A Gadget That Could Save Money On Electricity Bills | Dragons’ Den

First up tonight an entrepreneur who Thinks he has the power to Electrify The Den with a product that promises to save Both energy and money But being environmentally friendly Doesn't always guarantee the green stuff From the dragons Foreign Have you ever walked into your room and Found that lights are left on TVs games Consoles or you know a charger this used To happen to me regularly I have four Children I would walk into the bedroom And it would be lit up like black pill Illuminations Um I was getting frustrated looking at My energy bills which were always rising And I was getting frustrated moaning at The kids all the time to turn things off So having the kind of entrepreneurial Mindset I found myself sat down and the Answer was staring at me from the corner Of the room it was a home alarm Occupancy sensor and I used my Engineering background in sensor and Wireless Communications background to Take that and turn it into something That would switch off lights and Appliances automatically Okay so um three years later lots of Blood Sweat and Tears I now have this uh Shiny Gadget you see before you called The energy egg and the energy egg is Available with a major High Street

Retailers and it retails at 39.99 Um and it can save you 60 pounds and Your electric bills over the course of a Year in a living room Um let me show you how easy it is to use You take it out the box you put the Battery in the back of it you press the Button and it will sync up with the the Purpose built and control adapters so Here you've got a control adapter you've Got a power strip and you've got a light Switch so it would control all of these To switch off your lights and appliances You put it down beside your TV and That's it it starts saving you money you Um walk into a room the lights will Automatically switch on you walk out of The room and the lights and appliances Will automatically switch off Thank you very much for the opportunity To present to you today I'd be happy to Take any questions that you have Energizing pitch from Brian O'Reilly From Glasgow he wants 50 000 pounds for Just eight percent of his business Selling his energy saving devices But Peter Jones wants less of the sales Patter and more of the practicalities of His key product I don't think you've even explained this Product at all you haven't shown us how It works you haven't shown us how it's Installed you haven't shown us how it Would work in an average house yeah

You've got to get back to basics for Your pitch okay show us the how does it Work absolutely you've got a control Adapter there or this control adapter Here the first time you plug it in so I Get a control adapter with you yeah Where's the egg okay so that's in John Lewis just know if you went into John Lewis that's not the advertising piece I Just get on with the explanation okay Plug it in so you plug it at and then The first time you press the button it Will synchronize with the socket Trust me it is very simple to set up Anyone can do it I apologize that I Didn't nobody can do it but if they have The plug socket to plug in the wall they Change their light switch yeah and no Doubt when you want to go to a four or Five gang you've got another product You've got to buy we did it based on Customer feedback so some of the Feedback that we had was that well what Do I do with my sky plus box for example And because I want to keep that on all The time so we developed a power strip It's got two permanently iron sockets And it's got four wirelessly controlled Sockets plus we are we've got product Roadmap where we're building Um Wi-Fi technology into the energy I've Actually got a demo of a phone app with Me just now and effectively you just you Press the buttons and it all through

Your home Wi-Fi networks send a signal To the the different Um so that's the the lights on and off And you could do that with the points You said so this egg and those devices Today work with that app Um not that not that not that egg I need To say that so to get the next egg to Work with that app yeah what does that Need more money we could have a working Energy egg Um ready for the the market right with About 15 000 pounds I mean I don't know It's very simple That's what I like about it Piers Lenny has discovered a component Of Brian's business that could fit Neatly into his cloud computing Portfolio Now Duncan bannatyne wants to focus his Energies on the company's finances Did you say you're selling this at the Moment in John Lewis yes I did I know in Tesco direct so what's your financial Turnover last year then and 33 000 and What what's your gross profit and net Profit Um it was 7 000 for our um net and her gross was Minus 120. You lost 120 that's all the way around But you lost 120 000 pounds yes A what's your projection for the year Going ahead if you don't get an

Investment and 200 000 turnover yes So how are you funding all these losses Um we've we've got investors just now All right how many investors you got who Owns a company let's do that okay I've Owned 40 of the company and there are Um nine shareholders six investors Right and how much have they paying or Sorry what percentage is it on and well I'm forty so they they own the other Sixty percent So a few Keep losing money the way you're losing Money yeah when do you run out of money And we run out of money in about four Months time So you're really in big trouble then yes Are your investors want a bit more money In yes So you're not in trouble then you're Only in big trouble if you've been out Of money and there's nobody who wants to Put more money Okay yeah yeah but you will you put more Money or have you are you skinned I'm Skinned so that will take a bigger share And potentially yes Yeah I think in a lot of trouble then Brian Not good for the inventor as Duncan Bannatyne detects some major cracks in Energy eggs balance sheet And Kelly hoppen is underwhelmed by the Company's struggling sales

I think you've kind of missed the boat Slightly because you obviously have Created something that is is incredibly Useful saves energy But Um the product is in John Lewis and is Not really making sales you know and That is a great platform for you to Start selling in I would buy one of Those but it's not something that I Think I would invest in For that reason I'm out okay thank you Kelly hoppin has no instinct to invest And makes an Abrupt exit from the deal Compare's Lenny uncover a brighter Future for the company [Music] So what's your forecast next year and 1.2 million and if you've got any orders To show you can get from 200k this year To 1.2 million next year I'm confident That we'll have an order purchase order Value of 80 000 pounds in about a Month's time that's one order yep and I'm confident that we will have a agreed With a large facilities management Company another order for sixty thousand Pounds Um I like it But you've got a big problem in your Business structure to get me involved in A business that at eight percent and to Really get my attention that ain't going To happen but you've now embedded a

Structure in your organization that Doesn't allow somebody like me to own Enough of a chunk of the business to Really give it what it needs if you Don't mind me asking Deborah what kind Of shareholding did you have in mind That you I would certainly be looking at Something Beyond 25 if you took on 25 of The business and then I would be I would Be sitting at around I think 20 24 25 26 I would end up owning I didn't know Capitalization how much more money do You need about a hundred thousand pounds So double that so Deborah we might want I might invest and give you after 30 The other investors are going to put a Similar amount of money in yeah that's Now sixty percent you're then down to Something with a two in front of it so Will you get out of bed in the morning With the same Are you making did you interrupt me to Make the very same point I was making Peers I'm just checking no because no Because if you did you kind of broken my Flow of conversation it'd be a lot Easier for me if I could just have a Conversation and follow that Conversation Um yes I would still get out of bed in The morning all right okay guys Um sorry I'm out The dens crackling with tension as the

Dragon's squabbling results in a sharp Exit from Deborah meaden Could the light be about to go out on Brian's pitch Duncan bannatyne is next to decide Debra's right you know if she offers you 25 you do it to 30 percent So you'll have less shareholder in some Of your investors And that actually doesn't actually help When you go to bed in the morning you're Going up and drive to work and go and You're on a bad day And and I think that's the major problem Um I think if I invested Your Shield will come down not lawyer You'd leave and I'd end up having to run The business I'd find someone else to Run it so I'm afraid I'm out Another Dragon declined the opportunity To invest As Peter Jones heard anything to give Him a change of heart So Brian Um I I have been I don't think I don't feel Like I'm grumpy you are you are But I think it's because I got a bit Frustrated because I think you're Incredibly credible I think you've taken Investment to build a product your Biggest problem is that you've fallen Into a what I would say a mid-market Trap you need to for me

Differentiate to a whole bigger degree Than just this egg you need to have a Home solution or a home kit Which I think would work for you but It's not something that I would like to Invest in because for 50 000 you need Another four hundred thousand and then Maybe you've got a chance of making it So Brian I'm going to wish you all the Very best of luck but I'm out thank you Peter Jones has declared his hand Leaving Piers Lenny The Last Dragon Standing Can he see a way around the thorny issue Of that complicated share structure [Music] So you're asking an investor me to give You some money today negotiate a deal With the other investors to keep you Interested yeah and they're not here So the existing investors have have Given me a kind of uh some bandwidth in Terms of you know negotiating it's okay If I said to you I'll give you 50 000 Pounds I want 30 of the company but it's All coming off for existing investors so You stay where you are will they agree To that Potentially well they're not here either They're not Right I'll take a punt with you so this Is an offer but it's got a big caveat so I'll give you 50 000 pounds all the Money for 30 of the business yeah but

It's coming off the other investors That's it and if you can't agree that With them Once you've left the den then there is No deal Okay Yeah yeah yeah that's I I'll take that Back to the investors Thank you pierce A handshake an agreement and light at The end of the tunnel for the Entrepreneur who leaves the den with a Promising business proposition [Music] I was particularly interested in Pierce Because I knew that he was involved in Cloud computing I believe that Pierce is The background and the knowledge to Really help us progress as a business And develop our product roadmap

Your First Funnel Challenge
Quickly Launch Your Idea And Turn It Into A Business That You're Proud Of In Just 90 Minutes A Day!

(This Can Work Even If You Currently Have No Tech Skills, Don't Have A Product, Or Have No Idea What A Funnel Is Yet...!) 

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