0:38:22I can't invest in something that is whimsical.

0:38:22 > 0:38:25So, clearly, you know where I'm going.

0:38:25 > 0:38:27I wont be investing and I'm out.

0:38:32 > 0:38:34Only one dragon left.

0:38:34 > 0:38:38Will Deborah Meaden, with her experience in this field,

0:38:38 > 0:38:41be any more willing to offer the entrepreneurs the cash

0:38:41 > 0:38:44to make their expansion dreams a reality?

0:38:48 > 0:38:52I intrinsically understand this end of the market.

0:38:55 > 0:38:58I used to find people choose to camp,

0:38:58 > 0:39:00or even stay in caravans,

0:39:00 > 0:39:03not just because of money, not just because of price,

0:39:03 > 0:39:06but because it's different and it's fun.

0:39:06 > 0:39:09They've chosen that.

0:39:09 > 0:39:11You've got that in the glamping model.

0:39:11 > 0:39:15You lose something in the romance of it

0:39:15 > 0:39:19when you turn it into a hotel with lots of rooms all over it.

0:39:21 > 0:39:23So, I wont be investing and I'm out.

0:39:25 > 0:39:27- OK. Thank you.- Thank you.

0:39:27 > 0:39:29- PETER: Thank you. - Thank you, good luck.

0:39:31 > 0:39:35A disappointed Christian and Caroline exit the den.

0:39:35 > 0:39:39They needed an investment to transform their successful glamping business,

0:39:39 > 0:39:42but they leave with nothing.

0:39:42 > 0:39:43Back to mine, eh?

0:39:44 > 0:39:46Renegotiate.

0:39:46 > 0:39:51That's a shame. I got my Volkswagen camper van, Ruby, and I love it.

0:39:51 > 0:39:53- I love this.- I'd go.

0:39:58 > 0:40:02Henry Ford once said, if I'd asked what customers wanted,

0:40:02 > 0:40:05they would have said, "a faster horse,"

0:40:05 > 0:40:07demonstrating the best entrepreneurs have a vision

0:40:07 > 0:40:10for how a market can develop.

0:40:11 > 0:40:13Married couple, Nuala and Christopher Lewis,

0:40:13 > 0:40:17came to the Den, hoping they've had that kind of vision

0:40:17 > 0:40:18with their invention.

0:40:18 > 0:40:23It's a brand new take on the familiar old product of a mouse mat.

0:40:25 > 0:40:28Like many people, I like to sit on my sofa

0:40:28 > 0:40:30and surf the internet on my laptop.

0:40:30 > 0:40:33Sometimes I get frustrated with the trackpad,

0:40:33 > 0:40:35so I would reach for my mouse.

0:40:35 > 0:40:38I'd start running my mouse up and down my sofa arm on my lap,

0:40:38 > 0:40:42surfaces that are clearly not designed for the use of a mouse.

0:40:42 > 0:40:44Then came our Eureka moment,

0:40:44 > 0:40:48as you can see here our exciting new product, Slouch Mat.

0:40:48 > 0:40:51Peter Jones was keen to get his hands on the product.

0:40:51 > 0:40:53I'm a bit concerned about the bits here.

0:40:53 > 0:40:56What are these bits that pull out?

0:40:56 > 0:40:59Oh! You've actually ripped it open?

0:40:59 > 0:41:02- What are they inside? - Dried peas.- Wow!

0:41:03 > 0:41:08But Piers Linney had already spotted a competing product in the room.

0:41:08 > 0:41:12There is a device on the market that does that already?

0:41:12 > 0:41:15You've got two on your chair over there.

0:41:15 > 0:41:17They're called cushions.

0:41:19 > 0:41:21On the theme of soft furnishings,

0:41:21 > 0:41:26Kelly Hoppen wasted no time with her opinion on Slouch Mat aesthetics.

0:41:26 > 0:41:31I think this is an incredibly ugly item to have on a sofa.

0:41:31 > 0:41:32Even the cover,

0:41:32 > 0:41:35you could have used a neoprene in all different neutral colours

0:41:35 > 0:41:38which would have looked more modern than something which people would

0:41:38 > 0:41:40have liked to have had on the side of their sofa.

0:41:41 > 0:41:45Where the Dragons all agreed, is with smartphones, tablets

0:41:45 > 0:41:48and touch screen devices becoming ever more popular,

0:41:48 > 0:41:51the Slouch Mat was 1990s technology.

0:41:53 > 0:41:56I'm going to be constructive but brutal.

0:41:56 > 0:41:58I don't think it's very good.

0:41:58 > 0:42:01Have you invented something for the mouse,

0:42:01 > 0:42:04just as the mouse disappears from our lives?

0:42:04 > 0:42:07This is completely back in the Dark Ages.

0:42:07 > 0:42:10In a way you've invented a faster way of writing on parchment

0:42:10 > 0:42:13with a quill the day before the printing press was invented.

0:42:13 > 0:42:17- I don't think it's a good product, I don't think it will sell and I'm out.- Thank you.

0:42:23 > 0:42:27Could there be a gap on the supermarket shelves,

0:42:27 > 0:42:29already piled so high with jars and packets,

0:42:29 > 0:42:33tempting us with the promise of speedy convenience and tasty food?

0:42:33 > 0:42:37Entrepreneurs Vini and Bal Aujla think they have spotted one

0:42:37 > 0:42:39for a fresh curry sauce.

0:42:48 > 0:42:50HE INHALES DEEPLY

0:42:50 > 0:42:52Let's try and keep calm.

0:42:52 > 0:42:55Composed, take our time, take our time.

0:42:55 > 0:42:57LIFT BELL PINGS

0:43:12 > 0:43:15Hello. My name is Vini and this is my husband, Bal.

0:43:15 > 0:43:18- We're here today...- I can hardly hear you.

0:43:18 > 0:43:20Oh, gosh, OK.

0:43:20 > 0:43:23We are here today to ask for a £50,000 investment

0:43:23 > 0:43:27for a 15% share in our company,

0:43:27 > 0:43:29Vini & Bal's Rustic Indian.

0:43:30 > 0:43:37Currently we produce a range of four chilled, fresh Indian cook-in sauces.

0:43:37 > 0:43:39We only use natural ingredients.

0:43:39 > 0:43:43They're healthy, they're nutritious,

0:43:43 > 0:43:45they're very easy to use.

0:43:45 > 0:43:47The entire range is gluten-free,

0:43:47 > 0:43:49asides from the Shahi, which is the blue sauce,

0:43:49 > 0:43:52they are also dairy free

0:43:52 > 0:43:56and you'll always end up with a traditional, tasty Indian meal.

0:43:56 > 0:44:02In January this year our product was launched into 120 stores

0:44:02 > 0:44:05of a national, independent supermarket.

0:44:05 > 0:44:08We have a listing with the largest health food

0:44:08 > 0:44:12distributor in the south-east of England,

0:44:12 > 0:44:18who in turn also supplies five organic food stores in London.

0:44:18 > 0:44:25We are imminently going live with the largest online grocer

0:44:25 > 0:44:28and we have brought some samples for you to try

0:44:28 > 0:44:31and after which we will be happy to answer your questions.

0:44:34 > 0:44:37An understated pitch from this husband and wife team.

0:44:37 > 0:44:44They're looking for £50,000 for 15% of their fresh curry business.

0:44:44 > 0:44:48Key for Kelly Hoppen is Rustic Indian's authenticity.

0:44:48 > 0:44:50It's hot.

0:44:51 > 0:44:54Did you actually start making this in your own kitchen?

0:44:54 > 0:44:59Yes, these are recipes that have been handed down many generations

0:44:59 > 0:45:03and we actually wanted it to be more personal.

0:45:03 > 0:45:06What sort of competition is there out there?

0:45:06 > 0:45:10- Is there anything similar? - I mean, this is the thing.

0:45:10 > 0:45:14The supermarket shelves are saturated with the preserved jars,

0:45:14 > 0:45:18yet there is nothing in the fresh section and we just...

0:45:18 > 0:45:21We just can't get to grips with that.

0:45:21 > 0:45:23So there's no competition, whatsoever?

0:45:23 > 0:45:26- BAL: Not in the supermarket, no. - What is the shelf life of this?

0:45:26 > 0:45:29Currently we have 12 weeks.

0:45:29 > 0:45:31Have you looked into why they don't do fresh?

0:45:31 > 0:45:34They do have fresh Italian sauces

0:45:34 > 0:45:39so why somebody has not thought about making fresh Indian

0:45:39 > 0:45:43cook-in sauces, I think is purely down to the shelf life.

0:45:43 > 0:45:46- BAL: And their model? - VINI: And their model.- Yeah.

0:45:46 > 0:45:48I think it is as well.

0:45:48 > 0:45:51I've got a little bit of experience in this...

0:45:51 > 0:45:53It's different, admitted, it's Caribbean.

0:45:53 > 0:45:58One of the reasons why we very much keep away from this,

0:45:58 > 0:46:01- it's extremely expensive.- It is.

0:46:01 > 0:46:05And its shortened lifespan, which means high level of investment

0:46:05 > 0:46:09and wastage. So all the big players in this marketplace,

0:46:09 > 0:46:12if this was a market opportunity, they would have launched it.

0:46:12 > 0:46:14I'm wondering why they haven't?

0:46:14 > 0:46:17I don't think they've actually seen it.

0:46:17 > 0:46:20Trust me, they spend tens of millions a year

0:46:20 > 0:46:22in this type of arena.

0:46:22 > 0:46:23They'd know it.

0:46:27 > 0:46:30A lesson on the workings of the prepared food

0:46:30 > 0:46:34industry from a Dragon who knows.

0:46:34 > 0:46:38But Piers Linney wants to bring the pitch back around to basics.

0:46:41 > 0:46:43I want to talk about the food, I had the chicken, I love it.

0:46:43 > 0:46:46It's as simple as that. Very straightforward from me.

0:46:46 > 0:46:49When I grew up my uncle was Indian and very traditional,

0:46:49 > 0:46:52I know what the real food should taste like and you're right, it is

0:46:52 > 0:46:55quite different in terms of what we are presented with in restaurants.

0:46:55 > 0:46:57I like your packaging.

0:46:57 > 0:46:59- It stands out because it's different, isn't it?- Yes.

0:46:59 > 0:47:01Like you say, you just don't see this.

0:47:01 > 0:47:04When I first saw it I couldn't work out what is it?

0:47:04 > 0:47:08I'm not familiar with that existing. It's quite amazing you found a niche.

0:47:08 > 0:47:11That's pretty hard to do.

0:47:11 > 0:47:15So I can see you've put Vini & Bal on the back.

0:47:15 > 0:47:18Is it a bit of an ego trip?

0:47:20 > 0:47:26No. Erm, everything that you see here has been created by us.

0:47:26 > 0:47:31The illustration there was actually supposed to be my mum and dad

0:47:31 > 0:47:33back in the '70s coming over from India.

0:47:33 > 0:47:37When we are carrying out our marketing,

0:47:37 > 0:47:42everybody seemed to assume that this was Bal and I.

0:47:42 > 0:47:46- Right.- That's where the branding Vini & Bal's Rustic Indian came from.

0:47:46 > 0:47:50But the reality is Vini & Bal is Vini and Bal,

0:47:50 > 0:47:52the two people I see in front of me.

0:47:52 > 0:47:57The big issue for me is actually you guys, in terms of the product

0:47:57 > 0:47:58and its positioning,

0:47:58 > 0:48:01the reason why people like Loyd Grossman have sold millions.

0:48:01 > 0:48:04It's the reason why Levi Roots is a millionaire.

0:48:04 > 0:48:07It's because, it's the brand that pushes the client

0:48:07 > 0:48:08to buy the product.

0:48:08 > 0:48:12I'm wondering what you've got to drive the brand values behind it?

0:48:14 > 0:48:17We actually like Vini & Bal's Rustic Indian.

0:48:17 > 0:48:19We started a PR campaign in January.

0:48:19 > 0:48:23It's been very successful for us.

0:48:23 > 0:48:26The main headline grabbing publications are the Observer,

0:48:26 > 0:48:30the Guardian and Daily Mail and Sunday.

0:48:30 > 0:48:35John Torode from MasterChef actually recommended a buy on this product.

0:48:35 > 0:48:39That is a huge amount of PR.

0:48:39 > 0:48:44A huge amount, which would essentially get your name out there.

0:48:44 > 0:48:47The problem I'm having with all the PR that you've had,

0:48:47 > 0:48:51I would have thought that you would have had a much more successful business by now.

0:48:51 > 0:48:54We just started the PR in January of this year.

0:48:54 > 0:48:56It doesn't matter, you've still had it.

0:48:56 > 0:48:58Yeah, and we've had a phenomenal response.

0:48:58 > 0:49:01The problem is, we can't actually supply everybody

0:49:01 > 0:49:03because it's not readily available.

0:49:03 > 0:49:07A PR company is going to have to go out and market you.

0:49:07 > 0:49:12I don't think £50,000 is nearly enough money to actually

0:49:12 > 0:49:14build the brand that you want.

0:49:14 > 0:49:17It's just not something that I feel comfortable investing in.

0:49:17 > 0:49:21- I'm afraid I'm out, but I wish you a lot of luck.- Thank you.

0:49:24 > 0:49:27There are issues around this.

0:49:27 > 0:49:31I love the look of it but you are going to have to spend a fortune.

0:49:31 > 0:49:35I have a view, if you're spending less than £3,000 a month on PR

0:49:35 > 0:49:37you might as well not spend any money at all.

0:49:37 > 0:49:40I won't be investing so I'm afraid, I'm out.

0:49:43 > 0:49:48A double blow for the entrepreneurs as Kelly Hoppen and Deborah Meaden

0:49:48 > 0:49:53are spooked by the money needed to launch yet another cook-in sauce.

0:49:55 > 0:50:00But Peter Jones wants to learn more about the couples' business credentials.

0:50:01 > 0:50:03What do you do, Bal, now?

0:50:03 > 0:50:07Predominantly most of my time is Rustic Indian, our children.

0:50:07 > 0:50:09Erm...

0:50:09 > 0:50:12We have a leasehold business... You have got a leasehold business.

0:50:12 > 0:50:14Tell me about that quickly?

0:50:14 > 0:50:20Yeah, we bought this bakery as an ongoing concern in 2008.

0:50:20 > 0:50:22Erm...

0:50:22 > 0:50:26And we bought at the peak of the market,

0:50:26 > 0:50:29so to speak and the recession has kicked in.

0:50:29 > 0:50:30It's...

0:50:30 > 0:50:32It's...

0:50:32 > 0:50:35There is an economic downturn and, erm,

0:50:35 > 0:50:38the business sort of breaks even.

0:50:38 > 0:50:40How much money have you in that business?

0:50:41 > 0:50:44Well, including money that we put in

0:50:44 > 0:50:46and the money that we borrowed,

0:50:46 > 0:50:48that's 120,000.

0:50:50 > 0:50:53Did you know what it was making at the time you bought it?

0:50:53 > 0:50:56- Yeah, but in 2008 when we purchased it,

0:50:56 > 0:50:59the business had started to quieten down,

0:50:59 > 0:51:03just because those less money around.

0:51:03 > 0:51:08I struggle with that bit because I've developed a theory over the last 30-odd years in business

0:51:08 > 0:51:12that entrepreneurs who blame

0:51:12 > 0:51:15the weather, the recession,

0:51:15 > 0:51:17the government, never make it.

0:51:17 > 0:51:21I'd be in that bakery now, trying to make that bakery work.

0:51:22 > 0:51:24Yes...

0:51:24 > 0:51:26It's having an interest.

0:51:26 > 0:51:28It's having an interest in the bakery.

0:51:28 > 0:51:31You have an interest you've invested in it.

0:51:31 > 0:51:34Why are you not in there, making that bakery work?

0:51:34 > 0:51:36Why are you not in there baking the bread?

0:51:36 > 0:51:37It's not me.

0:51:37 > 0:51:39It's not me.

0:51:42 > 0:51:45Vini and Bal's admission that they have given up trying to

0:51:45 > 0:51:47make their current bakery business profitable

0:51:47 > 0:51:50has unnerved the Dragons.

0:51:50 > 0:51:54And Peter Jones has made his mind up.

0:52:00 > 0:52:05This is not something, sadly, for me to invest in.

0:52:05 > 0:52:07The brand positioning is wrong.

0:52:07 > 0:52:09I'm not convinced on the product.

0:52:10 > 0:52:12I do think there is a very,

0:52:12 > 0:52:16very good reason why that marketplace has not been tapped.

0:52:17 > 0:52:20I just think you're trying to punch way above your weight.

0:52:20 > 0:52:24I'm going to wish you the best of luck. It's a lovely product

0:52:24 > 0:52:28- but it's not an investment I can take forward and I'm out.- Thank you.

0:52:30 > 0:52:33I agree it's a lovely product, it's well packed.

0:52:33 > 0:52:35Well presented, but I just...

0:52:35 > 0:52:39..don't think the problems with supermarkets taking it

0:52:39 > 0:52:40can be overcome.

0:52:40 > 0:52:43For that reason,

0:52:43 > 0:52:44I'm out.

0:52:49 > 0:52:54With four tycoons gone, only the newest and youngest Dragon remains.

0:52:56 > 0:52:59But has Piers Linney's early enthusiasm for this fresh curry

0:52:59 > 0:53:03business been dampened by the more experienced old guard?

0:53:07 > 0:53:10Vini and Bal, two things that have been discussed wind me up.

0:53:10 > 0:53:14One is, entrepreneurs get into businesses that make mistakes,

0:53:14 > 0:53:15it's not what they thought it was,

0:53:15 > 0:53:18it's not something you should be strung up for.

0:53:18 > 0:53:20That's just life and that how you learn.

0:53:20 > 0:53:23The other thing is, I don't pretend to be an expert in supermarkets.

0:53:23 > 0:53:26You know, this is the way it's done and that's the way the market is and that's the price

0:53:26 > 0:53:29and they'll squeeze you, it's been done before.

0:53:29 > 0:53:30It's just nonsense.

0:53:30 > 0:53:34When you go into a supermarket you are looking for something which is differentiated,

0:53:34 > 0:53:35something that is fresh.

0:53:35 > 0:53:39Yeah, I trust its supply chain, maybe there is a story behind it.

0:53:39 > 0:53:42I know it's not some made up brand, that's being manufactured,

0:53:42 > 0:53:44shoved into a jar with who knows what

0:53:44 > 0:53:46just so it has got a shelf life.

0:53:46 > 0:53:48I mean, the world has to change.

0:53:48 > 0:53:50But...

0:53:50 > 0:53:52You're going to need more than 50K.

0:53:56 > 0:53:59That's the issue.

0:53:59 > 0:54:03I mean, a lot more, not even 100K, I mean, hundreds of thousands.

0:54:09 > 0:54:12You could spend 50 on just your branding.

0:54:12 > 0:54:13You could...

0:54:16 > 0:54:17The question is, can I?

0:54:21 > 0:54:23I'll tell you what, I make you an offer. It's a bit of a punt.

0:54:25 > 0:54:27I'd give you the 50,000...

0:54:31 > 0:54:33..but I want 30%.

0:54:36 > 0:54:39Is the 30% that you asked for, is that negotiable

0:54:39 > 0:54:41because you did want to go to a maximum of 25?

0:54:41 > 0:54:43- Is there any movement in that?- No.

0:54:45 > 0:54:47Erm...

0:54:47 > 0:54:52May we ask how you see yourself fitting in with our brand,

0:54:52 > 0:54:56our vision and what do you think you can bring to the table to

0:54:56 > 0:55:00help us get to where we want to get to?

0:55:00 > 0:55:02You don't know me as well as some of the other Dragons,

0:55:02 > 0:55:07that's the issue you've got but you have to take, I've bought businesses that are worth millions,

0:55:07 > 0:55:10tens of millions over the last five years, during three recessions.

0:55:10 > 0:55:14What I do have is lots of different networks, you know.

0:55:14 > 0:55:17I'm not going to lie to you, I'm not the biggest well-connected person

0:55:17 > 0:55:21in retail but you're not going to get this anywhere without some money.

0:55:21 > 0:55:24You know, there is a bit of risk in this, let's face it.

0:55:27 > 0:55:30- Do you want to have a chat in the boardroom?- In the boardroom!

0:55:31 > 0:55:33Yeah, yeah, help yourself.

0:55:40 > 0:55:42Say, "yes".

0:55:58 > 0:56:00- Yeah.- Yeah?

0:56:00 > 0:56:02Let's ask the question.

0:56:02 > 0:56:03OK...

0:56:06 > 0:56:08We'd be happy to accept your offer.

0:56:08 > 0:56:10- Cool.- Well done.

0:56:10 > 0:56:12APPLAUSE

0:56:15 > 0:56:19After a tricky negotiation, Piers Linney seals the deal

0:56:19 > 0:56:23and an overwhelmed Vini leaves the Den with her husband, Bal,

0:56:23 > 0:56:25and the £50,000 investment they need.

0:56:33 > 0:56:35She's still not too happy, is she?

0:56:35 > 0:56:37I don't know whether she was crying out of delight, or...

0:56:37 > 0:56:41- "Not Piers, come on..." - I think you'll do well.

0:56:41 > 0:56:45I'm pleased they got investment. I'm just pleased it wasn't my money.

0:56:45 > 0:56:48It's amazing with a capital A.

0:56:48 > 0:56:50A-mazing. Yeah?

0:56:52 > 0:56:55It's like you can't put a value, even though

0:56:55 > 0:56:58we just have in what we've given away and what we got back.

0:56:58 > 0:57:00That's not really the true value of a Dragon.

0:57:00 > 0:57:03It far outweighs what he's just invested.

0:57:03 > 0:57:07We know that, he knows that and now it's actually about building that.

0:57:16 > 0:57:21So a double investment this week, both of them in the food and drink industry,

0:57:21 > 0:57:25both trying to combine convenience for the consumer with a fresh taste.

0:57:25 > 0:57:29It's a fresh step for Piers Linney who's spicing up his business

0:57:29 > 0:57:32portfolio by entering this sector for the first time.

0:57:32 > 0:57:35The conversations on all of tonight's pitches

0:57:35 > 0:57:38continue on Twitter, using the hash tag Dragons' Den.

0:57:38 > 0:57:40Let's go.

0:57:41 > 0:57:43Next week in the Den...

0:57:43 > 0:57:48There's a huge amount of work to get anywhere near comfortable making an investment.

0:57:48 > 0:57:51Will you then take a percentage of those sales?

0:57:51 > 0:57:54We would split the sales 50/50.

0:57:54 > 0:57:57I'm not entirely convinced about this,

0:57:57 > 0:57:59- although I sort of like it in a way. - Thank you.

0:57:59 > 0:58:01I'm a natural investor for you.

0:58:01 > 0:58:03So what would be the offer?

0:58:03 > 0:58:06Or don't you want to make one?

0:58:07 > 0:58:10Why have you felt it necessary to come in here and try

0:58:10 > 0:58:14and pull the wool over our eyes?