Extraordinary Turnaround After Entrepreneur Checks Peter’s Credentials | Dragons’ Den

okay good luck yes let's do this the final entrepreneur in the den is a cornish engineer with a passion for building things when i was a kid playing with lego that was i've always known that was what i wanted to do i always wanted to make stuff and because i was passionate about sport it was a natural progression to work in an area to do with sport and fitness [Music] so it's all good we're a small business from cornwall and we want to take over the world and why shouldn't we a confident prediction from an inventor with ambition but will the dragons share his vision hello dragons my name is simon heap and i like to introduce rugged interactive i'm here today to ask you for 100 000 pounds in return for a 10 equity share in our company using motivational technology and innovative new software techniques we've um we've tried to take the best of gamification and competition and make exercise more motivational more fun more exciting interactive fitness is just at the beginning of its market growth there's no doubt that in the years to come going to a gym and running on a treadmill or lifting weights will become archaic and unusual our cardio wall fitmaker and trailblazer product products are now profitable and we expect to triple our turnover next year we sell globally and manufa and design and manufacture our products in cornwall um and we're very proud to do so i'd now like you to come up and have a go with our sports scientist lucy and our designer lauren okay so who would like to have a go oh futuristic sports equipment inventor simon heap is looking for a hundred thousand pounds for a 10 stake in his light pod bopping business do i just go here yes you're on this side you're on that side go hit the red one just the red one they test very stings stamina high impact interval training full speed less power faster four three two one zero you're done 64 to 45. some friendly competition in the den i might have a go sarah you're gonna but when it comes to spotting a business opportunity the gloves are off boxing gloves this is what i need [Laughter] i might just wear these in the den constantly that's good hit right on the right in the middle oh it's really even hey come on oh stop stop stop it finished technology business guru peter jones is the only dragon with enough puff left to ask the first questions okay so that's game one yes and what what's the difference between the other two so they all run off the same core technology so it's the same idea with that exactly yes yeah it's in a different body it's more suitable for different environments so that particularly goes well in schools and trampoline centers recently and obviously the um the climbing wall is for climbing so it goes in climate centers and in schools it's the same thing and if your hand up there you'd be climbing along and around it can i just feel the i just want to feel the grip on it actually um because that is the deal breaker isn't it the thing is these are these are really easy for kids to hold on to so they forget about how much they're using their body and they scamper around the place and they love it okay it's good okay so you turned over the most recent year and your best year is 250 000 revenue yes can i call my um advocate at this point would that be okay so what does he do he's new new business and sales what's his name martin worth okay let's get martin up then thank you with a financial grilling looming it appears the sports equipment innovator isn't prepared to take on peter jones alone enter simon's business associate martin worth will he be able to provide clarity on the fitness of the finances mr martin hi martin so i was just asking simon the last 12 months you've turned over generated sales at 250 000 yes and he then i don't know why but seemed to get a little bit worried and then called for you are you his safety blanket i don't know i've never been called that before so tell me through the last this last year 250 000 in revenue what was the gross profit that you made so in the last 12 months we anticipate posting uh just about breaking even on that figure was that what i asked you oh sorry the the the gross profit um in the last well the the uh gross profit that we are posting at the moment is around about 50 on the uh turnover so around about 125 000. yes you've valued your business at a million pounds that's right yes and you're definitely old enough to be slightly sensible yeah jeff so what's what am i missing well it's it's been an incredible run rate over the last quarter our under remote is is 50 000 pounds a month and that is growing you know month on month should we go through the balance sheet go ahead ask me ask me questions and i'll respond i'm not an accountant you know numbers i'm an engineer my my background is not you know numbers so i you know left that to two others what's the number at the bottom of your balance sheet is it positive or negative positive how much obviously that varies um but at the moment it is roughly 10 000 pounds actually it's a bit less than that simon do you not know i don't know exactly trouble is if you put enough issues into a balance sheet you can end up being several hundred thousand pound out so i'm asking you you don't really know do you i don't how big is your forward order book in money terms in money terms for the next year we're looking at eight hundred thousand physically written orders no no no physical orders written down confirmed what have you got we've got uh several moments no no physical orders in money terms signed sealed and delivered that would confirm yes how much we've got commitment on the 800 000. so your next year's turnover would be inaccessible eight hundred thousand million pounds oh that's our estimate yes you have not got eight hundred thousand pounds worth of committed orders have you can i ask the boss have you got eight hundred thousand pounds with the committed orders can i ask you in a different way no just as a yes or no we we have a forward um we have four order book for 800 000 no for half a million our pipeline is half a million your pipeline yes you have not got forward orders of 800 000 have you no can i ask how much do they cost how much do they sell for this one here depending on the uh the warranty and the support is around about eight to nine thousand pounds so what i'm interested in is is how that will enhance my revenue why would that make my business in a gym better okay so so you know gyms are boring they they have a high churn rate people go to the gym and i think it's something like two-thirds of gym users buy a membership and never go back i can cut this short and say it makes it more interesting it makes it more interesting it makes it more competitive okay okay i've played something really similar to this on brighton pier i've played it many many many times because it's a lot of fun it is so what is your usp you know as a business our usps are is our ability to create and innovate one thing we don't talk about is internet connected it goes up to the cloud but why is that a benefit it's not a benefit for a majority of people but professional sport and healthcare and schools it's a real benefit because it means they can track longitudinal performance you know this isn't just a british business this is a british british business selling worldwide we know it's popular in america we know it's popular in china we know it's popular in france we're ahead of the game nobody else is where we are the entrepreneurs have come back fighting but for one dragon in particular it's wasted energy [Music] as you probably know i was at university business school with your um with your business partner harry stevens so according to the rules of the den um i i won't be able to invest um i didn't actually know that you were coming coming in today and i didn't say anything until the end because i just thought i would sit back and uh and and and watch the fireworks um but um um we will let nature take its course [Music] den rules dictate that the dragons can't know anything about the business beforehand so nick jenkins walks away but are simon's products innovative enough for tech pioneer peter jones to overcome his concerns about their order book marty we didn't start off on the right foot no i think the excitement you got a bit carried away with it but i've got to say i i really like it and i don't think it's a game potentially that will become repetitive and boring either because it's got that whole cardiovascular fitness piece it's not a game you know this is basically to try and get you healthy the the thing i do like also it's typically quintessentially british i love it and i love it so much i want to make you an offer [Music] but i want to make you an offer on the basis that i do think that it works best in terms of collaboration so i'm going to offer you half of the money but for that i want fifteen percent of the company and i'll look at the other half it's an extraordinary turnaround with two dragons ready to invest although asking for 20 more of the business than was on offer has debra meden also seen anything in the game of throws to tempt her to invest do you know the thing for me you actually got me very very early on and it's the fact that it was watching these two play that made sarah and i think we want to go i've seen games that work and games that don't work and i've seen why they work and why they don't work and this is this has got something about it so i too am going to make you an offer i'm going to offer you half of the money and i want 15 of the business thank you okay um we need somebody that understands global business and you know can make those deals happen and you know i don't want to sort of say peter give me your cv but you know i i wouldn't i'm amazed you must have done your research but i'd like to hear you know in terms of not not your experience but i can give you all the words to a blue in the face yeah all right you tell me what does peter's global business do well in international technology and expansion and exploitation of of new ideas around the world so you know you're see you know so no listen to me i mean don't blow it now [Music] i need to decline my hand i'm going to give you just a little piece of advice now you could blow this i do think you've got amazing offers so i'm out don't blow it [Music] go and talk to them and climb the wall of all the questions with sarah willingham and nick jenkins out there are three dragon offers to consider but they're demanding 30 percent of the company three times as much as the 10 percent the entrepreneurs wanted to exchange for the cash they're getting a great deal [Music] i think 30 is a little high i think you know if you could come back with a lower percentage that would um that would seal the deal we were looking somewhere around 15. well i mean we are way apart aren't we you're 15 and we're 30. that's way off but there's a middle point isn't there would you do anything if if your investment was repaid [Music] yeah yeah yeah that would be an option a buyback because this is all about risk yes the minute i receive back my investment i will give you back five percent so that leaves me then with 10 in the company i would agree that i would put a time scale on it okay within the next two years peter would that sound sensible deborah meaden and peter jones have joined forces to clinch the deal tuka sulliman is now flying solo will he up the ante where are you here i would say i'll give you the whole hundred thousand for twenty percent a bold late move from outsourcing supremo tuka suleiman who undercuts the other dragons by letting them keep more of their company up front [Music] thank you for your offer but i think we're gonna go with deborah and peter excellent wow well done congratulations the entrepreneurs snatch victory from the jaws of defeat glad we got there in the end it's very exciting and they walk away with a hundred thousand pounds and two dragons well suited to take the interactive fitness machines global it was up to us not to mess it up there was a point where perhaps it looked like it was going in that way but but you know i think it was they understood and they they got it well done guys well tuka you put the cat amongst the pigeons then i thought it was going wrong at one point it was a structure that i was worried about about who who they employ is that why you got so worried you offered a hundred thousand to undercut [Music] us you

Channel: Dragons' Den

Views: 1,559,105

Keywords: bbc iplayer, united kingdom, british tv shows, watch uk tv online, watch british tv online, dragons, best, new, pitches, funniest, moments, most, shocking, products, businesses, peter jones, deborah meaden, dragons den worst pitches, dragons den funny, new dragons den, tej lalvani, touker suleyman, peter jones how we made our millions, dragons den, dragons den sidemen, dragons den 2020, business associates, brighton pier, sarah willingham, season 14, exercise, exercise for beginners

Id: 4ra9FL2lIB8

Length: 16min 55sec (1015 seconds)

Published: Fri Sep 25 2020