0:00:25 > 0:00:27These are the Dragons,
0:00:27 > 0:00:31five of Britain's wealthiest and most enterprising business leaders.
0:00:31 > 0:00:35Over the coming weeks, they'll make or break the dreams
0:00:35 > 0:00:39of dozens of budding entrepreneurs.
0:00:40 > 0:00:44Can I speak my mind? I think you've been so stupid.
0:00:44 > 0:00:45I wish you the best of luck,
0:00:45 > 0:00:49but as investor, I think I'd lose my shirt.
0:00:49 > 0:00:52The maximum you've made is £13,000.
0:00:52 > 0:00:56How am I ever going to see any of my £50,000?
0:00:56 > 0:01:00I consider this quite a punt, but I am going to make you an offer.
0:01:00 > 0:01:02Weakey, weakey, weakey, weakey, whoo!
0:01:06 > 0:01:12The multi-millionaire investors have each built up their fortunes from scratch.
0:01:13 > 0:01:17Hotel and health club owner, Duncan Bannatyne.
0:01:17 > 0:01:20Leisure industry expert, Deborah Meaden.
0:01:20 > 0:01:24Retail magnate, Theo Paphitis.
0:01:24 > 0:01:27Telecoms giant, Peter Jones.
0:01:28 > 0:01:33And Hilary Devey, who made her millions in the haulage industry.
0:01:34 > 0:01:39The Dragons have the credentials, the contacts, the commitment and the cash ready to invest,
0:01:39 > 0:01:41but only in the right business.
0:01:41 > 0:01:44Will any of these hopeful entrepreneurs
0:01:44 > 0:01:47walk away with their money?
0:01:54 > 0:01:57Welcome to Dragons' Den.
0:01:57 > 0:02:00In difficult times, more and more people are turning to business
0:02:00 > 0:02:02as a way of earning a living.
0:02:02 > 0:02:04The Den is the forum where deals are done
0:02:04 > 0:02:09and entrepreneurs secure the investment they so desperately need.
0:02:09 > 0:02:12But only if they can persuade any of our Dragons
0:02:12 > 0:02:15to part with their cash.
0:02:15 > 0:02:17Pitching in the Den can change lives,
0:02:17 > 0:02:20but only if investment is secured.
0:02:20 > 0:02:23Let's see how our first entrepreneurs get on.
0:02:42 > 0:02:46Hello, Dragons. My name's Nick. This is Richard and Sebastian.
0:02:46 > 0:02:51We're looking for £50,000 in exchange for 15 percent of our business.
0:02:51 > 0:02:54Bar Mate, like some good ideas,
0:02:54 > 0:02:58is the result of an evening in the pub in my student days.
0:02:58 > 0:03:03It was four-deep at the bar and I wondered, "Why does it take so long to get served?"
0:03:03 > 0:03:08I watched the bar staff and I realised that they spend most of their time holding the glass.
0:03:08 > 0:03:11I thought there was a huge efficiency gap there.
0:03:11 > 0:03:15If we designed something to hold the glass for them,
0:03:15 > 0:03:19that would free up their time so they could do other things.
0:03:19 > 0:03:22I got in touch with Seb, a product designer,
0:03:22 > 0:03:25and he'll explain where we are now.
0:03:25 > 0:03:28You take the pint glass, you lift up the tap, put the glass in.
0:03:28 > 0:03:31I can then go and take payment,
0:03:31 > 0:03:36and come back and the glass has taken care of itself and poured it to a predetermined level.
0:03:36 > 0:03:39I can come back and simply top it up.
0:03:40 > 0:03:44Our market is pubs, but in particular managed pubs, of which there are 9,000 in the UK.
0:03:44 > 0:03:49Each will typically have between ten and 20 taps that this is suitable for.
0:03:49 > 0:03:53That means a market between 90 and 180,000 units.
0:03:53 > 0:03:57Thank you for listening to us. We're happy to answer any questions.
0:04:01 > 0:04:05Penetrating a market as established as the pub trade is a tough ask,
0:04:05 > 0:04:09even with the most innovative of inventions.
0:04:09 > 0:04:15But that's what assured trio Nick, Richard and Sebastian believe they can do.
0:04:15 > 0:04:17In return for 15 percent of their company,
0:04:17 > 0:04:23they need £50,000 to take their prototype automated bar tap into production.
0:04:23 > 0:04:27Peter Jones is first to scrutinise the opportunity on offer.
0:04:30 > 0:04:32Guys, hi, I'm Peter.
0:04:32 > 0:04:36Before I start talking about that product, I want to talk about you.
0:04:36 > 0:04:39- A product designer by trade. - That's right.
0:04:39 > 0:04:42- Richard, what do you do? - I used to work in investment
0:04:42 > 0:04:46and for the last five years I ran a biotech company, up to the end of last year.
0:04:46 > 0:04:51- And Nick?- I'm an architect. I've got a small practice of four people in Central London.
0:04:51 > 0:04:54OK. When I look at the product,
0:04:54 > 0:04:58I mean, I've worked in a bar, what you tend to see with barmen,
0:04:58 > 0:05:01they put the glass down, pull the tap and get other drinks.
0:05:01 > 0:05:04They keep an eye on it, flick the tap and come back to it.
0:05:04 > 0:05:07They're multi-tasking anyway.
0:05:07 > 0:05:13So, how can you convince me that somebody's going to replace an existing tap?
0:05:13 > 0:05:18The current system of trying to manage that without having flat beer,
0:05:18 > 0:05:23because if you pour into the glass from a height, it foams everywhere,
0:05:23 > 0:05:27so what they currently do is raise the glass to the correct height.
0:05:27 > 0:05:31Typically, they take a pint glass, reverse it and stick another on top,
0:05:31 > 0:05:34- which isn't a realistic solution. - Right.
0:05:34 > 0:05:37And what do you think you'll be able to sell that for?
0:05:37 > 0:05:40We plan to sell it for a unit price of £90.
0:05:40 > 0:05:43We think it'll take about two months to recoup its costs for the pubs.
0:05:43 > 0:05:48We've been to Wetherspoons and their biggest complaint is customer waiting time,
0:05:48 > 0:05:50and they're interested in this.
0:05:50 > 0:05:52- They'd spend £90? - They're already spending
0:05:52 > 0:05:56- between £30 and £70 on a normal tap, anyway.- OK.
0:06:00 > 0:06:02It's early days for the business,
0:06:02 > 0:06:05but such interest from a major chain of pubs
0:06:05 > 0:06:08is bound to be of interest to an investor.
0:06:09 > 0:06:12Former football club chairman Theo Paphitis
0:06:12 > 0:06:16is next to question the confident trio.
0:06:17 > 0:06:20Guys, hello, I'm Theo.
0:06:20 > 0:06:25I've had to manage a business where you only had a very short window
0:06:25 > 0:06:27to get all your customers through,
0:06:27 > 0:06:29half time, just before the game,
0:06:29 > 0:06:34and the biggest problem was speed of delivery of the beer.
0:06:34 > 0:06:37Now, really, how much time are you saving?
0:06:37 > 0:06:42If you look at managed pubs, when you have very busy times, you might have four deep at the bar,
0:06:42 > 0:06:45someone walks up and asks for five pints of lager,
0:06:45 > 0:06:48they hold the first pint, they put it down,
0:06:48 > 0:06:51they hold the second... This is a long process.
0:06:51 > 0:06:54It takes, on average, 19 seconds to pour a pint.
0:06:54 > 0:06:59That's minutes. It frees the barman up to do other things.
0:06:59 > 0:07:01Nick, Richard, Sebastian, hi, I'm Deborah.
0:07:01 > 0:07:07This £90, how far have you got with establishing how that would be made, the material it would be made in?
0:07:07 > 0:07:09We've a complete quote for its manufacture
0:07:09 > 0:07:14and we've made allowances for the cost of shipping, VAT.
0:07:14 > 0:07:17And of the £90, there's also a cut for distribution.
0:07:17 > 0:07:20We've worked out that gives us a good gross profit.
0:07:20 > 0:07:23What are they going to cost you to make?
0:07:23 > 0:07:26We'd have a gross profit of 75 percent on the £90.
0:07:26 > 0:07:31- Sorry?- We'd have a gross profit of 75 percent on the £90.
0:07:33 > 0:07:37Poised responses and a potentially profitable product,
0:07:37 > 0:07:41the entrepreneurs are putting on a good performance in the Den.
0:07:41 > 0:07:45But Hilary Devey looks to have something on her mind.
0:07:47 > 0:07:51Guys, I've been in and out of pubs all my life,
0:07:51 > 0:07:54and I was pulling pints,
0:07:54 > 0:07:57illegally, from the age of six, seven years of age!
0:07:57 > 0:08:03To be honest, if I'd got bar staff that couldn't add up the order in their head,
0:08:03 > 0:08:06open a bottle, put it on the counter,
0:08:06 > 0:08:11pour a spirit or a glass of wine and then deliver the pint,
0:08:11 > 0:08:15frankly, I'd think they were badly trained bar staff.
0:08:17 > 0:08:20I've got to say, I'm out.
0:08:22 > 0:08:26It's a first blow for the trio.
0:08:26 > 0:08:30Will Duncan Bannatyne agree with his rival's concerns?
0:08:32 > 0:08:36I think you guys are great and I'd love to invest with you,
0:08:36 > 0:08:38but if this really does work,
0:08:38 > 0:08:42all you need is to get one of the big brewery chains involved, work with them,
0:08:42 > 0:08:45giving them first advantage where they get the first order
0:08:45 > 0:08:48or give them a licence, I'm sure they'll snap your hand off.
0:08:48 > 0:08:51But it's not for me and for that reason, I'm out.
0:08:51 > 0:08:53Thank you.
0:08:54 > 0:08:57Guys, I think it's a great, inventive product.
0:08:57 > 0:08:59I think it's nicely designed.
0:08:59 > 0:09:02I'm concerned about the cost.
0:09:02 > 0:09:05I think that when you go into negotiations to replace the taps,
0:09:05 > 0:09:08you'll end up almost having to give it away at cost.
0:09:08 > 0:09:14I'm going to decline the investment because of the margin pressure I think it will come under
0:09:14 > 0:09:16when you try to put it into the market.
0:09:16 > 0:09:20I wish you the best of luck, but I'm going to say I'm out.
0:09:22 > 0:09:25Two more Dragons out.
0:09:25 > 0:09:28Can leisure industry expert Deborah Meaden
0:09:28 > 0:09:31find a reason to invest?
0:09:34 > 0:09:38One of the issues with speed pouring is, you get an awful lot of wastage.
0:09:38 > 0:09:43- How does this affect that? - You don't have wastage because you set the level the pint stops at.
0:09:43 > 0:09:47So if you happen to have a barrel at a slightly different pressure
0:09:47 > 0:09:50and you find it's frothing over, you can adjust it.
0:09:50 > 0:09:52Where do you adjust that?
0:09:52 > 0:09:55It's a simple ring to adjust the pressure that it comes out at.
0:09:55 > 0:10:01- Have you got a patent?- We do. - Patent granted.- Yes.- For what?
0:10:01 > 0:10:04It's a UK patent and it covers the notion of a device
0:10:04 > 0:10:09which holds a glass at an angle, which declines as you fill it,
0:10:09 > 0:10:12and activates a valve to stop the filling.
0:10:12 > 0:10:15- And who owns the patent?- I do.
0:10:15 > 0:10:20- And would you be prepared to transfer that into the company?- Yes.
0:10:21 > 0:10:24Guys, has anybody said
0:10:24 > 0:10:26they will give you an order if this works?
0:10:26 > 0:10:29We have a pub chain who's willing to trial it.
0:10:29 > 0:10:31- How many?- There's 15 pubs.
0:10:31 > 0:10:34Obviously, they'd start with a smaller number to test it,
0:10:34 > 0:10:37and roll it out if it was successful.
0:10:37 > 0:10:41Wetherspoons said they would trial it in their headquarters on site.
0:10:45 > 0:10:48Listen, I think it's, erm...
0:10:48 > 0:10:51It's a good idea and I could see the minute you showed it,
0:10:51 > 0:10:56I could see how it would work with the weight and everything else.
0:10:58 > 0:11:01Erm... I'm going to make you an offer.
0:11:04 > 0:11:08The full money, but I'd want 25 percent.
0:11:14 > 0:11:18At last, Nick, Richard and Sebastian have the offer they came in for,
0:11:18 > 0:11:22but for nearly twice as much as they initially wanted to give away.
0:11:22 > 0:11:25With one Dragon remaining,
0:11:25 > 0:11:29will they be able to negotiate themselves a better deal?
0:11:36 > 0:11:40I consider this quite a punt.
0:11:40 > 0:11:43It's early. You take it out there and somebody says,
0:11:43 > 0:11:46"We've got one of these that does that."
0:11:47 > 0:11:50But I am going to make you an offer.
0:11:52 > 0:11:55I'm going to make you an offer for half of the money,
0:11:55 > 0:11:59actually on the same terms that Theo was talking about.
0:11:59 > 0:12:03So we've now got two decisions to be made.
0:12:03 > 0:12:07Does the Dragon to my right, would he consider taking a partner?
0:12:07 > 0:12:11And would you consider taking that offer?
0:12:11 > 0:12:14We'd quite like to go into a huddle and talk about the offer.
0:12:14 > 0:12:16Thank you.
0:12:18 > 0:12:21It's an unusual occurrence in the Den.
0:12:21 > 0:12:27The entrepreneurs still only have one full offer on the table for 25 percent.
0:12:27 > 0:12:30THEY WHISPER
0:12:32 > 0:12:35Will they choose Theo Paphitis on his own,
0:12:35 > 0:12:38try and convince him to partner with Deborah,
0:12:38 > 0:12:41or will they choose to go with no Dragons at all?
0:12:44 > 0:12:46(My legs hurt!)
0:12:49 > 0:12:53Er... If you were to share your investment with Deborah,
0:12:53 > 0:12:56so that there's less capital at risk for either of you,
0:12:56 > 0:13:01we would like to suggest that you both invested £25,000 each for 10 percent each,
0:13:01 > 0:13:05so overall, 20 percent rather than 25 percent.
0:13:05 > 0:13:07That's really good logic,
0:13:07 > 0:13:10but it's such a small percentage to have.
0:13:11 > 0:13:14My logic says,
0:13:14 > 0:13:17if you've got two Dragons,
0:13:17 > 0:13:23especially with Deborah's experience in pubs, clubs and marketing,
0:13:23 > 0:13:26maybe the right figure should be 30 percent...
0:13:31 > 0:13:33..so we've got 15 percent each.
0:13:35 > 0:13:38Think about that. If you've got two Dragons,
0:13:38 > 0:13:42what that gives you is a lot more firepower.
0:13:44 > 0:13:47Deborah, how would you feel about that?
0:13:47 > 0:13:50Absolutely. I'd be happy with that.
0:13:52 > 0:13:56- I preferred our huddle! - You preferred...!- It was nicer.
0:13:56 > 0:13:58Is your original offer still on the table?
0:14:00 > 0:14:04- Yes.- Thank you very much.
0:14:07 > 0:14:11(They could come down with the equity because they're sharing the risk.)
0:14:11 > 0:14:15- (I think we should take it.) - (Which one?)
0:14:15 > 0:14:17THEY WHISPER INAUDIBLY
0:14:19 > 0:14:22(We didn't come just for the money.)
0:14:27 > 0:14:32We would like to take the offer of 30 percent, split between Theo and Deborah.
0:14:32 > 0:14:35- We didn't come just for the money. - Fabulous!- Excellent!
0:14:35 > 0:14:37Well done, fella.
0:14:37 > 0:14:40- Thank you. - We didn't want to be home-wreckers!
0:14:42 > 0:14:45Nick, Richard and Sebastian have done it.
0:14:45 > 0:14:48For 30 percent of their business, they've gained £50,000
0:14:48 > 0:14:52and two multi-millionaire business partners.
0:14:54 > 0:14:56It seemed counter-intuitive to give away more,
0:14:56 > 0:15:00but we got two Dragons and that's got to be better than one!
0:15:00 > 0:15:03I think we might go for a drink!
0:15:03 > 0:15:06- Then Seb's got to make the production version.- I have.
0:15:06 > 0:15:08Incorporate a company for the five of us.
0:15:08 > 0:15:11There's five in this marriage!
0:15:14 > 0:15:18Many entrepreneurs believe the key to success in the Den
0:15:18 > 0:15:24is to get the Dragons to experience at firsthand their business, service or product.
0:15:24 > 0:15:28This was true of Jacqui Thompson from Lincolnshire,
0:15:28 > 0:15:30who wanted a £50,000 investment
0:15:30 > 0:15:34in her police-themed educational workshops.
0:15:34 > 0:15:37Pulse was created in 2008
0:15:37 > 0:15:42as a way to engage children into liking science in a fun way.
0:15:42 > 0:15:47What I would like to do is to take you into my world of CSI.
0:15:47 > 0:15:51With all five Dragons turning into crime-scene investigators...
0:15:51 > 0:15:53Heads up!
0:15:53 > 0:15:57..the Den found itself embroiled in a different kind of enquiry.
0:15:59 > 0:16:01This is our crime scene.
0:16:01 > 0:16:05What we've got is, a fatality has happened in the Den.
0:16:05 > 0:16:07Duh, duh, duhh!
0:16:08 > 0:16:12It looks like somebody had an ice cream, whilst the attacker had a cigarette.
0:16:12 > 0:16:15They tried to rob them of their CD information.
0:16:15 > 0:16:18They missed the £10, but hit them over the head with a bottle.
0:16:18 > 0:16:21THEO: Who sells ice cream?
0:16:21 > 0:16:22Or who sold ice cream?
0:16:24 > 0:16:26- Upon initial inspection... - Got prints.
0:16:26 > 0:16:30..Theo Paphitis applauded Jacqui's business concept.
0:16:30 > 0:16:33I think the theory of it is excellent.
0:16:33 > 0:16:37Teaching kids to learn through things that they're interested in,
0:16:37 > 0:16:41as opposed to sitting in class, would've done me the world of good at school.
0:16:41 > 0:16:44But problems soon arose
0:16:44 > 0:16:48as the Dragons forensically examined the business model.
0:16:48 > 0:16:53- Can I ask what you charge for this? - Based on a year group of about 120,
0:16:53 > 0:16:55it works out at 1,495.
0:16:55 > 0:16:58Can you talk me through the mechanics,
0:16:58 > 0:17:00what turnover you're expecting?
0:17:00 > 0:17:02Er... First year,
0:17:02 > 0:17:05I turned over £16,000.
0:17:05 > 0:17:07Last year, £34,000
0:17:07 > 0:17:10with a net profit of £13,000.
0:17:10 > 0:17:13The maximum you made is £13,000.
0:17:13 > 0:17:18How am I ever going to see any of my £50,000 back?
0:17:18 > 0:17:20It's not a scalable business at all.
0:17:20 > 0:17:25It's wholly dependent on yourself, and if you get knocked down by that proverbial bus tomorrow,
0:17:25 > 0:17:28bang goes our investment.
0:17:28 > 0:17:30I'm out.
0:17:33 > 0:17:38The Dragons have been asked to invest in some very large products in the past,
0:17:38 > 0:17:41but Bola Lafe, who was a finance manager for a global bank,
0:17:41 > 0:17:44is offering up one of the smallest.
0:17:44 > 0:17:48Of course, as long as the profits are big enough, the Dragons won't mind.
0:18:18 > 0:18:22Hello, I'm Bola Lafe, managing director of Opus Innovations Ltd.
0:18:22 > 0:18:27I'm the inventor of the Cleebo baby and kids nasal mucus tweezers.
0:18:27 > 0:18:33I'm here to ask for £50,000 in exchange for 10 percent of the business.
0:18:33 > 0:18:36The pitch won't be based on the tweezers,
0:18:36 > 0:18:40although I have another number of products,
0:18:40 > 0:18:42but the first thing is the tweezers.
0:18:42 > 0:18:46We've got two children. When the first was about four months old,
0:18:46 > 0:18:50she often had a blocked nose and an uneasy time at night trying to breathe.
0:18:50 > 0:18:53We were paranoid about putting her to bed.
0:18:53 > 0:18:57Children and small babies cannot blow their noses, as we all know,
0:18:57 > 0:19:02and these are a way of removing the solid and semi-solid mucus.
0:19:06 > 0:19:10Once it's blocked, a lot of parents, and I know most of you are parents,
0:19:10 > 0:19:13they actually stick dangerous implements up their noses.
0:19:13 > 0:19:16To demonstrate them...
0:19:16 > 0:19:20And because of the shape of them, you can't go up too far.
0:19:20 > 0:19:22The main thing with these is safety.
0:19:22 > 0:19:24Our plan is to make this global
0:19:24 > 0:19:27and make sure every parent with a small child
0:19:27 > 0:19:31has a pair of Cleebo tweezers in the changing bag
0:19:31 > 0:19:33or in the bathroom cabinet.
0:19:33 > 0:19:35Thank you.
0:19:39 > 0:19:43Big aspirations from father-of-two Bola Lafe, from Kent.
0:19:43 > 0:19:46- Can I see those tweezers?- Sure.
0:19:46 > 0:19:50He needs £50,000 to establish his range of baby accessories
0:19:50 > 0:19:54and is willing to part with 10 percent of his new company.
0:19:54 > 0:19:58Collectively, the Dragons have 17 children.
0:19:58 > 0:20:02What will Theo Paphitis make of Bola's invention?
0:20:03 > 0:20:05- Bola, hello.- Hi, Theo.
0:20:05 > 0:20:07OK, I've got five kids
0:20:07 > 0:20:12and I'm sure we've all nursed a child that's been poorly and has had a blocked nose.
0:20:12 > 0:20:15- Yes.- So, what have we done
0:20:15 > 0:20:17to clear that congestion?
0:20:17 > 0:20:21The top five things, and we surveyed 2,000 parents,
0:20:21 > 0:20:24the first thing they did was fingernails.
0:20:24 > 0:20:25They just used that.
0:20:25 > 0:20:30The second thing was cotton buds. If you slip, that goes straight up the nose.
0:20:30 > 0:20:33The third thing, believe it or not,
0:20:33 > 0:20:38- people use metal tweezers, which is what prompted this.- Never!
0:20:38 > 0:20:43I have seen the fingernail. Do you know what? I think it's safe.
0:20:43 > 0:20:47- Fingernail was number one. - A mother's fingernail just seems to manage.
0:20:47 > 0:20:51I've seen them do it so many times. I can't do it.
0:20:51 > 0:20:53Women just do it with their finger.
0:20:53 > 0:20:58The problem is, their nasal lining is very thin. That's why we've got the doctors involved -
0:20:58 > 0:21:02A fingernail doesn't really go up. The snot is there
0:21:02 > 0:21:06and you just go "weakey, weakey, weakey, weakey, whoo!"
0:21:09 > 0:21:12A rather un-Dragon-like response perhaps,
0:21:12 > 0:21:16but at least the multi-millionaires are engaging with the problem at hand.
0:21:16 > 0:21:21Can Peter Jones bring a little order back to proceedings?
0:21:22 > 0:21:26Bola, I'm praying that you've got something else, apart from bogey tweezers.
0:21:26 > 0:21:28I'll show you the others.
0:21:30 > 0:21:35These products haven't been commercialised yet. These are concepts and prototypes.
0:21:35 > 0:21:38This first product here...
0:21:38 > 0:21:41..is our take on the new wet-wipe holders.
0:21:41 > 0:21:44Babies move around a lot, they need distracting,
0:21:44 > 0:21:48so the different components come off. That could be a rattle.
0:21:48 > 0:21:50- Wet wipes in the middle.- Got it.
0:21:50 > 0:21:54This one is a game that doubles up as a learning aid.
0:21:54 > 0:21:58The idea is that, once you've studied the pack, you can take a card away
0:21:58 > 0:22:02and whoever's playing has time to guess what card's gone.
0:22:02 > 0:22:08- Do you have any products that you currently sell? The tweezers?- Yes.
0:22:08 > 0:22:11- What price do you sell them for? - £5.99.
0:22:11 > 0:22:15- What's your revenue since you started?- About £8,000. - And your profit?
0:22:15 > 0:22:18The profit, er, year one
0:22:18 > 0:22:21would be an 80,000 loss.
0:22:21 > 0:22:24OK. So, you've tested the concept and you've sold £8,000?
0:22:24 > 0:22:29- Is that why you've gone to other products?- Not at all. I've not been focused full time.
0:22:29 > 0:22:31I've been doing it in my spare time.
0:22:31 > 0:22:35- You've had a job up until now.- Yes. - What was the day job?
0:22:35 > 0:22:40I was a managing director at one of the global investment banks.
0:22:40 > 0:22:42- Which bank?- Citibank.
0:22:42 > 0:22:44- Managing director at Citibank? - Expense management.
0:22:44 > 0:22:48- Expense management.- For Europe and Asia, so I ran two regions.
0:22:48 > 0:22:52- How many people reported to you? - About 50.
0:22:55 > 0:22:58Any thoughts of baby talk are long gone
0:22:58 > 0:23:01as Bola's impressive credentials come to the fore.
0:23:01 > 0:23:06Deborah Meaden is next to interrogate the former banker.
0:23:08 > 0:23:11How much money have you put into this business?
0:23:11 > 0:23:15- With everything, just over 200,000. - Oh, my God.
0:23:15 > 0:23:17OK.
0:23:17 > 0:23:21- So, is that 200,000 already spent? - It is, yes.
0:23:21 > 0:23:26When you put your £200,000 in, what was your business plan?
0:23:26 > 0:23:29When did you think you were going to get cash back from that?
0:23:29 > 0:23:32We saw that as being from about the fourth year.
0:23:32 > 0:23:35We're looking at numbers of 1.4 million.
0:23:35 > 0:23:39And after that, the following year, 3.5.
0:23:39 > 0:23:43Sorry. In four years, you're going to be making 1.4 million profit?
0:23:43 > 0:23:47Yes. Because we've based this on kind of global numbers.
0:23:48 > 0:23:51OK. Erm... You've already spent 200,000.
0:23:51 > 0:23:56- Yes.- How much more money are you going to have to spend before you get into profit?
0:23:56 > 0:23:59About 100,000.
0:24:00 > 0:24:04- But we're still trying to get the word out there. - Bola, Bola, I've made my mind up.
0:24:04 > 0:24:10I cannot imagine that you are ever going to see
0:24:10 > 0:24:13any part of your £200,000 recouped
0:24:13 > 0:24:17through one very small product.
0:24:17 > 0:24:21- And the trouble is, your follow-up products, I don't think, are very good.- OK.
0:24:21 > 0:24:26I think you've been pretty foolhardy with your 200,000.
0:24:26 > 0:24:27Right. OK.
0:24:27 > 0:24:29I'm out.
0:24:31 > 0:24:34A frank exchange and an early loss.
0:24:34 > 0:24:36Bola's contrasting revelations
0:24:36 > 0:24:40are eliciting strong responses from the Dragons.
0:24:40 > 0:24:44Will Hilary Devey see an opportunity to invest?
0:24:45 > 0:24:50Bola, you're obviously a family man, you obviously love your children,
0:24:50 > 0:24:56but why would you give up a job as managing director to pursue that?
0:24:56 > 0:25:01I'm passionate about it. I made sure the family is protected for the next two years
0:25:01 > 0:25:04while we explore these products.
0:25:04 > 0:25:09And at the end of the day, if this doesn't work, I've got the ability to go back to the City.
0:25:09 > 0:25:12I think people are underestimating the problem.
0:25:12 > 0:25:14- I don't blame you for - - Well, no, I am a mother
0:25:14 > 0:25:17and I brought my own child up and...
0:25:17 > 0:25:19We've done the research.
0:25:19 > 0:25:23Like we've all said, you'd use your finger or a tissue.
0:25:23 > 0:25:27- Doctors recommend not to use a finger.- He's now 25 years of age
0:25:27 > 0:25:29and a big handsome lad!
0:25:29 > 0:25:33I do respect people's views, but the experts have looked at it
0:25:33 > 0:25:38and they have a different view because they see what goes on in the real world.
0:25:38 > 0:25:43You may have different views on this, but I'll prove you wrong.
0:25:43 > 0:25:46No question about it on this, because we know this is a problem.
0:25:46 > 0:25:49I've never failed at anything I've done.
0:25:49 > 0:25:52I would not give up my career to fail at this.
0:25:52 > 0:25:55I wouldn't waste anyone's money if you decided to invest.
0:25:55 > 0:25:59What you're getting is... I will make it work.
0:25:59 > 0:26:03Erm... It's just... It's who I am.
0:26:06 > 0:26:10A valiant plea from the assured entrepreneur.
0:26:10 > 0:26:14But will it be enough to salvage his dreams of investment?
0:26:14 > 0:26:18Duncan Bannatyne is now ready to have his say.
0:26:20 > 0:26:23OK, Bola, I would never, ever recommend
0:26:23 > 0:26:26anyone use conventional tweezers or hair pins,
0:26:26 > 0:26:32but I have seen parents using fingernails, cotton buds and twisted tissue.
0:26:32 > 0:26:37Whether or not these things are right to use, I don't know,
0:26:37 > 0:26:41but I would rather use any of these three things than use this.
0:26:41 > 0:26:47- But why would - - Nothing you have there is new or innovative or can't be copied.
0:26:47 > 0:26:50So for that reason, I have to say where I am and that is out.
0:26:50 > 0:26:52OK.
0:26:52 > 0:26:54Bola, the business,
0:26:54 > 0:26:59as much as I know you're hoping on the next innovation, and there's nothing wrong with hoping,
0:26:59 > 0:27:02I don't see anything here.
0:27:02 > 0:27:05I wish you the best of luck on your journey,
0:27:05 > 0:27:10but as an investor, I think I'd lose my shirt.
0:27:10 > 0:27:12- I'm out.- OK.
0:27:15 > 0:27:17Two more Dragons walk away from the deal
0:27:17 > 0:27:21and Bola's initial confidence is starting to wane.
0:27:21 > 0:27:24And it doesn't look as though Hilary Devey
0:27:24 > 0:27:27is about to change his fortunes either.
0:27:28 > 0:27:31I don't think I can invest my money in this.
0:27:31 > 0:27:34I don't believe I'd get my money back.
0:27:34 > 0:27:37And I think you will end up back in the City.
0:27:37 > 0:27:40So I wish you all the luck in the world,
0:27:40 > 0:27:43but I'm out.
0:27:44 > 0:27:49Bola, I've been listening because you've got such a credible background,
0:27:49 > 0:27:54you're incredibly well presented, you're articulate.
0:27:54 > 0:27:58Now, you've got a product there,
0:27:58 > 0:28:02is it a horrendous product that's never going to sell?
0:28:02 > 0:28:05Actually, I don't think it is.
0:28:05 > 0:28:07You'll sell some.
0:28:07 > 0:28:10Not enough to pay me back my 50 grand, that's for certain.
0:28:10 > 0:28:14So for that reason, I'm going to say to you that I'm out.
0:28:14 > 0:28:17OK.
0:28:18 > 0:28:22Pitching to the Dragons can be a chastening experience
0:28:22 > 0:28:25for even the most impressive of entrepreneurs.
0:28:25 > 0:28:27Bola leaves with nothing.
0:28:34 > 0:28:37Many businessmen and women who enter the Den
0:28:37 > 0:28:39start off their entrepreneurial journey
0:28:39 > 0:28:43while still holding down a day job.
0:28:43 > 0:28:47This was true of serving officer in the airborne infantry Paul Blair...
0:28:47 > 0:28:49He's lovely!
0:28:49 > 0:28:54..who needed £80,000 for his canine safety accessory.
0:28:54 > 0:28:58When I was taking my dog for a walk, I threw a stick for him to chase
0:28:58 > 0:29:01and as it was tumbling, he ran onto it and injured his mouth.
0:29:01 > 0:29:06After seeing a gap in the market, I created Safestix.
0:29:06 > 0:29:09Having recently completed a charity skydive,
0:29:09 > 0:29:13Duncan was more interested in Paul's other occupation.
0:29:13 > 0:29:17- Where are you serving? - In the Parachute Regiment.
0:29:17 > 0:29:21- The Parachute Regiment.- Yes. - Where?- Netheravon.
0:29:21 > 0:29:26- Are you?- Yes. - Did I meet you when I sky-jumped? - No. I made a point to avoid you.
0:29:27 > 0:29:32But the Dragons weren't so impressed by the details of his business.
0:29:32 > 0:29:35- How much have you invested in this? - To date, £46,000.
0:29:36 > 0:29:38Wow.
0:29:38 > 0:29:40- Can I speak my mind?- Please do.
0:29:40 > 0:29:43I think you've been so stupid.
0:29:43 > 0:29:46I don't really think you need investment.
0:29:46 > 0:29:49Why not go back to the manufacturers,
0:29:49 > 0:29:51say, "You manufacture it",
0:29:51 > 0:29:55let them sell them to retailers, and then take your royalties?
0:29:55 > 0:29:57OK, they'll then get a mark-up.
0:29:57 > 0:30:00However, Paul did achieve one thing in the Den,
0:30:00 > 0:30:05and that was to divide the Dragons about the best way forward for his business.
0:30:05 > 0:30:07So Paul rings him and says,
0:30:07 > 0:30:12"I want you to make more of these things, but I'm not going to pay you.
0:30:12 > 0:30:17"I want you to sell them and send me some money."
0:30:17 > 0:30:20- Is that what you're telling Paul to do?- That'd be great if it works.
0:30:20 > 0:30:22- That's a fantastic model!- OK.
0:30:22 > 0:30:28I totally disagree with Hilary's comment that what you've done is stupid.
0:30:28 > 0:30:34The reason I want to make that clear is because you might be packing my parachute!
0:30:34 > 0:30:36Get that in now!
0:30:36 > 0:30:40It's not an investable business because it's never going to make enough money.
0:30:40 > 0:30:42I'm out.
0:30:43 > 0:30:49So far tonight, only one business has secured an investment offer from the Dragons.
0:30:49 > 0:30:50Fabulous!
0:30:50 > 0:30:52If you'd like to hear from Theo and Deborah
0:30:52 > 0:30:56about why they chose to invest in the entrepreneurial trio...
0:30:56 > 0:31:00- We didn't want to be home-wreckers! - ..press the red button at the end of the programme.
0:31:03 > 0:31:06It's never too late to pursue a business idea.
0:31:06 > 0:31:11Our next entrepreneur is developing a concept that she first had in the 1960s.
0:31:11 > 0:31:1571-year-old inventor Wendy Thompson, from the Isle of Wight,
0:31:15 > 0:31:18hopes the Dragons will think it's worth the wait.
0:31:37 > 0:31:40Hello. My name's Wendy Thompson.
0:31:40 > 0:31:44I'd like to offer you 40 percent of my business
0:31:44 > 0:31:47in return for £50,000.
0:31:48 > 0:31:53Erm... Many years ago, when I was in my early 20s,
0:31:53 > 0:31:57I specialised in the treatment of children.
0:31:57 > 0:32:02I couldn't get the equipment I needed to, er, augment my treatment.
0:32:02 > 0:32:05So I invented some.
0:32:05 > 0:32:09But there was one piece of equipment that I never designed and developed,
0:32:09 > 0:32:12the Health Swing.
0:32:12 > 0:32:14The Ancient Greeks got there first
0:32:14 > 0:32:20because they used to use swinging as a magical transformational activity.
0:32:20 > 0:32:25So with the Health Swing, you've got the ancient but with a modern twist.
0:32:25 > 0:32:30Coming fast-forward to about 15 months ago,
0:32:30 > 0:32:33my husband had a stroke
0:32:33 > 0:32:36and we both had to adjust.
0:32:36 > 0:32:41And I thought, "Right, I'd better sell my cattle."
0:32:41 > 0:32:44I had two lovely herds of cattle.
0:32:44 > 0:32:51And then I thought I wanted to use the money in designing the swing.
0:32:51 > 0:32:55It's a progressive, whole body exerciser.
0:32:55 > 0:32:58It strengthens and it mobilises.
0:32:58 > 0:33:02I'd just like to demonstrate the swing now.
0:33:02 > 0:33:05It is only a prototype.
0:33:06 > 0:33:12Elizabeth is going to demonstrate it without any resistance.
0:33:12 > 0:33:16Right, now, I'm going to... THEY LAUGH
0:33:16 > 0:33:19I'm going to put up the resistance. Er...
0:33:20 > 0:33:22Right, off you go.
0:33:22 > 0:33:27I've put the resistance up quite a lot, so she's having to work at it.
0:33:27 > 0:33:30She's burning up more calories,
0:33:30 > 0:33:33she's using her cardiovascular system,
0:33:33 > 0:33:37her respiratory system, as well.
0:33:37 > 0:33:39Thank you.
0:33:39 > 0:33:41Thank you very much.
0:33:41 > 0:33:45After nearly 50 years with it on the drawing board,
0:33:45 > 0:33:48physiotherapist and lecturer Wendy Thompson
0:33:48 > 0:33:54believes the time is right to launch her new therapeutic rehabilitation swing.
0:33:54 > 0:33:56She needs £50,000.
0:33:56 > 0:34:01It seems to have brought back memories for one Dragon.
0:34:02 > 0:34:04- Hello. I'm Theo.- Hello, Theo.
0:34:04 > 0:34:08As a kid, I used to always like to be on a swing.
0:34:08 > 0:34:11- Yes. - OK? And it really is therapeutic.
0:34:11 > 0:34:16But the minute you put the resistance up, it became a workout.
0:34:16 > 0:34:18And do you know what?
0:34:18 > 0:34:21It didn't look very nice.
0:34:21 > 0:34:27Well, I'm sorry you didn't like it, but you don't have to have it as an exercise machine.
0:34:27 > 0:34:29You can just get on it and go.
0:34:29 > 0:34:33I've been to gyms... You see, in our world,
0:34:33 > 0:34:36not everybody can go to the gym.
0:34:36 > 0:34:40If they had this in their home, they can watch TV,
0:34:40 > 0:34:42they can actually increase their blood supply.
0:34:42 > 0:34:45I know! But we're going to get it down!
0:34:45 > 0:34:48This was just made to prove the concept.
0:34:48 > 0:34:54Could it be adjusted to hang from a ceiling or a door frame?
0:34:54 > 0:34:58- Yes. This was just made for the prototype.- OK.
0:35:02 > 0:35:05Authoritative responses from the likeable entrepreneur.
0:35:05 > 0:35:10So what of her background? Peter Jones wants to know.
0:35:11 > 0:35:17Wendy, you mentioned caring, you've done amazing things, but have you ever set a business up?
0:35:17 > 0:35:23I was born on a farm and, you know, farming is business.
0:35:23 > 0:35:27I worked before I went to school, milked a cow, that sort of thing.
0:35:27 > 0:35:29So that really, I suppose,
0:35:29 > 0:35:34was where I became resilient and I'd sort of solve things.
0:35:34 > 0:35:40Then, er, then I had a career in chartered physiotherapy.
0:35:40 > 0:35:46Then I took a degree in rehabilitation at Southampton, which was research.
0:35:46 > 0:35:50But it's not until now that I've been able to say,
0:35:50 > 0:35:53"Right, this is what I'd like to do more of."
0:35:53 > 0:35:56- Wendy.- Yes?
0:35:56 > 0:35:59- How much is it?- What I thought was, there's three markets,
0:35:59 > 0:36:04a home market, the gym market and the rehabilitation.
0:36:04 > 0:36:07- The home market is perhaps the most valuable.- Yes.
0:36:07 > 0:36:11So I'd have a small version made for the home.
0:36:11 > 0:36:16- How much would it cost? - That would be retailing at £500.- OK.
0:36:16 > 0:36:20Tell me about the people who can't get the gym. Who are they?
0:36:20 > 0:36:25Well, just take my bank manager. He comes back home -
0:36:25 > 0:36:29Why can't he drive to the gym and walk in the front door?
0:36:29 > 0:36:34Because actually, there's not too many gyms on the Isle of Wight, which is where I come from.
0:36:34 > 0:36:36- You live on the Isle of Wight?- I do.
0:36:36 > 0:36:40- Have you not got a gym there? - No, I haven't, no.
0:36:40 > 0:36:45- OK, let's put the Isle of Wight to one side.- OK.
0:36:45 > 0:36:48Because you said that you'd been to gyms.
0:36:48 > 0:36:54Which gym have you been to with this that said they would buy one?
0:36:54 > 0:36:55Freshwater.
0:36:55 > 0:36:57Never heard of it. Where is that?
0:36:57 > 0:36:59- On the Isle of Wight.- OK.
0:36:59 > 0:37:01LAUGHTER
0:37:01 > 0:37:04- Wendy...! - HILARY LAUGHS
0:37:04 > 0:37:08- Wendy.- But actually -
0:37:08 > 0:37:11- Can I get back to why you came in here?- Yes.- OK.
0:37:11 > 0:37:15- Wendy... - HILARY LAUGHS
0:37:15 > 0:37:18Do you know my Auntie Joyce on the Isle of Wight?
0:37:18 > 0:37:20THEY LAUGH LOUDLY
0:37:24 > 0:37:27The Dragons are clearly beguiled by Wendy
0:37:27 > 0:37:30and the atmosphere is far from Den-like.
0:37:30 > 0:37:34But Hilary Devey wants to bring it back to business.
0:37:36 > 0:37:39Wendy, hi. I'm Hilary.
0:37:39 > 0:37:42Erm... Have you spoke to
0:37:42 > 0:37:46neurologists and neuro physios about this product?
0:37:46 > 0:37:51- No.- Why?- Because, to be honest, Hilary, I don't really need to,
0:37:51 > 0:37:55- because I'm the one -- Yes, you do. - Right.
0:37:55 > 0:37:59- A few years ago, I had a stroke. - Did you?- Quite a serious stroke.
0:37:59 > 0:38:01- Yes.- I couldn't even spell the word "the".
0:38:01 > 0:38:06I went from running a £100 million- turnover business one day
0:38:06 > 0:38:11- to not even being able to put pyjamas on the next. - That's terrible.
0:38:11 > 0:38:16And at the time, they didn't have the right equipment in the hospital
0:38:16 > 0:38:20to give me the right physio for the type of stroke that I had,
0:38:20 > 0:38:25and I ended up with a paralysed hand, arm and leg.
0:38:25 > 0:38:28And to this day, I'm still experiencing that.
0:38:28 > 0:38:32- Right.- Because there is definitely a shortage of this equipment.- Yes.
0:38:32 > 0:38:36Both in the private sector and the NHS.
0:38:36 > 0:38:42So if it works and you've got neurologists on side to say it works for post-stroke victims,
0:38:42 > 0:38:46I definitely think you have a market in the health sector.
0:38:46 > 0:38:49Hilary, I know I've got a market.
0:38:52 > 0:38:54A candid exchange
0:38:54 > 0:38:57and one that ends with a passionate defence of her product.
0:38:57 > 0:39:02Now, will Deborah Meaden be tempted to invest in Wendy?
0:39:04 > 0:39:07In terms of the market,
0:39:07 > 0:39:11have you talked to anybody at all about supplying these to them?
0:39:11 > 0:39:15No, I haven't. I need some money to put it to production design.
0:39:15 > 0:39:19I guess what I'm looking for here is some indication
0:39:19 > 0:39:24of anybody you would supply it to being interested in buying it.
0:39:24 > 0:39:27I actually went on a cruise,
0:39:27 > 0:39:32and so I have spoken to other therapists and sort of said,
0:39:32 > 0:39:37"What would your reaction be to this sort of equipment?"
0:39:37 > 0:39:41OK. I'm going to be very short on my questioning.
0:39:41 > 0:39:43Before you go to all of that expense,
0:39:43 > 0:39:49finalising it and then going to a market and the market saying, "No, not interested,"
0:39:49 > 0:39:55find somebody who thinks it's such a good solution to the problem
0:39:55 > 0:39:57that they will either invest in you,
0:39:57 > 0:40:02or at very least say, "When it is produced,
0:40:02 > 0:40:05"I'll buy one, preferably some."
0:40:05 > 0:40:08I won't be investing. I'm out.
0:40:08 > 0:40:10Thank you.
0:40:11 > 0:40:15Heartfelt advice, but no cash.
0:40:15 > 0:40:19Theo Paphitis looks to have made up his mind, too.
0:40:19 > 0:40:22Wendy, you're fabulous,
0:40:22 > 0:40:28but I don't actually think this is a money-making venture, and that's what I'm here to do.
0:40:28 > 0:40:31I'm going to say to you thanks for giving us the opportunity,
0:40:31 > 0:40:35but it's not for me. I'm out.
0:40:35 > 0:40:39Erm, it's not something that any gym owner
0:40:39 > 0:40:42is going to buy and put in his health clubs or gyms,
0:40:42 > 0:40:45because it doesn't add anything.
0:40:45 > 0:40:48So for that reason, I'm going to say where I am.
0:40:48 > 0:40:51- I'm out.- Thank you.
0:40:51 > 0:40:56Wendy, I don't see this product getting into the domestic home.
0:40:56 > 0:41:01In terms of the swing, it's fantastic, but the swing has been around for a long time.
0:41:01 > 0:41:05So I don't see that as a real scalable business opportunity
0:41:05 > 0:41:10because I'm not convinced that people would want to buy one.
0:41:10 > 0:41:14- I'm going to say I'm out.- Thank you.
0:41:15 > 0:41:18Three Dragons out in quick succession.
0:41:18 > 0:41:25Now only Hilary Devey can rescue Wendy's investment dreams.
0:41:25 > 0:41:28Wendy, because you're so lovely,
0:41:28 > 0:41:31I'm tempted to say, "There's 50 grand."
0:41:31 > 0:41:34But that would be my heart ruling my head.
0:41:34 > 0:41:39Commercially, that would be totally the wrong thing for me to do,
0:41:39 > 0:41:42because 50 grand will go nowhere.
0:41:42 > 0:41:44I can't invest any money,
0:41:44 > 0:41:49but what I will invest is time with The Stroke Association
0:41:49 > 0:41:51and some top neuro physios that I know
0:41:51 > 0:41:55to see whether or not they think there's an opening for this
0:41:55 > 0:41:59in the private medical sector or in the NHS.
0:42:00 > 0:42:04- I'm more than happy to spend time with you.- Thank you very much.
0:42:04 > 0:42:09So, unfortunately, from a business perspective, I've got to say I'm out.
0:42:09 > 0:42:12But the offer is there. Please do contact me.
0:42:12 > 0:42:15Thank you. Thank you all.
0:42:17 > 0:42:22Charmed as they were, none of the Dragons could find enough of a reason to invest.
0:42:22 > 0:42:25Wendy leaves with nothing.
0:42:32 > 0:42:36Other entrepreneurs who tried and failed in the Den
0:42:36 > 0:42:39included Gareth and Brian Smith from Derbyshire,
0:42:39 > 0:42:42with their low-fat snack company.
0:42:42 > 0:42:45Mature cheddar and spring onion.
0:42:45 > 0:42:47They wanted £250,000
0:42:47 > 0:42:51and were offering just a ten-percent stake.
0:42:51 > 0:42:53I'm here with Dad
0:42:53 > 0:42:58to talk to you about our unique baked snack called Crips.
0:42:59 > 0:43:02Brian revealed a credible past.
0:43:02 > 0:43:06I'm a consultant food technologist. I developed the sog-resistant crouton
0:43:06 > 0:43:09which goes into soups.
0:43:09 > 0:43:14But it was the current state of their business that concerned Theo.
0:43:14 > 0:43:18- You've come in with a real racy valuation.- But pragmatic.
0:43:18 > 0:43:21It's only going to be pragmatic
0:43:21 > 0:43:25if Gareth has got some incredible sales figures.
0:43:25 > 0:43:31Last year, we turned over £227,000. A net loss of £80,000.
0:43:31 > 0:43:35The year before, as well, that was minus 93.
0:43:35 > 0:43:39- There was a year before that.- OK. - And we had a 165 net loss.
0:43:39 > 0:43:45It was a disclosure that marked the end for the father and son's hopes of investment.
0:43:45 > 0:43:50A company that loses money every year and has been valued at £2.5 million
0:43:50 > 0:43:52is quite ridiculous.
0:43:52 > 0:43:57Not if you have the vision of a brand and a product which is unique.
0:43:57 > 0:43:58You have this vision?
0:43:58 > 0:44:03I don't have the vision, and for that reason, I'm out.
0:44:04 > 0:44:08Warrington-based Ian Wilson needed £50,000
0:44:08 > 0:44:12to launch his new greener bicycle accessory.
0:44:12 > 0:44:13Hello, Dragons.
0:44:13 > 0:44:18I'm here today to show you my revolutionary product.
0:44:18 > 0:44:23As the bicycle moves along, the airflow turns the fan.
0:44:23 > 0:44:25I'd like to try it on the bike.
0:44:26 > 0:44:32- Can you tell if this is working? - PETER: Faster!- It's working.
0:44:33 > 0:44:38With proof of concept achieved, Deborah Meaden wanted proof of market potential.
0:44:38 > 0:44:41What's the closest alternative?
0:44:41 > 0:44:45There's solar ones, but they're quite expensive. They're about £80.
0:44:45 > 0:44:49- And how much do you think yours would sell at?- About 25.
0:44:50 > 0:44:55The pushbike has got lots of moving parts that you can harness.
0:44:55 > 0:44:59There's other things that are out there that do the same job,
0:44:59 > 0:45:03from solar, to dynamos, to batteries,
0:45:03 > 0:45:06and they don't cost anything like this.
0:45:06 > 0:45:10This is not an investable business. I'm out.
0:45:10 > 0:45:11Thank you.
0:45:15 > 0:45:18Motorbike enthusiast and former milkman
0:45:18 > 0:45:20Simon Booth, from Somerset, is next into the Den.
0:45:20 > 0:45:26He's one of the lucky entrepreneurs who's transformed a personal passion into a money-making business
0:45:26 > 0:45:30and he hopes the Dragons will recognise its potential.
0:46:00 > 0:46:03Hello. My name's Simon Booth.
0:46:03 > 0:46:09I'm here today looking for £75,000 for 10 percent of my business.
0:46:09 > 0:46:13Kiddimoto, since 2004
0:46:13 > 0:46:19is the award-winning designer, developer, distributor, manufacturer
0:46:19 > 0:46:26of unique wooden balance bikes for two to five year olds.
0:46:26 > 0:46:29Balance bikes are the perfect way
0:46:29 > 0:46:33to start children onto cycling.
0:46:33 > 0:46:37Customers include John Lewis,
0:46:37 > 0:46:42Evans Cycles, Honda, Suzuki,
0:46:42 > 0:46:44Triumph, to name but a few.
0:46:44 > 0:46:47We project that sales revenues
0:46:47 > 0:46:51will hit the £5 million mark in 2014.
0:46:51 > 0:46:53Thank you.
0:46:53 > 0:46:57Now Ruby's going to give you a demonstration.
0:47:00 > 0:47:04Grand claims from Simon Booth, who's brought along his three-year-old daughter
0:47:04 > 0:47:08to demonstrate his pedal-free children's balance bikes.
0:47:08 > 0:47:11In return for a ten percent stake,
0:47:11 > 0:47:16the Somerset entrepreneur needs £75,0000 to expand his company.
0:47:16 > 0:47:20- Well done, Ruby. - DRAGONS: Bye-bye, Ruby!
0:47:21 > 0:47:24Theo Paphitis looks impressed.
0:47:28 > 0:47:31- Simon. Hello, I'm Theo.- Hello, Theo.
0:47:31 > 0:47:34- It looks a great product.- Thank you. - Looks a quality product.
0:47:34 > 0:47:38I just want some quick numbers so I can tune into what you do.
0:47:38 > 0:47:43It started at trade shows, or consumer shows, selling direct.
0:47:43 > 0:47:48- It's the numbers I'm after. - We sold in the first year 300 units, and that was mostly direct.
0:47:48 > 0:47:52- I'd go and knock on doors - - It's the numbers I'm after.
0:47:52 > 0:47:55£30,000 first year.
0:47:55 > 0:47:57- Good.- £50,000.
0:47:57 > 0:48:02£100... Er, £265,000.
0:48:02 > 0:48:08Then it went up to... Er, last year it was 490.
0:48:08 > 0:48:12- Do you make any profit?- Yes. - How much did you make last year? - £30,000.
0:48:12 > 0:48:15- So, you made a clear profit of £30,000?- Yes.
0:48:15 > 0:48:18- How much do they cost to make?- £20.
0:48:18 > 0:48:23- And you sell them to the retailer for how much?- For an average of £50.
0:48:23 > 0:48:27- And they retail at what price? - About £100.
0:48:29 > 0:48:33Impressed by the figures and impressed with the product,
0:48:33 > 0:48:36Simon has made a good impression on the Dragons.
0:48:36 > 0:48:40But Duncan Bannatyne looks distracted.
0:48:40 > 0:48:43Simon, I'm confused as to why the motorbike's here.
0:48:43 > 0:48:47Because that's where the initial idea came from.
0:48:47 > 0:48:49These are replicas of motorcycles.
0:48:49 > 0:48:53- But do you own it? - That's my bike, yes.- OK.
0:48:53 > 0:48:56Where did you say you're selling these?
0:48:56 > 0:49:01Independently-owned bicycle shops, motorcycle shops, toy stores.
0:49:01 > 0:49:05So this is what I would do if I was in your position.
0:49:05 > 0:49:10I would sell my motorbike, borrow money on credit cards,
0:49:10 > 0:49:14- and do everything I could to buy stock to keep 100 percent of my company.- OK.
0:49:14 > 0:49:17- Why don't you do that?- The reason I've come to Dragons' Den
0:49:17 > 0:49:21is really because it's not just the investment.
0:49:21 > 0:49:27It would possibly be the help that comes with an investment,
0:49:27 > 0:49:32that has got an incredible amount of business background and acumen
0:49:32 > 0:49:35that I can bounce ideas.
0:49:35 > 0:49:39- THEO: So, you've come in here to find a friend?- Kind of, I guess!
0:49:39 > 0:49:43Give us a look at one. They look really good.
0:49:45 > 0:49:49A heartfelt plea from the entrepreneur.
0:49:49 > 0:49:54But how will he fair under the scrutiny of Deborah Meaden?
0:49:55 > 0:49:59Erm, I've got to say, I think you've done really well.
0:49:59 > 0:50:02- Thank you.- You've generated half a million pounds of turnover.
0:50:02 > 0:50:08I sat up and listened then! And then I thought, "Ooh, that only translated to £30,000 profit."
0:50:08 > 0:50:13- What's your take on that?- We just had a late delivery of stock,
0:50:13 > 0:50:15so that went in the books as...
0:50:15 > 0:50:21That doesn't affect your profit, because you paid, what, £100,000 for your stock,
0:50:21 > 0:50:26- you've got £100,000 worth of stock, so that doesn't affect profit.- OK. - I'm purely focusing on profit.
0:50:26 > 0:50:29I just want to understand why half a million
0:50:29 > 0:50:31- turns to 30,000.- Yes. Sure.
0:50:31 > 0:50:35- What are your overheads? Go through that.- OK.
0:50:35 > 0:50:38Key overheads will be exhibitions...
0:50:38 > 0:50:42Put some numbers against those. How much do you spend on exhibitions?
0:50:42 > 0:50:47- Exhibitions is in the region of 45 to 50,000.- OK.
0:50:47 > 0:50:51- Wages and salaries?- I think £45,000.
0:50:51 > 0:50:56- OK, and what about your rent? - It's about £15,000, I guess.
0:50:56 > 0:50:59At the moment, you've managed to explain 100,000 to me.
0:50:59 > 0:51:01Right.
0:51:01 > 0:51:05I must apologise, I can't pull those figures out of my head.
0:51:05 > 0:51:07You need to!
0:51:07 > 0:51:10- Do you know how important this is? - Sure.
0:51:11 > 0:51:13This is the whole business model.
0:51:13 > 0:51:17You've explained half of your costs,
0:51:17 > 0:51:20- and half you're really struggling to explain.- Sure.
0:51:20 > 0:51:22Which...
0:51:22 > 0:51:24It doesn't sound good, does it, Simon?
0:51:25 > 0:51:28Right now, your track record is telling me
0:51:28 > 0:51:32your net profit ratio is diabolical.
0:51:33 > 0:51:36OK, Simon, I'm really sorry,
0:51:36 > 0:51:40- you've failed to explain to me the business model.- I appreciate that.
0:51:40 > 0:51:44There's clearly a market! You've got half a million in sales.
0:51:45 > 0:51:48I'm out.
0:51:49 > 0:51:54A failure to make the numbers add up rarely goes down well in the Den.
0:51:54 > 0:51:57Simon loses his first Dragon.
0:51:57 > 0:52:01Peter Jones looks to have made his mind up, too.
0:52:03 > 0:52:05I'm going to be quite quick.
0:52:05 > 0:52:08You've taken a product to market, you've designed it yourself,
0:52:08 > 0:52:11that is to be congratulated,
0:52:11 > 0:52:15but I think it would be very difficult for me to invest...
0:52:15 > 0:52:18..in somebody that is going to require
0:52:18 > 0:52:23and expect a lot of assistance and mentoring and time.
0:52:23 > 0:52:26Erm... That's something that, unfortunately,
0:52:26 > 0:52:29- I have very little of - time. - Sure.
0:52:29 > 0:52:33- It's not an investment for me. I'm out.- OK, thank you.
0:52:34 > 0:52:37Simon, I'm not a million miles away from that.
0:52:37 > 0:52:40I love the product.
0:52:40 > 0:52:45Difficult to come here and spout numbers, but you should've been better prepared.
0:52:45 > 0:52:49I'd love to be your friend, but I'm not going to make any money.
0:52:49 > 0:52:52- I'm out.- Thank you very much.
0:52:53 > 0:52:59Two more Dragons walk away from investing in Simon and his business.
0:52:59 > 0:53:02Can logistics expert Hilary Devey
0:53:02 > 0:53:06find a reason to throw him the financial lifeline he badly needs?
0:53:08 > 0:53:14- Simon, you say they actually cost £20 to make?- Yes.
0:53:14 > 0:53:17- Is that shipped?- We've got some shipping costs in there, as well.
0:53:17 > 0:53:19What about distribution costs in the UK?
0:53:19 > 0:53:24Coming from our warehouse to the customer has to be included in the overhead, as well.
0:53:24 > 0:53:28- Right.- So there is courier costs. - So that, I would think, with a product like this,
0:53:28 > 0:53:33- would easily account for at least £40,000.- Yes.
0:53:33 > 0:53:40Answer me this. How did you manage to get John Lewis to promote them,
0:53:40 > 0:53:43to sell them in their stores?
0:53:43 > 0:53:46I met the buyer at the Nuremberg Toy Fair.
0:53:46 > 0:53:50They've just placed a nice order, their first order,
0:53:50 > 0:53:56£35,000 worth for their autumn collection.
0:53:56 > 0:54:00Er... We also talked to Harrods.
0:54:00 > 0:54:04Why have you not done it with House of Fraser, Selfridges, Mothercare?
0:54:04 > 0:54:07We will be approaching those, as well.
0:54:07 > 0:54:09Most of my customers are independent retailers.
0:54:09 > 0:54:12But I'd have thought, with a product like this,
0:54:12 > 0:54:17what you should've been aiming for, what your vision would've been was brand awareness.
0:54:17 > 0:54:22Sure. That's probably why I need a friend to give me some guidance!
0:54:26 > 0:54:28The confidence returns.
0:54:28 > 0:54:33Has the West Country entrepreneur got his pitch back on track?
0:54:33 > 0:54:37Duncan Bannatyne is now ready to show his hand.
0:54:40 > 0:54:43Simon, I'm not going to be your best friend
0:54:43 > 0:54:46and go out drinking with you every Friday night, erm,
0:54:46 > 0:54:49and sit in an office with you,
0:54:49 > 0:54:53but I quite like it, in actual fact, when...
0:54:53 > 0:54:58..somebody hasn't got the costings quite right, because that's something I can add.
0:54:58 > 0:55:01I can analyse exactly the costs.
0:55:03 > 0:55:07Because I like the product so much, I'm going to make you an offer.
0:55:07 > 0:55:10I'm actually going to make you two offers.
0:55:10 > 0:55:15I'll offer you the full amount you're asking for, £75,000,
0:55:15 > 0:55:19- but I want for that 30 percent of the company.- OK.
0:55:19 > 0:55:22I'll make you a second offer. I'm going to offer half the money,
0:55:22 > 0:55:26that's £37,500, for 15 percent.
0:55:26 > 0:55:30- With the second offer, you could get another Dragon to come in.- OK.
0:55:30 > 0:55:34- With the first offer, you can just accept me.- Thank you very much.
0:55:37 > 0:55:43At last, Simon has received an offer of the £75,000 he needs
0:55:43 > 0:55:48but at a level of equity three times the amount he initially intended to give away.
0:55:48 > 0:55:52Will Hilary Devey now choose to undercut her rival's offer,
0:55:52 > 0:55:57join forces with him or walk away from the deal altogether?
0:56:00 > 0:56:02OK, Simon...
0:56:03 > 0:56:07I also think it's a good product and I can see mileage in it.
0:56:07 > 0:56:12I can also help with my own marketing team and my own IT team.
0:56:12 > 0:56:17What I've also got is a logistics company throughout Europe to ship it
0:56:17 > 0:56:21- for a lot less than what you would pay.- Of course.
0:56:22 > 0:56:26So I would like to offer you half the money
0:56:26 > 0:56:30for 15 percent.
0:56:32 > 0:56:34Thank you very much.
0:56:37 > 0:56:40Well, thank you all very much.
0:56:40 > 0:56:44I've learnt an incredible amount about the fact that I don't know
0:56:44 > 0:56:47as much as I thought I knew about my business.
0:56:47 > 0:56:50And there's a lot more to learn.
0:56:51 > 0:56:54I really do need some friends
0:56:54 > 0:56:57and it would be good to have two friends.
0:56:57 > 0:57:03- What I'd like to do is accept your offer. - Well done, Simon. Very good move.
0:57:05 > 0:57:07Thanks very much.
0:57:07 > 0:57:10Simon's done it. It wasn't a smooth ride,
0:57:10 > 0:57:16but for two of the Dragons, the potential outweighed the risk.
0:57:19 > 0:57:23Simon, did you think at the end that you would walk away with the investment?
0:57:23 > 0:57:25Once I started getting a grilling,
0:57:25 > 0:57:30especially when Deborah started getting into the numbers, I felt like I didn't have a clue!
0:57:30 > 0:57:34It was established that I was looking for not only an investment,
0:57:34 > 0:57:37I was looking for friends.
0:57:37 > 0:57:41So Duncan and Hilary became my rich friends, if you like!
0:57:49 > 0:57:52A dramatic end to the day.
0:57:52 > 0:57:57It's important to get the numbers right in the Den, not just to impress the Dragons,
0:57:57 > 0:58:01but because if you understand the figures, you usually understand the business.
0:58:01 > 0:58:05Simon Booth was lucky to have two allies in Hilary Devey and Duncan Bannatyne
0:58:05 > 0:58:09who helped him find clarity where there was confusion.
0:58:09 > 0:58:12If you'd like to know why the Dragons invested in Simon,
0:58:12 > 0:58:14press the red button now.
0:58:14 > 0:58:20You can also apply to the programme if you think you have what it takes to face the multi-millionaires.
0:58:20 > 0:58:25Just visit bbc.co.uk/dragonsden. Goodbye.
0:58:26 > 0:58:29Next time on Dragons' Den...
0:58:29 > 0:58:32- Where's your company based? - At my home.- So, your bedroom?
0:58:32 > 0:58:34Basically, yes!
0:58:34 > 0:58:37- I'm not finished. - Neither was I, but go ahead.
0:58:37 > 0:58:38I was talking.
0:58:38 > 0:58:42- You're just too confusing.- I know.
0:58:42 > 0:58:46I don't want to invest in the world's most expensive beehive.
0:58:46 > 0:58:52Frankly, the beast doesn't change. When that beast is hungry, it wants feeding.
0:58:52 > 0:58:56Subtitles by Red Bee Media Ltd
0:58:56 > 0:59:00E-mail subtitling@bbc.co.uk