0:00:08 > 0:00:11I've got to say, what Peter's just said is actually genius.
0:00:13 > 0:00:15No, no, I'm not hearing that,
0:00:15 > 0:00:17and I'm not going to let you get away with that.
0:00:17 > 0:00:21Sorry, hang on, you've spent £400,000 on dolls?
0:00:21 > 0:00:22Mm.
0:00:23 > 0:00:25I'm glad it's your strategy, but I'm out.
0:00:26 > 0:00:30You're valuing a business that so far has made £1,000 profit
0:00:30 > 0:00:32- at a million?- Yeah. If I'm able to answer...
0:00:32 > 0:00:34I'd love to find out what you're going to say.
0:00:35 > 0:00:37I think you've got a cracking business.
0:00:37 > 0:00:38I'm going to make you an offer.
0:00:39 > 0:00:42Let's go back to the evidence. Give me the evidence.
0:01:15 > 0:01:18Welcome to Dragons' Den,
0:01:18 > 0:01:20where a fresh batch of nervous entrepreneurs
0:01:20 > 0:01:23are putting the finishing touches to what they hope
0:01:23 > 0:01:26will be the elevator pitch of a lifetime.
0:01:29 > 0:01:31For our first entrepreneurs,
0:01:31 > 0:01:33deciding what to wear for the toughest pitch of their life
0:01:33 > 0:01:35was easy.
0:01:35 > 0:01:37They took inspiration from their product.
0:01:38 > 0:01:40With the costumes that we're wearing,
0:01:40 > 0:01:45hopefully we'll get a very positive and quite a standout reaction
0:01:45 > 0:01:47from the Dragons. We're looking for them to smile.
0:02:10 > 0:02:12Hi, Dragons.
0:02:12 > 0:02:14- I'm Joe.- And I'm Andy.
0:02:14 > 0:02:18And we're the co-founders of Just Bee drinks.
0:02:18 > 0:02:22Today, we're looking for an investment of £65,000
0:02:22 > 0:02:24in return for 10% equity.
0:02:24 > 0:02:29Just Bee is a light and refreshing flavoured spring water drink,
0:02:29 > 0:02:32but the difference is instead of adding refined sugar
0:02:32 > 0:02:34or artificial sweeteners,
0:02:34 > 0:02:36we use a single drop of honey.
0:02:37 > 0:02:39Each drink is completely natural,
0:02:39 > 0:02:42very low in sugar, and less than 50 calories.
0:02:43 > 0:02:47But why honey? Well, my dad's a beekeeper.
0:02:47 > 0:02:49And my grandad was, too.
0:02:49 > 0:02:52I grew up having my dad's honey in cups of tea,
0:02:52 > 0:02:54instead of sugar.
0:02:54 > 0:02:58A few years ago, I mentioned this to my friend, Andy, and we wondered,
0:02:58 > 0:03:00why do you never see soft drinks with honey?
0:03:01 > 0:03:06This was the start of our big idea for a healthy drink using honey.
0:03:06 > 0:03:08Well, we had a fantastic first three months,
0:03:08 > 0:03:12gaining listings in premium retailers Selfridges
0:03:12 > 0:03:13and Fortnum and Mason.
0:03:13 > 0:03:17We're now stocked in over 100 outlets across the UK and Ireland,
0:03:17 > 0:03:21from delis and coffee shops to hospitals and office canteens.
0:03:22 > 0:03:26We've recently started discussions with the national retailers.
0:03:26 > 0:03:28We feel this is the next exciting step for Just Bee.
0:03:30 > 0:03:32Thank you. Now, we have some drinks for you to try.
0:03:36 > 0:03:39Andy Sugden and Joe Harper are on a mission
0:03:39 > 0:03:41to refresh the soft drinks market.
0:03:41 > 0:03:42Thank you.
0:03:42 > 0:03:45They think £65,000 should do it,
0:03:45 > 0:03:48and a 10% sweetener is on offer in return.
0:03:49 > 0:03:52Peter Jones wants to share his thoughts
0:03:52 > 0:03:53on the entrepreneurs' attire.
0:03:55 > 0:03:58I won't go through the sort of days you have in the Den.
0:04:00 > 0:04:02And when those doors opened,
0:04:02 > 0:04:04and I saw you two coming out dressed like that,
0:04:04 > 0:04:07I really thought we'd got a couple of Charlies coming in,
0:04:07 > 0:04:09and I was terrified.
0:04:09 > 0:04:10LAUGHTER
0:04:11 > 0:04:15My first reaction is why hasn't this happened before?
0:04:15 > 0:04:17We were asking the same question. Why?
0:04:18 > 0:04:20You haven't found the answer?
0:04:20 > 0:04:23- No.- The success you've had so far,
0:04:23 > 0:04:25- could you quantify that now in terms of sales?- Yeah.
0:04:25 > 0:04:29So, sales for the first 12 months was £50,000,
0:04:29 > 0:04:32and an operating loss of £38,000.
0:04:33 > 0:04:36What capital did you put into the business each at the start?
0:04:36 > 0:04:41So, in total so far, we've put £33,000 each in.
0:04:41 > 0:04:45- OK.- And we have also received some additional investment
0:04:45 > 0:04:47from a high-net-worth individual already.
0:04:47 > 0:04:48And what's his name?
0:04:48 > 0:04:50He's called Simon Leonard.
0:04:50 > 0:04:52And how much did he invest?
0:04:52 > 0:04:54So, he put in £150,000.
0:04:54 > 0:04:56- OK.- He got 23% for that.
0:04:56 > 0:04:59OK, so, right in thinking that your net assets
0:04:59 > 0:05:01are currently sitting around 170K?
0:05:02 > 0:05:03No.
0:05:03 > 0:05:07- So, the current balance sheet is about 45,000 of stock.- OK.
0:05:07 > 0:05:09About 19,000 of debtors.
0:05:09 > 0:05:12About £94,000 of cash.
0:05:12 > 0:05:15And £36,000 of creditors.
0:05:15 > 0:05:17What does that make your net position, then?
0:05:17 > 0:05:18121,000.
0:05:20 > 0:05:22I can't tell you how many people can't do that.
0:05:22 > 0:05:25We've spent 20 minutes trying to get that out of some people.
0:05:25 > 0:05:26Very impressive.
0:05:29 > 0:05:32Peter Jones doesn't hand out plaudits very often,
0:05:32 > 0:05:35but the entrepreneurs' firm grasp of their business' books
0:05:35 > 0:05:38has clearly made a good impression.
0:05:39 > 0:05:43Now, Deborah Meaden wants to find out whether these golden boys
0:05:43 > 0:05:45also have green credentials.
0:05:46 > 0:05:48- What I want to talk about is sustainability.- Mm-hm.
0:05:48 > 0:05:49Cos the story's lovely.
0:05:49 > 0:05:52The fact that your father, your grandfather, were beekeepers.
0:05:52 > 0:05:56But actually, one of the problems that have caused colony collapse
0:05:56 > 0:05:58is intense farming of bees.
0:05:58 > 0:06:02- OK.- So, to just drive a load of products fuelled by honey
0:06:02 > 0:06:04is a little bit counterintuitive.
0:06:04 > 0:06:06Yeah, some beekeepers take all of the honey away from the hive
0:06:06 > 0:06:09- and then fill it full of sugar syrup.- Yeah.- Yeah.
0:06:09 > 0:06:12We've made sure that all of our beekeepers in all of our supply,
0:06:12 > 0:06:14they're completely ethical and they leave enough honey
0:06:14 > 0:06:16for the bees to survive winter.
0:06:16 > 0:06:19- OK. That was my question.- That was really important for us, yeah.
0:06:19 > 0:06:21Yeah. Because if you're telling a lovely story about bees,
0:06:21 > 0:06:23that needs to go all the way back to the hive.
0:06:23 > 0:06:26- You know, we're looking after these as well.- Absolutely.
0:06:27 > 0:06:29But you're not going to like what I'm going to say.
0:06:29 > 0:06:31But this is only me, personally.
0:06:33 > 0:06:34I don't actually like the taste.
0:06:36 > 0:06:38Honey has a very slightly antiseptic taste, doesn't it?
0:06:40 > 0:06:42I personally don't know, but...
0:06:42 > 0:06:44It's probably just me. You liked it? You liked it? Can I just ask?
0:06:44 > 0:06:45- I loved it.- Did you like it?
0:06:45 > 0:06:48- NICK AND PETER:- I do know what you mean about the taste.
0:06:48 > 0:06:50- NICK:- That's why I don't put honey in tea.
0:06:50 > 0:06:53- Yeah.- Because it adds a flavour, sugar doesn't.- Yeah.
0:06:53 > 0:06:56- ANDY:- It's the first time I think we've heard that feedback.
0:06:56 > 0:06:59Although you've heard it from three people here.
0:06:59 > 0:07:00Now I mention it, yeah.
0:07:03 > 0:07:06A slight sting in the tail from Deborah Meaden,
0:07:06 > 0:07:09who declares the taste of honey not to her liking.
0:07:10 > 0:07:14But the Dragon with a portfolio swarming with drinks investments
0:07:14 > 0:07:15couldn't agree less.
0:07:16 > 0:07:18I just want to start with saying I love the product.
0:07:18 > 0:07:21- I really do.- Thank you. - I think it's got a great flavour.
0:07:22 > 0:07:26But...I don't think it's a very mass-market flavour.
0:07:27 > 0:07:31And the squash market is not going to be substituted with that.
0:07:31 > 0:07:34The water market will go, "Oh, this is a nice treat"...
0:07:34 > 0:07:38but will still want to hydrate themselves with water.
0:07:38 > 0:07:39But just because it's niche,
0:07:39 > 0:07:42it doesn't mean that this is not possible.
0:07:42 > 0:07:45It just takes a lot of power, and a lot of marketing.
0:07:45 > 0:07:47What is your price point?
0:07:47 > 0:07:49What would I buy that for?
0:07:49 > 0:07:51Our RRP is £1.69.
0:07:54 > 0:07:55That's quite a luxury, isn't it?
0:07:55 > 0:07:58That... That... I'm trying to see where it would go.
0:07:58 > 0:08:01Can you walk out of here, make a phone call to Tesco,
0:08:01 > 0:08:03where would they put it?
0:08:03 > 0:08:04So, in the first year,
0:08:04 > 0:08:08we've placed ourselves in a sort of a premium category
0:08:08 > 0:08:10of the flavoured water.
0:08:10 > 0:08:13But once we get to volume and we're in the likes of Waitrose,
0:08:13 > 0:08:15or Sainsbury's, or Tesco,
0:08:15 > 0:08:18we'd looking at the price point reducing to £1.49.
0:08:18 > 0:08:21Cos I can see it in the Pret, the Costas.
0:08:21 > 0:08:24I'm struggling with it as a supermarket product because it is...
0:08:24 > 0:08:25It's very premium.
0:08:25 > 0:08:29To put ten of those into your supermarket trolley,
0:08:29 > 0:08:32I think that's quite... It is quite a big ask.
0:08:34 > 0:08:37When the queen bee of the beverage market
0:08:37 > 0:08:41doubts your drink's ability to reach a mass market, it's not good.
0:08:42 > 0:08:46But Peter Jones thinks he may have hit upon a solution.
0:08:48 > 0:08:52I can see this getting you into the smaller players,
0:08:52 > 0:08:54like the delicatessens, the specialists.
0:08:54 > 0:08:57Exactly where you are, but then your mass-market product...
0:08:57 > 0:08:59If you see what Robinsons have brought out
0:08:59 > 0:09:01with their small little squeezy concentrate.
0:09:01 > 0:09:04I don't understand why you didn't think about bringing out
0:09:04 > 0:09:08the very ingredient that actually goes into water in the first place
0:09:08 > 0:09:11in a bee-like squeezy.
0:09:11 > 0:09:13So that actually that's the product
0:09:13 > 0:09:15that goes mass-market and supermarkets.
0:09:15 > 0:09:17Radiates your brand.
0:09:17 > 0:09:20It's a lot more cost-effective to the consumer to buy that,
0:09:20 > 0:09:21and it comes in a bee little pack,
0:09:21 > 0:09:23you squeeze it into your glass of water, kids have it at home.
0:09:23 > 0:09:25- Yeah, yeah. - It's brilliant.
0:09:27 > 0:09:30I've got to say, what Peter's just said is...
0:09:30 > 0:09:32And I hate to say this because he's going to
0:09:32 > 0:09:33go on about it for ever now,
0:09:33 > 0:09:35but I am going to say it. ..is actually genius.
0:09:38 > 0:09:40Because that's your squash market.
0:09:40 > 0:09:44- Mm.- If you can produce the concentrate, effectively,
0:09:44 > 0:09:47as a squash, that's your mass-market product.
0:09:47 > 0:09:49Can I just ask about the stability of honey?
0:09:49 > 0:09:52Because of course there's a crystallising issue with honey.
0:09:53 > 0:09:55- That is a fantastic idea... - It might work.
0:09:55 > 0:09:57I think there might be a technical issue
0:09:57 > 0:10:00why you can't make cordial with honey.
0:10:00 > 0:10:01Ah, but no, it doesn't. Sorry.
0:10:01 > 0:10:04Once it's dissolved,
0:10:04 > 0:10:05it doesn't.
0:10:05 > 0:10:07Are we still debating Peter's idea?
0:10:07 > 0:10:11- I know, sorry.- Because if we are, Peter needs to stand up there.- I just think it's such a genius idea.
0:10:11 > 0:10:14- Anyway, guys, while they talk about my idea...- Come out with something to replace squash.
0:10:14 > 0:10:16..and discuss amongst themselves,
0:10:16 > 0:10:18I'm going to make you an offer for all of the money
0:10:18 > 0:10:19for 25% of the company.
0:10:30 > 0:10:31- NICK:- Wow.
0:10:33 > 0:10:35OK. Would you like to respond to that now?
0:10:36 > 0:10:39Well, look, I would prefer that you didn't try and negotiate.
0:10:40 > 0:10:43And then at the end of all of this we can...share the honey.
0:10:46 > 0:10:47Bee-hive yourself.
0:10:49 > 0:10:50Like it.
0:10:52 > 0:10:54An offer from Peter Jones,
0:10:54 > 0:10:58whose ability to catapult a brand to the big-time is no secret.
0:10:59 > 0:11:03Will the cordial atmosphere continue with a bid from Deborah Meaden?
0:11:03 > 0:11:06First thing I will say, I think you've done a great job.
0:11:06 > 0:11:09I love the branding, I love the authenticity.
0:11:09 > 0:11:12You could have won me over on any day of the week,
0:11:12 > 0:11:15but unfortunately, I don't like the taste.
0:11:17 > 0:11:20And for me to be really engaged with something,
0:11:20 > 0:11:24I've got to be able to sit here and say, "But it's lovely!"
0:11:24 > 0:11:26And I would be very clear about that. That's personal.
0:11:26 > 0:11:29I know people will like this taste.
0:11:29 > 0:11:30So, that's the only reason.
0:11:31 > 0:11:33But I won't be investing, I'm out.
0:11:33 > 0:11:34- Thank you.- Thank you.
0:11:38 > 0:11:42I love the story, and a big fan of bees.
0:11:42 > 0:11:45Slightly concerned that the honey flavour
0:11:45 > 0:11:46might make it fairly niche...
0:11:47 > 0:11:49In that there are people who'll love it,
0:11:49 > 0:11:51but there'll be a lot of people who won't.
0:11:52 > 0:11:54So, for that reason, I can't get over the line.
0:11:54 > 0:11:55So, I'm out.
0:11:55 > 0:11:57Thanks.
0:11:57 > 0:11:59Guys, I like what you've done.
0:11:59 > 0:12:01Great. I like you guys, too.
0:12:03 > 0:12:06However, I think in this sector,
0:12:06 > 0:12:08which is not really my sector,
0:12:08 > 0:12:11you've got a perfect offer from the perfect Dragon.
0:12:11 > 0:12:15So, I'm not even going to play numbers with anybody on this.
0:12:17 > 0:12:19I'm not the right Dragon for you guys.
0:12:21 > 0:12:22So, for that reason, I'm out.
0:12:26 > 0:12:29Touker Suleyman steps aside graciously,
0:12:29 > 0:12:33joining Nick Jenkins and Deborah Meaden in going out.
0:12:34 > 0:12:37But Peter Jones doesn't yet have the deal in the bag.
0:12:38 > 0:12:42Could drinks tycoon Sarah Willingham just be in the mood
0:12:42 > 0:12:43to mix things up a bit?
0:12:50 > 0:12:52I really like the product.
0:12:52 > 0:12:54I've said that. I love the flavour.
0:12:56 > 0:12:57I do think, in its current form,
0:12:57 > 0:12:59it's going to be a real struggle in mass-market.
0:13:01 > 0:13:05And I've spoken to the buyers of the major retailers,
0:13:05 > 0:13:06the big supermarkets,
0:13:06 > 0:13:11and this is an area that they see is very saturated.
0:13:13 > 0:13:16There's a lot of people in there already,
0:13:16 > 0:13:17fighting for the space.
0:13:19 > 0:13:22And I do think it's going to be a hard sell.
0:13:24 > 0:13:25So, I'm sorry, I'm out.
0:13:29 > 0:13:32So, that's Sarah Willingham out of the picture,
0:13:32 > 0:13:35leaving just that one offer from Peter Jones.
0:13:36 > 0:13:39Now, it's all down to the negotiation.
0:13:41 > 0:13:43We hoped someone was going to make this competitive.
0:13:43 > 0:13:44HE CHUCKLES
0:13:48 > 0:13:4925% is...
0:13:51 > 0:13:54..a long way away from where we were at ten.
0:13:55 > 0:14:00We really do believe that this could be huge.
0:14:01 > 0:14:03Is there anything we can do?
0:14:05 > 0:14:06I don't think so,
0:14:06 > 0:14:08because I do think it's one of these situations where...
0:14:10 > 0:14:12..it might not go anywhere.
0:14:12 > 0:14:14You know, I'm not going to say you don't have a brand yet
0:14:14 > 0:14:16because you do, you've done really well.
0:14:16 > 0:14:20But I think that I add enough to justify why I would want 25%.
0:14:20 > 0:14:22Tangibly, what would you bring?
0:14:25 > 0:14:28I think that the relationships that I've got with the supermarkets,
0:14:28 > 0:14:31people like Mike Coupe, who runs Sainsbury's,
0:14:31 > 0:14:33or Andy Clarke, who looks after Asda, or...
0:14:33 > 0:14:34And I can go on.
0:14:34 > 0:14:36And these are direct relationships.
0:14:37 > 0:14:39And 25% makes it interesting for me.
0:14:43 > 0:14:45- Shall we have a chat? - Yeah, think so.
0:14:51 > 0:14:55- WHISPERING:- 25% is a long way from ten.- Yeah.
0:14:55 > 0:14:59We'd be down, moving down to...28.
0:14:59 > 0:15:01And a counter offer.
0:15:01 > 0:15:03Or just straight in with a counter offer.
0:15:04 > 0:15:05- You do it.- OK.
0:15:11 > 0:15:13Before we make you a counteroffer,
0:15:13 > 0:15:16we'd like to tell you a few more things.
0:15:16 > 0:15:18So, there's a huge export opportunity,
0:15:18 > 0:15:20and we're getting e-mails left,
0:15:20 > 0:15:24right and centre. We're actually in the listing process with Waitrose
0:15:24 > 0:15:27at the moment, and Boots and Whole Foods.
0:15:28 > 0:15:32We believe there's a real value in this company.
0:15:32 > 0:15:36Based on what we've just said, we'll counter offer - 15%.
0:15:40 > 0:15:43Guys, I'm... The answer's no.
0:15:43 > 0:15:45I wouldn't go down to 15%.
0:15:47 > 0:15:50If we dropped down to 15, we're at a third each.
0:15:52 > 0:15:55But that would mean I'd have 25, you'd both have 28 each.
0:15:57 > 0:15:59And our other investor would have the rest.
0:15:59 > 0:16:02So, you'd be the majority shareholders,
0:16:02 > 0:16:04you'd still have complete control.
0:16:04 > 0:16:06You'd own over 50% of the company.
0:16:06 > 0:16:08Just saying.
0:16:15 > 0:16:17Have one more chat.
0:16:20 > 0:16:22- WHISPERS:- I think one of them...
0:16:22 > 0:16:24One of them wants to do it, the other one doesn't.
0:16:26 > 0:16:27Anything clever we can do?
0:16:42 > 0:16:46We'd love to work with you, but we can't go above 15%.
0:16:49 > 0:16:51- Guys, look, you've made your decision.- It's the wrong decision.
0:16:51 > 0:16:53But on the basis of the fact that I'm not willing
0:16:53 > 0:16:59to change my offer, I'm going to have to say that I'm out.
0:16:59 > 0:17:00Thank you.
0:17:04 > 0:17:06A pitch buzzing with excitement,
0:17:06 > 0:17:10but resulting in a frustrating finale for the entrepreneurs.
0:17:10 > 0:17:13Peter Jones may have thought the product was the bees' knees,
0:17:13 > 0:17:16but not enough to drop his equity demand.
0:17:16 > 0:17:18- It's the right thing to do.- Yeah.
0:17:18 > 0:17:21Do you know what? I still genuinely wish them the best of luck.
0:17:21 > 0:17:23- Oh, yeah.- I hope they make it.
0:17:23 > 0:17:25Although I hope they don't pinch my idea.
0:17:25 > 0:17:29It feels slightly crazy to have turned down Peter Jones.
0:17:29 > 0:17:31It was tempting at the time, but I think we probably would have
0:17:31 > 0:17:34woken up tomorrow and could have regretted it.
0:17:42 > 0:17:45Next into the den is Francis Kane.
0:17:46 > 0:17:48An entrepreneur on a mission
0:17:48 > 0:17:51to change the face of the doll business.
0:17:55 > 0:17:59The fact that the product clearly looks as good as it does.
0:18:01 > 0:18:04And I think the ethos behind it, which is different to a lot of
0:18:04 > 0:18:07the other brands on the market at the moment.
0:18:09 > 0:18:11I'm hoping that that will come across.
0:18:11 > 0:18:12But it may be a bit of a rocky road,
0:18:12 > 0:18:15but we'll have to see when I get in there.
0:18:15 > 0:18:18She's already taken her idea from the playroom to the boardroom,
0:18:18 > 0:18:22but will the Dragons toy with investing in her range of products?
0:18:24 > 0:18:30Hello. My name is Francis Kane, and I am a owner of A Girl For All Time,
0:18:30 > 0:18:34which is a range of toys designed to celebrate and empower girls through
0:18:34 > 0:18:37creative, imaginative play.
0:18:37 > 0:18:40I'm in the Den today looking for £70,000
0:18:40 > 0:18:41for a 10% investment
0:18:41 > 0:18:45of my four-year-old growing business.
0:18:45 > 0:18:49I founded A Girl For All Time really because of my own frustration at
0:18:49 > 0:18:52trying to find anything that was well-designed and intelligently done
0:18:52 > 0:18:55for my own daughter when she was much younger.
0:18:55 > 0:18:57Her choices seemed to be limited to
0:18:57 > 0:19:00plastic lipstick and pretend ironing boards.
0:19:00 > 0:19:05So, I created a range of dolls that followed the adventures
0:19:05 > 0:19:08of the first-born girls of the fictional Marchmont family
0:19:08 > 0:19:10through 500 years of time.
0:19:10 > 0:19:15Stories that come with the range show the girls as heroes
0:19:15 > 0:19:17of their own stories.
0:19:17 > 0:19:20Currently, we have five dolls here that you see,
0:19:20 > 0:19:24and they have won a cachet of industry awards
0:19:24 > 0:19:27for top quality and design,
0:19:27 > 0:19:30including Play Doll Of The Year two years in a row.
0:19:30 > 0:19:352015 for us saw sales of just under £90,000.
0:19:35 > 0:19:412016 looks to be a strong year with 125% growth
0:19:41 > 0:19:45in the first four months of 2016.
0:19:45 > 0:19:49I do believe that our girls are so much more than pink and plastic
0:19:49 > 0:19:51lipstick and pretend ironing boards,
0:19:51 > 0:19:53and I think their toys should be as well.
0:19:53 > 0:19:56And I would like to show you some product, if I may.
0:19:59 > 0:20:01Frances Cain,
0:20:01 > 0:20:04originally from the American Midwest and now living in London,
0:20:04 > 0:20:06is looking for a boardroom buddy.
0:20:06 > 0:20:08You have the start of the family tree, Matilda.
0:20:09 > 0:20:12In exchange for 10% of her company,
0:20:12 > 0:20:15she'd like a Dragon to invest £70,000 on it.
0:20:17 > 0:20:19Peter Jones has a confession to make.
0:20:21 > 0:20:23I'm quite an expert in dolls.
0:20:23 > 0:20:25Oh, right.
0:20:25 > 0:20:27Because over the last sort of 20 years,
0:20:27 > 0:20:31I've grown up playing with dolls a lot because my youngest daughter,
0:20:31 > 0:20:34- who's now nine, and my oldest daughter, who's 23.- Hm.
0:20:36 > 0:20:40So, I have to say, there's something a bit eerie about the dolls.
0:20:41 > 0:20:42OK.
0:20:42 > 0:20:44I don't know. It looks a little bit sort of...
0:20:44 > 0:20:47Not as friendly as I would have expected.
0:20:47 > 0:20:49- Well, erm...- And I'm struggling.
0:20:49 > 0:20:52Immediately struggling with the sort of...the look.
0:20:52 > 0:20:54Because I look into this doll's eyes,
0:20:54 > 0:20:56and there's sort of like a darkness there.
0:20:56 > 0:20:59- Well, maybe slightly pensive. Maybe at times.- Pensive's a good...
0:20:59 > 0:21:01- Right word.- Or maybe thoughtful.
0:21:01 > 0:21:02Or...
0:21:02 > 0:21:04Yeah.
0:21:04 > 0:21:07And is that very much about you, Frances?
0:21:07 > 0:21:10Are you coming out in this doll?
0:21:10 > 0:21:14Well, I think what frustrated me when I was looking for something
0:21:14 > 0:21:16for my own daughter when she was growing up
0:21:16 > 0:21:18is I just felt things were either
0:21:18 > 0:21:23divided into kind of the very pink, bubbly, plastic thing
0:21:23 > 0:21:27or being shoved too far, I felt, into the adult world.
0:21:27 > 0:21:32These dolls are supposed to represent nine, ten, 11-year-olds.
0:21:32 > 0:21:35And we're not always constantly smiling, I feel, are we?
0:21:35 > 0:21:40I think having a companion who looks as we usually look
0:21:40 > 0:21:42is a positive thing.
0:21:44 > 0:21:48A product which makes Peter Jones feel uneasy.
0:21:48 > 0:21:51It's not a great start to Frances' pitch.
0:21:51 > 0:21:54But onto the business itself, and Touker Suleyman wants to know
0:21:54 > 0:21:56if there's anything that makes
0:21:56 > 0:21:59this product stand out in a crowded market.
0:21:59 > 0:22:03What is your USP that could make this doll
0:22:03 > 0:22:08- into a multi-million dollar business?- Excellent point.
0:22:08 > 0:22:12What we've created is a whole brand behind the characters of the dolls.
0:22:12 > 0:22:13So, as far as I know,
0:22:13 > 0:22:18we're the only brand on the market that does an entire family series
0:22:18 > 0:22:23that does these kind of stories with the dolls and creates a depth of
0:22:23 > 0:22:27experience with each range.
0:22:27 > 0:22:29Is it a nice story, or do any bad things happen in that family?
0:22:29 > 0:22:31Well, you know,
0:22:31 > 0:22:34family narrative is really about knowing the good things and the bad
0:22:34 > 0:22:37- things.- So, who's killed who in the family?
0:22:37 > 0:22:39Nobody... Nobody's killed, but don't forget,
0:22:39 > 0:22:41Matilda is a Tudor girl,
0:22:41 > 0:22:43- and Tudor was not always happy times.- Tell me about her.
0:22:43 > 0:22:44What's the unhappy times?
0:22:44 > 0:22:47Matilda is 13 years old,
0:22:47 > 0:22:50and she is sent as a spy to the court of Henry VIII
0:22:50 > 0:22:53and to help advance her cousin Catherine Howard's
0:22:53 > 0:22:55chances to be Queen.
0:22:55 > 0:22:57And Matilda keeps a secret diary.
0:22:57 > 0:23:00Hence the title of her book, Matilda's Secret.
0:23:00 > 0:23:02And it's about her time at court,
0:23:02 > 0:23:04which did not go very well for Catherine Howard,
0:23:04 > 0:23:06if you know your history.
0:23:07 > 0:23:11Frances proves there's more to her dolls than your average kid's
0:23:11 > 0:23:15playthings, with talk of their unique back stories.
0:23:15 > 0:23:18But is millionaire mum of four Sarah Willingham
0:23:18 > 0:23:20buying the product or the business?
0:23:22 > 0:23:27I wouldn't buy one, and I am absolutely your target market,
0:23:27 > 0:23:31if you want to sell the story of trying to empower your little girls
0:23:31 > 0:23:33to believe that they can do anything and be anything.
0:23:33 > 0:23:37I don't think that's what you're achieving through these dolls,
0:23:37 > 0:23:38I really don't.
0:23:39 > 0:23:42I think your objective, you're saying,
0:23:42 > 0:23:45is to make it very real through history.
0:23:45 > 0:23:49I'm not convinced that that's the way to empower
0:23:49 > 0:23:50young girls of today.
0:23:50 > 0:23:52Of course they need to learn history,
0:23:52 > 0:23:56but I think the dolls look like they've sacrificed a lot.
0:23:56 > 0:23:59They... They... They are girls who have suffered a lot.
0:23:59 > 0:24:03So, because I am your target market and I wouldn't buy one,
0:24:03 > 0:24:06I wish you all the best, but I'm afraid I'm not going to invest.
0:24:06 > 0:24:07So, I'm out.
0:24:09 > 0:24:12Sarah Willingham just can't gel with Frances' dolls
0:24:12 > 0:24:16and decides to pass on the business opportunity.
0:24:16 > 0:24:22Can Peter Jones redeem things with talk of cold, hard cash?
0:24:22 > 0:24:25How much money have you spent so far developing the business?
0:24:25 > 0:24:30So, over the last five years, having launched in 2012,
0:24:30 > 0:24:31a grand total of about...
0:24:31 > 0:24:34And it's rounding here, £400,000.
0:24:34 > 0:24:37- Oh, wow.- Cor!- Wow.
0:24:37 > 0:24:40If I could preface that, with the larger companies...
0:24:40 > 0:24:44- Sorry, hang on, Frances.- Yep. - You've spent £400,000 on dolls?
0:24:46 > 0:24:49It's been a... It's been an investment a little bit every year.
0:24:49 > 0:24:51Where did you get that money from?
0:24:51 > 0:24:54Part of it has been from my own funds,
0:24:54 > 0:24:56part of it was from friends and family.
0:24:59 > 0:25:03Francis has gone to great lengths to bankroll a brand she believes is on
0:25:03 > 0:25:06the brink of success.
0:25:06 > 0:25:09But does Deborah Meaden share her conviction?
0:25:10 > 0:25:12To me, they're not joyous.
0:25:12 > 0:25:15- Did you ever play with dolls, Deborah?- Never played with dolls.
0:25:15 > 0:25:18- I'm not surprised.- I was a... - SHE LAUGHS
0:25:18 > 0:25:21Spiders, snakes, all of those things.
0:25:21 > 0:25:24Never dolls. This is personal.
0:25:24 > 0:25:27So, please brace yourself.
0:25:27 > 0:25:29I just don't like it.
0:25:29 > 0:25:31You know, they don't make me feel good.
0:25:31 > 0:25:33They don't tell a great story to me.
0:25:33 > 0:25:36So, I'm really sorry, Frances, I'm out.
0:25:36 > 0:25:38I appreciate the comments, thank you.
0:25:43 > 0:25:46- What's this one called?- Lydia. - Lydia, right.
0:25:46 > 0:25:48Lydia, I bought you a doll.
0:25:48 > 0:25:51One of those over there. Are you excited about that?
0:25:51 > 0:25:53No, not really. Quite indifferent, really.
0:25:53 > 0:25:55Looks a bit sort of Botoxy.
0:25:55 > 0:25:58I'm sure you've done loads and loads of research.
0:25:58 > 0:25:59It's not a market I know anything about.
0:25:59 > 0:26:02I'm sure you've done absolutely stacks of it and you've gone to
0:26:02 > 0:26:09something which is quite different. But I just can't get it at all.
0:26:09 > 0:26:12- I'm afraid I'm out.- Right, OK. Thank you very much.
0:26:13 > 0:26:16The Dragon who made a fortune in personalised gifts
0:26:16 > 0:26:20shows no interest in these bespoke dolls.
0:26:20 > 0:26:24And Touker Suleyman has also come to a decision.
0:26:25 > 0:26:30You've gone a long way to build a business
0:26:30 > 0:26:33that has no appeal, in my view.
0:26:33 > 0:26:34I mean, in my own personal view.
0:26:34 > 0:26:37And I think you're probably a very professional person.
0:26:37 > 0:26:41You've built this whole business around the idea of this doll.
0:26:41 > 0:26:46You spent £400,000, but I don't see it going where you want to see it.
0:26:46 > 0:26:49I'll be happy one day if you get your money back.
0:26:49 > 0:26:53But it's not going to be with my money, I'm afraid.
0:26:53 > 0:26:55And for that reason, I'm out.
0:26:59 > 0:27:02I genuinely like the fact that you've come up
0:27:02 > 0:27:05with a storyline behind what you're trying to achieve.
0:27:05 > 0:27:09But I personally think you've made some real fatal errors.
0:27:10 > 0:27:13- There's a few things that scare me about this doll.- Mm-hm.
0:27:13 > 0:27:16When you go to bed at night and you put your doll down
0:27:16 > 0:27:18and you say goodnight and you sleep,
0:27:18 > 0:27:20if you open your eyes halfway through the night and your doll's
0:27:20 > 0:27:24still looking at you, there's something really eerie about that.
0:27:24 > 0:27:27I think you need to change that, and a very simple way of changing
0:27:27 > 0:27:30- that is make sure the eyes close when it lies flat.- Sleep eyes.
0:27:30 > 0:27:31There're called, yes, sleep eyes.
0:27:31 > 0:27:33Sleep eyes. I think that's important,
0:27:33 > 0:27:36and I think you do have to go back to the drawing board.
0:27:36 > 0:27:41I'm not going to invest because I don't know whether that £70,000 is
0:27:41 > 0:27:46enough to keep the business alive and make the changes necessary.
0:27:46 > 0:27:49So, I'm going to say that I'm out.
0:27:49 > 0:27:51- OK. Thank you very much. Thank you.- Good luck.
0:27:55 > 0:27:56Game over for Francis,
0:27:56 > 0:28:00who couldn't convince the Dragons her dolls had mass appeal.
0:28:00 > 0:28:05She leaves the Den with no more cash than when she arrived.
0:28:05 > 0:28:08- PETER:- I think she's really investable.- Oh, yes.- She was good.
0:28:08 > 0:28:09I think the concept's right.
0:28:09 > 0:28:11It's sad it's looking like that.
0:28:12 > 0:28:15Will I go out next week and start making new face moulds
0:28:15 > 0:28:18for all of the dolls? Probably not.
0:28:18 > 0:28:21So, maybe the Dragons might have missed out on this one.
0:28:27 > 0:28:29Still to come...
0:28:29 > 0:28:30Touker, can you see me?
0:28:30 > 0:28:33I can see you. I can definitely see you.
0:28:33 > 0:28:36Are there hazardous conditions ahead?
0:28:36 > 0:28:39You should not sell a franchise to an unsuspecting person
0:28:39 > 0:28:41without having proven the model.
0:28:41 > 0:28:43Thanks for answering the question,
0:28:43 > 0:28:44but can I direct my questions to them?
0:28:44 > 0:28:46I thought they'd answered it.
0:28:46 > 0:28:48They haven't even paused for breath.
0:28:48 > 0:28:50- They haven't answered. - OK. Sorry, sorry!
0:28:52 > 0:28:54And can any of these entrepreneurs
0:28:54 > 0:28:57navigate the Dragons to an investment?
0:28:57 > 0:28:58I think the product is exceptional.
0:28:58 > 0:29:01This has got Italian design written all over it.
0:29:01 > 0:29:02You turned over £136,000.
0:29:02 > 0:29:05Gross margin £96,000 and you've broken even.
0:29:05 > 0:29:07That is quite rare.
0:29:16 > 0:29:20Our next entrepreneur is hoping to make the world a prettier place.
0:29:20 > 0:29:25He's here to pitch a salon business, which he plans to take global.
0:29:25 > 0:29:27The Dragons really inspire me.
0:29:27 > 0:29:32And I can see a lot of synergy in terms what I do, what they've done.
0:29:34 > 0:29:36I think that there is a fine line
0:29:36 > 0:29:41between coming across as a salesman and coming across as someone
0:29:41 > 0:29:42that is very believable.
0:29:42 > 0:29:44I hope I'm the latter.
0:29:47 > 0:29:50I'm sure that they have an eye for talent,
0:29:50 > 0:29:53and I would hope that they'll see some talent in me today.
0:30:00 > 0:30:01Good afternoon, Dragons.
0:30:01 > 0:30:02My name is Damien Zannetou,
0:30:02 > 0:30:05and I'm the proud founder of an exciting new company
0:30:05 > 0:30:08and concept called Aenea, the science of beauty.
0:30:08 > 0:30:11I'm here today to pitch for £100,000
0:30:11 > 0:30:13for 10% equity in my business.
0:30:13 > 0:30:15So, what is Aenea?
0:30:15 > 0:30:17Simply put, a wellness concept.
0:30:17 > 0:30:19I've combined the hair and beauty,
0:30:19 > 0:30:22salon, spa and clinic experience all under one roof,
0:30:22 > 0:30:26but facilitated with its own private label product line at both the
0:30:26 > 0:30:28professional and retail level,
0:30:28 > 0:30:31consisting of an advanced anti-ageing cosmeceutical
0:30:31 > 0:30:33ingredients and formulations.
0:30:33 > 0:30:37I'm targeting the premium end of the market, but it's positioned on the
0:30:37 > 0:30:39high street, designed for those customers
0:30:39 > 0:30:41that want more treatments, less time,
0:30:41 > 0:30:44with a high fashion and a celebrity focus.
0:30:44 > 0:30:48My root to market is franchising, for a number of reasons.
0:30:48 > 0:30:50Rapid roll-out within the territory,
0:30:50 > 0:30:52less requirement for working capital,
0:30:52 > 0:30:56less risk, but more importantly to create a distribution network for my
0:30:56 > 0:30:58entire cosmetics range.
0:30:58 > 0:31:00Over the past 12 to 18 months,
0:31:00 > 0:31:04I've been working alongside team franchise consultants and experts to
0:31:04 > 0:31:06create what I think is a modest development schedule,
0:31:06 > 0:31:10to open 20 stores in the UK within the next three years,
0:31:10 > 0:31:13and in parallel, 20 stores in the Middle East.
0:31:13 > 0:31:18Each franchisee will pay a licence fee of £25,000 for a five-year
0:31:18 > 0:31:22renewable term, with a 10% monthly management service fee and a monthly
0:31:22 > 0:31:25marketing levy of 2%.
0:31:25 > 0:31:28So far, I've signed a franchise in London.
0:31:28 > 0:31:31I have pending applications for Bristol, for Liverpool
0:31:31 > 0:31:32and for Brighton.
0:31:32 > 0:31:36I also have a letter of intent from a lady in Riyadh, in Saudi Arabia,
0:31:36 > 0:31:39with pending applications for Dubai and also Bahrain,
0:31:39 > 0:31:42and I have a letter of intent for Nigeria.
0:31:42 > 0:31:45And recently, I've just been asked to team up with a distributor
0:31:45 > 0:31:49that would like to target the retail market in the UK and Ireland.
0:31:49 > 0:31:50I've brought some products with me today.
0:31:50 > 0:31:52I'd love to give you a sample,
0:31:52 > 0:31:54and I'm sure you have plenty of questions.
0:31:54 > 0:31:55Thank you!
0:31:59 > 0:32:03With his salon, spa and product range combo...
0:32:03 > 0:32:05- There's an exfoliator for you. - Thank you.
0:32:05 > 0:32:09Damien Zannetou thinks his business is a thing of beauty.
0:32:09 > 0:32:11Have I just broken mine?
0:32:11 > 0:32:15- Yes! Did you just break yours too? - How do you get this out?
0:32:16 > 0:32:18No, there's none in this.
0:32:18 > 0:32:20This isn't coming out, either.
0:32:20 > 0:32:25The entrepreneur is willing to hand over 10% of his equity in return
0:32:25 > 0:32:27for a cool £100,000.
0:32:27 > 0:32:29It's dying to come out, out of the top.
0:32:29 > 0:32:31Oh, it's not supposed to do that.
0:32:31 > 0:32:35The samples have hit some snagging issues with the Dragons.
0:32:35 > 0:32:37Cor, Damien, it's pretty badly made.
0:32:37 > 0:32:39- Why do you say that? - Cos mine's broken and yours...
0:32:39 > 0:32:43When I'm pulling this out now, look, it's like, it goes everywhere.
0:32:43 > 0:32:44I wouldn't say it's badly made.
0:32:44 > 0:32:50It won an award in 2014, and we won that as a highly commended range.
0:32:50 > 0:32:54Now, Peter Jones wants to nail whether the business package
0:32:54 > 0:32:55is robust enough for his liking.
0:32:57 > 0:33:02I have to say, not a good first impression with the products
0:33:02 > 0:33:04that you've handed out, but that being said,
0:33:04 > 0:33:07I'm more keen to understand,
0:33:07 > 0:33:10what on earth is this business?
0:33:10 > 0:33:15- OK.- Because I'm looking at that and seeing champagne and nail bar,
0:33:15 > 0:33:17and them you pitch something completely different.
0:33:17 > 0:33:18As I said earlier,
0:33:18 > 0:33:21it's a combination of a saloon, spa, clinic experience.
0:33:21 > 0:33:23What's a salon/clinic experience?
0:33:23 > 0:33:24A beauty salon.
0:33:24 > 0:33:28A hair and beauty salon, spa, and for each service we offer,
0:33:28 > 0:33:31we have all our own product line.
0:33:31 > 0:33:33So, why wouldn't somebody just set this up and do it themselves?
0:33:33 > 0:33:37Why do they need you? Um.
0:33:37 > 0:33:41That's a good question. They can do it themselves, but the fundamental
0:33:41 > 0:33:44difference is that we've combined the three models together.
0:33:44 > 0:33:46That's not difficult to do, is it?
0:33:46 > 0:33:48If you've got a place big enough, you say, "I cut hair over there,
0:33:48 > 0:33:49"and by the way, that's a nail bar,
0:33:49 > 0:33:52"and actually, we sell a range of cosmetics over here."
0:33:52 > 0:33:55- I don't get...- I think what you're missing is the USP,
0:33:55 > 0:33:57which is the product line.
0:33:57 > 0:33:59It would take them years of research.
0:33:59 > 0:34:01They haven't got their own product line.
0:34:01 > 0:34:03If you'll just allow me to finish.
0:34:03 > 0:34:05Your own product line is really badly put together.
0:34:05 > 0:34:06You're asking me a question,
0:34:06 > 0:34:09but you're not allowing me to finish the answer.
0:34:09 > 0:34:11- No, because I've heard what I wanted to hear.- OK.
0:34:11 > 0:34:14- And I'm going to talk over you.- They don't have their own product line.
0:34:14 > 0:34:18They don't, because you're giving them a product line.
0:34:18 > 0:34:22- Correct.- Why would I sell your product line that actually, frankly,
0:34:22 > 0:34:25breaks when you use it and it's a brand that nobody knows
0:34:25 > 0:34:27over putting in my salon
0:34:27 > 0:34:32brands everybody understands and knows and wants to buy?
0:34:32 > 0:34:33I think that's the key,
0:34:33 > 0:34:37is to expand the business through franchising and to make it a brand
0:34:37 > 0:34:38that everyone is aware of.
0:34:38 > 0:34:41In the skin care market, we are actually known
0:34:41 > 0:34:45because we won an award in 2014 for a very prestigious event.
0:34:49 > 0:34:52No champagne corks popping just yet,
0:34:52 > 0:34:55as Peter Jones fails to get his head around the potential attractiveness
0:34:55 > 0:34:58of Damien's business concept.
0:34:58 > 0:35:01Now Nick Jenkins wants to comb through
0:35:01 > 0:35:04the hair and beauty entrepreneur's
0:35:04 > 0:35:06franchisee recruitment strategy.
0:35:07 > 0:35:10People who buy franchises are people who would like to have their own
0:35:10 > 0:35:11- business, haven't done it before. - Sure.
0:35:11 > 0:35:14They need the confidence of someone else's proven success, and they're
0:35:14 > 0:35:17- prepared to give 10% of their income, in order...- Absolutely.
0:35:17 > 0:35:19..for the hand-holding process.
0:35:19 > 0:35:22What are you telling these people about how successful your original
0:35:22 > 0:35:24concept has been? Tell me about the numbers there?
0:35:24 > 0:35:28Sure. So, I've told prospective franchisees that a normal standard
0:35:28 > 0:35:32salon, spa, clinic concept could turn over about £750,000 a year.
0:35:32 > 0:35:35Has yours turned over £750,000?
0:35:35 > 0:35:36It has, yes. In year two, it did.
0:35:36 > 0:35:38Tell me about the numbers on that one.
0:35:38 > 0:35:39I want to know how successful that was.
0:35:39 > 0:35:43Yeah, it's a really tricky one, and this is where I'd like to be
0:35:43 > 0:35:45totally frank about the situation.
0:35:45 > 0:35:49Basically, I ran into a trademark dispute for my product line.
0:35:49 > 0:35:51So I had to force the company into liquidation.
0:35:51 > 0:35:56Why would you make the company bankrupt with a trademark dispute?
0:35:56 > 0:35:57- Exactly!- It was advice I was given.
0:35:57 > 0:36:00- By who?- By a lawyer, an insolvency practitioner.
0:36:00 > 0:36:02Who did you owe money to?
0:36:02 > 0:36:05At the time, I owed some money to HMRC.
0:36:05 > 0:36:08There was £75,000.
0:36:08 > 0:36:09So, you've left that behind?
0:36:09 > 0:36:12- Correct.- So the taxpayer didn't get their money back from you?
0:36:12 > 0:36:15I'll be totally frank, in 2014,
0:36:15 > 0:36:17my father was my accountant, and sadly,
0:36:17 > 0:36:22he passed away, but I was very much under the guidance of my father
0:36:22 > 0:36:24up until that point.
0:36:24 > 0:36:27When you started talking about this business
0:36:27 > 0:36:29- that was £750,000 turnover...- Yes.
0:36:29 > 0:36:33- You started it in 2010.- Yes. - You closed the company down.
0:36:33 > 0:36:35- You left debt behind?- Yes.
0:36:35 > 0:36:37- And you started New Co.- Yes.
0:36:37 > 0:36:40New Co ended up with these products under a different brand name.
0:36:40 > 0:36:42- Yes.- Tell me about that.
0:36:42 > 0:36:44So today, I mean,
0:36:44 > 0:36:47that business has been trading under the new franchise agreement
0:36:47 > 0:36:48for about a month,
0:36:48 > 0:36:52and it's turned over just under £55,000 for the month of May.
0:36:52 > 0:36:56- And profit?- That's running at about 20% profit.
0:36:56 > 0:36:58So you made £10,000 net profit?
0:36:58 > 0:37:00- Correct.- That £10,000, then,
0:37:00 > 0:37:03what would that have generated for you last month as a franchise?
0:37:03 > 0:37:0510%. Which is £1,000.
0:37:06 > 0:37:10You are valuing a business that has so far made £1,000 at £1 million?
0:37:12 > 0:37:13If I'm able to answer.
0:37:13 > 0:37:15I'd love to find out what you're going to say.
0:37:15 > 0:37:17I knew the question was going to come up,
0:37:17 > 0:37:20and I expected it to come from you as well.
0:37:20 > 0:37:23Yeah, I worked with a third party company.
0:37:23 > 0:37:26Because everything is based on projection,
0:37:26 > 0:37:29they said that the only way that the whole business could be valued would
0:37:29 > 0:37:31be on discounted cash flow.
0:37:31 > 0:37:34So they actually came back with a valuation of £5 million.
0:37:36 > 0:37:38I turned around and said that...
0:37:38 > 0:37:40Can I ask you, Damien, what is discounted cash flow?
0:37:40 > 0:37:44It's my cash flow at the end of year three, obviously.
0:37:44 > 0:37:47You know, it's three years of cash flow forecasted.
0:37:47 > 0:37:49Do you know what discounted cash flow is?
0:37:49 > 0:37:52Yeah. It's taking my cash in the bank at the end of year three,
0:37:52 > 0:37:53applying a discounted rate,
0:37:53 > 0:37:56- which in our case was 50%. - No, it's not.
0:37:56 > 0:37:59Again, it's not something that I can really answer,
0:37:59 > 0:38:01I've handed that over to a third party.
0:38:04 > 0:38:07The tension in the Den shows no signs of letting up,
0:38:07 > 0:38:12as Peter Jones uncovers gaps in Damien's business knowledge,
0:38:12 > 0:38:14and his justification for that
0:38:14 > 0:38:18has provided Nick Jenkins with some cause for alarm.
0:38:18 > 0:38:20I'm a bit concerned about your reliance on external consultants,
0:38:20 > 0:38:23to be perfectly honest. What you've demonstrated to Peter is
0:38:23 > 0:38:25you've no understanding of what they're talking about.
0:38:25 > 0:38:27You don't understand discounted cash flow.
0:38:27 > 0:38:29You say "other people", it was always other people.
0:38:29 > 0:38:31"Other people told me to shut my business down.
0:38:31 > 0:38:33"What did I know?"
0:38:33 > 0:38:35I want to know what YOU think.
0:38:35 > 0:38:37But you don't know that.
0:38:37 > 0:38:39- No, I'm not deflecting. I actually...- But you are.
0:38:39 > 0:38:42- No, I'm not.- You've been constantly deflecting.
0:38:42 > 0:38:43Because you know what I want to know,
0:38:43 > 0:38:45if I'm a potential franchisee?
0:38:45 > 0:38:48I've just got my redundancy payment of £30,000 or £40,000, right?
0:38:48 > 0:38:49I think, "OK, well, I'll go to this guy.
0:38:49 > 0:38:52"This guy will show me how to run my business so I can have success.
0:38:52 > 0:38:54Right. Well, so,
0:38:54 > 0:38:56just exactly how successful have you been so far?
0:38:56 > 0:38:59- Oh, well you didn't. It went bust.- I've... Again,
0:38:59 > 0:39:03I don't want to keep going back to consultants, but I am working
0:39:03 > 0:39:04with a top franchise consultant,
0:39:04 > 0:39:08and her advice has been that the first two to three franchisees
0:39:08 > 0:39:09in my year one of trading
0:39:09 > 0:39:12- will be development franchisees. - You're avoiding the question.
0:39:12 > 0:39:14- You, Damien...- Yeah.- ..are supposed to be telling me
0:39:14 > 0:39:18- how to run a business.- Yes.- How am I supposed to have faith in that?
0:39:18 > 0:39:20Well, I know exactly how to make money
0:39:20 > 0:39:21in terms of running that business.
0:39:21 > 0:39:23- First and foremost. - Have you ever done it?
0:39:23 > 0:39:26If you'll allow me to answer, I can give you an answer to your question.
0:39:26 > 0:39:30I'm very big on online marketing strategies and digital strategies.
0:39:30 > 0:39:31- OK, have you ever done it?- Yeah.
0:39:31 > 0:39:35So my website currently receives 11,500 unique visitors per month.
0:39:37 > 0:39:4111,500 visitors, 43% bounce rate,
0:39:41 > 0:39:44plus to turnover £50,000 and make a profit of £10,000,
0:39:44 > 0:39:47which is still my first month of trading,
0:39:47 > 0:39:51I know exactly how I can go into one of these operations and make money,
0:39:51 > 0:39:52and the reason is because
0:39:52 > 0:39:54I understand the digital marketing aspect.
0:39:54 > 0:39:56So in answer to your original question,
0:39:56 > 0:39:58when I'm speaking to my franchisees,
0:39:58 > 0:40:02the first thing I say to them is we are a stand-alone store in Clapham,
0:40:02 > 0:40:04and if you enter into this agreement,
0:40:04 > 0:40:07- you are a development franchisee. - You've only been going a month.
0:40:07 > 0:40:10So it's not proven, and they understand that.
0:40:10 > 0:40:14Damien gets the last word in a verbal sparring match
0:40:14 > 0:40:17over his ability to roll out franchises.
0:40:17 > 0:40:21But his insistence he can make a string of salons a success
0:40:21 > 0:40:24won't wash with Deborah Meaden.
0:40:24 > 0:40:28My concern is that your original business,
0:40:28 > 0:40:31which was turning over £750,000 a year,
0:40:31 > 0:40:33you've now turned into a franchise.
0:40:33 > 0:40:37- Yes.- And it now turns over £600,000 a year.
0:40:37 > 0:40:40- Yes.- So that's the evidence. Now, forget the words.
0:40:40 > 0:40:43- Yeah.- You can stand and talk to me till you're blue in the face.
0:40:43 > 0:40:44No, I'm not here to paint a pretty picture.
0:40:44 > 0:40:46- I'm only interested in fact.- Yeah.
0:40:46 > 0:40:49Now, you give me the evidence I'm going to make more money through
0:40:49 > 0:40:52your franchise than actually doing it on my own.
0:40:52 > 0:40:56OK. First and foremost, in direct answer to your question,
0:40:56 > 0:40:58you are correct that there is no evidence,
0:40:58 > 0:41:01- because it's a new company and a start-up.- So... Stop there.
0:41:01 > 0:41:03- There is absolutely no evidence. - There is no evidence.
0:41:03 > 0:41:05So, now what you've done is you...
0:41:05 > 0:41:07How much money have you spent with your franchise consultants?
0:41:07 > 0:41:09Around 7,000 or 8,000.
0:41:09 > 0:41:11So what you've actually done
0:41:11 > 0:41:13is spent your time not building evidence,
0:41:13 > 0:41:15you've spent your time building paperwork.
0:41:15 > 0:41:17I've done both. I have done both.
0:41:17 > 0:41:20All right, lovely. So let's go back to the evidence.
0:41:20 > 0:41:23- Give me the evidence.- Well, as I said, the first month of trading,
0:41:23 > 0:41:25we've produced 55,000, but I can't...
0:41:25 > 0:41:28No, but that's evidence that the income goes down
0:41:28 > 0:41:30when I go into your franchise.
0:41:30 > 0:41:33As I've said, my franchisees for the first year
0:41:33 > 0:41:36are development franchisees. They are aware that there is no evidence.
0:41:36 > 0:41:37No. No, Damien, I'm not hearing that
0:41:37 > 0:41:39and I'm not going to let you get away with that.
0:41:39 > 0:41:41So I'm just going to say those two words.
0:41:41 > 0:41:43I won't be investing. I'm out.
0:41:46 > 0:41:51That unproven business model loses Damien his first investor.
0:41:51 > 0:41:54But will the Dragon who franchised her way to the top of the global
0:41:54 > 0:41:57restaurant business have a different perspective on things?
0:42:00 > 0:42:04I've spent many, many years of my life franchising,
0:42:04 > 0:42:06and I've spent a long time, I've done it very successfully,
0:42:06 > 0:42:09and I spent a long time going around a lot of franchise fares as well,
0:42:09 > 0:42:11so I know what's out there.
0:42:11 > 0:42:15- Yes.- Now, good franchisors, they prove the model, they go out there,
0:42:15 > 0:42:17they make it work, and they go, "You know what?
0:42:17 > 0:42:19"I've got a quick route to market here."
0:42:19 > 0:42:21Look at Domino's. Did a fantastic job.
0:42:21 > 0:42:24You should not sell a franchise without having proven the model,
0:42:24 > 0:42:27and that is why I'm out.
0:42:29 > 0:42:31- OK. Thank you.- I'm going to make it very short, Damien,
0:42:31 > 0:42:33you seem like a very nice guy.
0:42:33 > 0:42:36You need to learn a lot. Stick to what you're doing.
0:42:36 > 0:42:37- OK.- Prove the concept.
0:42:37 > 0:42:40- Thank you.- Don't try and sell anything to anybody at the moment.
0:42:40 > 0:42:44- No.- Prove it for a whole year, then decide what you want to do with it.
0:42:44 > 0:42:47I'm afraid I'm not going to invest, I'm out.
0:42:47 > 0:42:48OK, thank you.
0:42:50 > 0:42:52Damien, it's not gone well.
0:42:52 > 0:42:55But I have to say, you've been dealt the right hand because you have come
0:42:55 > 0:42:58in here without anything of substance.
0:42:58 > 0:43:01I think you need to clearly go away
0:43:01 > 0:43:04and rethink how you're going to do this.
0:43:04 > 0:43:06So I'm obviously going to say that I'm out.
0:43:09 > 0:43:13Peter Jones isn't sharing Damien's vision either
0:43:13 > 0:43:17and becomes the fourth Dragon to walk away.
0:43:17 > 0:43:23It's left to e-commerce millionaire Nick Jenkins to have the final say.
0:43:23 > 0:43:25I think... Hopefully... You say that you've...
0:43:25 > 0:43:27You've consistently said throughout this
0:43:27 > 0:43:29that you understand and you agree.
0:43:29 > 0:43:33I hope you understand that you haven't got anything yet.
0:43:33 > 0:43:34So if I was you, I'd...
0:43:34 > 0:43:37Can I show you some agreements that I do have?
0:43:37 > 0:43:39- Or is that not an option?- No, no,
0:43:39 > 0:43:42I'm not interested in you showing me any agreements because, honestly,
0:43:42 > 0:43:44I think the advice you're getting from everybody is that you might
0:43:44 > 0:43:46well be able to sell some franchises,
0:43:46 > 0:43:49but this thing will fall flat on its face if those guys don't actually
0:43:49 > 0:43:51sell anything through their salons and they go bust,
0:43:51 > 0:43:54so it's not good for them and it's not go to be good for you.
0:43:54 > 0:43:55Which is why I said I'll prove it.
0:43:55 > 0:43:58So, if I was you, forget about the franchise business
0:43:58 > 0:43:59and run a decent business in Clapham.
0:43:59 > 0:44:02And then open another business and prove that you can do that.
0:44:02 > 0:44:04When you've got a chain of four or five and you're confident
0:44:04 > 0:44:05you can help others to do that,
0:44:05 > 0:44:07then think about a franchise business.
0:44:07 > 0:44:09That was kind of my strategy, but with your...help.
0:44:09 > 0:44:12Oh, good, well, I'm glad it's your strategy, but I'm out.
0:44:14 > 0:44:17Thank you for your time. I apologise if I've upset anyone.
0:44:17 > 0:44:20- That wasn't my intention. - Cheers, Damien.- Thank you.- Thanks.
0:44:20 > 0:44:22Bye-bye.
0:44:22 > 0:44:26Damien's hopes for a Dragon partner in his hair and beauty business are
0:44:26 > 0:44:29cut and finished by Nick Jenkins,
0:44:29 > 0:44:32after a pitch that certainly provoked some intense debate.
0:44:32 > 0:44:34Do it on my own.
0:44:34 > 0:44:35It went terrible.
0:44:35 > 0:44:38But my head is held high and I'm going to go away,
0:44:38 > 0:44:42I'm going to prove my model, I'm going to sign up my franchisees,
0:44:42 > 0:44:45I'm going to make them hugely successful.
0:44:45 > 0:44:46Watch this space.
0:44:56 > 0:45:01When our next entrepreneurs to enter the Den moved to London from Italy,
0:45:01 > 0:45:04they found navigating their way through the city traffic
0:45:04 > 0:45:05a pretty hairy experience,
0:45:05 > 0:45:09which gave them an idea for a product which they've since
0:45:09 > 0:45:11brought to market.
0:45:23 > 0:45:28We are a good team, he has business skills, I have technical skills.
0:45:28 > 0:45:31We have everything we need to set the product in place,
0:45:31 > 0:45:32so let's do it.
0:45:49 > 0:45:52You're making me go dizzy, I don't know about you.
0:45:52 > 0:45:55TOUKER LAUGHS
0:46:00 > 0:46:02Hello, Dragons. My name is Agostino Stilli.
0:46:02 > 0:46:05This is my business partner, Luca Amaduzzi.
0:46:05 > 0:46:08We are here today looking for an investment of £45,000,
0:46:08 > 0:46:12with a return of 5% equity in our company, CYCL.
0:46:12 > 0:46:15We are here today to present you WingLights.
0:46:15 > 0:46:17WingLights are a direction indicator for bicycle
0:46:17 > 0:46:20that flash amber on the side of your handlebar.
0:46:20 > 0:46:22They are designed to make sure that you are
0:46:22 > 0:46:25noticed when it's most needed, when turning and changing lane.
0:46:25 > 0:46:28With a single tap, they emit a bright LED light.
0:46:28 > 0:46:29They are extremely easy to fit.
0:46:29 > 0:46:31Once the mounter is in position,
0:46:31 > 0:46:34the WingLights snap on in seconds, and when you secure your bike,
0:46:34 > 0:46:38- they snap off. - We entered the market in July 2015,
0:46:38 > 0:46:41and nowadays we already sold more than 8,000 units.
0:46:41 > 0:46:43In the past eight months, we distribute in 14 different
0:46:43 > 0:46:47countries around the world. Together with the premium magnetic version,
0:46:47 > 0:46:50we are already commercialising a fixed version,
0:46:50 > 0:46:52and we are planning to launch a new version
0:46:52 > 0:46:53in the upcoming months.
0:46:53 > 0:46:55Thank you very much for your attention,
0:46:55 > 0:46:57we welcome now any questions you may have and we are passing now some
0:46:57 > 0:47:01samples around so you can get your hands on our product.
0:47:04 > 0:47:08Looking to work in tandem with a Dragon are Agostino Stilli...
0:47:08 > 0:47:10- Grazie.- Prego.
0:47:10 > 0:47:13..and his business partner Luca Amaduzzi.
0:47:13 > 0:47:15Here we are. Two different colours.
0:47:15 > 0:47:18They want to kick-start expansion of their business
0:47:18 > 0:47:21with a £45,000 investment.
0:47:21 > 0:47:25In return, they are offering 5% of their company.
0:47:25 > 0:47:30Peter Jones wants them to shed more light on the product in question.
0:47:31 > 0:47:33The two versions, can you just quickly describe,
0:47:33 > 0:47:35so what are the two different versions again?
0:47:35 > 0:47:38Yes, so basically you have the magnetic version
0:47:38 > 0:47:39that is in your hands now.
0:47:39 > 0:47:43It has a mounter that stays always on the bike,
0:47:43 > 0:47:46then you have a keyring with the two lights assembled on it.
0:47:46 > 0:47:50You can detach the two lights from the keyring like this. OK?
0:47:50 > 0:47:53And is this something you're doing full-time now?
0:47:53 > 0:47:59Yes, Agostino is also finishing a PhD in robotics part-time.
0:47:59 > 0:48:00So that's my last year.
0:48:00 > 0:48:04And give me an idea, you've sold them, what's the revenue?
0:48:04 > 0:48:05What's the gross margin?
0:48:05 > 0:48:08And what money have you got left over?
0:48:08 > 0:48:12The revenue is £136,000
0:48:12 > 0:48:16with a gross profit of £96,000.
0:48:16 > 0:48:20On the net profit, at this stage, we broke even.
0:48:22 > 0:48:26With a neatly designed product and a business that's in the black,
0:48:26 > 0:48:29the entrepreneurs are off to a good start.
0:48:29 > 0:48:32But Deborah Meaden wants to illuminate
0:48:32 > 0:48:34a potential fly in the ointment.
0:48:35 > 0:48:39Right at the beginning, you've got a lot about you, about your pitch.
0:48:39 > 0:48:42You can see, this has got Italian design written all over it,
0:48:42 > 0:48:45cos it's beautiful. You know, it feels nice, it looks good.
0:48:45 > 0:48:50My objection to this would be
0:48:50 > 0:48:53its visibility, because actually when you were riding in circles,
0:48:53 > 0:48:57there was quite a lot of time when I couldn't see that light.
0:48:57 > 0:49:00And at the moment, you know, good old-fashioned put your arm out -
0:49:00 > 0:49:03actually, that's very clear.
0:49:03 > 0:49:06If you start relying on something that has less visibility,
0:49:06 > 0:49:08for me it feels like it might actually make it less safe
0:49:08 > 0:49:10rather than more safe.
0:49:12 > 0:49:14I would say - I'm a cyclist,
0:49:14 > 0:49:16- Deborah is the person who will knock me off the bicycle.- Yes.
0:49:16 > 0:49:19She's looking at it from the perspective of the driver
0:49:19 > 0:49:20looking at this, and I'm looking at it
0:49:20 > 0:49:22from the perspective of me riding a bike.
0:49:22 > 0:49:25Actually, the question of having it on the handlebars,
0:49:25 > 0:49:27it's the widest part of the bike,
0:49:27 > 0:49:28and if you have it on the back,
0:49:28 > 0:49:30you have to have a stalk coming out...
0:49:30 > 0:49:32That's lovely, thanks for answering the question,
0:49:32 > 0:49:34but can I direct my questions to them?
0:49:34 > 0:49:36- I thought they'd answered it, sorry.- No,
0:49:36 > 0:49:39they haven't even paused for breath, they haven't answered it.
0:49:39 > 0:49:42- Sorry.- So that's my objection.
0:49:42 > 0:49:45I'm glad Nick interjected, cos that's my worry,
0:49:45 > 0:49:49that people will think they are covered because their light is here,
0:49:49 > 0:49:52but actually I, as a driver, I can't see you.
0:49:54 > 0:49:56There are other indicators in the market.
0:49:57 > 0:50:01Mostly they are placed just here.
0:50:01 > 0:50:05- Yes.- Ours even all-round visibility
0:50:05 > 0:50:08and you are always sure that when you turn it on,
0:50:08 > 0:50:11it turns on because you actually see it.
0:50:11 > 0:50:14- PETER:- Is there another thing here,
0:50:14 > 0:50:16I mean the WingLight, is it also for...
0:50:16 > 0:50:18the slimmer person.
0:50:18 > 0:50:19The slimmer person?
0:50:19 > 0:50:22I will show you what I mean. Can you see behind me?
0:50:24 > 0:50:28- LUCA:- This is kind of the smallest handlebar you can find.
0:50:28 > 0:50:29But it's from behind
0:50:29 > 0:50:31that's the problem, isn't it? It's not in front.
0:50:31 > 0:50:32- DEBORAH:- No, can't see you.
0:50:32 > 0:50:34If your right indicator was on now, I couldn't see it.
0:50:34 > 0:50:38- Can you not see?- I can see the right, but I can't see the left.
0:50:38 > 0:50:40- PETER:- If you are bigger like me, it doesn't work.
0:50:40 > 0:50:42- Touker, can you see me? - I can see you.
0:50:42 > 0:50:45- Can you see both lights? - Yes, I can see both lights.
0:50:49 > 0:50:52A Den divided over the visibility of the lights,
0:50:52 > 0:50:54but for Sarah Willingham,
0:50:54 > 0:50:57seeing them is only half of the problem.
0:50:58 > 0:51:01I'm struggling with it a little bit.
0:51:01 > 0:51:04Because I'm so used to things flashing on a bike,
0:51:04 > 0:51:06I don't know that that's an indicator.
0:51:06 > 0:51:08That could just be a light.
0:51:11 > 0:51:14It is orange, just like all the other indicators,
0:51:14 > 0:51:18so from that, you should already have a hint.
0:51:19 > 0:51:22Can I say, I'm just a little bit more worried about cycling
0:51:22 > 0:51:25anywhere near Sarah in a car.
0:51:25 > 0:51:29Just on account of the fact that a flashing orange light to the side of
0:51:29 > 0:51:34any scooter or motorbike generally indicates turning.
0:51:34 > 0:51:36Bikes at night-time are covered in flashing lights.
0:51:36 > 0:51:37Any good cyclist...
0:51:37 > 0:51:40- Not orange ones.- And not this kind of flashing.
0:51:40 > 0:51:45According to UK law, anyhow, it is still mandatory to make a signal.
0:51:45 > 0:51:47So you see it more as a safety,
0:51:47 > 0:51:49cos there's no doubt that as a driver
0:51:49 > 0:51:51I'm not expecting a flashing light,
0:51:51 > 0:51:53I'm not expecting an indicator on a bike,
0:51:53 > 0:51:57but I am expecting them to signal to me that they are going to turn left,
0:51:57 > 0:52:01and it's that signal that is going to stop me running them over.
0:52:01 > 0:52:05That signal is not very convenient if you think how you do the signal,
0:52:05 > 0:52:08so when you are going to turn, it is normally the hand signal,
0:52:08 > 0:52:12look behind you, reduce the control on your handlebar
0:52:12 > 0:52:14in a moment when you probably need to brake
0:52:14 > 0:52:16because you have to reduce your speed for turning.
0:52:16 > 0:52:18- At that point... - With these kind of things,
0:52:18 > 0:52:20you can start to signal before
0:52:20 > 0:52:23and you can announce the visibility of your signal system.
0:52:25 > 0:52:29I think it is such a big education
0:52:29 > 0:52:31for the drivers, actually,
0:52:31 > 0:52:34cos we are just not there yet,
0:52:34 > 0:52:37to know that this means a bike
0:52:37 > 0:52:40is turning right or is turning left and is not just
0:52:40 > 0:52:43another half of two flashing lights.
0:52:43 > 0:52:45I can't get past that,
0:52:45 > 0:52:49so I'm afraid it's not an investment for me, so I'm afraid I'm out, guys.
0:52:52 > 0:52:55Sarah Willingham is out,
0:52:55 > 0:52:59but which way is keen cyclist Nick Jenkins going to turn?
0:53:01 > 0:53:05What I am really impressed with is that you started, you turned over
0:53:05 > 0:53:09136,000, gross margin 96, and you have broken even,
0:53:09 > 0:53:12and I think that is quite rare,
0:53:12 > 0:53:16and that's a pretty good indication that you are pretty backable.
0:53:18 > 0:53:20So I'm going to make you an offer.
0:53:23 > 0:53:28So I'm going to make you an offer of all of the money but for 15%
0:53:28 > 0:53:32of the business, but I think you've got a cracking business.
0:53:32 > 0:53:34- Thank you.- Thank you.
0:53:35 > 0:53:38Nick Jenkins thinks the duo are going places,
0:53:38 > 0:53:40and he wants to join them.
0:53:42 > 0:53:45Now Peter Jones is next to have his say.
0:53:47 > 0:53:50I think the product is exceptional.
0:53:50 > 0:53:53The quality and the way you've put this together, I think,
0:53:53 > 0:53:56is as good as I've ever seen a product.
0:53:56 > 0:53:57- Thank you. - You know, congratulations.
0:53:59 > 0:54:03But I do think that you are going to struggle selling
0:54:03 > 0:54:05and making money out of this product.
0:54:07 > 0:54:11I think you do have to come up with some other products
0:54:11 > 0:54:13as a wider range.
0:54:13 > 0:54:15So I'm not going to invest in you today,
0:54:15 > 0:54:17I'm going to say that I'm out,
0:54:17 > 0:54:20but I think it is exceptional what you've done and I congratulate where
0:54:20 > 0:54:23- you've got to.- Thank you. - Thank you very much.
0:54:28 > 0:54:29I'll say a very strange thing.
0:54:29 > 0:54:32I wish you had come in with a different product.
0:54:32 > 0:54:34You are incredibly backable.
0:54:34 > 0:54:36It's a market that I'm not...
0:54:36 > 0:54:40I don't even cycle, so I can't convince myself.
0:54:40 > 0:54:41However much I sit here and try,
0:54:41 > 0:54:44I can't convince myself that this is one I'm going to love, so I won't be
0:54:44 > 0:54:46investing. I'm out.
0:54:50 > 0:54:55Deborah Meaden becomes the third Dragon to step away from a deal...
0:54:56 > 0:55:00..which leaves only Touker Suleyman able to step things up a gear
0:55:00 > 0:55:04and rival Nick Jenkins' 15% off.
0:55:04 > 0:55:07Well, I am the one
0:55:07 > 0:55:11who has a business connection to bicycles.
0:55:11 > 0:55:14We have a website called Bike Soup.
0:55:14 > 0:55:17- Bike Suit?- Did you do your homework?
0:55:17 > 0:55:19Er, Bike Suit?
0:55:19 > 0:55:21- Soup.- Soup!
0:55:21 > 0:55:24- No, I don't know.- Did you do any homework on which Dragon
0:55:24 > 0:55:26you might want to invest?
0:55:28 > 0:55:32- PETER:- Well, obviously not. - Obviously not, OK, so...
0:55:32 > 0:55:36I have a lot of experience in the retail world.
0:55:36 > 0:55:38I know a lot of retailers in this sector.
0:55:40 > 0:55:42And I'm going to make you an offer.
0:55:45 > 0:55:48But I'm going to want more than what Nick wants.
0:55:49 > 0:55:53I'll give you £60,000,
0:55:53 > 0:55:54but I want 25%.
0:55:57 > 0:55:58OK.
0:55:58 > 0:56:01- I think we...- Go for a chat.- Yes.
0:56:01 > 0:56:02You want to go and have a chat at the back wall?
0:56:02 > 0:56:05- Yes, thank you for your offer. - Thank you for your offer.
0:56:08 > 0:56:12Touker Suleyman's bid of more money than the £45,000
0:56:12 > 0:56:15the entrepreneurs were looking for has got to be tempting.
0:56:15 > 0:56:18THEY SPEAK IN ITALIAN
0:56:20 > 0:56:25But at 25%, 20 more than the five they were offering,
0:56:25 > 0:56:28he's significantly devaluing the business.
0:56:28 > 0:56:33Will they go for the extra cash or Nick Jenkins' 15%?
0:56:33 > 0:56:34- OK.- OK?
0:56:43 > 0:56:45We are considering...
0:56:46 > 0:56:50And, Nick, would you go down to 12 and a half?
0:56:54 > 0:56:56Yeah, I could do 12 and a half.
0:56:59 > 0:57:01We've got a deal.
0:57:01 > 0:57:04- Excellent.- Thanks very much.
0:57:04 > 0:57:10A tour de force of a pitch resulting in a £45,000 cash injection for the
0:57:10 > 0:57:14entrepreneurs and a deal that mixes business with pleasure
0:57:14 > 0:57:15for Nick Jenkins.
0:57:15 > 0:57:18HE EXCLAIMS
0:57:18 > 0:57:19Well done.
0:57:19 > 0:57:21We really think Nick is on our wavelength,
0:57:21 > 0:57:24so, yeah, I think we can really do great things together
0:57:24 > 0:57:28and we are looking forward to working with him.
0:57:28 > 0:57:29Yes, definitely.
0:57:36 > 0:57:37So, as the Den doors close,
0:57:37 > 0:57:40we have seen two pairs of entrepreneurs brave enough
0:57:40 > 0:57:43to negotiate with the Dragons.
0:57:43 > 0:57:46Now, in business, it's important to know when to stand firm and when to
0:57:46 > 0:57:50compromise. Joe and Andy stuck to their guns and their equity,
0:57:50 > 0:57:52but left without investment,
0:57:52 > 0:57:56but the guys from CYCL did manage to settle on a deal.
0:57:59 > 0:58:00Coming up next time...
0:58:00 > 0:58:02What about a high-five?
0:58:02 > 0:58:04You've done absolutely the wrong thing here.
0:58:04 > 0:58:06Do you want to offer me something
0:58:06 > 0:58:09that my ten-year-old would probably decline?
0:58:09 > 0:58:14I can tell you one thing, you will look back and say, "Mistake."
0:58:14 > 0:58:16There's not a chance.
0:58:16 > 0:58:19I am definitely out.
0:58:19 > 0:58:24No, I'm not going to put myself in your shoes because I don't have to.
0:58:24 > 0:58:26That is absolutely bonkers.
0:58:26 > 0:58:28I think you've blown it.
0:58:28 > 0:58:30Do you know, I think I'm going to make you an offer.
0:58:30 > 0:58:33If it helps, I'm already regretting going out.