How time flies, we’re already up to episode 3 of Dragons Den.  The series has started out well and checking this week’s pitch previews on the BBC website it looks like a good episode ahead.

Josephine Buchan – Dusty: A Life in Music

http://www.josephinebuchan.com

First into the den this week was Josephine Buchan who was seeking £250,000 for 25% of her company creating a musical theatre production celebrating the songs of Dusty Springfield.

Josephine is a professional independent theatre producer with 25 years experience in acting, presenting, teaching and industry with a keen interest in the potential of drama and dramatic techniques to aid learning.

Josephine started strongly with a confident and clear description of her concept which was then followed by a rendition of “You don’t have to say you love me”.

Duncan was unimpressed with the calculation of return, 80% of 25%.  Deborah Meadan felt a musical about Dusty was a great opportunity but wanted to understand more about the costs.  All of the Dragons were confused about the financials particularly the profits split between the production and the theatres they tour in.

In the ends the Dragons felt the “Theatre industry” spoke a different language, and without clear financials they were all out.   Theo was interested in taking “Mrs P and the kids to see it!”

Lawrence Webb & Frank Drewett – Lid Lifters

http://www.lidlifter.co.uk

Lawrence and Frank were seeking £50,000 for 25% in their Wheelie Bin Lid Lifter, a labour saving device for opening wheelie bin lids.  Duncan Bannatyne, felt the product was just a piece of string and a bit of plastic.  The product costs £2.50 cost, £5 trade and retails at £9.99.  Astonishingly they have had a patent since 1997 but have only sold 2000 in 12 years!

Their main reason for the investment was for public awareness. Deborah Meadan felt it was a product that solved a problem, and felt rather than marketing it to big retailers they should market it to care homes and people who need it.  She offered half the money for 25% of the business.

Duncan Bannatyne and James Caan were both out, Duncan felt it was not a business with which he would get a return on.

Theo Paphitis was concerned whether “Mrs P would use it” and matched Deborah’s offer but said it was an utter punt on his part.

A quiet Peter Jones felt this was not a business but an opportunity to acquire a patent, and provide this to manufacturers and distributors.  He felt confident that this was a good investment, not as a business but as an invention.  He offered the full £50,000 for 50% of the patent.

Lawrence and Frank decided to take Peters offer of £50,000 for 50% of the patent.

Emily Webb – Oarsome Potential

http://www.oarsome-potential.co.uk

Emily was seeking £75,000 for 20% of her company which sells a protective grip for sports equipment, specifically rowing oars.

On her website they state “We are offering a new design with better materials that can help improve technique, help reduce wrist and hand strain, help reduce friction on the hands, therefore improving performance, technique and comfort. We have developed two new products: the Oarsome Revolver and the Oarsome Grip to improve performance, technique and comfort.”

Emily Webb is just 20 years old studying Business Management at Exeter University.  She gave a good presentation explaining the key advantages of her product but seemed slightly nervous and didn’t give information on how the money would be used or the current financials.

Emily has an approved UK and USA patent which she owns.  She answered questions confidently, but has only sold 6 units for £17.99 each which Duncan Bannatyne felt was expensive.

James Caan, discovered that the patent could be applied to anything with a handle and that Emily was discussing a deal with a crutch manufacturer.

Peter Jones felt the issue was with marketing, people wouldn’t know that this product exsited. Emily had very vague reasons for needing the money and wasn’t able to give clear answers.  Peter Jones felt she had a poor understanding of numbers, no advertising plan, and felt that the product didn’t have a potential return and was out.

James Caan felt that Emily had solved a problem but had not thought of the business plan.

Deborah Meadan felt there were several small markets but no “one” market which would make the product a major success and was out.

Theo Paphitis enjoyed the pitch, and felt Emily answered objections well, but felt the markets are too small to get a return, he wished her the best of luck but was out.

Duncan Bannatyne felt Emily gave a fantastic pitch and would try to stock them in his health and fitness centres but could not invest.

Emily left without a deal.

Oliver and Toby Richmond – Servicing Stop

http://www.servicingstop.co.uk

The final pitch of the episode was from Oliver and Toby who went into the Den seeking £100,000 for 12.5% of their bespoke nationwide car servicing company.

Their website says “Servicing Stop Ltd was founded by Oliver and Toby Richmond to give the UK public a better professional car service experience in terms of customer service and cost. The company now has 750+ garages on their network and is still growing fast.”

The company collect and return vehicles while being cheaper than car manufacturers own garages, they also do not void the car’s warrenty when used, and give clear fixed prices.

The garages give Servicing Stop Ltd “trade rates” and they then charge the customer full retail rates.

Deborah Meadan felt they had done a great job after setting up this business from scratch up questioned what they were looking for.

Peter Jones found they had £40,000 in the bank and no debt, so wondered what they had spent all their start up costs on.  He felt things weren’t as good as they seemed as they had taken their money back.  Peter Jones offered £100,000 for 35% of the business but said the offer was valid for just 4 minutes.

Duncan Bannatyne and Theo Paphitis went straight out.

Deborah Meadan offered the full amount for 30% of the business, much to Peters annoyance as he shook is head.

James Caan matched Peter Jones offer for 35%, but Oliver and Toby dealt for Deborah’s offer as it was the best deal.

Conclusion

Yet another successful week in the den with 2 accepted offers.  It seems once again the ones I am keen on are never a success on further investigation.  I particularly liked the Oarsome Potential which seemed a simple but effective idea.  However as the dragons rightly pointed out Emily needs a stronger business plan.  A shame though as this is what they could have brought to the business, some direction and speed.  It sounds like even without them she’ll be a success though!