"You Didn't Bother Because You're Australian?" | Dragons' Den

which one will be tempted I do like Peter yeah I'm a massive fan of Harry James when I decided up my business I read his book and I loved it I am really excited and thrilled to have the opportunity to pitch my business to him today we're ready to slay some dragons I'm ready to tempt the Dragons hi I'm Sarah Hilary and I'm the founder and chief temptation officer of be tempted gluten-free cakes I'm here today to ask for an investment of 75 thousand pounds in exchange for a 5% stake in my business a few years ago I went gluten-free by choice and was astounded by the lack of great tasting gluten free products on the market so I made my own I made a business out of it and be tempted was born we've built up a really great customer base every week we delivered to Harrods Whole Foods Selfridges and Fortnum and Mason our product range comprises of nine flavors in a variety of formats since 2012 we have turned over in excess of 500,000 pounds our gross margin is anywhere between 51 to 73 percent I'm here today because we have a potential opportunity to launch our brand into a national retailer and we anticipate that it would increase a monthly revenue by over 300% this is an amazing opportunity and one that I hope you will find tempting I have one of my temptation officers with me would you like to be tempted oh I'm sorry I'm tempted absolutely tantalizing the dragons with her range of gluten-free cakes Pisa we know you like it hot oh I do like it hot it's sweet talking entrepreneur Sarah Hilary now I realize why she keeps winking at us thank you very much she's hoping to secure 75 thousand pounds for a five percent slice of her business it's a bit greedy don't you think yes you're right little bit greedy but it's the valuation she's placed on her company that has caught the attention of touka suleiman thank you I can see you've tried to suite us all up you think that your business is now worth 1.5 million so let's talk about those numbers ciao year 1 2012 turnover how much 40 6046 year to 82,000 year free 86 yeah via for $99.99 yet one-two-one one-two-one okay what was the gross profit what was in that profit I can't remember for year one you can't remember one for the entire kill you the last year last year gross profit of the gross profit in that year sorry it's just gone from my head right now I'm sorry I can't tell you you can't tell me you should know that rule number one in the bin and you've got to get your figures right yes Sarah yes so I don't mean to shock you that's right your products look fantastic they taste brilliant I thought you were really going to come in with some pretty hefty numbers and growth but you haven't what is your forecast for this year three hundred and sixty seven thousand pounds and what has changed how are you going to achieve the 120 to 360 leap so this potential option either that we have with the national retailer is for Khufu with Tesco's and they said they're gonna order three products into a minimum of 150 Express stores so what revenue was that give you one hundred and eighty thousand pounds your business over four years hasn't really grown at all yes and you're forecasting this year no real growth apart from one account so what's going on there first of all years of relatively flat variety of reasons I guess that I didn't have enough money or investment behind me to invest in new products or any marketing to grow the business okay that's one reason another reason at the time I wasn't really interested in growing the business why were you not looking to grow the business okay well to be honest because I'm Australian yeah I wasn't quite sure how my visa situation would work out so you spent four years not growing your business because you're Australian I don't understand I'd only give you a hard time but I kind of do now and it doesn't answer my question you just said that it's because you weren't fully committed because you thought you were get might be going back to Australia yeah is that what you well why don't you repeat that to Peter because that's what I'm sorry but now I have indefinite leave to remain so I can stay in the UK oh okay took a bit of extracting a frustrating exchange for the Dragons as Peter Jones has to work hard to get to the bottom of be tempted slow growth but with Sarah's dedication to the business finally established days LaVon is letting his taste buds do the talking I must say this is delicious thank you is absolutely amazing the the chocolate brownie what's the next step that you plan to do I would like to get into another retailer I also like to target the cafe market and we had an inquiry about potentially supplying ral gourmet UK so you're gonna be the first one selling gluten-free and Tesco in terms of the luxury high-end artisan produced we would be the first the the competitor that I would compare who I'd compare it to would be the Tesco finest brownies and that retails at two pounds fifty two pound fifty and yours will be how much two pounds 49 and there's no preservatives handmade yeah well I like that the product is good what exactly do you want from the dragon I'd like some contact so it'll be great to to be introduced to some of the people that you know and I think it would be a lot of fun Sarah you mentioned brownish and automatically I realize I have a conflict I know that brownie yes so for that reason I really have to say I'm out I understand can I ask what you think about brownies they sorry no but that one's over Sarah sorry hi Jenny hi have you heard of the sniff test it's not about your cakes because they actually taste lovely it's the nicest gluten-free product I've tasted the sniff test is what an investor does when they look at a business and decide whether or not they're going to invest and something doesn't smell right here at all to me at all you came in and gave a very confident pitch you sent miss temptation to wink at us oscillator eat your cakes but you don't know your numbers talk to me about how you get to you one-and-a-half million valuation okay sure so because everything is everything is moving at the moment is not a reason for it to be one and a half it was told you that it's worth one and a half million I had somebody who was a finance director in a restaurant chains okay for the numbers but do you believe it's a one and a half million valuation are you just really happy that they're giving you a big night you know I honestly I do think it is based on from there onwards and forward value and with a terminal value for exit of well if you look at goo so between twenty to twenty five million pounds same as green and blacks I'm fascinated you can't look at something like goo they broke a market massive amount of marketing behind it and it was a different type of product yours is lovely but it's it's gluten-free brownies with a nice brand your valuations crazy I'm afraid I'm out Sara I I think the size of the opportunity and what you've done over the last four years has demonstrated really where the business is at it's all very neat and it's all looks great but it's just - cottage industries very small Tesco Express I don't believe it will work for you at 2:49 I think you'll find it would be 149 very quickly and margin pressures will come on as volumes potentially increase I also think the valuation is is not just crazy it's absolutely ridiculous stupid mad so for all those reasons I'm not going to be able to invest and say that I'm out okay thank you very much Sara your business strategy and the evaluation of half-baked and that shows a naivety on understanding how that works in business you know I can't see the help I could give you on such a ridiculous valuation and a small percentage so I have to say I'm often tempted but on this occasion I'm not persuaded I'm out look I like the product it's great it tastes good and you've been able to penetrate quite a few retailers and I think you're you're doing okay but with a dragon on board you could you could do even better I think the risk is very high for what you're asking for the business I'll make you an offer but you're not gonna like it okay there's got to be all of the money but I want 40% of the business [Music] tej la ghani's offer of 75,000 pounds for 40% of the company demands eight times more equity than Sarah put on the table slashing the value of her company by over a million pounds would there be any potential to buy back any of your percentage if we hit our revenue target for years 1 & 2 the first year revenue was going to be how much three other 367 and then 900,000 pounds with a 166 thousand net profit if you hit years 1 & 2 target I'll drop it down by 10% so from 40 to 30 would that be possible to do it to 20 sorry he's a sweet sweet deal I'm tempted would be tempted but not that tempted as long as year 1 year 2 a hit down to 30% and can I ask how you see this going with your contacts like who right so basically I can look at introducing you to Asda Sainsbury's in Waitrose and open those doors for you ok ok can I go to the wall yes thanks a tough decision for the entrepreneur tale our Varney's revised bid reducing his stake from 40 to 30 percent on a buyback deal still leave Sara giving up six times more equity than she wanted I was hoping it's gonna be a bit more competitive and other than this because I think it's a great opportunity I do see the value of having a dragon on board and so for that reason tasia I'd like to accept your offer great thank you well done ha good luck sir finally after a tense negotiation Sara exits the den with an investment I think you've got quite good deal there even though it was a little bit greedy what's a greedy I just love the brownies did you come here today to get a dragon on board and that's exactly what's happened I'm really excited I'm really excited you you

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Rating: 4.7838688 out of 5

Keywords: bbc iplayer, british tv, watch uk tv online, watch british tv online, dragons, den, best, new, series, worst, pitches, funniest, moments, most, shocking, ideas, products, businesses, peter jones, deborah meaden, dragons den worst pitches, dragons den funny, dragons den series 17, dragons den 2019, shark tank, shark tank 2019, new dragons den, new shark tank, sara davies, tej lalvani, touker suleyman, Shark Tank, New Episode, Series 17, B Tempted, Sarah Hilleary

Id: exW-oc_X4t0

Length: 14min 31sec (871 seconds)

Published: Mon Sep 02 2019