Dragon’s Den first aired back in 2005 and has since contributed 15 series of investment entertainment to the world. In the most recent episode, five investors pitch their ideas to the Dragons, with ideas ranging from gluten-free cakes to colorful pocket squares. The judges decide on who to invest in based on the product, the numbers, and the people. It’s all or nothing in the cut-throat business world!
It must be a daunting prospect to enter the realm of seriously successful investors and come under their scrutiny, but that is exactly what each entrepreneur must do if they are to secure the cash and assistance they need to carry their business to the next level. The odds of becoming rich are not great, but with a Dragon on your side, they are pretty much guaranteed.
The first entrepreneur to enter the Den was Australian Sarah Hilary with her “Be Tempted” range of gluten-free cakes. She came prepared with a temptress whose role it was to hand out snacks and wink at the Dragons to sweeten them up. Sarah presented a pretty classic story: She went gluten-free but couldn’t find enough delicious cakes on the market, so she made her own. We’ve heard it all before, and so had the Dragons, but did her numbers add up and would they be willing to invest £75,000 for just 5% of her business?
Hilary stumbled and fumbled over her figures; never a good move in the Den. Despite outlining a £500,000 turnover since 2012 and describing her connections with high-end stores like Harrods, she stuttered when asked to share her gross profits, and it quickly became obvious that her £1.5 million valuation of the business simply didn’t add up.
That was enough to turn off most of the Dragons, who couldn’t see an opportunity to make their money back and weren’t satisfied with the overvaluation and lack of business strategy. Tej Lalvani picked up the pieces of her shattered pitch, offering the full amount of money but demanding 40% of her business. The pair settled with a 10% buy-back, and the first deal of the day was made!
To read more about this episode and meet the other entrepreneurs, jump with me! Continue reading