0:00:25 > 0:00:27These are the Dragons,
0:00:27 > 0:00:32five of Britain's wealthiest and most enterprising business leaders.
0:00:32 > 0:00:39They're about to make or break the dreams of dozens of budding entrepreneurs.
0:00:39 > 0:00:44You may well sell a few. But commercially... No, love.
0:00:44 > 0:00:4714 years in the gym business...
0:00:47 > 0:00:52Turnover 100 million a year... I've been doing it all wrong.
0:00:52 > 0:00:54So far so good. It all sounds very interesting.
0:00:54 > 0:00:57On track for a turnover of two million this year.
0:00:57 > 0:01:00That's not a business plan. That's a road to rack and ruin.
0:01:00 > 0:01:03That's a real frustration.
0:01:03 > 0:01:07The only way I can deal with that is to make you an offer.
0:01:11 > 0:01:17The multi-millionaire investors have each built up their fortunes from scratch.
0:01:18 > 0:01:21Hotel and health club owner Duncan Bannatyne.
0:01:21 > 0:01:25Leisure industry expert, Deborah Meaden.
0:01:25 > 0:01:28Retail magnate, Theo Paphitis.
0:01:28 > 0:01:31Telecoms giant, Peter Jones.
0:01:31 > 0:01:36And Hilary Devey, who made her millions in the haulage industry.
0:01:38 > 0:01:42The Dragons have the credentials, the contacts, the commitment and the cash
0:01:42 > 0:01:44ready to invest,
0:01:44 > 0:01:46but only in the right business.
0:01:46 > 0:01:51Will any of these hopeful entrepreneurs walk away with their money?
0:02:00 > 0:02:02Welcome to the Dragons' Den.
0:02:02 > 0:02:06For the last nine weeks, the Dragons have been in formidable form
0:02:06 > 0:02:09and today, the doors open for the last time this year.
0:02:09 > 0:02:11Our final set of entrepreneurs
0:02:11 > 0:02:13are waiting to face the multimillionaires
0:02:13 > 0:02:15in the hope of securing an investment
0:02:15 > 0:02:18that could make their business fortune.
0:02:18 > 0:02:21As we've seen, pitching in the Den is a daunting prospect,
0:02:21 > 0:02:25but a lucky few walk away with a life-changing outcome.
0:02:26 > 0:02:31Long-term business partners James Eadon and Chris Ollivier are first into the Den
0:02:31 > 0:02:35with a new product they think will stand out from the crowd in the toy industry.
0:03:05 > 0:03:06Hello, everyone.
0:03:06 > 0:03:10My name is Chris and my colleague is James.
0:03:10 > 0:03:14We are founder members of a company called Culica Limited.
0:03:14 > 0:03:20We're looking for £80,000 in return for 10 percent equity in the company.
0:03:20 > 0:03:25- James...- Hello, everybody. I'm the inventor of the Culica.
0:03:25 > 0:03:31The Culica is the greatest game invention since playing cards and chess.
0:03:31 > 0:03:35You play with pegs and the pegs slot into the Culica
0:03:35 > 0:03:39and you play by putting pegs in according to different rules.
0:03:39 > 0:03:46These games have names like CuColours, CuMolecula, CuSnakes,
0:03:46 > 0:03:47CuMatch
0:03:47 > 0:03:51and CuCombat.
0:03:51 > 0:03:54And the great thing about the Culica is,
0:03:54 > 0:03:58you can play are multiplayer games or single-player games.
0:03:58 > 0:04:01It's much of a touchy-feely-type game,
0:04:01 > 0:04:04so the best way to get to know it
0:04:04 > 0:04:06is if you want to complete a semi-started game,
0:04:06 > 0:04:09- James will explain.- Let's go.
0:04:09 > 0:04:12- Thank you.- No problem. Thank you.
0:04:12 > 0:04:15- What do I have to do? - We'll explain in a second.
0:04:16 > 0:04:18- There's a bag.- A bag?- Yes.
0:04:18 > 0:04:23- I'll watch.- You're going to watch. Anyone else want to?- Thank you.
0:04:23 > 0:04:26- Each bag has a different colour in. - That's right.
0:04:26 > 0:04:29The rules are, you have to get four in a row straight,
0:04:29 > 0:04:31or three in a row diagonal.
0:04:31 > 0:04:35- Three in a row diagonal.- But not by moving ones that are already in.
0:04:35 > 0:04:40- You never said that! - And pass on the Culica to the next person along in the row.
0:04:40 > 0:04:43I see. So, I've only got green? So, I take one out?
0:04:43 > 0:04:46I'm going to put the green one in there.
0:04:46 > 0:04:50- Duncan's trying to get four in a row.- And we're trying to stop him?
0:04:50 > 0:04:52- That's right. - Or get four before him.
0:04:52 > 0:04:56- I'm going to block him. There you go.- Good block.
0:04:56 > 0:04:59- I've blocked him. - SHE CHUCKLES
0:05:00 > 0:05:02- That wins.- Very good.
0:05:02 > 0:05:05All right, so you set it up so just one...
0:05:05 > 0:05:09- I don't even get a go!- I think Duncan moved one of the yellow pegs.
0:05:09 > 0:05:11I won. Just leave it. I won the game!
0:05:11 > 0:05:14The problem was, Duncan went first!
0:05:18 > 0:05:21Competition amongst the Dragons is not unusual in the Den.
0:05:21 > 0:05:27But former work friends, James Eadon and Chris Ollivier, hope to turn it to their advantage
0:05:27 > 0:05:30with a demonstration of their new multigame cube.
0:05:30 > 0:05:35They're looking for £80,000 to establish it on the market.
0:05:35 > 0:05:40A bewildered Peter Jones is first to question the duo.
0:05:43 > 0:05:45Hi, I'm Peter.
0:05:45 > 0:05:49When you were doing your pitch, you were doing...
0:05:49 > 0:05:51THEY LAUGH
0:05:51 > 0:05:53What on earth was that?
0:05:53 > 0:05:56I was simply doing some gestures.
0:05:56 > 0:06:00Cusnakes is like a snake, so this is a snake.
0:06:00 > 0:06:02- Right.- Combat...- Right.
0:06:02 > 0:06:08- But what's that?- That's my impression of somebody doing a combat move in a martial art.
0:06:08 > 0:06:11But that has nothing to do with the game itself?
0:06:11 > 0:06:14That was more demonstrating the word.
0:06:14 > 0:06:18- Word association. - You articulate word association so that we might get it?
0:06:18 > 0:06:22- Obviously, that was a failed strategy.- Ohh!
0:06:22 > 0:06:24- James, Chris, hi. I'm Deborah. - Hi, Deborah.
0:06:24 > 0:06:29The first thing I want to understand is where the business is at the moment.
0:06:29 > 0:06:32Are you already in production and selling them,
0:06:32 > 0:06:35or is this still at prototype?
0:06:35 > 0:06:40- No, we have our first production run arriving in the country at the moment.- Yes.
0:06:40 > 0:06:42We have 5,000 ordered.
0:06:42 > 0:06:46Our online store has been opened literally a few days.
0:06:46 > 0:06:49Are you selling to any retailers? Have you approached any?
0:06:49 > 0:06:53- We have a distributor doing that for us.- OK.
0:06:53 > 0:06:58And where are they? Have they approached anybody? Taken any orders?
0:06:58 > 0:07:02We have a firm offer, if not a formal order, from Lakeland.
0:07:02 > 0:07:05They've given us the paperwork and bought 800 units,
0:07:05 > 0:07:09- with another 200 to 400 to follow. - But there's no order number on it yet.
0:07:09 > 0:07:13And the distributor... Give me an idea of how much they think
0:07:13 > 0:07:15they're going to sell of this game.
0:07:15 > 0:07:19I can't give you concrete numbers, because it's not a science, but -
0:07:19 > 0:07:22The best way of saying it, then, is, erm,
0:07:22 > 0:07:25- of the games that they sell...- Yes?
0:07:25 > 0:07:29..how many will they sell of a very successful game?
0:07:29 > 0:07:32They're selling into all the major distributors -
0:07:32 > 0:07:35Take one of the games that they currently sell
0:07:35 > 0:07:39and tell me what they consider good sales.
0:07:39 > 0:07:41We don't know.
0:07:45 > 0:07:48The jovial atmosphere is long gone
0:07:48 > 0:07:51as more pressing business concerns come to the fore.
0:07:51 > 0:07:55Theo Paphitis is not looking impressed.
0:07:57 > 0:08:00OK. You're obviously incredibly passionate about it.
0:08:00 > 0:08:07I've got to be honest, I've seen nothing that tells me I can't wait to get a sample and play with it.
0:08:07 > 0:08:11Your order book doesn't say people think they want to take it home and play with it.
0:08:11 > 0:08:16You have to bear in mind that we are new. We've just come onto the market.
0:08:16 > 0:08:19And we got interest from Hamleys, and our distributor said
0:08:19 > 0:08:23that Hamleys never stock anything from a new company before it's selling.
0:08:23 > 0:08:27Let me just tell you. You seem to have stumbled upon somebody
0:08:27 > 0:08:31who tells you what you want to hear.
0:08:31 > 0:08:35If I may... Essentially, what we're dealing here with is a revolutionary product.
0:08:35 > 0:08:39In marketing speak, we call it a disruptive technology.
0:08:39 > 0:08:42Our strength and weakness is, it's a novelty.
0:08:42 > 0:08:45My opinion is, this game is going to get popular.
0:08:45 > 0:08:50There'll be early adopters, chess, bridge and poker players, people who like mind games.
0:08:50 > 0:08:53Parents will buy it because it gets kids away from the telly.
0:08:53 > 0:08:56This game makes you smarter.
0:08:56 > 0:09:00This invention is going to set the toy world on fire!
0:09:00 > 0:09:03It's going to make millions in a short amount of time.
0:09:07 > 0:09:12EVAN: A bold and passionate fight back from the creative brain of the business.
0:09:12 > 0:09:15But will James's steadfast belief in the product
0:09:15 > 0:09:17be shared by Hilary Devey?
0:09:19 > 0:09:22Chris, James, have I got this right,
0:09:22 > 0:09:28you've actually got 5,000 of this product on the sea, on its way to you now?
0:09:28 > 0:09:30No, it's actually in our warehouse.
0:09:30 > 0:09:33- You've got it?!- Yes.- In theory. - And we're selling.
0:09:33 > 0:09:37Bear in mind, we're investing our own money, and it's money we can afford to lose.
0:09:37 > 0:09:40So we're taking a business risk and it's on our heads.
0:09:40 > 0:09:44The amazing thing is, we've got intent form Hamleys.
0:09:44 > 0:09:49- That's unprecedented. This means they must really love the prototype. - No, no, no, no, no.
0:09:49 > 0:09:54- They're in the toy industry and they buyers. - James. James, stop talking, please.
0:09:54 > 0:09:57- They also - - Chris, don't start when he stops.
0:09:57 > 0:09:59I want to ask you one question.
0:09:59 > 0:10:03Do you want me to be polite or honest?
0:10:03 > 0:10:07We're always looking for honest feedback. We've had very positive.
0:10:07 > 0:10:11It's the most boring game I have ever seen.
0:10:11 > 0:10:14You would play it twice at the very most.
0:10:14 > 0:10:17And for that reason, I'm out.
0:10:19 > 0:10:22A first blow for the plucky duo
0:10:22 > 0:10:26as an indignant Duncan Bannatyne walks away from the deal.
0:10:26 > 0:10:30Now, Theo Paphitis is ready to have his say.
0:10:34 > 0:10:39OK, the games market is incredibly competitive.
0:10:39 > 0:10:45Your peak selling period, which is Christmas, is when you sell most of your toys.
0:10:45 > 0:10:48Do you know what they do? They discount them.
0:10:48 > 0:10:52So you kill your margin at the time you're selling most of your product.
0:10:52 > 0:10:56It's nuts. And you will find this out as you get big orders
0:10:56 > 0:10:59from these retailers you hope to get.
0:10:59 > 0:11:03You've got some stock, not a huge amount, 5,000 units.
0:11:03 > 0:11:09You'll know within those units whether you've got a business here and whether we're right or wrong.
0:11:09 > 0:11:14If we're wrong, you won't need the money. If we're right, we've saved our money.
0:11:14 > 0:11:16But I'm going to have too say, I'm out.
0:11:16 > 0:11:19Chris, James. You may well sell a few,
0:11:19 > 0:11:23you might sell the 5,000 that have landed today.
0:11:23 > 0:11:28But commercially... No, love. No.
0:11:28 > 0:11:33I don't think it's going to be the market leader that you protest it will be.
0:11:33 > 0:11:37It's not investable product for me. I'm sorry, I'm out.
0:11:40 > 0:11:43Two more Dragons out.
0:11:43 > 0:11:48The duo's Den fate lies in the hands of Deborah Meaden and Peter Jones.
0:11:48 > 0:11:52Will they find a reason to invest £80,000?
0:11:52 > 0:11:56Erm... I don't know.
0:11:56 > 0:12:00I can only go on gut reaction. You're clearly smart guys.
0:12:00 > 0:12:04You might have invented the next great thing.
0:12:04 > 0:12:06The problem for me is,
0:12:06 > 0:12:10I didn't find it that exciting.
0:12:10 > 0:12:13I'm out.
0:12:13 > 0:12:16Guys, what's sad about it is, I love all these types of things.
0:12:16 > 0:12:20From the Rubik's Cube as a kid, all the way through,
0:12:20 > 0:12:22I've always had these sort of things.
0:12:22 > 0:12:25I don't know whether it's the game
0:12:25 > 0:12:30or the way you've put it across, but it just doesn't do it for me.
0:12:30 > 0:12:35You've got to make a decision. Do I want to invest my money? Would I buy one?
0:12:35 > 0:12:38I'm weighing those questions up. Firstly, I wouldn't buy one.
0:12:38 > 0:12:42Secondly, I wouldn't invest my money.
0:12:42 > 0:12:46I'm going to say I'm out!
0:12:46 > 0:12:49- DRAGONS: Good luck. - Would you like a business card?
0:12:49 > 0:12:53- No. Off you go. - No. Just... The stairs are there.
0:12:53 > 0:12:55Thank you. Good luck, guys.
0:12:55 > 0:12:58James and Chris's enthusiasm for their product
0:12:58 > 0:13:02may have won the affection of the Dragons, but not their cash.
0:13:02 > 0:13:05The duo leave with nothing.
0:13:07 > 0:13:11When asked the Dragons to play, what we didn't anticipate, which was a disaster,
0:13:11 > 0:13:13was Duncan started rearranging the pegs.
0:13:13 > 0:13:15Moving them all over the place.
0:13:15 > 0:13:18We'll take on board their criticisms
0:13:18 > 0:13:21and we'll analyse them and reanalyse them,
0:13:21 > 0:13:23and if we don't get too much cognitive dissonance,
0:13:23 > 0:13:26we might actually learn something!
0:13:35 > 0:13:40It's not often that the Den gets to discuss the finer points of the National Health Service.
0:13:40 > 0:13:44But pharmacist Rob Forde and business partner Dr John Blenkinsopp
0:13:44 > 0:13:49caused a stir with their plan to transform the dispensing of repeat prescriptions.
0:13:49 > 0:13:53They wanted £75,000.
0:13:54 > 0:13:59Medicines Direct is a novel way for patients on long-term medications to gain access to their prescriptions.
0:13:59 > 0:14:05What we will be doing is allowing patients to order their medicine over the telephone
0:14:05 > 0:14:08and in that way, drive down wastage.
0:14:08 > 0:14:13Things seem to start well for the medical pair.
0:14:13 > 0:14:18Lots of words I like to hear there. Reducing waste, improving quality, all of those things.
0:14:18 > 0:14:22If I was a partner is a GP service, how much money would I save?
0:14:22 > 0:14:26We estimate that we'll save between seven and 17 percent
0:14:26 > 0:14:28on the current drug budget.
0:14:28 > 0:14:34But the atmosphere soon soured, as the business concept seemed to hit a nerve or two.
0:14:34 > 0:14:37I have no interest in something
0:14:37 > 0:14:43that does exactly the opposite of what patients actually need.
0:14:43 > 0:14:47I believe that the GP should have the ability to know his patient,
0:14:47 > 0:14:51should be reviewing his patient, and not somebody at the end of a telephone.
0:14:51 > 0:14:56I would beg to disagree. The person who writes the most prescriptions
0:14:56 > 0:15:00in an average GP practice is actually the receptionist.
0:15:00 > 0:15:04We want to deliver the right drug for the patient, for the condition every time,
0:15:04 > 0:15:07and that's just not happening today.
0:15:08 > 0:15:13Despite conflicting opinions, it was Hilary Devey who discovered the business flaw
0:15:13 > 0:15:16that ultimately sealed Rob and John's fate.
0:15:16 > 0:15:20In two years, you've got one GP practice on board.
0:15:20 > 0:15:23In the early stages, what we were doing was testing our model.
0:15:23 > 0:15:28We're on the point now for launch really.
0:15:28 > 0:15:31You're too early. You should've been here next year
0:15:31 > 0:15:38and said, "We've signed up 30. Do you want to put this money in?" Because I would have.
0:15:38 > 0:15:43- The timing could have been better. - Therefore, you can't have my £75,000.
0:15:43 > 0:15:46- Thank you.- I'm afraid I'm out.
0:15:47 > 0:15:54Easily the most athletic pitch came from Wiltshire-based husband- and-wife team Rory and Jacqui.
0:15:54 > 0:16:00They hoped the Dragons would invest £50,000 in their new sport concept for gyms.
0:16:00 > 0:16:04I believe people are competitive and enjoy training for a goal.
0:16:04 > 0:16:08The Optathlon is a race of eight gym exercises.
0:16:08 > 0:16:13We've created 15 different courses, each with the same exercises
0:16:13 > 0:16:16done over the same order, to suit all body types.
0:16:16 > 0:16:23Keen to showcase the idea, Jacqui managed to complete the program in record time.
0:16:23 > 0:16:2510 reps up to 100 reps.
0:16:25 > 0:16:2920 step-ups with the heavy weights.
0:16:29 > 0:16:31Sit-ups here. The shoulder press.
0:16:31 > 0:16:35- And the bike. - Jacqui, you can probably stop now.
0:16:35 > 0:16:38- Are you OK?- Yes!
0:16:38 > 0:16:43But for Peter Jones, it was the demo that exposed the problem.
0:16:43 > 0:16:48You're looking to introduce another concept which is another play on a word,
0:16:48 > 0:16:50ie, triathlon, octathlon,
0:16:50 > 0:16:53and you think this is going to turn into a business.
0:16:53 > 0:16:56There are aspects in it that can turn into a business.
0:16:56 > 0:17:01You can make money for personal trainers, clubs and training providers.
0:17:01 > 0:17:04But you can't own the concept of octathlon,
0:17:04 > 0:17:08or the concept of an eight-series fitness training program.
0:17:08 > 0:17:10But as so often happens in the Den,
0:17:10 > 0:17:15it was the expert's analysis that proved the entrepreneurs' undoing.
0:17:16 > 0:17:2014 years in the gym business...
0:17:20 > 0:17:25Turnover of £100 million a year... I've been doing it all wrong.
0:17:25 > 0:17:30I know what you're saying. The thing is, you go to the gym
0:17:30 > 0:17:33and most people are fed up in there. They are bored.
0:17:33 > 0:17:36They would love to have something to aim for.
0:17:36 > 0:17:42OK, I mean, this is interval training.
0:17:42 > 0:17:45- f you make it into a sport and it attracts sponsors - - It's not a sport.
0:17:45 > 0:17:48It's not going to happen. t's never going to happen.
0:17:48 > 0:17:50I am out.
0:17:50 > 0:17:56No investment for Rory and Jacqui. But what did they think of their pitch?
0:17:56 > 0:17:58I felt I was going to war!
0:18:00 > 0:18:02I had a battle on my hands!
0:18:02 > 0:18:05A lot of information didn't come through
0:18:05 > 0:18:09because they were probably held up with some basic concepts.
0:18:09 > 0:18:13I just want to help people keep their fitness levels up,
0:18:13 > 0:18:16enjoy their fitness more and have a reason to train.
0:18:21 > 0:18:26Next into the Den is 25-year-old Tim Smith from Manchester.
0:18:26 > 0:18:30He's looking for an investment of £300,000
0:18:30 > 0:18:32in his family-owned footwear business.
0:18:32 > 0:18:37Can he convince the Dragons to part with more money than they've ever invested before?
0:18:59 > 0:19:01Hello, Dragons. My name is Tim Smith.
0:19:01 > 0:19:04Today, I'm looking for an investment
0:19:04 > 0:19:08of £300,000 for 10 percent equity.
0:19:08 > 0:19:10Redfoot Shoes was launched in 2007
0:19:10 > 0:19:15to create and develop innovative yet stylish footwear.
0:19:15 > 0:19:21The first product is a folding rain boot.
0:19:21 > 0:19:25This is a fully waterproof, fleece-lined boot
0:19:25 > 0:19:27which, when folded up...
0:19:31 > 0:19:33..is extremely compact,
0:19:33 > 0:19:36and when it unfolds it regains its shape,
0:19:36 > 0:19:38so it easily stands up.
0:19:40 > 0:19:45Another product that we're known for is a folding shoe.
0:19:45 > 0:19:50Ours is a patented split-sole shoe that fits into its own pouch,
0:19:50 > 0:19:53which can be easily carried in a handbag.
0:19:53 > 0:19:58We've developed it with a podiatrist, so it's extremely comfortable on the foot.
0:19:58 > 0:20:00We're constantly inventing.
0:20:00 > 0:20:03This year we're on target to achieve £2 million in sales
0:20:03 > 0:20:07with a net profit of £400,000.
0:20:07 > 0:20:12We're looking to the Dragons to provide added value, as well as a cash investment.
0:20:12 > 0:20:17Thank you for listening to my pitch. If you've got any questions, I'll be happy to answer them.
0:20:21 > 0:20:25A faultless pitch from Lancastrian shoe manufacturer Tim Smith
0:20:25 > 0:20:27which he hopes will come in handy,
0:20:27 > 0:20:31as he's asking for a £300,000 investment.
0:20:31 > 0:20:37In return, 10 percent of his established footwear company is on offer.
0:20:37 > 0:20:39Deborah Meaden looks impressed.
0:20:41 > 0:20:44- Hi, I'm Deborah.- Hi, Deborah.
0:20:44 > 0:20:47So far so good. It all sounds very interesting.
0:20:47 > 0:20:50- On track for a turnover of £2 million.- That's right.
0:20:50 > 0:20:55- Can I see one? Maybe I'll get it in the construction.- Can I have a boot?
0:20:55 > 0:20:59- Sure.- Can I have a shoe, Tim, please?
0:21:03 > 0:21:05There you go.
0:21:05 > 0:21:11The main difference, I get it now, you've got a solid sole, so it's actually a proper shoe.
0:21:11 > 0:21:14- That's right.- As opposed to a very soft slipper-type thing.
0:21:14 > 0:21:18At the minute, there's nothing else on the market which has that split sole.
0:21:18 > 0:21:22- I'm about to test it out. - That's great.
0:21:23 > 0:21:26In terms of your sales mix,
0:21:26 > 0:21:28where are you finding the interest is?
0:21:28 > 0:21:34The folding shoe is in more stores and we've had more interest with that.
0:21:34 > 0:21:41The folding welly has been received really well with the retailers that we're in now -
0:21:41 > 0:21:46VivaLaDiva online, and then 415 independents.
0:21:46 > 0:21:50In Europe, Benetton have placed an order
0:21:50 > 0:21:53of 10,000 pairs of the boot,
0:21:54 > 0:21:57with £20,000 pairs of the folding shoe.
0:21:57 > 0:22:01- But they cost less to make than the folding shoes.- These cost less?- Yes.
0:22:01 > 0:22:07- So your margin's higher on these. - Yes. The folding shoe cost £10 to make, selling for £15.
0:22:07 > 0:22:13The boots cost £6 to make and we sell them £20.
0:22:14 > 0:22:19Confident and composed, it's a good start for the young entrepreneur.
0:22:19 > 0:22:24Duncan Bannatyne wants to drill down into the business itself.
0:22:25 > 0:22:27OK, Tim, can you tell me,
0:22:27 > 0:22:32- since 2007...- Yes. - ..what your turnover and profit has been over those three years.
0:22:32 > 0:22:37- 2007 - £150,000.- Yes. - 2008 - £500,000.
0:22:37 > 0:22:392009 - £1 million.
0:22:39 > 0:22:422010 - £1.3 million.
0:22:42 > 0:22:45Net profit... We made a loss of £80,000.
0:22:45 > 0:22:47Minus 80. Yes.
0:22:47 > 0:22:48- A loss of 20,000.- Yes.
0:22:48 > 0:22:50- A profit of 80,000.- Yes.
0:22:50 > 0:22:54And then a profit last year of 160,000.
0:22:54 > 0:22:58- What's your projection for 2011? - 400,000 net profit.
0:22:59 > 0:23:03Explain why that's going to jump from 160 to 400,000.
0:23:03 > 0:23:06Because of the sales pipeline that we've got this year.
0:23:06 > 0:23:12We've got just under 100,000 pairs forecasted for the end of this year, which we'll sell.
0:23:12 > 0:23:14Tim, hello. I'm Theo.
0:23:14 > 0:23:17- Hi, Theo.- What's the background?
0:23:17 > 0:23:19Who owns the business? How did you get here?
0:23:19 > 0:23:21We've got three businesses.
0:23:21 > 0:23:26- I run Redfoot and I work full time, 24/7 on Redfoot.- OK.
0:23:26 > 0:23:32- My father has got a made-to-order footwear business, the Bacup Shoe Company.- OK.
0:23:32 > 0:23:38It's high volume, low-margin stock. He's ran that.
0:23:38 > 0:23:41- What's the other business? - It's a warehousing business.
0:23:41 > 0:23:45All right, so the three businesses are owned by...?
0:23:45 > 0:23:49Er, well, the three businesses are owned by a holding company...
0:23:49 > 0:23:52- OK.- ..called Train Track.
0:23:52 > 0:23:54- Train Track?- Yes.- Go on.
0:23:54 > 0:23:59Train Track's owned by my brother, myself and my father.
0:23:59 > 0:24:03My brother and myself own 45 percent and my father owns 10 percent.
0:24:03 > 0:24:08How are you going to do the deal here? Are you asking us to invest in the subsidiary?
0:24:08 > 0:24:10In Redfoot.
0:24:10 > 0:24:14- One last question.- Yes. - The Bacup Shoe Company...- Yes.
0:24:14 > 0:24:16How much does that turn over?
0:24:16 > 0:24:20- Last year, it turned over just under 10 million.- 10 million.
0:24:20 > 0:24:24- And made a profit of? - It made a loss of £60,000.
0:24:25 > 0:24:27But it's on track this year to make a profit.
0:24:27 > 0:24:29- It didn't make one the previous year?- No.
0:24:29 > 0:24:33- And the previous year? - Er, the previous year,
0:24:33 > 0:24:36it, er, made... it made a loss.
0:24:36 > 0:24:41I've got to stress, the made-to-order business had been making a profit up to 2008.
0:24:41 > 0:24:4560 of its business was Woolworths, and when they went bust,
0:24:45 > 0:24:50we had to very quickly get 60 percent more new business.
0:24:53 > 0:24:57Openness and honesty is a must if you want a Dragon to invest.
0:24:57 > 0:25:00But will the company's chequered financial history
0:25:00 > 0:25:03prove a concern for Peter Jones?
0:25:06 > 0:25:09Firstly, on the business and the pitch, congratulations.
0:25:09 > 0:25:12Absolutely first class.
0:25:12 > 0:25:17But I think by asking for £300,000 and valuing your business at £3 million,
0:25:17 > 0:25:20it causes an issue.
0:25:20 > 0:25:24But say that we do £200,000 in net profit this year, not £400,000
0:25:24 > 0:25:27and you work on £200,000 over the next five years,
0:25:27 > 0:25:31that's £1 million on top of the balance sheet of £850.
0:25:31 > 0:25:34That's how I would see a valuation.
0:25:34 > 0:25:38I don't think that's an unrealistic valuation.
0:25:38 > 0:25:43I would value your business at, your net asset value today,
0:25:43 > 0:25:46which is about 3-400,000.
0:25:46 > 0:25:50- How do you get to that? - Because of the losses you've accumulated to date.
0:25:50 > 0:25:53The profit that you've done this year is fantastic.
0:25:53 > 0:25:56But you need to have a little bit more historic proof
0:25:56 > 0:26:01- to show that those earnings are sustainable to get a decent valuation.- OK.
0:26:02 > 0:26:08I think it's too punchy to come in at £300,000.
0:26:08 > 0:26:09It's not for me and I'm out.
0:26:13 > 0:26:16Kind words, perhaps, but no cash.
0:26:16 > 0:26:22Retail magnate Theo Paphitis is now ready to show his hand.
0:26:25 > 0:26:30Tim, the thing that strikes me immediately with this product,
0:26:30 > 0:26:34- .being a shopkeeper, is that they're brilliantly made.- Yes.
0:26:34 > 0:26:37You're a growing business, you've done really well,
0:26:37 > 0:26:40but there's a complicated...
0:26:40 > 0:26:44..structural ownership of the business.
0:26:44 > 0:26:47- I don't think it is. - Believe you me, if I invested,
0:26:47 > 0:26:52I'm not investing with you, I'm investing with your dad and your brother.
0:26:52 > 0:26:57- Tim -- I don't understand what you mean in terms of Redfoot.
0:26:57 > 0:27:01- It's owned by -- The holding company.
0:27:01 > 0:27:05Which would then pull my strings.
0:27:05 > 0:27:06Why?
0:27:06 > 0:27:09DUNCAN: Because they own it!
0:27:09 > 0:27:11- Because they own it. - You don't own it.
0:27:12 > 0:27:15Well, I own it with my father and brother.
0:27:15 > 0:27:17Right, that's it. Exactly. That's it!
0:27:17 > 0:27:21I wish you the best of luck. You've got a decent product.
0:27:21 > 0:27:24Can it be successful? No reason why it shouldn't be.
0:27:24 > 0:27:28- But I can't invest. I'm out. - Thank you.
0:27:29 > 0:27:32I-I've got to say,
0:27:32 > 0:27:36I'm sure that you're going to have a very good future ahead of you.
0:27:36 > 0:27:39If you were stood here as a 100-percent owner,
0:27:39 > 0:27:41I might take more time to explore all of that.
0:27:41 > 0:27:44- But I completely agree with Theo. - Yes.
0:27:44 > 0:27:49Becoming a minority shareholder in a family business
0:27:49 > 0:27:51would leave me the junior partner,
0:27:51 > 0:27:55and I'm not going to enjoy that!
0:27:55 > 0:27:58So I've got to tell you, you nearly convinced me,
0:27:58 > 0:28:01- but I won't be investing, Tim. I'm out.- All right, thanks.
0:28:06 > 0:28:09Two more Dragons walk away from the deal.
0:28:09 > 0:28:12But Tim still has two investors left.
0:28:12 > 0:28:16Will the valuation prove a sticking point for Hilary Devey?
0:28:19 > 0:28:21Erm...
0:28:21 > 0:28:26It's an incredibly competitive and incredibly complicated market.
0:28:26 > 0:28:31The competition is so fierce that, yes, if you do get it as a brand,
0:28:31 > 0:28:36there'll be another one next week that'll be equally good as yours.
0:28:36 > 0:28:39- It's not for me. Therefore, I'm out. - Thank you.
0:28:42 > 0:28:45- Tim, you've put a very high value on the company.- Yes.
0:28:45 > 0:28:47£3 million.
0:28:47 > 0:28:53You've got one of the most difficult businesses to make money in, the shoe business.
0:28:53 > 0:28:58- The number of sizes you need, the number of different lines, it's just phenomenal.- Yes.
0:28:58 > 0:29:01Erm... I can't invest,
0:29:01 > 0:29:04- and so for that reason, I'm out. - Thank you.
0:29:06 > 0:29:09The Dragons may have been impressed with his business,
0:29:09 > 0:29:11but not the investment opportunity.
0:29:11 > 0:29:15Tim leaves with nothing.
0:29:15 > 0:29:19I think the share structure is difficult to understand.
0:29:19 > 0:29:25My brother and father not being here probably was a negative,
0:29:25 > 0:29:27because they own the business, as well.
0:29:27 > 0:29:30I still think it's a fair valuation,
0:29:30 > 0:29:33but they thought it was too much risk
0:29:33 > 0:29:36for what I was asking for.
0:29:43 > 0:29:49So far tonight, the Dragons have been unconvinced by the business ideas pitched before them.
0:29:49 > 0:29:52What's sad about it is, I love all these types of things,
0:29:52 > 0:29:55but it just doesn't do it for me. I'm out!
0:29:55 > 0:30:01If you'd like to know more about how the brave entrepreneurs make it to the Den,
0:30:01 > 0:30:04press the red button at the end of the programme.
0:30:09 > 0:30:13Each year, the Dragons get to see a plethora of different contraptions
0:30:13 > 0:30:16that solve a multitude of problems.
0:30:16 > 0:30:20Malory Maltby came in with his reinvention- of-a-wheel-shaped handle.
0:30:20 > 0:30:22If I do this...
0:30:23 > 0:30:26..it's very easy to bring in something light.
0:30:26 > 0:30:28What you can do with this
0:30:28 > 0:30:31is to undo it
0:30:31 > 0:30:33and turn it from a wheel into a lever,
0:30:33 > 0:30:37and that gives me about five times the leverage.
0:30:37 > 0:30:41In fact, those blocks are moving with just one finger.
0:30:42 > 0:30:48An intrigued Peter Jones wanted to know more about the serial inventor.
0:30:48 > 0:30:51Malory, I just want to ask you to be clear.
0:30:51 > 0:30:54You came in and pitched for £50,000, 20 percent of Malory,
0:30:54 > 0:30:57- not 20 percent of this product. - That's right.
0:30:57 > 0:31:02- So 20 percent of everything you invent.- Yes.
0:31:02 > 0:31:04I've got 16 potential patents.
0:31:04 > 0:31:09They vary from a system for building houses,
0:31:09 > 0:31:10to a new type of bra.
0:31:10 > 0:31:13I've got another one that's going through the patent process now -
0:31:13 > 0:31:17- Can you talk to me about those? - No, I can't.
0:31:17 > 0:31:19I tell you why that's hard to evaluate...
0:31:19 > 0:31:23- If I'm investing 20 percent into Malory...- Yes.
0:31:23 > 0:31:26..instead of asking you business questions, I'd have to ask,
0:31:26 > 0:31:29"How's your health? What's your fitness like?
0:31:29 > 0:31:33- "Would you consider an exercise regime?"- Of course!
0:31:33 > 0:31:38Charmed as they were, it was Theo Paphitis who summed up the mood amongst the Dragons.
0:31:38 > 0:31:41- Where do you live? - In the middle of France.
0:31:41 > 0:31:47I wish you lived next to me! I have so many really weird ideas.
0:31:47 > 0:31:52If only there was somebody around I could give them to and say, "Concentrate on that."
0:31:52 > 0:31:55But unfortunately, I live in Surrey.
0:31:55 > 0:32:00I can't take away from you what you've done, it's marvellous,
0:32:00 > 0:32:06but it doesn't do anything much different to what's out there at the moment.
0:32:06 > 0:32:11I'm going to wish you the best of luck and say I'm out.
0:32:12 > 0:32:17Liverpool-based Kenneth Cheung came into the Den needing £50,000
0:32:17 > 0:32:20to expand his range of educational recycling products.
0:32:20 > 0:32:25The is the world's smallest composting system.
0:32:25 > 0:32:31A child would add an apple core and then one of these special space composting worms.
0:32:31 > 0:32:34Afterwards, they will add one of these magic beans
0:32:34 > 0:32:38and it will grow out with a little message on the beam.
0:32:39 > 0:32:43At first, Deborah was rather impressed with the offering.
0:32:43 > 0:32:48- What did you mean by, "You get a message on the plant?" - Would you like to see?- I would.
0:32:50 > 0:32:54- That grows with that message on it? - Yes.
0:32:54 > 0:32:58Can you see that? That's quite neat.
0:32:59 > 0:33:01But the joy was short-lived
0:33:01 > 0:33:03as the Dragons soon uncovered flaws
0:33:03 > 0:33:06with the business behind Kenneth's products.
0:33:06 > 0:33:11How are we going to make a profit if I put £50,000 into your company?
0:33:11 > 0:33:15In the first year, we have £40,000 turnover.
0:33:15 > 0:33:18Next year, with your help,
0:33:18 > 0:33:22we will get a £700,000 turnover.
0:33:22 > 0:33:29Right now, I have 35 outlets. In 2012, we're thinking 250.
0:33:29 > 0:33:34- Kenneth, the investment you've asked for today is more than you're turning over!- Mm.
0:33:34 > 0:33:38To have that many customers for such small turnover
0:33:38 > 0:33:42is against every rule any of us have ever lived by!
0:33:42 > 0:33:47To grow that to thousands of them is a logistical nightmare
0:33:47 > 0:33:50when you're turning over so little.
0:33:50 > 0:33:53That's not a business plan. That's a road to rack and ruin.
0:33:53 > 0:33:55Mm-hm.
0:33:55 > 0:33:59You get that feeling when somebody's got entrepreneurial talent, which you have,
0:33:59 > 0:34:04but I would think of something else, do something else. Get rid of the stock you've got.
0:34:04 > 0:34:07As an investment, it's just not there.
0:34:07 > 0:34:09I'm going to say I'm out.
0:34:11 > 0:34:14The rival investors aren't renowned for always seeing eye to eye,
0:34:14 > 0:34:19so you might think a product aimed at resolving disputes would be of interest to them.
0:34:19 > 0:34:22Edinburgh's Karen Chapman certainly hoped so,
0:34:22 > 0:34:26as she asked for a £75,000 cash injection.
0:34:27 > 0:34:30My first product is Squibble Don't Squabble,
0:34:30 > 0:34:31which, as the name suggests,
0:34:31 > 0:34:35is designed to solve family squabbles.
0:34:35 > 0:34:38It's based on drawing the short straw.
0:34:38 > 0:34:42The straws are all different lengths.
0:34:42 > 0:34:46From the outset, Duncan Bannatyne couldn't even agree with the concept.
0:34:46 > 0:34:50What problem does it solve?
0:34:50 > 0:34:54- Petty squabbles.- But a squabble over what? How does it solve the problem?
0:34:54 > 0:34:58Who sits in the middle car seat - that's a common one in our house.
0:34:58 > 0:35:02I've brought up six children, and if Kid A sat in the middle,
0:35:02 > 0:35:06Kid B would say, "I'm sitting there tomorrow."
0:35:06 > 0:35:09And Kid C would say, "I'm sitting there tomorrow."
0:35:09 > 0:35:13Although the squabble is sorted now, it won't be sorted tomorrow.
0:35:13 > 0:35:16Kid A would say, "I won the squibble, so I'm sitting here tomorrow."
0:35:16 > 0:35:20So you would still have a squabble about a squibble!
0:35:21 > 0:35:23But in the end, there was no disputing the fact
0:35:23 > 0:35:29that none of the Dragons saw a financial future in Karen's invention.
0:35:29 > 0:35:32What price are you selling it into the retailers?
0:35:32 > 0:35:33Three pounds.
0:35:33 > 0:35:37- And...- How much does it cost me?! - We're getting there.
0:35:37 > 0:35:39- Two pounds.- OK.
0:35:39 > 0:35:42Your ratios are all over the place.
0:35:42 > 0:35:45To make a pound on consumables is one thing.
0:35:45 > 0:35:48To make money on something that's a one-off purchase
0:35:48 > 0:35:50is a different thing altogether.
0:35:50 > 0:35:55So £75,000... It'd be a long time before I saw that money back.
0:35:55 > 0:35:59Good ideas, but think through the business plan.
0:35:59 > 0:36:00I'm out.
0:36:06 > 0:36:11Many good entrepreneurs identify a problem and invent a solution.
0:36:11 > 0:36:16The questions to ask are - does the problem really exist and does the solution work?
0:36:16 > 0:36:19Next up is surveyor Helen Waterston,
0:36:19 > 0:36:23hoping to grab the Dragons' attention with her innovative kitchen product.
0:36:55 > 0:36:59Hello. My name is Helen Waterston.
0:36:59 > 0:37:02I'm here today to ask for your consideration
0:37:02 > 0:37:08in investing £70,000 for ten percent of my company,
0:37:08 > 0:37:10Innovative Gadgets Ltd.
0:37:13 > 0:37:17Roastcosy was created
0:37:17 > 0:37:21basically from my own desire to create reusable tin foil
0:37:21 > 0:37:24to rest my Sunday roast.
0:37:24 > 0:37:27It's a high-quality stainless steel chain mail
0:37:27 > 0:37:31that you simply drape over the actual meat.
0:37:31 > 0:37:35It has extra rings at each corner
0:37:35 > 0:37:37and also a small stainless steel label in the middle,
0:37:37 > 0:37:43which makes it very easy to take off any food with any kind of fork.
0:37:43 > 0:37:48And the special thing about it, apart from being environmentally friendly,
0:37:48 > 0:37:51it reduces shrinkage.
0:37:51 > 0:37:54Because the meats are covered,
0:37:54 > 0:37:57the moisture is retained.
0:37:57 > 0:38:02I'm already talking to Whitbread, who have over 400 outlets,
0:38:02 > 0:38:08in trialling this in a number of their taverns and restaurants.
0:38:08 > 0:38:10Thank you.
0:38:14 > 0:38:17Motherwell-based inventor Helen Waterston
0:38:17 > 0:38:21is hoping to whet the Dragons' appetite to the tune of £70,000
0:38:21 > 0:38:24to launch her innovative cooking aid.
0:38:24 > 0:38:25It's like a coat or armour.
0:38:25 > 0:38:29In return, she's offering ten percent equity.
0:38:29 > 0:38:34Peter Jones is first to question the hopeful entrepreneur.
0:38:35 > 0:38:39- Helen.- Yes?- I'm Peter.- Hi, Peter.
0:38:39 > 0:38:44Let me get this right. This is something you wrap around your chicken
0:38:44 > 0:38:46- before you put it in the oven?- Yes.
0:38:46 > 0:38:49- It is prior, during and after.- OK.
0:38:49 > 0:38:52- And have you invented this?- I have.
0:38:52 > 0:38:57I went out to search this on the market and I couldn't find anything like it.
0:38:57 > 0:39:01I had in my head what I wanted to find and I couldn't find it.
0:39:01 > 0:39:06And I basically started off by laminating marathon blankets
0:39:06 > 0:39:09- to try and get a reflective surface. - OK.
0:39:09 > 0:39:11Why is it environmentally friendly?
0:39:11 > 0:39:15Because it substantially reduces the need for tin foil.
0:39:15 > 0:39:19- Tin foil is non-degradable - - OK. I get that.
0:39:19 > 0:39:22Let's take it that this is the next best thing.
0:39:22 > 0:39:27What's the difference in cost of this, compared to a lifetime of tin foil?
0:39:27 > 0:39:30Tin foil is very expensive. Erm...
0:39:30 > 0:39:36- How much is it?- Tin foil's about, well, £2.80 per domestic roll.
0:39:36 > 0:39:40OK. And how much is your product?
0:39:40 > 0:39:44The product itself retails at £29.95.
0:39:44 > 0:39:47- Wow.- It has a lifetime guarantee.
0:39:47 > 0:39:52But the key to this is that foil is not environmentally friendly.
0:39:52 > 0:39:57- It doesn't break down in landfill sites.- Helen, I'm asking the questions. Yes?
0:39:57 > 0:39:59£29.95. What does it cost to make?
0:39:59 > 0:40:0114 pounds.
0:40:01 > 0:40:04- It costs you 14 pounds?- Yes.
0:40:04 > 0:40:06Wow.
0:40:09 > 0:40:12Assured and informed responses,
0:40:12 > 0:40:15but will Helen maintain her poise
0:40:15 > 0:40:18under the scrutiny of Hilary Devey?
0:40:19 > 0:40:21I've got to say, I like it.
0:40:21 > 0:40:26If it didn't cost £29.95, I'd probably rush out and buy one tomorrow.
0:40:26 > 0:40:31That is my stumbling block and I know that, from a wholesale point of view,
0:40:31 > 0:40:33I would rather have it more affordable.
0:40:33 > 0:40:36But I'm trying to be realistic about the prices
0:40:36 > 0:40:40and, obviously, if I could get a repricing structure,
0:40:40 > 0:40:45then I would be able to retail it and wholesale it at a more affordable price.
0:40:45 > 0:40:49- Have you approached retailers with them?- I haven't been able to
0:40:49 > 0:40:54because I wouldn't approach a retailer without having a supply that I could afford.
0:40:54 > 0:40:57So, you're really in the very early stages?
0:40:57 > 0:41:01Very early stages of getting the new prototypes through.
0:41:01 > 0:41:07I've got a situation where I've finally made a good-quality contact in China
0:41:07 > 0:41:11and I can now buy it at half of the price
0:41:11 > 0:41:13I'm currently buying it.
0:41:13 > 0:41:15Can I say, Helen, I don't actually cook,
0:41:15 > 0:41:20and I find myself surprisingly interested in something you use to cook,
0:41:20 > 0:41:23- because I have no affinity to it whatsoever.- OK.
0:41:23 > 0:41:26But I absolutely know
0:41:26 > 0:41:31that my husband would think that was a really great thing.
0:41:32 > 0:41:36What I would like to understand is,
0:41:36 > 0:41:42can this do more, different or less than silver foil?
0:41:42 > 0:41:44Compare those two for me.
0:41:44 > 0:41:48Roastcosy is an incredibly high-quality stainless steel.
0:41:48 > 0:41:53In this roasting process, it, I would say, achieves better results
0:41:53 > 0:42:00because it has the ability to brown and crisp through the interlocking rings.
0:42:00 > 0:42:05Also, in the basting process, you'd have to lift foil off,
0:42:05 > 0:42:08you can baste through this Roastcosy without lifting it off,
0:42:08 > 0:42:11which is a great advantage.
0:42:14 > 0:42:17Whilst her product seems to have gone down well in the Den,
0:42:17 > 0:42:22the Lanarkshire-based inventor has yet to receive an offer for her business.
0:42:22 > 0:42:27Will Duncan Bannatyne be prepared to invest the £70,000
0:42:27 > 0:42:29she badly needs?
0:42:30 > 0:42:32- I just want you to explain something to me.- Yes.
0:42:32 > 0:42:37About three weeks ago, I put a Sunday roast in.
0:42:37 > 0:42:42- I took it out the oven.- Yes. - Put it on the table, I carved it and we ate it.
0:42:42 > 0:42:46It was lovely. Now, there was no tin foil on it.
0:42:46 > 0:42:51Most chefs recommend that all meat is rested for a certain period of time.
0:42:51 > 0:42:56When these chickens were cooked, this one was visibly larger.
0:42:56 > 0:42:59This one lost its moisture more than this one.
0:42:59 > 0:43:03- Although it's lots its moisture... - In losing moisture, it shrinks.
0:43:03 > 0:43:06- Therefore, you're losing meat. - You're losing moisture.
0:43:06 > 0:43:09All the chicken has done is lost some moisture.
0:43:09 > 0:43:13But it depends on your argument against things like tenderness and succulence.
0:43:13 > 0:43:16What makes something taste good?
0:43:16 > 0:43:20So if you cook with the Roastcosy, because of the interlocking rings,
0:43:20 > 0:43:25it allows the heat to permeate and brown and crisp the chicken.
0:43:25 > 0:43:27You don't get that with foil.
0:43:27 > 0:43:30And you can see that it has a venting action,
0:43:30 > 0:43:36so any steam can vent, but not as much as leaving a bare chicken to roast.
0:43:36 > 0:43:38Is this a cooking lesson?
0:43:38 > 0:43:43It's turning into one. I think it's so ludicrous, but...
0:43:43 > 0:43:47So you put this on it and it makes it cool slower,
0:43:47 > 0:43:49but the whole point of resting it
0:43:49 > 0:43:54is to cool it so the moisture comes back out, so it defeats the object.
0:43:54 > 0:43:56Helen, I'm out.
0:43:59 > 0:44:02Helen's first criticism and her first loss.
0:44:02 > 0:44:07And it looks like Peter Jones has made up his mind, too.
0:44:10 > 0:44:14- I think you've got a great product, I really do.- Thanks.
0:44:14 > 0:44:17It's not often that people bring out products that are innovative,
0:44:17 > 0:44:20and I think you've got that.
0:44:21 > 0:44:25The issue is that I think you've asked for a huge amount of money
0:44:25 > 0:44:29that potentially isn't needed, erm,
0:44:29 > 0:44:32and a very, very small share.
0:44:32 > 0:44:36I think you should've mixed it the other way - asked for less, given away a bit more
0:44:36 > 0:44:40to get something like this to have the chance of getting off the ground.
0:44:42 > 0:44:45The only way I can deal with that
0:44:45 > 0:44:47is to make you an offer...
0:44:49 > 0:44:51..of half the money.
0:44:51 > 0:44:54But I want in return for that...
0:44:55 > 0:44:59..24 percent of the company.
0:45:00 > 0:45:01OK.
0:45:05 > 0:45:08In a surprising about turn,
0:45:08 > 0:45:11Peter Jones has made an offer, but for more than double the equity
0:45:11 > 0:45:15and just half the £70,000 she requires.
0:45:15 > 0:45:21Strict Den rules state she must receive the full amount or she walks away with nothing.
0:45:21 > 0:45:25Will Theo Paphitis be prepared to put up the balance?
0:45:29 > 0:45:32I like it.
0:45:32 > 0:45:37The problem I've got is, I've never cooked.
0:45:37 > 0:45:41I'm sitting here thinking, "It sounds too good to be true."
0:45:41 > 0:45:46But I haven't got a clue whether this works or not.
0:45:46 > 0:45:50So this is not something I could invest in.
0:45:51 > 0:45:53I'm going to wish you the very best of luck
0:45:53 > 0:45:56- and say I'm out.- Thank you.
0:45:56 > 0:45:58Thanks.
0:45:58 > 0:46:02I've got to say, I think it could become a household brand.
0:46:02 > 0:46:06In ten years' time, there could be one in every home.
0:46:06 > 0:46:09But you've got to get it to market first
0:46:09 > 0:46:14and I think a 70k investment won't be anywhere near enough to get this out there.
0:46:14 > 0:46:17I think you're looking at more like 250.
0:46:17 > 0:46:24And so for me, it's too high a risk. Sadly, I've got to say I'm out.
0:46:27 > 0:46:29Helen is fast running out of Dragons
0:46:29 > 0:46:33to secure the vital final offer of £35,000.
0:46:33 > 0:46:39Her investment hopes now rest solely with Deborah Meaden.
0:46:41 > 0:46:45You've identified the issues, clearly issues over price,
0:46:45 > 0:46:49and it sounds like there might, therefore, be issues over supply.
0:46:49 > 0:46:52You are quite a way from getting it out onto the shelves.
0:46:52 > 0:46:55You have a name, but you don't really have any brand.
0:46:55 > 0:46:58So there's quite a big step between this -
0:46:58 > 0:47:01This is why I'm here. I totally understand that.
0:47:01 > 0:47:04SHE SIGHS
0:47:24 > 0:47:26Er...
0:47:26 > 0:47:30Yes, I'll match Peter's offer.
0:47:31 > 0:47:34OK.
0:47:42 > 0:47:49Would you be willing to slightly negotiate on the percentage?
0:47:49 > 0:47:52Would you consider 20 percent each?
0:47:55 > 0:48:01You've clearly invented a product that could sell extremely well.
0:48:01 > 0:48:03Let's say it's just high risk.
0:48:03 > 0:48:0748 percent is, in my opinion, not bad.
0:48:19 > 0:48:26Well, I think I value your input, er, so much,
0:48:26 > 0:48:28that I would be delighted to accept.
0:48:28 > 0:48:30- BOTH CHEER - Excellent.
0:48:30 > 0:48:31APPLAUSE
0:48:31 > 0:48:35- Thank you.- Well done.
0:48:35 > 0:48:38Well done. Might get my trying to cook a chicken!
0:48:38 > 0:48:41Helen's done it. It cost her a lot of equity,
0:48:41 > 0:48:46but she's secured the backing of two influential business leaders.
0:48:48 > 0:48:53Helen, very well done. Two investors. Is that two more than you thought you would have?
0:48:53 > 0:48:58It s. I don't think it's sunk in yet. But there's a bit of a journey still to go.
0:48:58 > 0:49:02You got your full offer, but it is pretty well half the business you've given away.
0:49:02 > 0:49:08I know, but I think you can't quantify or value the amount that they bring to the table,
0:49:08 > 0:49:11and that was really what I was aiming for.
0:49:11 > 0:49:14- Very good luck indeed.- Thank you.
0:49:22 > 0:49:27So the doors close for another year, and what a year it's been.
0:49:27 > 0:49:30We've seen new Dragon Hilary Devey make her mark,
0:49:30 > 0:49:34and, collectively, the Dragons have offered over £1 million in investment.
0:49:34 > 0:49:37The pitches may have come to an end for the time being,
0:49:37 > 0:49:40but the hard work for the entrepreneurs
0:49:40 > 0:49:43and our multimillionaires continues.
0:49:48 > 0:49:52This year, Dragons Den welcomed thousands of applications
0:49:52 > 0:49:55from Britain's best and brightest entrepreneurs.
0:49:55 > 0:49:58- What's the projection? - Five million turnover.
0:49:58 > 0:50:00Profit, 600,000.
0:50:00 > 0:50:02People can't copy what we have.
0:50:02 > 0:50:07They can't copy the passion that we've got and the amount of lives we've changed.
0:50:07 > 0:50:09I try to create magic for people.
0:50:09 > 0:50:13Give me a chance and I'll make magic products that the world will buy.
0:50:13 > 0:50:15Armed with their money-making ideas,
0:50:15 > 0:50:21they had a once-in-a-lifetime opportunity to pitch to the multimillionaires.
0:50:21 > 0:50:23I'm not totally convinced on the actual business.
0:50:23 > 0:50:29What I am absolutely convinced on is the three people standing in front of me.
0:50:29 > 0:50:35Without listening to what the other Dragons have got to say, I'd like to make you an offer.
0:50:35 > 0:50:40The Den is where deals are made, and this summer we've seen the Dragons shake hands
0:50:40 > 0:50:43on offers of investment worth more than £1 million.
0:50:43 > 0:50:47I'm going to make you an offer that demonstrates that I'm excited.
0:50:47 > 0:50:50It'll be better than any other offer.
0:50:50 > 0:50:54Sorry, I was expecting one offer, let alone two on the table.
0:50:54 > 0:50:58I think you'll both be very successful, and I also think you'll both be very rich at the end of it.
0:50:58 > 0:51:03- Well done.- Over 10 episodes, a total of 26 entrepreneurs
0:51:03 > 0:51:07moved one step closer to realising their business dreams.
0:51:07 > 0:51:10Yes!
0:51:12 > 0:51:16First to pitch this series was Georgette Hewitt.
0:51:16 > 0:51:21- Hello.- But it was a presentation she'd probably rather forget.
0:51:21 > 0:51:24Basically, I've got, erm, around,
0:51:24 > 0:51:292,500 suppliers... erm, 25 suppliers. Erm...
0:51:29 > 0:51:34I'm sorry. I can't. I'm sorry. I completely lost it. I'm sorry.
0:51:34 > 0:51:38SHE SIGHS
0:51:38 > 0:51:41I'm sorry. Please can I start again?
0:51:41 > 0:51:45But in one of the biggest comebacks the Den has witnessed,
0:51:45 > 0:51:48she went on to secure not one but two Dragon investors.
0:51:48 > 0:51:49Thank you.
0:51:49 > 0:51:53I'm so embarrassed about how my pitch went. I'm mortified.
0:51:53 > 0:51:58I'm going to be watching reruns in ten years' time with my children and be cringing.
0:52:00 > 0:52:04- This is an important decision! - And so for that reason, Chris,
0:52:04 > 0:52:06I'm withdrawing my offer and I'm out.
0:52:06 > 0:52:10The Den wouldn't be the same without the odd disagreement,
0:52:10 > 0:52:13and this series hasn't disappointed.
0:52:13 > 0:52:17- Please let me finish, Theo.- No! Not unless you answer my question!
0:52:17 > 0:52:21- It hasn't changed!- If it hasn't changed, it hasn't changed!
0:52:21 > 0:52:24- OK -- And I was part of that.- Gill -
0:52:24 > 0:52:26I'm a refugee of that. Sorry.
0:52:26 > 0:52:29I'm totally out.
0:52:29 > 0:52:33However, Glenn's pitch for his tanning aid
0:52:33 > 0:52:36was a little unusual, to say the least.
0:52:36 > 0:52:39I've got no sales figures, no bookwork whatsoever,
0:52:39 > 0:52:45but what I do have is a potential target market that I think is colossal.
0:52:45 > 0:52:49Who wouldn't want to look a little bit better for £20?
0:52:49 > 0:52:51Thank you. Any questions?
0:52:51 > 0:52:57Deborah Meaden tried her best to entice a more business-like approach.
0:52:57 > 0:53:00I wouldn't for one second consider investing in you
0:53:00 > 0:53:03unless you could give me something that said,
0:53:03 > 0:53:07"I've got more than something that I did 20 years ago and left in my garage."
0:53:07 > 0:53:13That's a very good point. A very valid point. But I don't know what else to say.
0:53:13 > 0:53:17But with Glenn, admissions kept on coming.
0:53:17 > 0:53:21You're probably going to ask me about a business plan. How do I know? I ain't got a clue!
0:53:21 > 0:53:23And coming...
0:53:23 > 0:53:26It's taken you 14 years to send an email?
0:53:26 > 0:53:30No. I disagree. I disagree. It has, yes, technically.
0:53:30 > 0:53:32And coming...
0:53:32 > 0:53:35- When you lie on a sunbed, you put this on top of you?- Yes.
0:53:35 > 0:53:38- But most sunbeds now are stand-up sunbeds.- Mm.
0:53:38 > 0:53:41- So, what happens then? - They fall off.
0:53:41 > 0:53:43DRAGONS LAUGH
0:53:45 > 0:53:51Despite all his charm, Glenn failed to part the Dragons from any cash.
0:53:51 > 0:53:54I'm a bit lost for words.
0:53:54 > 0:53:58I don't think this will sell for £20. I'm out.
0:53:58 > 0:54:02It would give me no more greater pleasure than to prove Duncan wrong.
0:54:02 > 0:54:06If you're watching, Duncan, I'll do you a special discount.
0:54:08 > 0:54:14But this series will probably be remembered most for one thing. It was the year of the new Dragon.
0:54:14 > 0:54:16Hi, I'm Hilary.
0:54:16 > 0:54:20Successful businesswoman Hilary Devey
0:54:20 > 0:54:23brought with her a new sense of style
0:54:23 > 0:54:26and a choice of words never before heard in the Den.
0:54:26 > 0:54:30You would make my foot itch, mate!
0:54:30 > 0:54:32Passion doesn't create profit.
0:54:32 > 0:54:36- Marketing expertise is what I need. - I can give you that. Move on.
0:54:36 > 0:54:39- Help me strategy -- Fine. Move on.
0:54:39 > 0:54:42And frankly, the beast doesn't change.
0:54:42 > 0:54:45When that beast is hungry, it wants feeding.
0:54:45 > 0:54:49I still have not got a clue how your turnover's broken down!
0:54:49 > 0:54:54We're on Planet Earth in Dragons' Den!
0:54:54 > 0:54:56I'm out!
0:54:58 > 0:55:02I had a hand in any business venture that my father had.
0:55:02 > 0:55:06By the age of 11, I could run a set of weekly accounts,
0:55:06 > 0:55:08balance tills, run bars.
0:55:08 > 0:55:11So, how did I get into business?
0:55:11 > 0:55:14I was dragged in to it and I had no choice.
0:55:14 > 0:55:17I don't suffer fools gladly.
0:55:17 > 0:55:21If that upsets people, then tough, because that's business.
0:55:24 > 0:55:27I like Hilary. She's very straight talking.
0:55:27 > 0:55:30She says it how it is. She's a great addition to the team.
0:55:30 > 0:55:36She was a new Dragon on the first couple of days. She's not new any more.
0:55:36 > 0:55:37She's a Dragon.
0:55:39 > 0:55:43- Hilary. - I look forward to working with you.
0:55:43 > 0:55:46- Hilary, we'd like to accept your offer.- Good.
0:55:46 > 0:55:49Hilary shook hands on four deals in the Den.
0:55:49 > 0:55:52I'm in the Den
0:55:52 > 0:55:56to diversify my portfolio of business interests.
0:55:56 > 0:55:59Hilary, we're in business together! Well done.
0:56:02 > 0:56:06But it was her first that proved she's prepared to put her money where her mouth is,
0:56:06 > 0:56:09even if her rival Dragons disagreed.
0:56:09 > 0:56:12The Duvalay Sleep System is really simple.
0:56:12 > 0:56:18It has a special memory foam base, which smooths out the lumps and bumps in hard caravan seats.
0:56:18 > 0:56:22Liz and Alan Colleran's confusion over their numbers
0:56:22 > 0:56:24riled most of the multimillionaires.
0:56:24 > 0:56:29How much do you think you spend a year when you say you don't spend any money on anything?
0:56:32 > 0:56:35- I don't know.- You don't know? Dunno!
0:56:35 > 0:56:38But luckily for the husband-and-wife team,
0:56:38 > 0:56:41there was one Dragon prepared to swim against the tide.
0:56:41 > 0:56:45You need some input to help you with the direction.
0:56:45 > 0:56:49But unlike Deborah, I don't think that's the end of the world.
0:56:49 > 0:56:54I've got people that can teach you that and keep their finger on the button.
0:56:54 > 0:56:59I'll offer you the full amount, but I want 26 percent.
0:56:59 > 0:57:01How are we doing? CHATTER
0:57:01 > 0:57:04After returning home to Dewsbury,
0:57:04 > 0:57:09Liz and Alan had kept their success in the Den a closely-guarded secret.
0:57:09 > 0:57:13Today's the day we've been waiting for. We're really excited. Looking forward to it.
0:57:13 > 0:57:15Who's for a beer?
0:57:15 > 0:57:20They invited a group of family and friends round to watch how they got on.
0:57:20 > 0:57:23VARIOUS: Oooh!
0:57:23 > 0:57:26DEBORAH: "I've got no problem with people getting passionate,
0:57:26 > 0:57:30"but, Liz, you border on the defensive.
0:57:30 > 0:57:31"I can't invest."
0:57:31 > 0:57:35- "I'm sorry, Deborah." - "And for that reason, I'm out."
0:57:35 > 0:57:37ALL EXCLAIM
0:57:37 > 0:57:41"Just one Dragon remains. Has Hilary Devey seen anything..."
0:57:41 > 0:57:45Come on, Hilary! CHEERING
0:57:47 > 0:57:51"I'll offer you the full amount, but I want 26 percent."
0:57:51 > 0:57:54CHEERING
0:57:55 > 0:57:59It's been a long road and look where we are.
0:57:59 > 0:58:04We've been on Dragons' Den. We've got a multimillion-pound investor. It feels good.
0:58:04 > 0:58:07They've put so much work in, it's about time they got a break.
0:58:07 > 0:58:09- Aw!- It really is.
0:58:09 > 0:58:13With Liz and Alan's proud sons by their side,
0:58:13 > 0:58:16the future looks bright for the Colleran family firm.
0:58:21 > 0:58:26As the Den closes its doors, the Dragons have agreed to share their secrets for success.
0:58:26 > 0:58:29We've seen their tips on pitching and negotiating.
0:58:29 > 0:58:34This week, How To Win In The Den examines money-making ideas...
0:58:34 > 0:58:37Think outside the box.
0:58:37 > 0:58:39..and looks again at the some of the products...
0:58:39 > 0:58:42Bit gimmicky. I think people might buy it.
0:58:42 > 0:58:44..that have graced the Den.
0:58:44 > 0:58:46It never ceases to amaze me.
0:58:46 > 0:58:50Subtitles by Red Bee Media Ltd
0:58:50 > 0:58:54E-mail subtitling@bbc.co.uk