Entrepreneur leading negotiation against dragons

there's a price comparison website for everything these days so is there money to be made by adding another one well next into the lift is Amir Hassan with his idea to help you shop around for minicabs will he be the latest to drive home and investment hello everyone my name is Armour her son and I'm here today with my business Minnie Cabot calm we're looking for a seventy-five thousand pound investment in return for a fifteen percent share in the business every year ten million trips are taken by cab out of town all pretty much books on the phone and yet everyday people across the UK are still having to sift through cards and phone books dumped on their doormats having to gather phone numbers to call cab offices just to get a quote Minnie Cabot aims to make all of that a thing of the past now you can book a trip to the airport a meeting concert a night out or even a visit to your grandma in just a mini Cabot moment with our website and our mobile app you can instantly compare real time quotes from a range of licensed mini cab providers across the UK the cab providers set the rates on our system the customer then pays for the fare in full on our site and then once a trip is completed the we pay the cab provider deducting a 10% commission and the one-pound booking fee in the process and that's why without any PR or marketing we've already trapped it 100 licensed mini cab operators across the UK into our network last month 10,000 pounds worth of bookings was placed through mini Cabot and we will add a few zeros to that with your investment thank you a confident pitch from former mobile phone technology man our mare her son so you're going from Manchester to let's say soak on Trent his price comparison website and app promises to get the best deals on out of town taxi journeys just simply enter your card details and then you can book a cab but with the meter running on our mares time in the den Duncan Bannatyne wants to get straight down to business you said we a few temperatures that the row where do you have a partner or investors err I own 84% however I'm actually setting side 8% of that as an equity options pool for the current and incoming team members then I have Eadie who owns about 8% he's like a commercial advisor and then I have a corporate investor as well I'm a corporate and restaurant how much seven and a half percent so who's the who are they so the corporate investor it's a major telecoms company they don't you have worked for them in the past possibly possibly okay and all possibly not they don't wish to be named it doesn't matter if you've come in for investment you know it's a bit like saying I've got a promise of two hundred thousand pounds or who's that from oh I can't tell you well if I say it's one of the mobile operates it doesn't help me and you need to decide here and now you want to disclose it and we can have a conversation or do you want to withhold it and walk back in that lift it's it's Oh - okay are they going to target their customer base with your app actually working with him on a priority moments offer for look and what does that mean so customers for instance if they're going to a particular concert to a particular venue they can see an offer might be five pounds off your first booking through Mini Cabot and they'll see that offer what is your forecast profit this year with investment we aim to do six hundred and sixty nine thousand pounds of gross booking revenue so that's a fifty-two thousand pound gross profit yeah net profit net profit so in the first year it would be a loss of forty eight and a half thousand pounds thank you relief for the entrepreneur as he survives a grilling from Peter Jones but there's something troubling kelly Hoppen I have a bit of a problem with minicabs per se because they have a very they have had a very bad reputation how do you know that the companies that you're putting under your brand again to match who who you want to be in the market sure so first of all we checked that their license and so on and we have that opportunity for customers to rate the the drivers and the calves and so on the other important thing is we hold the money so if there is an issue with the booking that really sharpens the performance of the cab firm I'm not excited by it and if I'm going to invest in something not only does it have to be a business proposition but I actually I have to want to be involved in it so I'm going to say I'm out very early because it's just not something that I would invest in you know if I was going to invest and a business like this I'd invest in yours because I think you can do it but it's a pun so because of that and that reason only I'm not going to invest but I wish you the best of luck and I think there's a good chance you make it but I'm out thank you a mares to dragons down as kelly Hoppen and Duncan Bannatyne take themselves out of the investment loop now Peter Jones is ready to declare his decision I think you are very good and I think you've created a very lean business model and you have a product that has an opportunity to make it I think it's clever you brought a network and got a network involved I'm going to make you an offer and I'm going to offer you all of the money seventy-five thousand pounds but I want 40% of the business okay thank you telecoms giant Peter Jones's offer is on the table but with a hefty price tag he wants 25% more equity than the entrepreneur is offering which way will Deborah Medan go well I have to say I think I think there's there's certainly legs in this I'm gonna make you an offer and it's gonna put you in a predicament cuz I'm gonna make you the same offer as mr. Jones down there so I got to offer you all of the money but I want 40% of the business thank you Thank You Deborah two identical offers on the table both for more equity than Amer had planned on giving away now piers lynnie is the last dragon in the race and I think you're going to need to raise more money at some point you know whether it's to accelerate growth or maybe things didn't quite go to plan sometimes they don't maybe like huge amounts but who knows so I think you need to be incentivized so and your team too so I'm also going to make you an offer so all the money but for 30% Thank You Pierce I'll take a moment to think yeah by going in with a better offer piers Linney has made a potentially game-changing move can the entrepreneur turn the situation to his advantage first of all thank you for for office and thank you for listening to me as well I'd like to ask first of all would you be open to all three of you co investing in mini Cabot and bringing your range of expertise so what's going to be a very fantastic opportunity I wouldn't a mare and I'll tell you why sometimes you can get too much advice in a business you can have too many voices and too many people chipping in so I personally wouldn't be part of a trio of three dragons okay would you be willing to come down on your percentages peter and deborah at all if there were if we were to do something with the deborah would accept but if there was something where i shared an investment with deborah for example you've got the power of two then i would be prepared to drop to 15% yeah in other words i'd give you back five percent if you prove the business model in the next 12 months so you're saying fifteen percent each subject to hit and hitting a certain so we're saying 20 percent each oh but who job if you hit the targets which you have given us here today yeah I'd have about five percent Peter would hand back five percent yeah you have any thoughts on that piers ah gets too complicated isn't it fends you seem to want more than one dragon doesn't it it's what that's what you should be pitching for yeah you want to board room full of people then it's not it's about building a coalition of experts right so my offer is that my offers are the same offer is 30% for all the money fix no messing about whether you hit your target or not it's a tough one should our mare choose piers Lily's financially better offer or go for the power of two dragons but the entrepreneur hasn't finished negotiating yet my concern really is I'll be open I think 40% is very strong and I not that comfortable with ratchets just because you know I'm so invested in there already and I'd actually think it could do a disservice if for whatever reason we don't hit that that metric you've got a key man who's feels punished so I like your offer piers if you can both move to close to 30% as possible with that was without a ratchet then I'd be I'll be comfortable this is an unusual scene in the den an entrepreneur who's in the driving seat of the negotiations has a mare done enough to convince Deborah Medan and Peter Jones to drop their conditions I would revise my offer yeah and it will sit between peers offer and my original offer and this will be it so I will offer you half of the money so that's thirty seven thousand five hundred for 17 laps into the business thank you would you be interested in matching that I would I would match that offer I'm not going to move around my 30% still sensed by do I they wanted to I'm quite keen invest with you okay so I've decided piers thank you for your offer is a small world and hopefully we'll there was each other again but I'd like to accept Deborah and Peter's offer thank you our mayor has done it it took guts to negotiate with the Dragons but it was worth it in the end and the plucky entrepreneur leaves the den with two well-connected business people on board I saw Pierce's really enthusiastic and I thought great but I you know deep down I always wanted Deborah and I wanted Peter and I thought between them making couple more bases time will tell if it was the right decision or whether I should have gone with the sweetie deal that piers was offering but you know being an entrepreneur is all about taking risks

Channel: Hoy Zeyn

Views: 1,329,685

Rating: 4.6892428 out of 5

Keywords: Dragons' Den (TV Program)

Id: pvtf_UBYKbY

Length: 14min 23sec (863 seconds)

Published: Thu Feb 06 2014