Foreign To a special Christmas edition of Dragon's Den for most of us it might be The season of Goodwill but for many Entrepreneurs it's the season to make Good money hopeful businessmen and women Are waiting to face the dragons Desperate to secure a cash injection in Order to gear up for their most Profitable time of year but don't expect Talk to me of mince pies fairy lights And the office party this is business After all [Music] Foreign I'm known in the industry as Mrs Christmas My main business is events hopefully Today with your hundred thousand pounds Investment and 20 return you'll see that I'm so much more than just Christmas So Years ago we always used to visit the Big man in the red suit and occasionally We'd get a cuddly toy or perhaps a Photograph as well so what I decided to Do is think right what can I do that can Stand out from the rest so then I Pioneered uh wish for Ticket which is an Online ticketing solution rather than Waiting in a queue for two hours to see Father Christmas people could book Online at their Leisure so then to make The experience more exciting and bigger
I created rocket the reindeer which is a 12-minute animated 3D film suddenly the Footfall was increasing enormously and That's when I created some costume Characters called Rocket and cheeky that Are based from the film You come out and there's a whole Merchandise there of DVDs and stuff all Sorts of different things but not only That in 2010 I've turned over roughly About a million pounds and my profit is 300 000 pounds so thank you for Listening Um would anyone like a hug before we Carry on questions hi hello Um what was the name of the event Company melbury events Melbourne events And that's the only company no we have Two other companies wish for Ticket Limited and Rocket the reindeer limited Okay And how long have you been trading 15 Years have you yes Yes well done Right this business is very very Seasonal so it is who do you work with Um I work with the big boys I work with Selfridges I've done that for six years In London the Manchester Trafford Center Westfield Um I've pioneered the technology that You see at the Christmas grottos and Experiences today in the UK tell me About you
I've always done events I've always been A leader never ever a follower I'm very Creative tell me how right I was asked To put in a Christmas event three years Ago and I had to try and increase the Footfall into the experience at Christmas and the Figures were nine Thousand that's why I had to inherit in Year two when I took it over we Increased that to 27 000 people that Came through last year was 47 000. Right and this Revenue the 1 million Revenue in the previous 12 months Turnover with the 300 000k yeah it's About net or gross profit that's gross Profit gross profit and um the business Is making money the business is making Good money can we just explore those Numbers a bit so um you've got GP of 300 000 in 2010 yes so what does that Produce in terms of net profit at the Moment there isn't really too much left In in the pot for profit because I've Reinvested everything I've got I've Bought costume characters and I bought My films so I'm at a position now where I've got assets and I'm almost Asic rich But cash for a cash okay let's talk About that then your balance sheet so What does that look like so 2011 it's Looking like the million turnover yeah My gross profit was 500 000. yeah that's Profit and loss though yes so I'm Looking so you you talked about assets
Yes I'm sitting at the balance sheet Yeah what are your fixed assets about uh 200 000 pounds okay so um what's the Number at the bottom your net assets for The company at the moment it's forty Thousand pounds forty thousand that's What that's what my profit will be for 2012. profit that's net no you're Talking profit okay so balance sheet What's your net worth 200 200 000 pounds that's my assets That's different Melanie I can see Deborah's frustration Here because I'm go on try another one I'm trying to try another slime That's the same question yeah right in Total do you have any stock yes what's The value of that stock 50 000 pounds Cost price yes DVDs and some of this merchandise so if You'd imagine now on your right hand Side of a piece of paper you've just Written 50 000 pounds yes on that left Hand side of the paper now Do you owe anybody any money at the Moment about twenty thousand pounds and Does anybody owe you any money about Fifty seven thousand Now if we take the difference between 57 And 20 000 we get what Oh is that sorry sorry I'm one step Ahead of thinking so totaling up 37 000 Goes onto the other sheet right okay Well the 50 000. 77 yeah 87 87 yeah
Numbers is not your game not my game no Do you have any cash in your bank at the Moment Um about 20 something thousand I think Okay do you have any loans about 45 000 Pounds to finance the second film okay So in general I've come out of a net Asset value of your company 62 000. right okay Peter can I just Check one thing you said earlier you Said you're 200 000 pounds worth of Assets yes So we've got wish for ticket in that as Well we haven't discussed that yet okay So give me five give me a few seconds My head is smashed now with numbers I'm Going to say to you it is smashed Confusion Reigns and much of Melanie's Earlier good work is undone can retail Expert theoper fetus help bring the Likable businesswoman's pitch back on Track Just sitting here listening to everybody Asking you questions thinking the pen is Going to drop any minute because I'm Struggling with it right okay and you're Great and it's very Visual and you're Really enthusiastic strong person that We love to see here if I had my sheets Here and I could tell you I don't Remember numbers I honestly I don't Remember numbers I'll make you loads of money Melanie I Know if you're making loads of money
What are you doing I'm not yet no I have A creative head and it just needs Somebody like you to grab hold of me and Say you know what I'll do your finances Melanie Melanie money I can't even Understand your business they're not Invest in you right okay let's go let's Do this you've got Melbourne events Which is a ground operation so I have Hundreds of costumes and Staffing the Best in the country and what I did is I Created wish for ticket as an add-on and Then I made a film I came up with rocket That I wanted a 3D experience that no One else had done we'll have a look at The films yes they're here And how many did you sell last year it Was seen by about 600 000 people across The country Melanie stop there yes that Was the first no no no No no let me ask you a question and you Come up with a completely different Answer yep She says how many did you sell and you Said last year it was seen by 600 000 People right how many did you sell Couple hundred on that last year because It came out a week before Christmas that Doesn't matter You sold 200. we just teased it we just We sold 200 at what price at six pounds What did it cost you to make the film 70 80 000 pounds Right so you spent 80 000 making a film
Then you sold 1 200 pounds worth of DVDs And I sold the license as well who too Shopping centers how much for for six Thousand pounds Six times I sold it so thirty six seven You saw the license for and you sold 1 200 pounds worth of DVDs It cost you eighty thousand pounds to Make the film yes and you sold the film For thirty seven thousand Pounds yeah Making a loss of forty two and a half Thousand pound It's a very very simple business rule You're not understanding the concept of Business there's a huge licensing Opportunity for this product I wish you a very very Merry Christmas Melanie but I um Out Uh great to be creative But you've invested money in these other Areas That they haven't paid off No I'm free I'm I'm sorry I'm so sorry No why no because of the gate figures And their gates are relevant because They'd still do the gate without Watching that movie Peter I'm I'm now Going to I've now got these assets But they're paid for they're not assets They're ideas to generate additional Income and you've just proved that by Introducing them at the cost that you Have that they don't generate any income
I've now got people from abroad wanting To work with them I can clearly see Listen you've had a business for 15 Years Um it's amazing what you could have done If actually you've aligned yourself with People that actually could help You've done a well to stay alive frankly You clearly are very entrepreneurial You've got a real passion for events and You clearly are very good at it but I Think a reality check needs to happen I'm going to say I'm out Right there's other people who've got Characters there's other people have got Booking engines and other people do Events So you've put all these three together But while doing all of that what is Absolutely clear is you make little Or no money You're a million miles away from where You think you are that doesn't mean you Can't get there You need to stop Reconsider and have a new battle plan So for that reason I'm going to wish you Luck and please say the advice but I'm Out It's profit not passion these dragons Are after as two more investors walk Away from the deal Is Deborah meaden willing to offer the Financial Lifeline Melanie badly needs
Melanie the trouble is I have no idea Whether you have got a fantastic Business or a business that is about to Fall over okay it's a fantastic business I have I've got no choice okay I can't invest No I and I wouldn't invest that's the Way I've said it issue but it's so Frustrating because you will get your Investment back but I just feel like if I ask you a question I'm not going to be able to believe the Answer okay So I'm at Melanie I really like you I like your enthusiasm I like your passion you don't know your Numbers but that's not a crime yeah it's Not my strength My advice would be before you go off at Tangents spending more money right a Three-year business plan It looks at me I won't be investing okay Today so I'm out okay okay thank you Bye-bye These dragons may be high on Christmas Spirit but that doesn't mean Entrepreneurs will be getting an easier Time in the den today Melanie leaves With nothing That's probably the investment of the Year that we all missed we'll never know I know what she should put on her Santa List but an accountant or a calculator
Calculator Next to face the dragons Is Marianne du Jardin from Seattle She's Enlisted the help of a Very Special Assistant although today he's Opted to arrive via elevator instead of The more traditional chimney [Music] I'm really happy to have Santa here he's Going to add some joy and some Spirit oh Happy Christmas It looks a little bit crafty And I'm sure he's really on board with My product and it'll help the dragons Invest Are you bleeding Father Christmas of Course I do So Merry Christmas dragons [Music] Oh oh Hello my name is Marianne de jardan and I'm here today to ask for 40 000 in Return for 25 of my company rethink wrap No I hate to talk trash in front of Santa But did you know the UK bins 227 000 Miles of gift wrap each year That's enough to circle the Earth nine Times And most people think oh it's paper it Can be recycled but actually most of it Goes to the landfill because gift wrap In itself is either too thin or too
Shiny and it actually pollutes the Recycling stream So I have rethink wrap it's the smart Reusable gift wrap for those of us who Love beautifully wrapped gifts but hate Trashing the planet It works just like regular gift wrap Except that it comes crunched up in a Tin which for me it's embraced the Wrinkles is my Mantra and each of the Gift wrap is individually numbered so It's perfect for social media you can Track it online and see where in the World it's been and what happy occasions It celebrated I think I should wrap this up and Santa Has some gifts for you oh wow yes Well I hear you've all been very good Reusable gift wrap is the offering from Marianne du Jardin I haven't I'll have to look into that who's Seeking 40 000 pounds oh thank you very Much Joe in return for a 25 share in her Business Santa will have to open our Presents today yes please by all means Open them now Santa might have a gift For every boy and girl merry Christmas Everybody Merry Christmas but will any Of the dragons feel in the seasonal Spirit of giving Marianne hi hi Dave Um I just want to tell a bit more about How this works okay so I buy a tin yes And I wrap a present give it to my
Family well you can either give forward Or ask for it back and just keep it Within families that we have a you know One that circulates within our family And we reuse every year Marianne yes yes Um you remind me a little bit of my Ex-wife okay Because she uses the same wrapping paper Year after year but then she then irons It all and puts it away for the Following year right perfect she says They're wrapping paper every year I do I Don't iron mine to be fair she has Beautiful wrapping paper once the Children open them all up she takes them Presses them puts them away for the next Year Anyway so tell me about yourself I'm originally from Seattle right I'm a Graphic designer for retail packaging so When did you first start this business About a year and a half ago okay so what Sales have you done 400 pounds I know I know I know So the next 12 months right a where will You sell it and be how much will you Sell well I have a meeting with John Lewis in two weeks which is quite Exciting Um I hope to get into retailers I'll Probably sell on Amazon just to get out There and I think I could do Um
Ten thousand Pounds or ten thousand units units I'm Looking for pounds um it would be 78. Gross profit Um 48 Net profit hopefully break even Marianne's modest sails have left the Dragon somewhat underwhelmed Cancer Davies unravel anything to lift The mood Marianne what are you planning to spend The 40 000 on if you get the investment Some inventory also the um the website So you haven't got the website at the Moment no the website's up and running And it's already it's just the tracking Part of it that I would really like some Back-end help with because I'm not a Coder So how do you track where it's been well It's proactive you have to go online and Share it with social media there's no Tech that does that it's just you it's Just me yeah it's I'm doing it manually Yeah honestly the idea of the whole Tracking it around the globe I feel like You're putting a lot of time effort Money into this part here and I see it's Got a couple of extra little stickers on And I just worry that that's not Achievable if you were producing a lot Of these I would probably make it proactive so
That people would create their own Identity so I wouldn't have to do the Individual ID so they could name it Themselves and create you know more of a Bond with it Marianne is confident she can upscale Production whilst retaining her gift Wraps home spun feel But has tajlalvani spotted a more Fundamental problem with her products Eco credentials Marion is this made from recycled Material No It's not that would make it a lot better I think because that way at least you're Using recycled material to make it What about this The aluminum How do you dispose of this well it Actually acts as a reminder to keep it And store it and if I could have 30 of Those you put it back in no but I can't Because I've given the present away you Can put it within the Box That's not okay because also You got plastic yeah I know Look you've done the right thing to Pitch it at 40 000 for 25 and I like the Concept However To make that into a business With these components I think you're Doubling up on the issue so I don't
Think it deals with it okay So for that reason I'm out Thank you Marianne has lost her first dragon as Peter Jones fears that in trying to deal With one problem she succeeded only in Creating another [Music] Gift wrap is already part and parcel of Tuka suleiman's retail Empire But will he tie up this particular deal Look Um You've come up with a luxury wrapping Paper And you could sell some go out there and Sell to people who might want to put it On expensive gifts Harrods they have a rapid division Selfridges go to Cartier go to Gucci is It for you to say go to Cartier and Gucci because you can do that I could do That of course I could do that yes Unfortunately Um I don't see the reward big enough for me To go to Gucci and Cartier and sell These for you Okay so for that reason okay I'm out Okay Marielle I can see we're trying to get At this But I just don't think it's a business As an investor at this stage okay
Love what you're doing and continue to Do it I hope it does work out But I'm out Very Anne I love the idea and if it's a Small victory that you've made today I Am going to go away from here and start Reusing all of my ex-gift job However I don't like the idea of Scrunching it I'd be like your wife I'd Be I'd be ironing it ex-wife See I embrace the wrinkles like yeah Yeah but then I also worry that I don't See that you've got a unique business Model because I'm guessing this isn't Something you've got any form of Protection on So it's not for me today and I'm out Second third and fourth dragon have now Folded on the deal Deborah meaden always has an eye for an Investment with planet-saving potential But is she like Marianne dreaming of a Green Christmas I've got drawfuls at recycled wrapping Paper actually my whole family does Comes a bit of a thing I've got an Ancient bit of wrap that keeps going Around and the ribbons and the labels Get cut up and all my Christmas cars get Cut up actually my mother takes it one Step further she recycles gifts Yeah I've had the same gift back three Or four times which actually is quite Modern offer Now isn't it yeah it is I
Can remember what you gave me last year Mum stop it Anyway Um so I come from that angle and I'm a Bit rabid about recycling anyway so I'm I'm your customer except that I wouldn't Want to buy that oh I would kind of feel That it's another production process Particularly that plastic is production If you're gonna do it you have got to be Lily white right if somebody cares Enough to pay then they're going to care That the whole thing is completely Environmentally friendly Like you're thinking but there's just Something not quite right about the Execution I'm out Okay Thank you all for your time good luck Sadly for Marianne she must leave the Den empty-handed The outcome that I hoped for but in the Future it will be great we should Rethink Her initial concept might have been a Cracker but when it came to wrapping up A deal the dragon simply weren't Prepared to talk turkey I'm just thinking how Frosty Christmas Is going to be in the meeting household Now I've told my mother off for Recycling gifts Mrs Mead and Senior is Going to be very unhappy
It's one of the great paradoxes of Modern society the more industrial we Become The More We crave handcrafted Homemade Goods this is something our Next entrepreneur Alison whitmash from Huddersfield has taken advantage of Oh lovely Foreign And I'm here today to ask for a 50 000 Pound investment for 10 equity in my Company proper made and the ladies who Bake My vision at the very beginning was to Create an army of ladies baking cakes With the same passion as home baking as I do myself But I knew passion alone wouldn't be Enough to get a slice of the 600 million Pound home baking Market as it stands Today so what we've created is a range Of traditional cakes alongside our Unique flavors so I'd just like to give You an introduction to four of the cakes The first one is the Victoria vanilla as This to me represents everything good About the home baking the second is ADD Licorice cake and this one a gold star At the Great Taste Awards last year the Next one is dandelion and Burdock cake The final one is a Christmas dinner cake Which has all the elements of Christmas In mine is the turkey and the gravy so In this one you've got Sprouts carrots Parsnips cranberries chestnuts oranges
And and it's all mixed together with Some Christmas spices and believe me it Tastes delicious Thank you Never before has the den seen such a Mouth-watering display Also a bit of each one oh lovely to talk About but is Alison wittmarsh's business As tempting which is the Christmas He's hoping the dragons will see Potential in her huddersfield-based Home-baked cake range and take a 10 Stake in exchange for 50 000 pounds Hilary duvet looks intrigued Alison hello hi I'm Hillary Um first of all go through your own Background and how you have the vision And I've always spent my whole work in Life in field manufacturing I started Off developing recipe dishes for Well-known retail Brands and then I Moved into manufacturing and I did that Until I had children and then I found it Very difficult to actually manage a Senior production manager role so I've Packed it all in and became a dinner Lady so then after Bernardino lady I Started in my home kitchen just baking I Did my first farmers market sold out Completely and then it's just exploded We've doubled our turnover year on year And this year we're on track to hit a Quarter of a million pounds with a net Profit of 36 000 pounds and um
And you know you're demonstrating your Passion yeah sorry Whether it's the cake or not Allison is Clearly endearing herself to the dragons Bannatyne wants to drill down into the Business itself Is going to make 36 000 net profit this Year yeah so who is your biggest Customer my biggest customer is a Corporate caterer and they supply all The the Arts the museums in Leeds and What's this going to come from that Customer well they spend on average I Think about 800 pounds a week 40 000 a Year yeah And many people do you employ uh 12 People so 12 ladies and one token man [Laughter] How do you physically get the cakes Delivered we have a unit Um I have a delivery man so if somebody 100 miles away wanted some keys and then I do use a Distribution Company We're at the stage now where a lot of Our new customers are further afield and We've just picked up a a contract to Supply all the music festivals so that One will be a National Distribution Alison high that contract so who is it How big is it it's a company called Utopia and they do all the backstage Catering for all the music festivals What kind of you know quantities Depending on the festivals it can be
Anything from 3 000 units up to 40 000 Units and what's that worth to you in Value terms um on that contract alone About 40 000 pounds what do you think is Going to happen in the future what's in What's the next point I think if we Worked more smartly we could take Possibly a million pounds on where we Are now but I do believe that what we Have created it could be extended all Over the UK Expansion plans and lucrative new Contracts it's not just the products That are appealing to the Multi-millionaires Can Peter Jones find a reason to invest I think you've done amazingly well thank You everybody as everybody said the Cakes are fantastic Um I am sitting here though thinking That as you start to really grow this Business how do you retain this sort of Home cooking style well there's two ways We could go we could either build a Massive factory so we could increase the Output but I think we'd lose everything about the Brand so you agree it is difficult so do I do it that scale or can I do what We've created in Huddersfield and Replicate it somewhere else in Scotland Or in the South and then logistically we Can still keep all the elements of the Brand like the local sourcing but
Actually that's that's huge duplication Isn't it yes you need to really Work through the economies of scale to Get those costs down See at the moment a way that you could Make this a really big business But when I say big I mean turning over Several million and making a couple Hundred thousand pounds a year which is What you'll need to do as as you grow if I've if I've invested 50 000 pounds So I can't find a way to invest in you Because I think this is a localized Unscalable business So Allison I'm not going to invest today I'm going to say that I'm out A worrying analysis of her expansion Plans it's a first setback for Alison And Duncan bannatyne looks to have made Up his mind too Unfortunately This business has been driven By a fantastic Energetic lady called Alison Who loves what she does loves the people That work for her and loves her business You take Alison out and you have a Problem how do you fill that space I do Think there's other people like me out There I really do and I'd like to at Least open another one it's just Employing the right people I'm not there A lot of the unit now and I still think I don't need to be there anymore I'm
Selling and I'm on the road a lot you're Still there in the business selling gun On the road and then go back and make Sure your cakes are picked the right way Unfortunately I think this business Relies a little bit too much on you and I think it's going to be hard to expand It so for that reason that reason Normally I'm going to have to tell you That uh where I am and I'm afraid that Allison I wish you the best of luck but I'm out thank you Allison How much do you think it costs to send a Cake from Huddersfield To let's say say London for keep it Simple and well I've been quoted Anything from 50 pound of pallet to About 80 pound of power Okay so what's the shelf life of a Proper made cake and made fresh is seven Days but refrigerator in a some of them Need refrigerators some of them don't Obviously if it's got the cream cheese On then you would have to refrigerate it But we've also got customers now that Are wanting to take it Frozen as well I Mean I've just been in a discussion with Nothing I was very interested in taking The Christmas dinner cake Um I'm not sure why I think I should as As again they're quite Keen to get it Out to Afghanistan over the next Delicious period and
Um And they would take it as a Frozen as a Frozen product Right Um I couldn't Disagree more with Peter and Duncan I actually think you can scale it I think you certainly can get the sort Of turnover that Peter mentioned several Million I think the Dilemma Is Not whether you can do it or not Dilemma is is that what you want yes it Definitely is I went in this really Um to build A national brand and And I still believe we can do it Obviously with your help Earnest plea from the passionate Entrepreneur but as yet no offers of Cash However there are still three dragons Left in [Music] Your very impressive Alison I think you Have got it pretty buttoned down if you Put preservatives in lengthen it shelf Life you're just going to become the Same as ever the same as everybody the Point is that you're not that's the Whole thing about this business and and
You're bang on with that you know people They're looking for they want homemade They don't want the bother of homemade And everything nowadays however lovely It looks it looks synthetic so I I get There is a big Market in that There are hurdles obviously ahead of you And I think this is not an easy thing to Scale But actually I think you would be a good Person to scale it Um so I am I'm going to make you an Offer Fifty thousand pounds And I want 25 of the business At last an offer of investment but for Two and a half times the equity Allison Initially wanted to give away Now will Logistics expert Hilary duvet Choose to compete My worry is that the more premises you Take on The lower the margin becomes And I think you need to go into high Volume places but I think Type of cost Approach in me so I need the scale I'm Targeting the bigger players now because Unless you can distribute in volume yeah You'll never ever make a margin no For me the only way you could see it Happening is to have perhaps another Two or three manufacturing bases and Yeah I could I could do all that for you
I could help you Look I I've I've thought about it and I just don't know if there's enough in It for me To put the time into it So reluctantly I'm going to say I'm out But I've got to say you are marvelous Thank you So that just leaves me There was already made you an offer for Fifty thousand pounds or 25 the business How do you feel about such a large Percentage Ask me that you know a few months ago I Would I would have been reluctant but I'm in this really my my get out plan Was always I sold the business at 50. How many years have you been five years 45 now yeah I do believe with your help Then I could still have that dream look That's your dream of getting this Business Exited in five years time and growing it You're only need more than 50 000 pounds So I'm thinking on my feet Um I would suggest Another way to cook the cake That you get a hundred thousand pounds And I would put fifty thousand did But for me to make it worth my while at
One hour and at least 20 percent Would you be prepared to go down to Twenty percent if I got 20 percent Um I worry that the second lump of cash Is not identified but in principle yes So I'll be giving away 40 40 which allow You to get to your goal a lot quicker Yeah Well I would feel at the minute Uncomfortable about giving away 40 of my Company so at the minute Then I think at that stage I've probably Don't have to allow you to um Negotiate with Debra I'm out Are you still interested oh absolutely I'm still all right I have to take you up on your face [Applause] Alison has done it she may have chosen Half the cash that was on offer in the Den but she retains a much larger slice Of her company and still walks away with A valuable investor on board Thank you Foreign [Applause]
