Other Companies Want To Buy This Patent From Entrepreneur | Dragons’ Den

Next to face the dragons is Lisa Young From Kent Lisa spent the best part of Two decades working in the spray tan Industry and she's always on the lookout For new custom I think Peter Jones would love one of my Spray tans We can create a nice sculpted body for Him I think he'd really enjoy it Drink hey it's too late now any of his Vodka I drink The Jug We've learned a pitch that the numbers It's been a massive build I can feel my Palpitations and but today got up feel Confident been excited [Music] Thank you [Music] Hello dragons my name is Lisa and I'm Here to pitch for 60 000 pounds for a 20 Share in my company sunless Solutions My love of the tanning industry began Over 17 years ago As a heavy sunbed user I could see the Damage that was being caused to my skin And I looked at alternative ways to tan I discovered spray tan I was instantly Hooked I worked with a chemist and I Established a professional spray tan Solution Okay I was a professional spray tan Solution Sorry Um I went on in 2008 to establish

Thunder Solutions I'd like to show you a Demonstration of our product I think Italian is designed to maintain the Overspray within the tent It comes with a mesh ceiling so that you Can see the light coming through the Tent It also comes with an extractor a flap At the back and extending floor flap I Think we kind of get it we get we get That okay that's fine thank you Sorry Okay once you've finished your client Will step outside You're turning 10 isolated flights And Um okay my company and my strap line Spray it fake it love it come with a Registered trademark along with my Tanning tape designed to change the way We spray tan in the future the tanning Tent has been has been designed To be machine washable and Tumble dryer Safe it's the first spray tan cubicle of Its kind it's it currently has a Painting in the UK USA and Europe Uh Oh gosh Designs change the way we say the Self-time market itself is worth over 100 million pounds With your investment we'd like to take Our brand global

And also the spray tan team thank you For your time today we've got some spray Tan survival kits to give out to you A range of spray tanning lotions and an Inflatable tent in which to apply them Are the Dual offering from Lisa young Who's seeking sixty thousand pounds for A 20 share in her company just like to Say thank you to my girls now thank you But her flustered delivery has left Tuka Suleiman unclear about precisely what's On the table I'm a bit confused because you because You you were quite nervous I mean what Are we investing in you've got you've Got the lotions and you've got the tent Yes we have right as far as the lotions Are concerned yes um you've had it since 2008. yes so give us some figures for The last three years okay um the last Three years in 2012 we turned over 437 000 pounds in the following year we Earned 310 000. and last year uh two Three five yep With a net of 69.5 000 yep and a profit Of four thousand eight hundred and That's mainly on the lotions it's mainly On the lotions the the actual we Actually bought the first batch of Tanning tents in in um 2013. so how many Have you sold those up to date two Thousand five hundred You've valued the business at 300 000 Pounds I have yes and how did you were

You advised on that or you picked a Figure okay no I didn't pick a figure I Spoke to the accountants and I think the Reason we've valued our company at 300 000 pounds is is mainly because of the Need of the tent what's happening is is That there is other tanning products out There are other tanning companies out There but they all are looking to Purchase this tent because they all can See the way forwarding they can see it's The future Can I ask you with your other business You had sales of 437 310 235 is that Because you were taking your eye off the Ball with your main business I would say that I was trying to develop This and I was using any capital I had To bring this product in Because I believed in it um yeah I Always my heart always sinks when Someone says I want your money to go Global and think you haven't even done Warrington yet You've got to conquer your own Market Before you can think about going global And then get your other business up to Scratch because that's not a bad Business no yeah and I work really hard It was blood sweating too you're clearly Very clearly very capable But it is small it is Niche so I'm out Quicker than it takes one of her spray Tans to dry Lisa has lost her first

Dragon And Peter Jones has concerns over the Size of the business opportunity too In terms of Of the telling tent I kind of get it but It's such a tiny tiny Market because This is only going to be purchased by Somebody that is in the trade this isn't Something for somebody at home I've seen this happen so many times Well I say so many times God Tara's going to Kill me when I watch this it's almost Like rapid and it's really quick goes Into the shower does stuff with the legs Are done and it's like glove thing and Then comes out and looks like you know She's had 10 days in Barbados no problem But I don't think you're claiming that's The market no I'm not claiming that's The thing it doesn't for one minute Think this is about domestic this isn't This is for mobile anybody who's going To do this with their tan you wouldn't Be using that you need two people to Spray tan therefore it's a Not a Home Market well this is only a mobile Sprayer then so it's mobile and it's for Salons but salons are not going to have That because sellers have their own Facilities I think I think if you find That you'll walk into any Salon they've Got a pop-up cubicle in it it smells it Smells of a spray tan it's sticky it's Unhygienic

Lisa has given the dragon's chapter and Verse on the merits of her tent But so far only Deborah meaden appears To be on the same page She's grasped the market so will she Grasp the opportunity to invest [Music] I've got to be honest I don't like Um I don't like tanning product an awful Lot But Um the tent issue I actually spent more Time in a spray cubicle expecting to but When I did strictly okay Um by the time I got to them and they'd Had loads of people and they're all Slightly skewed with and and whatever so I actually think it's really neat the Tanning tents that we've got at the Moment the cubicles with the why I've Had their day their pennies to buy on The internet but they also bend and Break and they're unhygienic Now there is the bigger tanning Companies out there they all want to buy That painting off of me I'm amazed you've got a patent on it Because it's actually based up a block Bouncy castle without the bouncy castle Bit at the bottom of it I spent quite a Bit of money I've worked with the my IP Lawyer to make sure that when it it's For the purposes of spray tan it can't Be copied it could they could do it

Square around circular it can't happen So that's the interesting bit to me Right now I want to understand that Conversation or those conversations About patents because that's where that Value lies as far as I'm concerned okay No problem Um obviously we had quite a few meetings With the companies for me at the time Spending three years developing Something I probably overvalued that at That point what did you value it at I Asked for 500 000 pounds to take my Painting away from me and work with it And did they counter offer Okay Um they came back and they were offering Something like a hundred thousand pounds So for me it would be better to roll the Dice and take a chance on it however to Take it forward it does need investment Okay I'm going to tell you where I am Um I'm not going to criticize that I Think that's a really good idea okay I think you are loopy to have stopped Conversations What I would have done if I were you is I wouldn't have sold the patent I would Have said you pay me an upfront fee for The exclusive rights to it and license It But actually what you have told me is as Far as I'm concerned the only thing that Is of value in this company is that

Patent and you've just told me what it's Worth and it ain't the three hundred Thousand pound you're asking for There isn't enough value in it I'm Really sorry but I'm out Sir has significantly overvalued her Patent The result Deborah meaden joins Nick Jenkins in declining the deal Have an initially skeptical Peter Jones Or Tuka Suleiman heard anything to Change their minds Lisa I can't get my head around the valuation You're not making Um so so on that basis I'm out Lisa I don't see that this is a business To really invest in and make a lot of Money it's not for me so I'm out [Music] It's not looking good for the beauty Entrepreneur Four dragons have now turned down her Tanning tent Lisa has hardly been sprayed with offers But Sarah Willingham has been unusually Quiet She intent on striking a deal I love that tense [Music] The issue is You've made it such a good product that It's going to be machine washable and go In the tumble dryer

And I reckon that's going to last Everybody ages And I think there's not enough people That are going to be buying it to Actually make that a better route to Market than the one that Deborah was Talking about [Music] Um good luck with everything but I'm Afraid I'm not investing because I'm out Okay thank you So a deflated Lisa leaves the den with Nothing A spray tanning business May guarantee a Healthy bronze but as far as a deal with The dragons is concerned she sadly Failed to strike gold When I walked in and realized I'd messed Up my pitch so much I kind of felt a Little bit gutted from that point Forward to be fair I think that if I could say again I'd Probably walk in a lot different and Really fight for what I wanted because Brilliant product absolute brilliant Product [Music]

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...!) 

(Challenge Starts Every Monday)

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