0:00:25 > 0:00:27'These are the Dragons.
0:00:27 > 0:00:31'Five of Britain's wealthiest and most enterprising business leaders.
0:00:31 > 0:00:38'Over the coming weeks, they'll make or break the dreams of dozens of budding entrepreneurs.'
0:00:40 > 0:00:45It's taken you 14 years to send an email. Doesn't that worry you?
0:00:45 > 0:00:48I wouldn't for one second consider investing in you.
0:00:48 > 0:00:52Let me have a look at the blingy one cos I'm a blingy person.
0:00:52 > 0:00:59It's not very often that I see a business model that I want to fail.
0:00:59 > 0:01:04I'm not totally convinced on the actual business. What I am absolutely convinced on
0:01:04 > 0:01:06is the people standing in front of me.
0:01:11 > 0:01:15'The multi-millionaire investors have each built up their fortunes from scratch.
0:01:17 > 0:01:20'Hotel and health-club owner Duncan Bannatyne.
0:01:21 > 0:01:24'Leisure industry expert Deborah Meaden.
0:01:24 > 0:01:27'Retail magnate Theo Paphitis.
0:01:28 > 0:01:31'Telecoms giant Peter Jones.
0:01:31 > 0:01:36'And new Dragon Hilary Devey, who made her millions in the haulage industry.
0:01:36 > 0:01:41'The Dragons have the credentials, the contacts, the commitment and the cash ready to invest.
0:01:41 > 0:01:45'But only in the right business.
0:01:45 > 0:01:49'Will any of these hopeful entrepreneurs walk away with their money?'
0:01:58 > 0:02:00Welcome to the Dragons' Den.
0:02:00 > 0:02:03Once again, the doors are open for business
0:02:03 > 0:02:06and entrepreneurs are ready to face the five multi-millionaires
0:02:06 > 0:02:10hoping to secure a much-needed cash injection for their venture.
0:02:10 > 0:02:14All the investors are keen to back the best ideas that come before them
0:02:14 > 0:02:19but so far our new Dragon, Hilary Devey, has proven she's tough to impress.
0:02:19 > 0:02:23Will she seal the deal on her first investment tonight?
0:02:24 > 0:02:27Londoners Krissy Sims and Kerry O'Brien,
0:02:27 > 0:02:31AKA DJ Trickles and Lady MC, are first into the den
0:02:31 > 0:02:37with a concept they believe will capture the Dragons' imagination. How will they fare?
0:02:59 > 0:03:02Hi, I'm Krissy and this is Kerry.
0:03:02 > 0:03:06We're here to seek an investment of £150,000
0:03:06 > 0:03:08for a 20 percent stake in our company.
0:03:08 > 0:03:13The British DJ and MC Academy is a youth arts organisation working with young people and adults,
0:03:13 > 0:03:18delivering workshops and accredited courses in the arts, such as DJing,
0:03:18 > 0:03:20lyrical writing and music production.
0:03:20 > 0:03:22Behind us is the base station.
0:03:22 > 0:03:27It's fully equipped and designed with the latest DJ equipment inside it.
0:03:27 > 0:03:32We found lots of young people didn't find it cool to go to youth clubs.
0:03:32 > 0:03:37So we designed the base station so we could go absolutely anywhere and teach.
0:03:37 > 0:03:40So we have three segments to this business.
0:03:40 > 0:03:43The first idea is called the Rapping Project.
0:03:43 > 0:03:46There are PR and experiential marketing companies
0:03:46 > 0:03:51crying out for new ideas to promote their clients' products. Our second idea is already up and running.
0:03:51 > 0:03:55Our clients have been booking us for corporate events and festivals.
0:03:55 > 0:03:59And our third and final strand is our corporate team-building experience.
0:03:59 > 0:04:04And we're hoping you agree that this would be useful for any organisation out there.
0:04:04 > 0:04:09- Thanks for you time. - Thank you. We're going to offer you a master class.- Right, I'm in.
0:04:13 > 0:04:16'A passionate pitch from the young London duo
0:04:16 > 0:04:19'who, in return for a 20 percent stake,
0:04:19 > 0:04:23'need £150,000 to expand their music training academy.'
0:04:23 > 0:04:27These are all brand new tracks that have been created by our artists.
0:04:27 > 0:04:31We're going to play the first track.
0:04:31 > 0:04:34- Testing, one, two, three. - Brilliant. OK.
0:04:34 > 0:04:37OK, are we going to do a little bit of rap, then?
0:04:37 > 0:04:40# I said a hip hop, the hippie, the hippie, to the hip hip hop you don't stop the rock it
0:04:40 > 0:04:42# To the bang bang boogie, say up to the boogie, to the rhythm of the boogie, the beat
0:04:42 > 0:04:45'Having had the full base station experience...'
0:04:46 > 0:04:49THEY CLAP
0:04:49 > 0:04:52'..Peter Jones is ready to return to business.'
0:04:52 > 0:04:54Well done, well done. That was brilliant.
0:04:56 > 0:04:58Kerry and Krissy, I just want to separate
0:04:58 > 0:05:03and get down to the serious nature of whether this actually is a business.
0:05:03 > 0:05:07- Where does the income actually come from?- We're service providers
0:05:07 > 0:05:12- so we run accredited courses, workshops, events. - What do you charge for this?
0:05:12 > 0:05:16For an event or a festival, the cost is £1,500 a day.
0:05:16 > 0:05:21Our profits are £500, and that's for one booking.
0:05:21 > 0:05:25- Who's your biggest customer?- Nike. - And so what's the deal with them?
0:05:25 > 0:05:29Give us an example of one event you've done for them, the cost.
0:05:29 > 0:05:32- We're doing Wembley Stadium. - What do they pay for that?- £1,500.
0:05:32 > 0:05:37And we'll provide them with the music, a DJ,
0:05:37 > 0:05:41and we give people an experience. They can either listen to the music or get involved.
0:05:43 > 0:05:49'Confident answers from the assured entrepreneurs. Now Theo Paphitis wants to drill down
0:05:49 > 0:05:52'into the details of their company's background.'
0:05:54 > 0:05:57- Right, ladies, who owns the business?- We do.
0:05:57 > 0:05:59And you've filed how many years' accounts?
0:05:59 > 0:06:05- We're on our fourth year now. - Your fourth year? Go through the bottom line in those three years.
0:06:05 > 0:06:07We made a loss of £50,000 on the first year.
0:06:07 > 0:06:11- Second year was...- We broke even. - Even, yeah. Third year?
0:06:11 > 0:06:16- Our net profit was £40,000.- You made a profit?- £40,000.- Excellent.
0:06:16 > 0:06:23- And year four, you're forecasting... - £440,000, and that's just the youth sector and the DJ academy.
0:06:23 > 0:06:27- How many advanced bookings have you got?- We've got many.- Loads.- Many.
0:06:27 > 0:06:31- Can you give me a value? - An approximate figure, 25 grand. - OK. Thank you.
0:06:31 > 0:06:39I like this. I really like it. Cos I actually sponsor a music project getting kids off the streets.
0:06:39 > 0:06:42My problem is, the longevity of the concept.
0:06:42 > 0:06:45Because this will soon be emulated.
0:06:45 > 0:06:51People can copy ideas but they can't copy what we have. They can't copy the amount of work we've put in.
0:06:51 > 0:06:54They can't copy our company or the passion that we've got
0:06:54 > 0:06:57- and the amount of lives that we've changed.- You're a good sales person.
0:06:57 > 0:07:03I'm just passionate and genuine and I talk from my heart. We've put in three years.
0:07:03 > 0:07:08We've been through the mills and back and people can copy the ideas, but they can't copy what we are.
0:07:12 > 0:07:18'Kerry and Krissy are holding their own in the den and handling the Dragons with some aplomb.
0:07:18 > 0:07:21'Duncan Bannatyne is intrigued.'
0:07:23 > 0:07:28Kerry, Krissy, tell me your background. Where have you come from?
0:07:28 > 0:07:31I started off writing songs when I was quite young,
0:07:31 > 0:07:34using a lot of the challenges I was faced with as a child
0:07:34 > 0:07:39- to express myself.- Did you make any money out of selling those? - Yeah, I've been quite successful.
0:07:39 > 0:07:43I was actually the first female MC in jungle music.
0:07:43 > 0:07:48Then Krissy mentioned she wanted to set up a DJ school and I really want to help kids through music.
0:07:48 > 0:07:51That's how we formed our partnership.
0:07:51 > 0:07:55I finished school with not very many GCSEs
0:07:55 > 0:07:58so I bought my set of turntables when I was 16
0:07:58 > 0:08:01and I just spent all my time mastering the arts of DJing.
0:08:01 > 0:08:05When I was 21, I bought a recording studio.
0:08:05 > 0:08:09I managed to sell it with a 20 grand profit, which was quite good.
0:08:09 > 0:08:12- And the rest is history. We've been changing lives...- That's great.
0:08:12 > 0:08:15- You're going back into the pitch again.- Sorry.
0:08:15 > 0:08:18No, that's great. I think you're both inspirational.
0:08:24 > 0:08:28'An engaging response and the Dragons are certainly captivated.
0:08:28 > 0:08:32'Deborah Meaden is next to interrogate the young businesswomen.'
0:08:35 > 0:08:40- Hi, I'm Deborah.- Hi.- Hi. You've made a bit of profit, which is great. Year three, bit of profit.
0:08:40 > 0:08:43You're now forecasting huge profits.
0:08:43 > 0:08:48So I'd like to understand the mechanisms from turnover to profit.
0:08:48 > 0:08:55OK. On our forecast, we've established that we're going to have four vehicles
0:08:55 > 0:08:59to run 730 events in one year.
0:08:59 > 0:09:04- OK. Talk me through to the profit. - OK. The actual net profits
0:09:04 > 0:09:08- will be £490,000. - No, no, that's a number.
0:09:08 > 0:09:11You're going to take me... So you're running 730 events,
0:09:11 > 0:09:17you've got four vehicles, that many people working for you and that drops through to £490,000.
0:09:17 > 0:09:19Would you mind if I take this?
0:09:19 > 0:09:22OK, it really is quite a simple process.
0:09:22 > 0:09:25We get our tutor, we brief them,
0:09:25 > 0:09:28they get the address, they go there, they deliver the work.
0:09:28 > 0:09:33No, sorry, I'm not getting... We need to get to what I'm asking,
0:09:33 > 0:09:36which is what are the mechanics of the business?
0:09:36 > 0:09:40You've got four vehicles, you're doing 730 events, how many people in your office?
0:09:40 > 0:09:43We've got five members of staff at the moment and we have 40 tutors.
0:09:43 > 0:09:47How many will you have to produce £490,000 of profit?
0:09:47 > 0:09:50- Do you want to answer? - Do you want to...?- Sure. OK.
0:09:50 > 0:09:53Every sector of our business,
0:09:53 > 0:09:58we've got these amazing ideas to create something bigger and better.
0:09:58 > 0:10:03- And we're really going to make it happen. We're so passionate. - Krissy. Shh.
0:10:03 > 0:10:05- SHE LAUGHS - I think we get your passion.
0:10:05 > 0:10:10But what we're saying is, the youth sector isn't going to make us millions,
0:10:10 > 0:10:13but that's what we're here for. So we want to tap into this corporate sector
0:10:13 > 0:10:17and then we can make all these profits to put back into what we love.
0:10:22 > 0:10:27'Passion and ardour perhaps, but it's profit and margin the Dragons want to hear about.
0:10:27 > 0:10:30'Has Peter Jones spotted a reason to invest?'
0:10:33 > 0:10:38Krissy, Kerry, I actually see this as a great concept for a social enterprise.
0:10:42 > 0:10:45Do you know what? I think there lies the mistake.
0:10:45 > 0:10:49You've changed it from what is great and why people will back you
0:10:49 > 0:10:52into something, as an investor, I'm conflicted,
0:10:52 > 0:10:56because when I invest in you, I won't want to have any money back.
0:10:57 > 0:11:03I think it's fantastic what you do but it's not an investment, and for that reason, I'm out.
0:11:09 > 0:11:14'The young entrepreneurs' hopes are dashed as Peter Jones walks away from the deal.
0:11:14 > 0:11:17'But there are still four Dragons left.
0:11:17 > 0:11:20'Will Theo Paphitis agree with his rival's concerns?'
0:11:24 > 0:11:28Kerry, Chris, I'm blown over by your passion.
0:11:29 > 0:11:33And do you know what? I don't have a problem with the social enterprise issue.
0:11:33 > 0:11:38You go out there, you make profits, and if you want to give those profits back, good for you.
0:11:38 > 0:11:42You've got to make money first before you can give it away. That's my great belief in life.
0:11:43 > 0:11:47But it is an owner-operator business.
0:11:47 > 0:11:50I don't think this is an investor business.
0:11:50 > 0:11:55- I can't invest in you. But I wish I could.- Oh. Thank you.
0:11:55 > 0:11:59- I'm out.- Well, you're both fantastic, inspiring girls.
0:11:59 > 0:12:02If you came along and asked for, say, £50,000,
0:12:02 > 0:12:05you'd probably get someone taking a punt.
0:12:05 > 0:12:10But £150,000 is too much to invest in that.
0:12:10 > 0:12:13So for that reason I have to say, I'm sorry, but I'm out.
0:12:13 > 0:12:18- OK. Thank you.- Krissy, Kerry, when I tested you on the numbers,
0:12:18 > 0:12:23I'm afraid it wasn't as good as I was expecting from the pitch.
0:12:23 > 0:12:27When you stand in front of five investors and say,
0:12:27 > 0:12:29"We're going to go from a £40,000 profit
0:12:29 > 0:12:33"to a half a million pound profit,"
0:12:33 > 0:12:37all that investor really wants to hear is how.
0:12:37 > 0:12:42And I know you're going to give me more reasons and words why, but you've had your moment.
0:12:44 > 0:12:46I'm out.
0:12:50 > 0:12:53'Three more Dragons walk away from the deal
0:12:53 > 0:12:58'and Kerry and Krissy's time in the den looks like it's coming to an end.
0:12:58 > 0:13:02'But Hilary Devey does have some experience in this sector.'
0:13:10 > 0:13:15I wholly emphasise with where you're going, getting kids off the streets,
0:13:15 > 0:13:18because I've got a son that went down the same route.
0:13:18 > 0:13:21And it's probably music that saved him in the end.
0:13:30 > 0:13:35You've come on here asking for 150K.
0:13:35 > 0:13:40So you've got to go off with either 150K or nothing.
0:13:42 > 0:13:48- You could invest half of that, maybe. - You can't do that. You've got to get the full investment.- Oh, really?
0:13:57 > 0:13:58Erm...
0:14:02 > 0:14:06With most businesses, you do find you get economies of scale.
0:14:06 > 0:14:11I can't see where you're going to find those economies of scale in this business.
0:14:11 > 0:14:13Sure.
0:14:13 > 0:14:18- Unfortunately, I've got to say I'm out.- OK. Thank you.- I'm sorry.
0:14:20 > 0:14:23'Kerry and Krissy certainly charmed the Dragons
0:14:23 > 0:14:27'but heads rule hearts in this den. They leave with nothing.'
0:14:27 > 0:14:31- That was a shame. Nice girls. - Whether it's this or whatever it is, they'll make it.
0:14:32 > 0:14:35I'm actually quite happy.
0:14:35 > 0:14:39They gave us great feedback, they felt our passion, they felt everything that we are.
0:14:39 > 0:14:44And we're going to make everything we said happen. It just might take us a little bit longer.
0:14:51 > 0:14:54'Entrepreneurs entering the den have one thing in common.
0:14:54 > 0:14:58'They all believe their idea is one that will impress the Dragons.
0:14:58 > 0:15:04'Fish and chip shop owner John McMonagle from Glasgow needed a £125,000 investment
0:15:04 > 0:15:07'in his prototype invention.'
0:15:08 > 0:15:11I'm sure everybody here has been driving up the road when they're tired.
0:15:11 > 0:15:14My product is an inflatable car bed.
0:15:15 > 0:15:17PUMP WHIRRS
0:15:19 > 0:15:21You've got to be joking.
0:15:24 > 0:15:27John, I've done some really silly things in the den.
0:15:27 > 0:15:32Am I likely to get in a car with an inflatable bed?
0:15:32 > 0:15:34I would like to think very likely.
0:15:36 > 0:15:38- Come on, then. - HE LAUGHS
0:15:39 > 0:15:43'Despite his initial enthusiasm...'
0:15:43 > 0:15:44Bye, Theo!
0:15:44 > 0:15:48'..Theo Paphitis had an immediate concern.'
0:15:48 > 0:15:52It's going down. No, don't pump it up any more! That's fine.
0:15:54 > 0:15:56John, where do I lie down, mate?
0:15:56 > 0:15:58You couldn't get Jonesy in it. Jonesy.
0:15:58 > 0:16:03'Never one to shy away from a challenge, Peter Jones was next to try John's invention.'
0:16:03 > 0:16:07- It's a little bit... - LAUGHTER
0:16:07 > 0:16:08- Oh! - HORN BEEPS
0:16:08 > 0:16:12THEY LAUGH
0:16:12 > 0:16:15- You've got to be kidding. - Can you just move over?
0:16:15 > 0:16:18- You have that side. - All right. I actually can't move.
0:16:18 > 0:16:21THEY LAUGH
0:16:21 > 0:16:25'All entrepreneurs should note, however jovial the atmosphere in the den,
0:16:25 > 0:16:28'it's all about the bottom line for the Dragons.'
0:16:28 > 0:16:31I don't think you're ever going to sell them in vast numbers,
0:16:31 > 0:16:36and this sort of product needs to be sold in vast numbers to make any money on it.
0:16:36 > 0:16:39- Keep on innovating. - Thank you.- I'm out.
0:16:39 > 0:16:41- PETER GROANS - Push!
0:16:41 > 0:16:44Come on, we've got to go to work.
0:16:46 > 0:16:50- Well?- John!- Hi. - I'm not going to laugh at you.
0:16:50 > 0:16:54If you could actually work something that was more eloquent than that,
0:16:54 > 0:16:59you might have half a chance. That's not it. I'm out.
0:17:02 > 0:17:08One way to catch the eye of the Dragons and that of the modern consumer is with a strong brand.
0:17:08 > 0:17:11That's more than just a logo. It's a whole visual identity.
0:17:11 > 0:17:17And it's what London-based friends Christian Hartmann, Tom Callard and Martin McLaughlin believe they have.
0:17:17 > 0:17:19Will the Dragons agree?
0:17:44 > 0:17:47Hello, guys. My name's Christian, this is Tom and this is Martin.
0:17:47 > 0:17:55We are here today to ask for £70,000 for 35 percent in our company, Love Da Pop.
0:17:55 > 0:18:02Love Da Pop makes, packs and sells the world's best popcorn. Doesn't that sound good?
0:18:03 > 0:18:07Erm, we have developed two different sized bags
0:18:07 > 0:18:10and we've got five wonderful flavours.
0:18:10 > 0:18:13Salt and pepper, popcorn in the nude,
0:18:13 > 0:18:18we've got caramel, white chocolate, and our latest invention, whoopsie daisy. It came about from a mistake.
0:18:18 > 0:18:23We have operated for ten months. We've turned over £31,000 so far.
0:18:23 > 0:18:26We're not the biggest of companies yet but that's why we're here.
0:18:26 > 0:18:31In the ten months we've been doing this, we've found there really is a market for this popcorn.
0:18:31 > 0:18:36So weirdly, while the events we serve at are kind of cool, new events,
0:18:36 > 0:18:40the snacks served at them are stuck in the eighties. But that's events.
0:18:40 > 0:18:44We feel quite confident there. We need your help to move into retail.
0:18:44 > 0:18:48We hope to change Love Da Pop and transform an absolute passion of ours
0:18:48 > 0:18:50into a profitable company of the future.
0:18:50 > 0:18:53If you'd like to now have a sample of our bags of Love Da Pop,
0:18:53 > 0:18:56Christian will now bring over some bags to you.
0:18:59 > 0:19:03'A characterful pitch from popcorn connoisseurs Martin McLaughlin,
0:19:03 > 0:19:05'Tom Callard and Christian Hartmann.
0:19:05 > 0:19:08'In return for a 35 percent stake,
0:19:08 > 0:19:12'they want £70,000 to turn their take on the popular cinema snack
0:19:12 > 0:19:15'into a mainstream brand.'
0:19:15 > 0:19:17- This tastes fantastic.- Thank you.
0:19:18 > 0:19:24'Marketing expert Deborah Meaden wants clarification on what they've achieved so far.'
0:19:27 > 0:19:31- Hi, I'm Deborah.- Hello. - So when you talk about events,
0:19:31 > 0:19:36how many events have you attended to generate your £31,000 of turnover?
0:19:36 > 0:19:39We have done 24 corporate events to date
0:19:39 > 0:19:44and we also have a deal with a company called Secret Cinema for this whole year.
0:19:44 > 0:19:48Secret Cinema do really, really cool, big film events.
0:19:48 > 0:19:54OK. So, erm, this is your plan on packaging?
0:19:54 > 0:19:58The level that we operate at the moment, this is the packaging that we use.
0:19:58 > 0:20:03We quite like the handmade feel of it. We think it feels quite authentic and genuine.
0:20:03 > 0:20:08So, really, your unique selling point is that you're taking a traditional product,
0:20:08 > 0:20:13you're trying to add a twist by I think, possibly, yourselves being quite quirky.
0:20:13 > 0:20:18- Oh, really?- Yep. OK, do you think that's enough of a...
0:20:18 > 0:20:20I think the focus, really, has to be taste
0:20:20 > 0:20:25because it's not a scalable business model for us to be the face of it
0:20:25 > 0:20:29beyond it having a story that we started it, like Ben & Jerry's or something.
0:20:29 > 0:20:34All other popcorn, we think, apart from maybe one other, is popped with hot air.
0:20:34 > 0:20:37It's slightly healthier, but the popcorn tastes cardboardy.
0:20:37 > 0:20:39So we use vegetable oil instead of hot air.
0:20:39 > 0:20:43The point is that we focus on taste exclusively with the best ingredients
0:20:43 > 0:20:46cos we think people are willing to pay more for that.
0:20:47 > 0:20:52'Firm belief in their product, perhaps, but how does that translate into profit?
0:20:52 > 0:20:56'Theo Paphitis is next to cross-examine the trio.'
0:20:57 > 0:21:01Guys, the popcorn's good.
0:21:01 > 0:21:04- ALL: Thank you.- But tell me what your business plan is.
0:21:04 > 0:21:07How are you going to make money out of this?
0:21:07 > 0:21:12There's a three-step plan. Number one, we do the events. We become THE events popcorn.
0:21:12 > 0:21:14It helps us show off the brand and get exposure.
0:21:14 > 0:21:17That will allow us to move into cafes, bars,
0:21:17 > 0:21:22- places where at the moment there's no...- This is all great theory. Give me some numbers.
0:21:22 > 0:21:27Numbers. The big bags will sell in retail at £2.40
0:21:27 > 0:21:33and our costs on that will be 25 pence.
0:21:33 > 0:21:37- What, just the raw materials? - Raw materials and labour.
0:21:37 > 0:21:39- Packaging?- Packaging, as well.
0:21:39 > 0:21:42- Delivery?- Erm...
0:21:43 > 0:21:47There'd be delivery on top of that.
0:21:48 > 0:21:53- What, you're going to charge delivery or include it in your cost? - We charge delivery on top of that.
0:21:53 > 0:21:57You think the retailer will let you charge him to deliver it?
0:21:58 > 0:22:03- I mean, it is something we could back into the bags if we have to. - You've never thought about it?
0:22:03 > 0:22:09Have you spoken to retailers and said, "I'll sell you my product and charge you to deliver it"?
0:22:11 > 0:22:17It's one of the key problems. You need great big vans to deliver this stuff.
0:22:18 > 0:22:23And if you're just delivering 20, 30 bags to a cafe, you're going to make 20, 30 quid,
0:22:23 > 0:22:27it's going to cost you that in distribution costs. You haven't thought it through.
0:22:32 > 0:22:37'The fledgling entrepreneurs get a lesson in business from retail Dragon Theo Paphitis.
0:22:37 > 0:22:41'And Duncan Bannatyne does not look impressed.'
0:22:42 > 0:22:46You're nice guys, but I really think it's time for a reality check.
0:22:46 > 0:22:51For you to think that you're going to take over the world in popcorn is ridiculous.
0:22:51 > 0:22:56I mean, the bags, it's just a stripy bag. It's not a business. You're not going to take over the world.
0:22:56 > 0:22:59You're not the new Ben & Jerry. You're not anywhere near it.
0:22:59 > 0:23:05Erm, yeah, we realise that it's a tiny, tiny business at the moment.
0:23:05 > 0:23:08It's barely a business. It's a passion.
0:23:08 > 0:23:11And we've got a good product. I think we've got a good brand.
0:23:11 > 0:23:15Come on, this is painful. You have a fairly good product, but it's not the best popcorn.
0:23:15 > 0:23:19It's not the greatest product. It's not fantastic and it's not bagged properly.
0:23:19 > 0:23:22I'll stop wasting time. I'm out.
0:23:23 > 0:23:26'The trio's initial confidence takes a hit
0:23:26 > 0:23:30'as Duncan Bannatyne crushes their dreams of investment.
0:23:30 > 0:23:34'Will Hilary Devey find any financial comfort in the company's figures?'
0:23:35 > 0:23:40I'm Hilary. Hi. So when you did your business plan,
0:23:40 > 0:23:45- how were your projections derived? - We based it on a lot of what we have done to date.
0:23:45 > 0:23:52So we have certain contracts for certain events. We're also in negotiations with Nomad.
0:23:52 > 0:23:56They have 100 events in the next year, a target audience of 70,000.
0:23:56 > 0:24:01Then for year three, it was a bit of an estimate in terms of how we would get it into retail.
0:24:03 > 0:24:07I mean, to me, it's not coming over as a business model, a business plan for the future.
0:24:07 > 0:24:09It's coming over as cottage industry,
0:24:09 > 0:24:14that you guys obviously like popcorn so you thought, "Well, we'll make it and we'll sell it."
0:24:14 > 0:24:17That, to me, is not investable and not sustainable.
0:24:17 > 0:24:20- I'm out.- Thank you.
0:24:23 > 0:24:29I... I think the amount of space it takes to pre-bag popcorn
0:24:29 > 0:24:33compared to other much higher margin stuff is an issue
0:24:33 > 0:24:36and that become a bigger issue when you're trying to sell into cafes
0:24:36 > 0:24:39where space is absolutely at a premium.
0:24:39 > 0:24:42So I think there's some structural issues.
0:24:42 > 0:24:46What I do think is do it, make a bit of money, don't make this your lifetime living.
0:24:46 > 0:24:50Cos I suspect you've got more than this about you. I'm out.
0:24:52 > 0:24:58'Two more investors walk away and Martin, Tom and Christian look to be heading back down the stairs
0:24:58 > 0:25:01'without the £70,000 they badly need.
0:25:01 > 0:25:04'Now just two Dragons remain.'
0:25:06 > 0:25:11Guys, I've just noticed in your little pack you gave me with the clip,
0:25:11 > 0:25:15I notice that I've got a lottery ticket. It's not some subliminal message
0:25:15 > 0:25:20to make me think, "I've got more chance of making money with this ticket than with your business"?
0:25:20 > 0:25:24That's just little touches. We like to put little sentiments that we offer with bags.
0:25:24 > 0:25:29- You like to give things away that cost money.- Not as extreme as the lottery tickets
0:25:29 > 0:25:32but it can be little jokes or little sentiments like that.
0:25:32 > 0:25:37Can I ask a bit of background about you? Where have you come from and how did you get to this point?
0:25:37 > 0:25:40We all met through work. We work in advertising.
0:25:40 > 0:25:43We're in the same agency in London.
0:25:43 > 0:25:46- Who do you work for? - Saatchi & Saatchi.- OK.
0:25:46 > 0:25:50Does the advertising agency you work for now know that you're doing this?
0:25:50 > 0:25:53- Yeah, they love it.- They're supportive.- That's been nice.
0:25:53 > 0:25:57It's building our own brand, so it's good training.
0:25:57 > 0:26:02So where do you take that brand further? For instance, could you do corn snacks?
0:26:02 > 0:26:06- Could you do fizzy pop?- Yeah. There's the retro vibe about it,
0:26:06 > 0:26:12so we were considering buying a candyfloss machine, cos it fits in with that whole feeling.
0:26:12 > 0:26:16But further down the line. We wanted to establish ourselves as popcorn first.
0:26:16 > 0:26:20- Love Da Drink, Love Da Pop, Love Da Candy.- Yeah.
0:26:21 > 0:26:23OK. Thank you.
0:26:25 > 0:26:28'Inexperienced entrepreneurs they may be,
0:26:28 > 0:26:31'but the trio have revealed expertise in other areas
0:26:31 > 0:26:34'that'll help launch a new brand into the marketplace.
0:26:34 > 0:26:38'Will this be enough to convince Theo Paphitis to invest?'
0:26:40 > 0:26:44Guys, listen, you've got something about you.
0:26:45 > 0:26:50But you're not going to get into retail at a massive premium.
0:26:50 > 0:26:53There's so much more to do before this can be a success.
0:26:55 > 0:26:58I don't think I'm going to make money out of this.
0:26:58 > 0:27:01I hope you do and I want to wish you the very best of luck.
0:27:01 > 0:27:04But I'm afraid I'm out.
0:27:04 > 0:27:06Thank you very much.
0:27:08 > 0:27:12Listen, guys, I think the other Dragons have said it, really.
0:27:13 > 0:27:16It's a tough one, isn't it? And even you are nodding your head.
0:27:16 > 0:27:19It's one of those, "Is it going to make money or not?"
0:27:22 > 0:27:25I'm sitting here and thinking...
0:27:28 > 0:27:34You remind me a lot of the three guys I've met who started a brand that's become quite well-known,
0:27:34 > 0:27:39the Innocents brand. You've got that quirkiness in you.
0:27:39 > 0:27:43And I know that comes from your advertising agency stuff.
0:27:43 > 0:27:47But I'm not totally convinced on the actual business and where it's at.
0:27:49 > 0:27:53What I am absolutely convinced on
0:27:53 > 0:27:55is the three people standing in front of me.
0:27:57 > 0:28:02I think you're articulate, you're intelligent, you're clearly passionate
0:28:02 > 0:28:07and if you're able to do a deal with one of the cinema groups,
0:28:07 > 0:28:09it would extend the brand,
0:28:09 > 0:28:13which might entice retailers to take a punt.
0:28:16 > 0:28:20I'm going to make you an offer, because I think you have got something.
0:28:21 > 0:28:23All of the money...
0:28:25 > 0:28:28..in return for 45 percent of your business.
0:28:30 > 0:28:33- OK. Can we have one moment?- Yeah.
0:28:34 > 0:28:36'A dramatic about turn
0:28:36 > 0:28:40'as Peter Jones surprises his rival Dragons and makes an offer.
0:28:40 > 0:28:43'But it's for nearly half the company.
0:28:43 > 0:28:46'Will it prove too much for the brand-savvy entrepreneurs?'
0:28:46 > 0:28:49THEY WHISPER
0:28:59 > 0:29:01Yep, that'd be great, Peter.
0:29:01 > 0:29:04APPLAUSE
0:29:04 > 0:29:10'Martin, Tom and Christian have done it. They're approach may have split the den,
0:29:10 > 0:29:15'but they walk away with a multi-millionaire business partner and a £70,000 investment.'
0:29:15 > 0:29:18Well done, guys.
0:29:24 > 0:29:29'Inspiration for business ideas come in many shapes and sizes.
0:29:29 > 0:29:32'For trained lawyer Sophia Hussein from Preston,
0:29:32 > 0:29:35'hers was from a situation many of us will relate to.'
0:29:35 > 0:29:38It's been a long time coming,
0:29:38 > 0:29:40but someone is finally here...
0:29:41 > 0:29:45..to fight these. Parking fines.
0:29:46 > 0:29:51'Sophia needed a £50,000 cash injection into her web-based business
0:29:51 > 0:29:54'that challenges unlawfully-issued parking tickets.'
0:29:54 > 0:29:56How much are you going to charge me?
0:29:56 > 0:30:00The average parking fine in England and Wales in £80.
0:30:00 > 0:30:03We take half of that, which is £40.
0:30:03 > 0:30:06As a customer, I would really be angry.
0:30:06 > 0:30:09The parking fine was illegal
0:30:09 > 0:30:12but I'm still having to pay 40 quid.
0:30:12 > 0:30:15- I mean, that just riled me. - But it's better than paying 80.
0:30:16 > 0:30:22'The subject of parking fines clearly touched a nerve with the Dragons.
0:30:22 > 0:30:26'But the 27-year-old never looked likely to touch their cash.'
0:30:26 > 0:30:30It's not very often that I see a business model...
0:30:32 > 0:30:34..that I want to fail.
0:30:34 > 0:30:39It's ridiculous and I hope people will just be a lot more careful where they park
0:30:39 > 0:30:41and not just look for a little crack in the law
0:30:41 > 0:30:46where the local authority hasn't quite met one of the 50 rules
0:30:46 > 0:30:50where they've put a car parking space. I'm out.
0:30:50 > 0:30:52It's not a ridiculous idea,
0:30:52 > 0:30:57I just think we shouldn't be adding to the bureaucracy that already stupidly exists
0:30:57 > 0:31:01in local councils anyway. You're obviously quite astute
0:31:01 > 0:31:07and I'd go away and think of something else. But I've got to say, I'm out.
0:31:07 > 0:31:09- Thank you.- Thank you, Sophia.
0:31:10 > 0:31:15'So far tonight, only one business has been deemed worthy of Dragon investment.'
0:31:15 > 0:31:21- Great. Thank you very much.- 'If you want to find out what made Peter Jones enter the popcorn industry,
0:31:21 > 0:31:24'press the red button at the end of the programme.'
0:31:26 > 0:31:30The Dragons have invested in a wide variety of proposals over the years
0:31:30 > 0:31:34and they have a diverse range of business interests themselves.
0:31:34 > 0:31:37Glen Harden from Kent is next into the den
0:31:37 > 0:31:41hoping to add his unique idea to their portfolios.
0:31:56 > 0:32:02Hi. My name's Glen and I'm here to offer you 20 percent of my company for £50,000 investment.
0:32:02 > 0:32:06The company's called UV Body Sculpture
0:32:06 > 0:32:10and what it does, pretty much, is this.
0:32:13 > 0:32:17And what it will very soon be able to do is this.
0:32:19 > 0:32:25In the past, this kind of toned, defined look would've taken years to achieve,
0:32:25 > 0:32:29but using UV Body Sculpture, this can be achieved in three to four weeks.
0:32:29 > 0:32:31How?
0:32:31 > 0:32:38It's easy. It's because this look is simply the result of a process called selective tanning.
0:32:38 > 0:32:41You place a screen across your body, relax in the sun or under a sunbed
0:32:41 > 0:32:46and allow your body's natural tanning process to do the rest.
0:32:46 > 0:32:50I've owned this product and the patents for 14 years and I've done nothing with it.
0:32:50 > 0:32:52It's gathered dust in my dad's lockup.
0:32:52 > 0:32:56So I've got no sales figures to talk to you about.
0:32:56 > 0:33:01No book work whatsoever. But what I do have is a potential target market
0:33:01 > 0:33:04that I think is colossal,
0:33:04 > 0:33:08because who wouldn't want to look a little bit better for £20?
0:33:08 > 0:33:10Thank you. Any questions?
0:33:14 > 0:33:17'A laconic and remarkably frank pitch
0:33:17 > 0:33:20'from Kent-based father of four Glen Harden.
0:33:20 > 0:33:23'Despite a 14-year lull in trading,
0:33:23 > 0:33:26'he believes now is the time to plough £50,000
0:33:26 > 0:33:28'into his patented tanning aid.
0:33:28 > 0:33:33'But Duncan Bannatyne seems more interested in the entrepreneur's accomplice in the den.'
0:33:35 > 0:33:39Erm, you've brought a model up the stairs.
0:33:39 > 0:33:41Has he had some of this UV tanning?
0:33:41 > 0:33:45- Oh, absolutely.- He has?- Yeah. - Cos he looks just natural to me.
0:33:45 > 0:33:51- What, the abs look natural?- Yeah. - Well, that's brilliant. That's absolutely superb, Duncan.
0:33:51 > 0:33:54He's my son. He's got absolutely no abs.
0:33:54 > 0:33:58- So he's actually a fat boy? - No definition whatsoever.
0:33:58 > 0:34:02No, he's a right little pudding. When he's really cut, he's OK.
0:34:02 > 0:34:06But, no, the abs are selective tanning.
0:34:06 > 0:34:11- My question is, he's used selective tanning?- Sorry, yes.- He has. OK.
0:34:11 > 0:34:13- We could probably let the model go now.- Yeah, OK.
0:34:13 > 0:34:16OK? Thanks very much. Thanks a lot.
0:34:18 > 0:34:21Right. How does it work?
0:34:22 > 0:34:24- Can I hand you one?- Yes, please.
0:34:27 > 0:34:30The methodology is incredibly simple
0:34:30 > 0:34:34but the results are very, very good.
0:34:34 > 0:34:38- So what I do is, I put this bit across my body.- Yeah.
0:34:39 > 0:34:44So therefore it'll tan between these bits more and they'll be browner.
0:34:44 > 0:34:49- I think they've got that, Duncan, yep.- Right. OK. - Thank you for explaining it.
0:34:51 > 0:34:57'With a little Dragon assistance, the proposition Glen's offering is finally explained.
0:34:57 > 0:35:00'But what of the man behind the invention?
0:35:00 > 0:35:02'Theo Paphitis wants to know.'
0:35:05 > 0:35:11- Glen, what do you do?- I run my own business, a little family business manufacturing kitchens,
0:35:11 > 0:35:15kitchens and bedrooms. And I've got six employees...
0:35:16 > 0:35:20- ..that rely on me for their jobs. - How did you then get from
0:35:20 > 0:35:24manufacturing kitchens and bedrooms to these screens? When?
0:35:25 > 0:35:28I actually developed them 20 years ago,
0:35:28 > 0:35:33but long before that, to be honest, when I was about 12 years old,
0:35:33 > 0:35:35I was fascinated...
0:35:35 > 0:35:41My mum used to buy us a season ticket to the local swimming pool in the summer holidays to get rid of us
0:35:41 > 0:35:45and I was fascinated by the people that come in that had fallen asleep in the sun
0:35:45 > 0:35:49and they'd look like they were wearing a string vest and it started from there.
0:35:49 > 0:35:53And after you got the patent, you just put it in your dad's lockup?
0:35:53 > 0:35:58- In my dad's lockup.- So when you developed it, you obviously must have tried to sell it.
0:35:58 > 0:36:01Did anyone buy any of them?
0:36:01 > 0:36:06Oh, yeah, I probably sold... Yeah, my brother done me a web page in his bedroom.
0:36:06 > 0:36:09It was getting one hit a day and then some days it was two hits.
0:36:10 > 0:36:13Is that a clue?
0:36:13 > 0:36:20No, I don't think it is a clue. If nobody knows about something, how the hell are they going to buy it?
0:36:23 > 0:36:29'The Dragons look bemused as they get to grips with Glen's inimitable pitching style.
0:36:29 > 0:36:33'Deborah Meaden wants to bring some order back to the den.'
0:36:33 > 0:36:36- Glen, hi.- Hi, Deborah.
0:36:36 > 0:36:39Erm, you're very charming.
0:36:39 > 0:36:43But I wouldn't for one second consider investing in you
0:36:43 > 0:36:49unless you could give me something that said, "I've got more than something that I did 20 years ago
0:36:49 > 0:36:52"and left in my garage." Cos so far that's all you've said.
0:36:52 > 0:36:55That's a very good point, a very valid point.
0:36:55 > 0:36:57But I don't know what else to say.
0:36:57 > 0:37:02- You understand there's got to be something? - Well, God, this is probably...
0:37:02 > 0:37:06My dad taught me, never ask for anything.
0:37:06 > 0:37:10Don't ask for money. This is the single hardest thing I've ever done in my life.
0:37:10 > 0:37:15And you're probably going to ask me in a minute a business plan. I ain't got a clue.
0:37:17 > 0:37:20Well, it's a very unusual approach, I have to say.
0:37:20 > 0:37:23It's quite a high-risk strategy. But what you do have to do
0:37:23 > 0:37:25is give us a reason to invest.
0:37:25 > 0:37:32I sent an email to the tanning shop, just so I had something,
0:37:32 > 0:37:36and I got an email back the following day asking for more details on the product.
0:37:36 > 0:37:42I know that's not an order, but to me, from that to that for £20 is like a given.
0:37:42 > 0:37:44I can't see a downside to it.
0:37:48 > 0:37:52'Whether it's the steadfast belief in his product or his beguiling manner,
0:37:52 > 0:37:56'Glen seems to have momentarily tamed the fierce multi-millionaires.
0:37:56 > 0:38:00'Can Hilary Devey see any future for this business?'
0:38:02 > 0:38:06Glen, I honestly think you could well be onto something.
0:38:06 > 0:38:10Why not get out there and get it sold?
0:38:10 > 0:38:14Take two weeks' holiday, go out there and market it.
0:38:14 > 0:38:17Selling half a dozen screens doesn't interest me in the least.
0:38:17 > 0:38:20It's not my skill set at all.
0:38:20 > 0:38:24But if you've got six people working for you, you must have a salesman.
0:38:24 > 0:38:29- My brother is my salesman.- So why doesn't he, whilst in between...
0:38:29 > 0:38:34You've got to meet him. We check for a pulse every week and regularly don't find one.
0:38:34 > 0:38:37THEY LAUGH
0:38:37 > 0:38:41- Your son's podgy and your brother you have to check for a pulse.- Yeah.
0:38:41 > 0:38:44- But you love them. - He's got a low mileage car.
0:38:44 > 0:38:47Glen, Glen, let's come back to a very valid question here.
0:38:47 > 0:38:50- When you lie down on a sunbed, you put this on top of you.- Yeah.
0:38:50 > 0:38:54- But most sunbeds now are stand-up sunbeds.- Mm.- So what happens then?
0:38:54 > 0:38:56They fall off.
0:38:56 > 0:39:00- THEY LAUGH They do.- He's got the measure of you!
0:39:00 > 0:39:04- THEY LAUGH - I'm a bit lost for words now.
0:39:05 > 0:39:08But I don't think this'll sell for 20 quid.
0:39:08 > 0:39:11Some tanning shops will buy it and they will sell it to their customers.
0:39:11 > 0:39:14I see it as five quid maximum.
0:39:14 > 0:39:17- I'm out.- OK, my friend. Thank you.
0:39:21 > 0:39:24'Normal den order is resumed
0:39:24 > 0:39:29'as Duncan Bannatyne delivers the first blow to Glen's hopes of securing the cash.
0:39:29 > 0:39:32'And Deborah Meaden is now ready to show her hand.'
0:39:34 > 0:39:39Glen, I know you said you don't want to sell half a dozen here and half a dozen there,
0:39:39 > 0:39:42- but do you know, when I started up, that's all I was selling.- Mm-hm.
0:39:42 > 0:39:46A bit here and a bit there. Because it tells you whether or not there's a market.
0:39:46 > 0:39:50And if you'd been able to say to us, "I've had 20 yeses"
0:39:50 > 0:39:53- I think you might have had a slightly different response.- Mm-hm.
0:39:53 > 0:39:59I think I'd struggle far more if I'd been knocking doors down and trying to flog a dead horse.
0:39:59 > 0:40:03This is new to the market now because for 14 years, nobody's known about it.
0:40:03 > 0:40:08- And you might well be right, it might be nothing.- I'm out.- OK.
0:40:08 > 0:40:14Glen, it's taken you 14 years to send an email.
0:40:14 > 0:40:16No, I disagree. I disagree.
0:40:16 > 0:40:20- It has, yeah, technically, it's taken me 14 years.- Doesn't that worry you?
0:40:22 > 0:40:25Cos it would worry the pants off me, Glen.
0:40:27 > 0:40:29You've been refreshing, you've been honest.
0:40:29 > 0:40:33- But I'm out.- OK, thank you.
0:40:37 > 0:40:41'Two more Dragons out and Glen's prospects look bleak.
0:40:41 > 0:40:45'And Hilary Devey looks to have made up her mind, too.'
0:40:47 > 0:40:51Glen, do what I said.
0:40:51 > 0:40:54- Get out there and get it sold.- OK.
0:40:54 > 0:40:57I can't put 50 grand into it. It's too hard earned.
0:40:57 > 0:41:02- I wish you the best of luck, but I'm out.- OK.
0:41:03 > 0:41:10Glen, I've not said very much. I can't work out whether I like it or I don't like it.
0:41:10 > 0:41:14If you've got two sunbeds standing next to each other, one does this and one does this,
0:41:14 > 0:41:19- which one are you going to go on? Same price.- That's what I would do. I would take this product
0:41:19 > 0:41:24to a sunbed manufacturer and license it to them and say, "Every time you use my product,
0:41:24 > 0:41:26"you've got to pay me X amount of money."
0:41:26 > 0:41:30Nobody can copy you cos you've got the patent. So I would do that.
0:41:30 > 0:41:33- I wish you the best of luck, but I'm out.- Thank you.
0:41:35 > 0:41:39'A disappointing end for Glen. He may have charmed the Dragons,
0:41:39 > 0:41:43'but it takes more than that to part these multi-millionaires from their cash.'
0:41:45 > 0:41:49I think they might have missed a trick. I still genuinely believe in the product.
0:41:49 > 0:41:52I didn't plan to charm them into an investment
0:41:52 > 0:41:56but I think Duncan started the ball rolling by trying to be the funny guy
0:41:56 > 0:42:00and you do have to get up pretty early in the morning to be funnier than me
0:42:00 > 0:42:03and he unfortunately didn't get up early enough.
0:42:11 > 0:42:16'Other entrepreneurs who tried and failed in the den included Leicestershire-based Alan Clark
0:42:16 > 0:42:21'who wanted £70,000 to help make bath time a little more entertaining.'
0:42:23 > 0:42:26Bath Sound turns any bath into an audible loud speaker.
0:42:26 > 0:42:30I slap my Bluetooth, it's looking to pair with my phone,
0:42:30 > 0:42:33which it has done now, so now I can play my music.
0:42:33 > 0:42:35CLASSICAL MUSIC PLAYS
0:42:35 > 0:42:38Turn the volume up a little bit.
0:42:42 > 0:42:46There are no speakers. The bath itself is the speaker. So you bathe in the speaker.
0:42:46 > 0:42:49'It was the price that worried Peter Jones.'
0:42:49 > 0:42:53- What do you think you'll be able to sell that for?- £412 plus VAT.
0:42:54 > 0:42:59- So it's a £500 product to have a Bluetooth speaker in your bathroom. - Yep.
0:42:59 > 0:43:01Wow.
0:43:01 > 0:43:05'But for self-confessed gadget collector Theo Paphitis,
0:43:05 > 0:43:08'the concerns were over the concept itself.'
0:43:08 > 0:43:12You're going to have to handle your phone while you're in the bath,
0:43:12 > 0:43:16which is never a clever idea. Not if you're as clumsy as I am.
0:43:16 > 0:43:21I'm not convinced that you're going to have a massive market.
0:43:21 > 0:43:25So I congratulate you on choosing a piece of Handel's Water Music,
0:43:25 > 0:43:28which went nicely with the bath, but I'm out.
0:43:30 > 0:43:35'Partners Elizabeth Chance and Colin Halfpenny from Cornwall
0:43:35 > 0:43:38'brought a touch of glamour into the den, hoping to walk away with £50,000
0:43:38 > 0:43:43'for their business supplying fashion accessories for dogs.'
0:43:43 > 0:43:46SHE LAUGHS We started Dog Bling just as a hobby
0:43:46 > 0:43:50but it soon became apparent that it had become more than a hobby and into a business.
0:43:50 > 0:43:55We have a range of products which include personalised leather diamante collars,
0:43:55 > 0:43:57dog goggles and also dog glasses.
0:43:57 > 0:44:03'It turns out the Dragons are divided when it comes to canine sartorial taste.'
0:44:03 > 0:44:08I like my animals to be animals. Personally, I don't like the sunglasses.
0:44:08 > 0:44:11Let me have a look at the blingy one, cos I'm a blingy person.
0:44:11 > 0:44:17'But the Dragons are united when it comes to revelations of modest trading figures.'
0:44:18 > 0:44:23- What profit have you made over the last year? - Last year we made £10,000.
0:44:23 > 0:44:28You can't expect anyone in their right mind to invest £50,000
0:44:28 > 0:44:33in a business that turns over nothing at the moment. For that reason, I'm out.
0:44:34 > 0:44:37'So no cash for Elizabeth and Colin
0:44:37 > 0:44:42'but some words of advice should they decide to take their chances in the den again.'
0:44:42 > 0:44:46They're incredibly well behaved. Particularly him. He's gorgeous, isn't he?
0:44:46 > 0:44:49The dogs have been so good, you should've got them to do the pitch.
0:44:49 > 0:44:52- Yeah!- We should have. - Thank you so much.
0:44:58 > 0:45:02With consumers looking for ways to save money at the moment,
0:45:02 > 0:45:04"staycations" have soared in popularity.
0:45:04 > 0:45:09Next into the den are husband and wife team Alan and Liz Colleran from Dewsbury
0:45:09 > 0:45:13with an innovative product aimed at the caravan market.
0:45:36 > 0:45:41Hello, Dragons. My name is Liz Colleran and this is my husband, Alan Colleran.
0:45:41 > 0:45:47Our company is Raskelf Memory Foam and we're pitching for £80,000 for ten percent of our business.
0:45:47 > 0:45:53We've been married 28 years. Our company came about from an idea we had whilst we were caravanning.
0:45:53 > 0:45:59Our best-selling product is also our most innovative product. The Duvalay.
0:45:59 > 0:46:02The Duvalay sleep system is really simple.
0:46:02 > 0:46:09It has a special memory foam base which smoothes out the lumps and bumps in hard caravan seats.
0:46:09 > 0:46:15It's totally open on one side, so you're not constricted like a normal sleeping bag. It's also,
0:46:15 > 0:46:21when you're up against a cold caravan wall, it's totally joined. You never get a cold back or bottom.
0:46:21 > 0:46:25You can have one for single or simply put two together to make a double.
0:46:25 > 0:46:28And when you get home from your holiday, it's easy-peasy to wash.
0:46:28 > 0:46:34You simply take the memory foam out, take the duvet out and wash it as a sheet.
0:46:34 > 0:46:38So far, we've sold about 10,000 of these units
0:46:38 > 0:46:44and each one retails at £120. So that's sales of about £1 million on this product alone.
0:46:44 > 0:46:47In fact, we can't make them fast enough.
0:46:47 > 0:46:52We need your help and expertise to help us break into the huge European and American markets.
0:46:52 > 0:46:56Thank you for listening. Would you like to come and try?
0:46:59 > 0:47:04'A well honed pitch from family business owners Liz and Alan Colleran.
0:47:04 > 0:47:09'They need an £80,000 investment to expand their caravan accessory company
0:47:09 > 0:47:12'and are willing to part with ten percent equity in return.'
0:47:12 > 0:47:16- It is quite cosy. - 'Having enjoyed the product,
0:47:16 > 0:47:19'Hilary Devey is first to quiz the duo.'
0:47:20 > 0:47:24Liz, Alan, I think you've got a fantastic concept.
0:47:24 > 0:47:27What made you think of this?
0:47:27 > 0:47:29I was a housewife until seven years ago.
0:47:29 > 0:47:33We only got the idea because I slept in a caravan and had a bad back
0:47:33 > 0:47:37and we bought a piece of memory foam, looked at it, thought, "We could do that".
0:47:37 > 0:47:41Nobody's doing this. We've got patent applications pending on it.
0:47:41 > 0:47:46For the last seven years, it's been Alan and myself just thrashing things backward and forward.
0:47:46 > 0:47:48OK, epitomise your vision.
0:47:48 > 0:47:54We're looking at speed. We want to get it out fast, roll it into different countries.
0:47:54 > 0:48:00At the moment, we're only scratching the surface. There's 2.2 million caravans in Holland, Germany,
0:48:00 > 0:48:04the UK and the Netherlands which each have two of these beds.
0:48:04 > 0:48:10Everybody, no matter what country you're in, will get up on a morning from those beds with a bad back.
0:48:10 > 0:48:16- And you're telling me that there's absolutely nobody else in this country or in Europe doing this?- No.
0:48:19 > 0:48:23'A confident start from the experienced entrepreneurs.
0:48:23 > 0:48:26'Leisure industry expert Deborah Meaden
0:48:26 > 0:48:29'wants to delve into the detail behind their business.'
0:48:30 > 0:48:35Liz, Alan, I mean, so far, great story.
0:48:35 > 0:48:41So what are your... Can you give me some financial information? I only need a couple of years.
0:48:41 > 0:48:48In 2009, we turned over about £465,000 with a net profit of about £35,000.
0:48:48 > 0:48:532010 was about £800,000
0:48:53 > 0:48:55- with a net profit of £110,000.- OK.
0:48:55 > 0:48:59The turnover looks fantastic but...
0:48:59 > 0:49:04I mean, it's a nice enough profit, but I would've hoped that it might have been higher.
0:49:04 > 0:49:10Can you talk me through your P and L just for last year, just tell me what you're spending your money on.
0:49:10 > 0:49:12We've got a factory, shop, showrooms.
0:49:12 > 0:49:16- Wages.- Wages, staff.- What kind of money are they, then? Factory?
0:49:16 > 0:49:18- Erm...- That's £16,000 a year.
0:49:18 > 0:49:22- Shop?- Well, that's in with that, actually. It's all in there.
0:49:22 > 0:49:24Sales staff?
0:49:24 > 0:49:27- Staff, we've got ten staff. - Ten staff.
0:49:27 > 0:49:32Erm... We don't know the... We don't have those details, I'm afraid.
0:49:36 > 0:49:39Well, we would know within five seconds of getting back to the office.
0:49:39 > 0:49:42- No, Liz...- I would say... - I'm an investor.
0:49:42 > 0:49:46All I want to know from you is how your business works
0:49:46 > 0:49:50and things like "What is your wage bill?"
0:49:50 > 0:49:54is pretty simple stuff.
0:49:57 > 0:49:59What can I say?
0:50:02 > 0:50:05'It's an awkward moment for the Collerans.
0:50:05 > 0:50:10'A failure to demonstrate a grasp of your numbers rarely goes down well in the den.
0:50:10 > 0:50:14'Will the couple fair any better under the scrutiny of Peter Jones?'
0:50:15 > 0:50:21Liz, Alan, just going through those costs, erm,
0:50:21 > 0:50:24I've got £800,000 revenue this year,
0:50:24 > 0:50:26I've got £110,000 profit.
0:50:26 > 0:50:30I'm looking for costs within the business. What do you pay yourselves?
0:50:30 > 0:50:37We pay ourselves a dividend from the profit and we dip into that for the salary.
0:50:37 > 0:50:41- So what would you say you took? - We took about £15,000.
0:50:41 > 0:50:45- Each?- No.- Between you. OK.
0:50:45 > 0:50:48Do you run your business a bit like a lifestyle?
0:50:48 > 0:50:51- So you take money when you need to? - Yeah. Yes, we do.
0:50:51 > 0:50:54- Yeah.- Yeah, we do. - What else do you spend money on?
0:50:56 > 0:51:00Erm, I would say we spend...
0:51:00 > 0:51:04- Try exhibitions.- Exhibitions, yeah. We do loads of exhibitions.
0:51:04 > 0:51:08Insurance. Light. Heating.
0:51:08 > 0:51:11- Yeah.- Yeah, the overheads.- Transport.
0:51:11 > 0:51:17- Have you got any vehicles that you've bought?- We've only got one. We don't spend money on anything.
0:51:17 > 0:51:20Well, you do spend money on something because you're spending.
0:51:20 > 0:51:25How much do you think you spend a year when you say you don't spend any money on anything?
0:51:27 > 0:51:29I don't know.
0:51:29 > 0:51:33- You don't know? Don't know. - You say we should have our finger on the button,
0:51:33 > 0:51:38but we are running round like lunatics running this business. We're busy.
0:51:38 > 0:51:42- There's only us two... - Right, Liz, as an investor, how do you think that makes me feel?
0:51:42 > 0:51:46- I would think... - We're running around like lunatics. - For the last seven years,
0:51:46 > 0:51:52- we've worked really hard and brought a product to the market.- No, Liz, when I ask you the questions,
0:51:52 > 0:51:56you haven't got the answers and now you're getting extremely defensive.
0:51:56 > 0:52:01You should know. Absolutely, you should know.
0:52:07 > 0:52:12Can I say where I am? Liz, Alan, your numbers don't add up.
0:52:12 > 0:52:16It's ridiculous and it's ludicrous and I am out.
0:52:18 > 0:52:22'A brief but disparaging contribution from Duncan Bannatyne
0:52:22 > 0:52:25'as Liz and Alan lose their first Dragon.
0:52:25 > 0:52:28'Will Theo Paphitis be more forgiving?'
0:52:36 > 0:52:39You knew you were coming here to look for investment.
0:52:40 > 0:52:45Did you not think that someone might just ask you those questions?
0:52:45 > 0:52:50- Yeah, we've thought about every single question except that.- What...
0:52:51 > 0:52:55Seriously, guys, I quite like the concept purely for its simplicity.
0:52:55 > 0:52:59But it's not investable for me.
0:52:59 > 0:53:02- I'm going to say I'm out.- Thank you.
0:53:02 > 0:53:05Liz, Alan, as a business,
0:53:05 > 0:53:09I can't see getting a return at anything like what you've offered.
0:53:09 > 0:53:13But I think you've done a really good job to create something from nothing.
0:53:13 > 0:53:18You're amazingly passionate about what you've done, so good luck but I'm not going to invest and I'm out.
0:53:18 > 0:53:20- Thank you.- OK.
0:53:22 > 0:53:25I'm really disappointed.
0:53:25 > 0:53:30I've got no problem with people getting passionate. But, Liz, you border on the defensive.
0:53:31 > 0:53:37You have got to give me a reason and enough information
0:53:37 > 0:53:41to want to hand you my money, because I honestly, I promise you this,
0:53:41 > 0:53:45if you had, you'd have had an investment from me.
0:53:46 > 0:53:50- Oh. - And I think that is a great shame.
0:53:54 > 0:53:56I can't invest.
0:53:56 > 0:53:58I'm sorry, Deborah.
0:53:59 > 0:54:01And for that reason, I'm out.
0:54:04 > 0:54:10'A sombre mood takes over the den and the once confident entrepreneurs look forlorn.
0:54:10 > 0:54:12'Just one Dragon remains.
0:54:12 > 0:54:18'Has Hilary Devey seen anything in the business that could turn around their investment fortunes?'
0:54:29 > 0:54:32Erm, Liz, Alan...
0:54:38 > 0:54:42You see, I think that you both need quite a lot of mentoring.
0:54:49 > 0:54:51I think we do need some help.
0:54:51 > 0:54:56I think this product's so good that sometimes it's quite daunting.
0:54:56 > 0:55:00There's lots of different uses. There's trucks, there's the whole truck market.
0:55:00 > 0:55:06- Boats, we sell them to boats.- I think you've got a huge market, some of which you've not even touched on.
0:55:09 > 0:55:14You need some input into the business to help you with the direction.
0:55:14 > 0:55:17But unlike Deborah, I don't really think that's the end of the world.
0:55:17 > 0:55:21I have people that can teach you that and keep your finger on the button.
0:55:23 > 0:55:27So because I do think it has got vision...
0:55:29 > 0:55:31..I'll offer you the full amount.
0:55:33 > 0:55:35But I want 26 percent.
0:55:41 > 0:55:45- You couldn't make it 20 percent?- No, I'm sorry, I can't move from 26.- 22?
0:55:45 > 0:55:47No.
0:55:47 > 0:55:54Because it's a limited company, anybody owning 75 percent of the business has got total control.
0:55:54 > 0:55:57So I need that protection and therefore I need 26 percent.
0:55:59 > 0:56:01Can we go and have a word?
0:56:07 > 0:56:13'A dramatic development in the den as Hilary Devey presents the duo with an investment lifeline.
0:56:13 > 0:56:18'But it comes at a cost. More than a quarter of their company.
0:56:18 > 0:56:22'Is it just too high a price to get a Dragon on board?'
0:56:26 > 0:56:28THEY WHISPER
0:56:36 > 0:56:41I'd like to take it, Hilary, but I want Alan to be happy with it.
0:56:41 > 0:56:45Alan, don't say "All right" because your wife says all right.
0:56:45 > 0:56:49- You've been married 28 years. She's not going to divorce you now.- Yes.
0:56:49 > 0:56:55- Yes, please! We've love it. - Yes, please.- Thank you.- Well done.
0:56:55 > 0:56:59'Liz and Alan have done it. In a last-minute turn around,
0:56:59 > 0:57:04'they've secured the den's newest dragon and £80,000 of her cash.'
0:57:04 > 0:57:08- I look forward to working with you, guys.- Thank you. We do, as well.
0:57:16 > 0:57:19Now, Liz and Alan, are you happy with what you've just signed up to?
0:57:19 > 0:57:27I am. The more I think about it, the more happy I'm getting. We did say 20 percent would be our limit
0:57:27 > 0:57:30but, for the sake of six percent...
0:57:30 > 0:57:35I said to Alan when we got to the wall, "Are we going to lose this for six percent?
0:57:35 > 0:57:38"Would we regret it? I don't know."
0:57:38 > 0:57:42- We would've.- Yeah, probably.- Well, very good luck with it.- Thank you.
0:57:50 > 0:57:53So today our newest Dragon,
0:57:53 > 0:57:56self-made multi-millionaire Hilary Devey,
0:57:56 > 0:58:01has shown that not only does she have an eye for spotting potential money-making opportunities
0:58:01 > 0:58:04but she's also prepared to take an independent line
0:58:04 > 0:58:07and make up her own mind rather than following the crowd.
0:58:07 > 0:58:14You can find out why Hilary invested in Alan and Liz today by pressing the red button now.
0:58:14 > 0:58:18You can also follow us on Twitter or let us know what you thought of today's programme.
0:58:18 > 0:58:21We're:
0:58:21 > 0:58:22Goodbye.
0:58:26 > 0:58:32- Passion doesn't create profit. - How do you think it's gone so far? - Can we start again?
0:58:34 > 0:58:40- Wow.- Anybody got a white flag? I surrender! It's relentless!
0:58:40 > 0:58:46I think you're good, I think the product's good. I am prepared to look at the percentages.
0:58:47 > 0:58:51Subtitles by Red Bee Media Ltd
0:58:51 > 0:58:55E-mail subtitling@bbc.co.uk
0:58:55 > 0:58:55.