Episode 4 Dragons' Den

Tonight on Dragons' Den...

Rachel and Paula, can we be...?

-Oh!

-Can we start being a bit more serious about this?

I don't want this to go wrong for you.

-OK.

-But you need to come up with something a lot stronger than that.

You have solved a problem that doesn't exist.

I'm going to say it how it is - I'm not impressed.

You've put your whole life behind this?

Yeah.

I'm still struggling to understand what I'm investing in.

You've got to make this more snappy.

-I'm going to make you an offer.

-You might need two Dragons for this.

I can't not make you an offer.

Welcome to Dragons' Den,

where a fresh batch of nervous entrepreneurs

are putting the finishing touches to what they hope will be

the elevator pitch of a lifetime.

HE HUMS

First up tonight is an expat who's travelled thousands of miles

from his adopted home, Australia,

for the chance to tap the Dragons for investment.

Life's journey has brought me to this moment.

I'll go in there, I'll put my best foot forward.

I know I've got something good.

I'm just going to see what the Den, the universe, presents to me.

It's time to tame some Dragons.

Stuart's wife Emily has shared not just the flight from down under

but the long journey the invention has been on, too.

-Come on, Stu.

-Can't wait.

-Yeah.

She'll be watching in our reaction room with family friend, Giles.

Ever since I met Stu, he's always had ideas.

Now it's like he's finally found...

This is it, this is the one!

And now to get the opportunity to be here is just brilliant.

It could be a complete life-changer.

Hello, Dragons.

My name is Stuart Mason.

I'm the inventor of SpaTap.

I'm here today with the opportunity of a £65,000 investment

for a 20% equity share.

The world is in the grip of a water crisis,

and SpaTap is a water-saving, eco-friendly,

mobile tap and shower system that fits in your pocket.

So it's made from silicone, and it instantly attaches to any bottle,

creating a flow-controllable tap or shower that can dispense water

in different ways. I'll just quickly demonstrate.

So if you wanted a small amount of water, say for a hand wash,

you can give it a gentle squeeze.

You get a little hand wash.

If you wanted a bit more water, you can pull the bung out...

and you get enough water for, say, a shower.

This one-litre bottle will dispense water over eight minutes

and 30 seconds, which is extreme water-saving.

So, in 18 months of trading, we have a turnover of £29,000.

We have sold over 4,500 units.

The UK retail price is £14.95.

Our wholesale is between £4.50 and £8.50 depending on volume.

Our landed cost is £3.

In Europe, 33 million people go camping, and in the US,

45 million people per quarter go camping.

SpaTap has multiple applications within multiple markets,

including the huge humanitarian market,

and we recently won first prize in Standard Bank's Water For Africa

competition, beating 470 other entrants from around the world

and winning 10,000 US dollars.

So, thank you, that is my pitch.

Anyone is welcome to come up and have a closer look.

There we go.

Good work.

A pitch with green credentials from inventor Stuart Mason.

He is hoping to secure £65,000 in exchange for 20% of his company.

Just give it the gentlest of squeezes.

That's it. And that gives you between 15-20ml.

Deborah Meaden made her first millions in British holiday parks...

As a hand-washing thing, that actually does work.

So literally just a...

-Oh.

-Well, you squeeze it with the very hand you...

-Oh, I see, with the hand you... Yeah.

-That's it.

..and now she is keen to ascertain whether there's a market

for this product in her former sector.

So, in the UK, how big is the camping market?

Well, 5.4 million families will just go in tents.

And what do they currently do for water?

Depends. If you go to...

People go wild camping.

That means they'll take their own water in.

But of the market, how many go wild camping and how many go on to

camping sites that have got plenty of water access?

Yeah, well, on camping sites, you know, probably...

Maybe 60% will go to campsites where there is water.

But if there is a shower block,

if you want to wash your hands or just clean the food,

you can take it over there, or you can have one of these hanging up

and you can have a quick rinse off.

Yeah, but to be fair, a lot of them have water and electrics close by

anyway, don't they? So...

I'm just trying to understand the driver behind why

you would buy this in the camping fraternity when there is actually

quite a lot of access to water on most sites,

unless they're completely wild.

But I was hoping you might have an answer.

-Well...

-Go humanitarian, Stu.

I've just mentioned the camping market, but there's sports,

there's handymen...

-Humanitarian.

-You know...

In what circumstance...?

I mean, you can't just list a group of people.

In what circumstances and for what reason would they be using this?

Well, I'll give you a perfect example of dog...

People who are walking their dog.

Yeah, but go humanitarian!

And they don't want their car to get muddy after, like, muddy paws.

So it's just, yeah.

OK, no, you need to come up with...

I don't want this to go wrong for you,

but you need to come up with something a lot stronger than that.

It's... Well, to keep clean, to clean children.

But when? In their houses, or...?

No, when they're travelling. When they're out and about.

It is, like, whenever you need a tap that you can use this.

-Festivals?

-Pardon?

-Festivals?

Yeah, exactly. I'm glad you've reminded me of that, because...

-You can get that for free.

-Thanks for that, Touker.

Clutching at straws and having to be reminded of one of his product's

key markets is not the best of starts for Stuart.

But thankfully, another Dragon is on hand to steer him

towards that other major business opportunity, the charitable sector.

I can totally see on the humanitarian side,

or in the developing world,

you could end up supplying probably quite a large number

to water and sanitation projects around the place.

-Yes!

-Come on, Nick.

If you are supplying, for example,

to development projects,

do you have any idea of the price at which you could supply them?

Because, you know, £4 in that kind of environment is a lot of money.

Yeah, we could probably get them down to, like, in the US, 1.50, 1.

You are completely guessing, aren't you?

I'm not completely guessing.

Have you had a quote for any quantity

that gets you down to 1.50?

I've had a quote that's got me down to, erm...

..2.50 on 100,000.

-I think this pressure's building, don't you?

-Yeah.

I absolutely see how this would be an enormous amount of value

-by the side of a latrine...

-Yes.

-..where you...

-By the side of a what?

-A latrine. It's an outdoor loo.

But I just think you'd have to produce it at a price

that was affordable in that market,

which would mean your margin per item is tiny,

which would mean it's not going to be a huge business.

Nick Jenkins can see the potential but not the profitability

for the product's use in sanitation projects,

talk of which has given Peter Jones concerns

of a rather unsavoury nature.

Isn't this going to pass on, potentially, disease, though?

I'm going to be touching this sort of teat at the end,

or whatever you want to call it.

I don't think that this is something people would want to share, is it?

Thank you, Peter. You've hit the nail on the head.

This is a personal tap.

This is... There is no more sharing any more taps.

-Ah...

-No, but in the humanitarian, you're sharing.

In a development environment, where you don't get

one latrine per person, you get a lot of shared latrines.

So someone has just come out of the loo

and they want to wash their hands,

so they've put faecal material on the teat.

How much of an issue is that?

Well, when you are actually using one, if you have got unclean hands,

you can actually very easily clean the whole unit,

because it's made of silicone.

So the unit is very easy to keep clean.

Yeah, I would need to be a little bit more convinced about that,

because I can't see people carrying this themselves to their latrine.

I do see this thing hanging outside, in which case,

you are going to have to stop people touching it with the hands

that they have just...

..touched their bottom with.

Nick Jenkins gets down to the nitty-gritty of some major concerns

over cross-contamination.

Can Sarah Willingham see beyond the issue

to identify a lucrative opportunity?

I think it's a really cool product, first of all.

-It clearly works.

-Thank you.

-Yes! Thank you, Sarah.

-Come on!

I could see, you know, last year at Glastonbury,

I think there's quite a lot of us that could have done with it,

and, you know... I can completely see the use of it

-in that type of environment.

-Yeah.

Yeah, she's there.

The challenge is, in the consumer market, which is...

Let's call it half of your goal is to get into the consumer market,

the other half humanitarian.

In the consumer market, I think it is so niche,

which doesn't make it a massive business opportunity

for the consumer side.

So then I got very excited about the humanitarian side.

Very excited, actually.

Until Peter dropped the sanitary bomb.

And I think that was absolutely bang on, and I'd not thought of it.

So I'm afraid I'm not going to invest.

-I'm out.

-Thank you.

That worry about hygiene just won't go away,

as Sarah Willingham becomes the first Dragon

to wash her hands of a deal.

But Deborah Meaden is still reflecting

on her old stomping ground, the holiday market.

Sometimes you get products you would buy and you would use

but you wouldn't invest in, because it's just not big enough.

The good news for you is, actually, it's quite a tight market,

the camping market.

You're going to know really, really quickly if you've got something.

But I'm not convinced you have.

-I'm really sorry, Stuart.

-That's all right.

I kind of want to,

but I haven't found my reason, so I'm afraid I'm out.

Thank you, all the same. Thank you.

-Oh, Stu!

-Oh, Deborah!

Deborah Meaden pours cold water on the idea

of a Meaden-Mason partnership.

And it looks like Peter Jones has made up his mind, too.

You would want this to be a high-volume product at a low cost

and everybody to use it, and unfortunately,

I don't think that we are...

The communities of which you might want to go into,

with WaterAid and the like,

I think that the cost will need to be a lot lower,

and then also you will have a cross-contamination issue,

because not everybody will be able to have their own individual one.

So, sadly, I'm out.

But good luck to you.

Oh, he's nearly crying. He's nearly crying.

I think it's a great idea.

I mean, I like it, and I'm thinking to myself, he's a nice guy -

if I wanted to invest, how can I add value?

And I think what this needs is your perseverance.

But I don't see this for me as being an investment

where I'll get a return back on it.

And for that reason, I'm not going to invest, and I'm out.

Thank you, Touker.

Showered with compliments but no cash,

as Touker Suleyman becomes the fourth Dragon to bow out.

Nick Jenkins is Stuart's last hope.

Can details of that industry award persuade him into an investment?

So this went to a panel who looked at it?

-Of expert judges.

-Of expert judges,

specifically looking at it as a water and sanitation product?

Yeah. Water For Africa competition, we were first prize.

This is good. Come on.

We were actually mentioned in the HIF,

-the Humanitarian Innovation Fund report...

-Yeah.

..and it contrasts us with what else is available within that market.

There is not a lot. Things like a bucket.

Erm...

Look, I mean, I hope that you just carry on with that

and actually it turns out

that this doesn't have any cross-contamination issues.

I just can't quite get past it.

But I'm afraid I can't invest.

I wish you all the best, and I'm out.

Thank you.

So that's it.

It's been a pleasure. Thank you very much.

Stuart leaves the Den with no cash,

but it won't stop his steadfast determination to succeed.

I'm not too embarrassed to say

I've still never heard of a latrine before.

-Really?

-No.

-Here he comes!

-Here he comes.

Oh!

The Dragon tamer.

All right, we didn't get that investment,

but I'll have the whole thing.

Because that 20%,

that is going to be worth millions and millions and millions.

I guarantee that.

OK for this, though.

Our next entrepreneur is here to pitch a wholesale food business

with a multitude of moneymaking opportunities,

including a restaurant franchise and a range of hot sauces.

-That looks good, mate.

-He's looking for investment

and knows exactly which Dragons he'd like to dish out some cash.

Right, OK. Come on, then, guys.

Sarah, she's got a restaurant background.

Then Peter, on the other hand, is a man that everybody wants.

Sometimes behind every successful man is a woman.

So if I have both of them...

..I would be very, very happy.

(This is the moment of our life.)

(The moment of truth.)

SPANISH GUITAR MUSIC PLAYS

Hello, Dragons. My name is Faheem Badur.

I'm the director and sole shareholder of a company

called Direct Wholesale And Investment Group Limited.

Direct Wholesale was established in 2010 with the main aim of supplying

restaurants and food service sector

with my own blend of recipes and products.

In 2012, we decided to get a bit adventurous

and vertically integrate our business model

and we created Perios, which is a fast, casual restaurant concept

based on food with global flavours, flavours from all over the world.

We have expanded the brand rapidly.

We have now got six stores.

Of six...

..five are franchised, one is company-owned.

We have also developed our sauce range,

which we are only at the moment selling from our restaurants,

but we would love to take these into the retail sector

and expand on the brand.

Last year the company turned over 1.5 million.

That's on the wholesale side only.

And hopefully, with you guys on board,

we can make Perios a national and possibly a global brand.

-What are you asking for?

-Oh! Sorry.

You've forgotten the most important part of your pitch.

-Yes, yes, yes.

-You don't want any money,

you don't want any percentage.

I just want you guys on board!

-That's all I want!

-£25 and 50%!

Touker, you can have anything you want.

You've got the same style!

-FAHEEM LAUGHS

-I'm pitching...

I'm pitching...

I am asking for £130,000 in return for 10% equity in the business.

-All right, carry on.

-Thank you very much! Thank you.

With a restaurant franchise, sauce supply,

and plans to expand into retail,

it's all going on in Faheem Badur's business.

-What is this, chicken?

-This is chicken breast.

Thank you very much. Thank you very much, Freddie, Hal,

you have done a great job. Thank you very much.

The enthusiastic entrepreneur is looking for £130,000

for just 10% of his company.

Nick Jenkins wants to make sense of what he has heard so far.

Hi, I'm Nick. You spoke very quickly in that presentation,

and I have this feeling that the reason you spoke quickly is because

you are thinking, "I have hot food samples that have just come in.

"The longer I speak, the cooler these food samples are going to get.

"I need to speak incredibly quickly!"

-So...

-I think that's absolutely correct.

Apart from the fact that I was really nervous, trying to hide it!

So what we've got is... This is a bit confusing.

We've got a business which is...

It's several businesses all meshed into one.

What I want to do is...

I've got experience in the food service sector

plus the restaurant sector,

and one of the elements that I want to touch is retail.

I want to get into the sort of retail sector.

I've got products that is very appealing that I've developed

-for the food service sector...

-You've got to make this more snappy!

I'm still sitting here struggling to understand what I'm investing in.

Am I investing in a restaurant supply business

or am I investing in a restaurant chain?

You're investing in both.

Faheem confirms that he wants the investment to grow

his restaurant franchise and product range.

But the Dragons still remain confused

over the many facets of his business.

Now the Dragon who made her fortune in restaurant chain roll-outs

wants to pick apart yet another aspect of his company -

his restaurant franchise model.

I don't get it. I'm trying desperately hard to understand this.

You opened a restaurant and somebody came along and went,

"Wow, this is absolutely amazing, I'd like to have a franchise of it."

It's the other way around. We first sold it,

and then somebody came and said, "Amazing."

We built up the visuals and somebody came and said,

"Look, this looks amazing and we'll have it."

I might be being so thick here - I don't...

So did you open a franchise before you opened your own restaurant?

It was simultaneously, actually.

So you opened two together.

-Yes.

-OK. And what did they pay for that?

We actually just charged them the basics in terms of like setup,

and then what you've got to do is you have to do the...

Commission builders to carry on doing the work,

and we actually then supply the artwork and everything,

it's all ours.

-And they buy the sauce from you?

-Yes.

So, of your restaurant, for example,

you should be making 80-100 grand bottom line on that site.

Yeah, hopefully we'll be making that.

OK. Hopefully or yeah?

Yeah, because we just sort of opened, so we've...

Hang on, I thought you opened it in 2012?

2012 was our first small takeaway restaurant that we opened,

and that one we have actually...

We licensed it out,

management licence for somebody else to operate.

Oh, my God. Couldn't be more confused.

Despite her years working with high street restaurants,

Sarah Willingham is struggling to get to grips

with Faheem's business model.

And it's meant the only thing on the menu for Deborah Meaden

is exasperation.

I'm confused. I don't know about anybody else.

-Totally.

-Well, I'm clearly confused.

Would you just like to explain turnover, gross margin,

overheads, net profit?

Turnover last year, 1.5.

Net profit, 65.

And what does it look like next year?

From now onwards, we have got...

We are ready. I think our model is ready, our structure is ready,

and all we want to do is start franchising.

So anything we've franchised is net, any revenue is coming is net.

We don't have any other expenses.

Sorry, is that your idea of explaining to me

-how your business works?

-Er...

I'm just asking you...

..just to explain your business in numbers.

How much profit are you going to make next year?

I'm looking to turn over...

No, no, no. Next word out of your mouth is a number.

How much profit are you going to make next year?

Half a million.

Great.

Deborah Meaden faces an uphill struggle

as she tries to clarify Faheem's basic numbers.

And now Peter Jones is poised to deliver a critique of his menu.

-I'm going to say it how it is - I'm not impressed.

-OK.

I think this is something my kids could put together as a menu.

You've got about 12 products there.

You've come up with a sauce and you've bottled it

with a pretty average label. The most impressive thing

is when you say you've turned over 1.5 million.

I think that's when everybody is, "Wow!"

You've got us at that point.

But if you didn't have the turnover, you'd kind of question, what is it,

really, that you've got? You've got almost five or six pop-up type

restaurants, where frankly, the food looks very average.

Literally, you've got 12...

I can only go into this restaurant and have 12 things.

There is 1,600 different combinations of food

you can have there using different spice and ingredients.

-So if you actually...

-I can have grilled chicken,

I can go for the sizzler, chicken bite or buffalo wings.

But you've got nine different flavours,

so each one you can choose...

But, Faheem, do you not see what I mean?

You look at the back here - you only offer five drinks.

We... It's a refill, so you can choose.

Why can't I have a bottle of beer?

Oh, yeah, actually, let me show you something.

-No, not now!

-No, no, no, no, I've got...

Hang on a second. Hang on a second.

So that is basically our beer menu.

Oh, right, so you have got more...

That's our kids' menu.

-Right.

-And that is our dessert menu.

We have actually developed a Perios kids story for kids.

-Is there anything else?

-There is a lot to it, Peter!

HE LAUGHS

Confusion around Faheem's business plan, confusion around his menus,

and now Nick Jenkins appears confused

about the story behind brand Perios.

Is Perio a person?

Perios is a brand we actually created

which wanted to represent the world flavours.

OK, but what does it mean?

You know, brand relies a little bit on authenticity.

If you had told me a story about Perry, who is...

Or Perio, who is a chap who had a great-great-great-grandfather

who was Indian and another one who was Portuguese,

another one who was Mexican - very multicultural family -

and he used to spend his time with his great-great-great...

I say great-great-great-grandparents cos there's about 12 different

flavours here. They would all sit round

for this multicultural breakfast, and this is what he wanted

-to recreate in his restaurant...

-That is a good story!

Am I just helping you out with a brand story here?

Are you kidding me? Is this actually happening?

-This is a mishmash of...

-It's not actually mishmash.

If it was, people would not come in.

-We'd not have customers coming in.

-Faheem...

Hang on, Touker, I haven't finished yet.

-Save me!

-I haven't finished yet. You're speaking to me.

Right, if I was looking for a restaurant franchise,

I wouldn't be filled with confidence right now.

And I just don't really get the story,

I don't understand what this is.

All these menus you've given us -

there's one over there that's got a picture of...

It looks like an American diner.

There we go, OK. This just doesn't tie in with that, which doesn't...

It does. We've got American flavour on the menu.

I'm sorry, you've... I'm going to tell you where I am.

I am so confused by your numbers,

I'm completely confused by your brand,

but I'm not confused about whether or not I'm going to invest.

I'm not. I'm out.

Faheem fails to survive a grilling from Nick Jenkins,

who becomes the first Dragon to go out.

And it looks like Deborah Meaden is heading for the exit, too.

This has been one of the most frustrating pitches

I think I've ever sat through.

I'm sorry, Deborah, if you feel like that.

And with all honesty,

if I knew even 1% that what I'm pitching,

you would not double up the investment...

But that's just words.

How many people do you think I get standing in front of me saying,

"You give me your money and I'll double up your investment"?

Yeah, but what if I gave you a personal guarantee on the money?

-Well, can you?

-Yes, I can.

Are you very wealthy?

I'm not very wealthy, but I've got enough...

Yeah, but a personal guarantee...

I'll put my house in your name!

No, no, you see, I really, really...

That's not... Really? You think I'd turf somebody out of their house?

-It's not...

-No, I'm just sort of saying,

I believe in the business, I believe in the model, and I really...

Faheem, listen to me, I'm trying to help you here.

You're not going to get an investment from me,

but at some point, you're going to have to get investment.

You're going to have to explain your business.

You can't. You haven't.

I'm out.

I think you've done great,

coming to where you are today.

You're turning over one and a half million.

But what worries me is, you're all over the place.

And I think bringing a Dragon on board is not going to change

the situation. Might make it worse for you.

And I can't invest in you.

I'm out.

That impressive turnover goes by the wayside yet again,

as Faheem's inability to explain his business succinctly

leads to the loss of another Dragon.

Could the Den's king of sauce, Peter Jones,

be the one to propel Faheem's brand and his restaurant concept

into the big-time?

I've opened restaurants before and I've failed miserably

because I've got it wrong, and in fact,

I've lost my shirt on one restaurant.

I don't think I could add anything to you.

But my big issue with this is I think that you've got a lot wrong,

and I think you're going down a very, very dangerous road.

I think you need to go back to the drawing board

and start to really think about what you've got here,

and which type of business you want to invest your time into.

You want to be a wholesale sauce provider at low margin

into restaurant chains and do what you used to do?

That's what you should do. If you want to run and set up

a small pop-up style restaurant and go on to the next,

you should do that.

Combining it is not a good thing for you.

So I'm not going to invest in you,

because I think that you are personally confused

about where the direction of this business is going.

And that's the reason why I'm not going to give you the money today,

-and say that I'm out.

-Thanks, Peter.

Peter Jones walks away from the deal,

leaving the Den's resident restaurateur with the final bill.

Will Faheem's £1.5 million turnover be enough to entice Sarah Willingham

to come on board and streamline the business?

I have never worked so hard in the Den

to try and understand a business.

This is so up my street.

You know, this is what I've done.

You've done 1.5 million turnover - I think that's bloody brilliant.

But I have no concept of where you make your money within the business.

I have no concept of how this can get rolled out.

And I have no choice but to say I'm out.

Thank you.

Faheem's dreams of a double Dragon deal with Peter Jones

and Sarah Willingham are dashed,

and the dapper entrepreneur leaves the Den with nothing.

I could not explain to them the whole vision properly.

I think that was a bit of, probably, my fault, maybe, in a way.

I've never seen a restaurant with a more confusing...

What, am I in a Mexican place?

Then there's a bit of Indian and a bit of Japanese,

and a bit of this and a bit of that.

I think the tougher it gets, the more of a...

You know, like a phoenix, you rise again, stronger.

So hopefully it will be...

The resurrection will be much stronger.

Hopefully.

When Ben Drury from Sidcup faced the Dragons,

it wasn't his pitch that baffled them, but his product -

a gadget to help parents teach their children to tie their shoelaces.

Children don't seem to have a problem

doing that first bit of the lace up.

The issue they have is the dexterity to hold it all together

while they do the lace. What the Lace'mup does

is allow them to hold the bunny ears

and do exactly what they did the first time, and pull it tight.

The Lace'mup then just comes straight off the shoe,

leaving the lace tied.

The product divided the Den between the Dragons

who found it easy to use...

I did it. There.

..and those who struggled to master it.

I find that quite fiddly.

I am finding this harder to tie than I would the shoelace.

As was Peter Jones, who'd had to call in for reinforcements.

I've had to ask a fellow Dragon to do it for me.

And I'm not going to tie your shoelaces again!

It's about time you did them yourself.

When you buy it, there are instructions inside.

What, so I've got to teach my child how to do this?

-The first time, yes.

-Isn't it quicker just to teach them

-how to tie their shoelaces up?

-With four kids under ten,

it was left to Sarah Willingham to judge the product's usefulness.

This is one of those umbrella on a hat moments.

You have made something that is so simple

and that all kids learn to do.

Might take them a week, might take them a day,

it's dead easy.

You have solved a problem that doesn't exist.

Which, sadly for Ben,

meant he failed to tie any of the Dragons into an investment.

Really sorry, Ben, but I'm out.

-I'm out.

-I'm afraid I'm out, too.

Thank you.

Still to come, battle of the sexes...

I'm giving you a man's point of view.

No, you're giving Touker's point of view.

-There is a difference.

-Touker's point of view, then, fine.

..putting up defences...

For every four stores, they are selling one.

-Yes.

-You think that's good?

I think that's excellent.

But will the Dragons do a deal?

You've created a business that's already very profitable.

Don't see very many of those in here.

In terms of the product, I think it's absolutely brilliant.

You've done well, haven't you?

Next up, a hairdresser and a beautician who've created a product

which they believe stands out from the crowd.

They are here to find financial backing,

and maybe a cover girl, too.

You look beautiful, all of you.

Thank you.

All the Dragons could be influential for our business, but I have to say,

Sarah Willingham quite easily in her own right could be

the face of a cosmetics company.

Obviously she has great business knowledge.

So with the combination of the two,

I think she would be a great asset to our company.

(Are you ready?)

(I was born ready!)

# Are you ready?

# G-L-A-M

# O-R

# O-U-S, yeah

# G-L-A-M

# O-R

# O-U-S

# G-L-A-M

# O-R

# O-U-S, yeah

# G-L-A-M

# O-R... #

Hello, Dragons. My name is Paula.

And my name is Rachel, and our company is called Beauty Boulevard,

and we've created a product called Glitter Lips,

which is a high-impact,

long-lasting glitter lip product that is drink proof,

kiss proof and party proof.

We are here today to offer you a 5% stake in our company

in return for a £65,000 investment.

The application is simple.

You apply the gloss on to clean, dry lips.

You then apply the glitter to the gloss

and once those two items touch, they set.

Our products have graced the pages of Elle, Cosmopolitan,

Grazia and Vogue, and we've also been on TV,

on ITV's This Morning,

Ant And Dec's Saturday Night Takeaway

and Strictly Come Dancing.

We have since gone on to supply...

..450 stockists in the UK.

We supply Superdrug, Fenwicks and Topshop Oxford Street.

We also have seven stockists worldwide.

In our first month of trading, we turned over £367.

However, six months on from that,

we had a monthly turnover of £39,000.

Last year, we turned over £250,000 on Glitter Lips By Beauty Boulevard.

We thank you for listening and we welcome your questions.

With their glittery lipstick range,

Rachel de Caux and Paula Short are clearly aiming to dazzle the Dragons

into an investment.

Thank you to our models.

Thank you very much.

They are hoping to kiss goodbye to a 5% stake in their business

in return for £65,000 of Dragon capital.

The product has certainly made an impression on Touker Suleyman.

But is it the right one?

Ladies.

I can just imagine, I'm going on a date...

..and I pick up the young lady

and she comes out with lips like that.

I'd go...

Why? Because I've never seen it, and I wouldn't expect it.

I'm giving you a man's point...

I'm a bachelor, so I'm giving you a man's point of view.

No, you're giving Touker's point of view.

-There's a difference.

-Touker's point of view, then, fine.

I was a bit bemused when you first walked in,

I was slightly reminded... I saw the light glinting off the lips,

and I was reminded of a scene from Moonraker,

where Jaws has his sort of metal teeth.

But as you walked a bit closer, I kind of got it.

It really does sparkle.

It's quite incredible.

We've obviously worn big colours for you to see today,

but there's very subtle colours as well that will just add a sheen.

Not just the colours - the sparkle bit is really quite...

You've got that... You have nailed that.

That's brilliant.

Rachel and Paula, can we be...?

-Oh!

-Can we start being a bit more serious about this, please?

So, you turned...

-What's so funny?

-That's a really good application, actually!

Oh, he does wear lipstick.

I'm not surprised.

You turned over 250,000 last year, is that right?

-Yes.

-What was your profit?

Our gross profit was 225, and our net profit was 104.

And how many products did you sell?

We sold 38,000 units last year.

We've done 55,000 in total since we started.

55,000.

That's quite a lot.

-What does it sell for?

-£12.50 is our retail, yes.

Right, and what does it cost you?

-78p.

-78p.

And what about your distributors?

£5.99.

-OK, good margin.

-It's OK.

A product that's flying off the shelves

with a healthy margin to boot.

Surely the perfect package for any savvy investor?

But there's something troubling Sarah Willingham.

Yeah, your numbers are much better than I thought.

The problem is, when you value a business

at a multiple of your profits, which is what you've done -

I mean, you've valued the business at 12 times profit -

you know, you're kind of investing in...

the future quite far down the line.

And my big concern is,

if you're taking that much turnover and proving that market,

why won't Rimmel and everybody else come out with the same,

if they haven't already?

I mean, I have seen glitter lipsticks.

How can you protect that?

We've had a two-and-a-half-year head start,

and we have a nondisclosure agreement with our suppliers

on the formula that we've created,

so we've protected ourselves as much as we possibly can.

The hardest thing for us right now is

we don't get in front of any buyers anywhere.

Despite that PR, I find that incredible.

That is incredible, because buyers' jobs are to find product,

and you have had major exposure,

so that worries me more than that encourages me,

because all I can do is get you in front of a buyer,

but if they've got an intrinsic reason why they're just...

You know, they're seeing what we see.

They're seeing that it's being used in some very high-profile places,

you can tell them how many you've sold,

and they are still not buying them. That does worry me.

Sarah Willingham and Deborah Meaden raise serious questions

over the product's long-term prospects.

Have they taken the sparkle off proceedings for Touker Suleyman?

I agree, it's a good little earner for you guys while the going is hot.

I'd really push it.

But try and get out when you can smell that it's sort of coming off,

before you end up with a lot of stock.

I don't think you need investment.

I think, from what you're saying,

all you need is to keep on plugging it, you know?

Keep on knocking on doors.

But I'm not going to be an investor in this

because I think it's very limited, it's a fad,

and for that reason, I'm out.

Man down, as Touker Suleyman exits the deal.

Will Nick Jenkins be prepared to gloss over

his fellow Dragons' worries about the business' longevity?

I have to say, I'm pretty impressed with what you've done with this...

..in that you've created a business with a fantastic margin

and that's already very profitable.

Don't see very many of those in here.

It's just that, unfortunately, I can't see anything that I could add.

But well done, and good luck.

But...

I like it! Thank you very much.

Thank you very much for your time, Nick. Thank you.

I'm not convinced that I've helped you in any way

by wearing the product today.

-Me neither.

-So, for that, I apologise.

But I had to try the product.

-Of course you did.

-Having tried it and seen it,

I'm not convinced, actually, that this is going to work.

It's just not something that I can see that's going to go mass-market,

because I think it is an acquired taste.

So, for that reason, I'm out.

Clearly you'll sell some, because you are selling them already.

And, you know, I think it's really funky.

It's cool. It's great. But it is fashion.

I am a little worried about why the buyers aren't picking it up.

I know it's just going for it now,

but I think it might be a bit of a blast, and then go quiet.

So I won't be investing.

I'm out.

Another loss,

leaving just one person able to rescue Rachel and Paula's

investment dreams, their preferred Dragon, Sarah Willingham.

I actually don't think it's properly peaked yet.

I do think you'll do those numbers this year.

But I don't think next year it will be a bigger number.

It's not a five-year thing,

which makes it very difficult to invest in

because it's quick cash now,

and it's not enough cash to justify the multiple of profit

that you're asking in terms of the investment.

So I'm going to use it, but I'm not going to invest.

So good luck, but I'm afraid I'm out.

-Thank you.

-Thank you.

So the Dragon the entrepreneurs hoped would be

the face of their brand and the brawn of their bank balance

is the one to deliver the fatal blow to their pitch.

They leave the Den with nothing.

All right, all right, all right. Don't say a word.

-Peter, you've got something...

-Peter, Peter, give us a little...

-Yeah, there.

-Give us a little...

Yeah, all right. Don't have to take the mickey!

Peter Jones as a model...

I think, if I had to hire a model, Peter Jones wouldn't be it.

I'd have to say, "I'm out."

Last through the lift doors are husband and wife team

Martin Chard and Jenny David.

Martin has Asperger's and dyslexia, conditions which have presented

their own set of challenges in getting his product to market.

-Good luck.

-Yeah. I love you.

Every day, things I tend to stumble a lot on, you know,

it's the simple things that everybody can do.

So I've spent my whole life feeling stupid.

This is it. This is what you want.

And that's the whole purpose of doing this,

because I wanted to look in the mirror and look at something

that I felt proud of.

Hello. My name's Martin Chard.

This is my wife, Jenny David.

We're here today to ask for £50,000 investment

and your valuable business expertise in return for

20% of our Marxman Limited.

I'd describe myself as dyslexic with a sprinkle of Asperger's.

People often say I think outside the box.

Truth is, I never had a box in the first place.

I've been working for many years now as a building maintenance engineer,

and I often have to put up lots of shelves,

fixtures and fittings throughout the day.

I've found that it can be quite frustrating,

marking where to drill the hole positions.

This is the Marxman. You simply...

..hold the bracket where you want to.

You simply push it in the hole...

..and it will spray a burst of green chalk, showing you where to drill.

The Marxman never touches the surface,

therefore it won't clog up or dry out.

Martin has also developed the deep hole Marxman,

which is for the construction industry only,

as it will not adequately mark a shallow hole.

We have patent granted in the UK,

Europe, China, and with America pending.

We're proud to announce that on 16th March,

we launched in all Wickes stores

with an initial order of 5,760 units.

Within the first month, we've received re-orders of 2,500 units.

We would love to have a Dragon or Dragons on board in order to help us

promote the product and sell it worldwide.

Would anybody like to come and try?

A quietly confident pitch from

Martin Chard and Jenny David from London.

They are hoping the Dragons will invest £50,000

for a 20% stake in what they believe will become a tool box staple

for builders and DIYers.

But Peter Jones needs some convincing.

Why wouldn't you just use a Sharpie?

Because it doesn't mark...

It dries out, and it clogs, and it doesn't last.

It doesn't need to last, though, does it?

Well, if you're somebody who does it day in, day out,

and a lot of fixtures and fittings in a day,

it most certainly does need to last.

But what would be the difference to me using a Sharpie

for something like this, that cost me less than £1?

Because, on different thicknesses, I think it won't reach

because that's about 40 mil.

And on various surfaces, if you mark pebbledash

-with any other pencil, or Sharpie...

-You won't see it.

I get your point, but actually, you want this to be mainstream.

You want every builder to have one in their bag.

-That's right.

-Is every builder going to throw a little Sharpie in,

or a pencil marker in?

Well, up until now, they would have been doing exactly what you say.

But once they've tried this,

they will most certainly be wanting one of these,

no matter what job they're doing.

-You didn't hear what I was going to say.

-Sorry.

My question is, is every plumber in the country going to want to spend

£10 on something, in the past, where it has cost them 20p...

-Yes.

-Yes.

-..to do the same thing?

Because you can't always do the same thing using a pencil

because occasionally you just can't get to mark that surface,

and it's really frustrating.

So it's quite a specialist...

You've really got to like the invention, haven't you, then?

No. No, I completely disagree,

because we sell in Wickes roughly 57 a day.

57 a day in how many stores?

In excess of 200.

For every four stores, they are selling one.

-Yes.

-You think that's good?

I think that's excellent,

considering that people won't go into the store looking for this.

So people aren't aware of this product yet,

we haven't put the advertising in,

so they're pretty good odds for impulse buy.

Top marks for the entrepreneurs,

as they stand their ground with Peter Jones

on the saleability of their product.

Can they keep it up as Touker Suleyman gets down

to some number crunching?

So, what have you turned over in a full year?

13,300 units.

So what's that in pounds, shillings and pence, or pounds?

We don't expect to make a profit this year.

No, no. Sorry. What is the turnover?

I'm sorry. I actually don't have that information in my head.

I do apologise.

So you sold 13,000.

And how much, on average?

-4.76 is the average.

-Yeah, 4.76 is the average.

The recommended retail price is £9.95.

And what was your investment to get to here so far?

About 100 grand. 150-ish.

-How much?! 100,000?

-Yes.

-Yeah.

Well, because the patents themselves are 50, 55,000 already.

-Wow, you've gone really...

-We are not businesspeople.

We started by doing the patent,

we were told afterwards that we probably should have done

a lot more market research first.

-I think so.

-But since then,

we've done exhibitions with a lot of market research.

So where did the 100,000 come from?

Well, partly from inheritance that my wife got.

Partly from an inheritance that I had.

And partly from our lifetime of work,

and spending the children's inheritance.

So you've put your whole life behind this?

-Yes.

-Yeah.

With so much riding on investment,

the Den isn't the place for entrepreneurs to reveal big gaps

in their business knowledge.

That didn't go very well at all, did it?

And it looks like alarm bells are ringing for Nick Jenkins.

The issue for me, in some respects,

is your understanding of the business.

You need someone to come in and effectively run

the commercial side of this.

It makes it very different from a lot of investments,

where I'm supporting an entrepreneur who maybe doesn't know everything

right now but has the potential to really grow into that.

And I would expect that this business,

that I'd give them a bit of a helping hand and in a year or two,

they're flying on their own.

I think this is different.

This is one where it would need ongoing support.

That would be quite a big commitment on my part,

to take that on, because that isn't going to be for the next year,

that will be for the next two, three, four years.

Hmm...

Nick Jenkins is torn between the product's potential

and the commitment it would take to grow its market.

Will Deborah Meaden, with her ever-expanding

tool investment portfolio,

be more sure of Marxman's capacity for success?

It's one of those things that people don't know they need

until they actually see it.

It is too expensive at the moment.

You don't want people to think,

you want people to be at that till thinking, "Oh, that's good."

You know, no thought, and actually, at £10, people think.

At £4.99, people don't think, they go,

"That's a good idea. Let's try it."

So I certainly think we could get that made at a much better price.

How would you feel about somebody running the business for you,

with you developing product? How would you feel about that?

That would be our dream. That would be fantastic.

It would be YOUR dream, yeah.

Because I like it.

Good.

I'm going to make you an offer.

So, I'm going to offer you all of the money.

I want 30% of the business because

I'm basically going to do the business bit for you.

So that's my offer to you.

Deborah Meaden can see a clear route to market, and what's more,

she wants to come along for the ride.

Has her approval swayed a previously teetering Nick Jenkins?

I'm also going to make you an offer as well.

You've been very, very open about what you want to get out of this.

You want this to succeed

and you are very happy for someone to come in and effectively take over

the commercial side of this, which is what I think this really needs.

So I'm going to match Deborah's offer...

Thank you.

..which is all of the money for 30% of the business.

-Thank you.

-Thank you.

With two identical offers on the table,

the entrepreneurs' shaky start is now a distant memory.

Is Touker Suleyman also primed to invest?

You've got a great product, you are great people,

and you've got two offers.

But in a funny way, you might need two Dragons for this.

So, I'm very willing...

..to make you an offer for half the money for 15%,

and if another Dragon wants to come on, then there is two Dragons...

..who would then give you much more time...

..to make this work.

Yeah.

Touker Suleyman shakes things up with a

two-Dragons-for-the-price-of-one proposal,

but it requires another Dragon to take him up on his offer.

In terms of the product, I think it is absolutely brilliant.

The genius of it, of course, is the deep hole.

Erm...

I can't not make you an offer.

You are going to need quite a lot of help.

I do think in this case that two Dragons could really help you

on the journey.

So I would also like to make you an offer...

Half of the money with another Dragon for 15% of the business.

-Thank you.

-Thank you very much.

A quartet of offers,

as Sarah Willingham pledges to go 50-50 with another Dragon.

Will Peter Jones have had a change of heart over his earlier concerns

and put a deal with Marxman in his sights?

You've done well, haven't you?

It seems so.

Yeah.

I think the important thing is that you get the Dragon that best matches

you and where you want to go.

So I'm going to offer you all of the money as well.

But I'm only going to ask for 25%.

Thank you.

We now need to talk to the wall.

Peter Jones puts the cat amongst the pigeons by undercutting

his rival Dragons with a lower-equity offer.

Which leaves the entrepreneurs with a difficult choice -

Nick Jenkins or Deborah Meaden and 30%,

a potential Suleyman-Willingham double-header at 15% each,

or Peter Jones at that lower offer of 25%.

OK. It was what I wanted when we came in.

OK? Go ahead?

Deborah, we'd very much like to accept your offer.

Yes! Oh, I'm so pleased!

Do you know, I genuinely, genuinely, I'm so pleased,

because I'm sitting there trying not to look excited

because I don't want to tell them how excited I am,

but I'm so excited.

Martin and Jenny leave with £50,000,

a Dragon with an extensive contacts book...

Brilliant.

..and that all-important recognition they came in for.

My God!

Here goes.

Yeah, head held high, which is lovely.

I've felt stupid my whole life,

so I don't need to feel stupid about this.

We did well.

-I'm really chuffed.

-Yeah, proud of you.

-Thank you.

-Nice one.

You probably knew it already,

but the Dragons have again shown that pitching in the Den

can be tough, but it can also ultimately be rewarding.

Martin Chard and Jenny David proved that it's not always

about exuberance or showmanship.

Their quiet, passionate commitment led to offers from all five Dragons,

and finally a deal with Deborah Meaden.

Coming up next time...

The conversation is not for later,

the conversation is now.

You know my answer.

Yeah.

-I'm not prepared to do that today...

-No.

-Pardon?

-That's not the right answer.

-That's not the right answer?

What are you going to do if you don't get investment?

It's not going to work.

I'm going to make you an offer.

I think I might pitch in with an offer as well.

I'm going to make you an offer, and it's definitely an offer

that I think you should accept.

-Next!

-Well, that went well.