Enter the Den - Role Play Game
iTeddy
You
You set up your first IT business when you were 15 years old and have been a gadget enthusiast all your life. You came up with the idea of the iTeddy when thinking of ideas for a toy for your baby niece. You wanted to create something that combined old fashioned values with cutting edge 21st century technology.
The Business
The iTeddy combines MP3 and MP4 technology in the heart of a cuddly toy. It has a video player that shows cartoons, an audio player that provides bedtime stories, a picture viewer to store and show photos, and built in games. There is also a supporting website that offers downloads and a help page at iteddy.com.
The first of its kind on the market, the toy is a gift for 3 to 9 year olds that you expect will be bought for them by 25-45 year olds. You have a patent pending for the product and initial searches have returned nothing to suggest it won’t be granted. However, it's early days and securing the patent isn’t guaranteed. This could be a concern for the Dragons, who like to know that a product is protected from being copied by competitors.
Financials
You haven't begun trading yet but your forecasts are as follows:
| Unit sales | Sales Turnover | Gross Profit | |
| Year 1 | 30,000 | £792,000 | £350,000 |
| Year 2 | 50,000 | £1,422,000 | £693,000 |
| Year 3 | 70,000 | £2,132,400 | £1,064,800 |
iTeddy
It is important for the Dragons that a product has sufficient legal protection to prevent others copying the idea. You need to research and plan how you will spend the investment on intellectual property to give the Dragons confidence that your idea cannot be copied.
You have a patent pending for the iTeddy but this needs to be strong to prevent anyone else designing anything close to your idea. What specific aspects will you cover with the patent?
Things to Consider
What other intellectual property would be beneficial to have and what can you afford with the investment you’re asking for? Consider the benefits of trademarks, design registrations and domain names. A good place to start would be the UK government’s intellectual property website at ipo.gov.uk.
Decide which territories you would like your intellectual property to cover. To do this, consider the countries in which you intend to manufacture and sell the product.
Challenge
You are asking the Dragons for an investment of £140,000 for a 15% share of your business and must present your strategy to them in a 3 minute pitch. They will then ask you questions about your business plan until they are satisfied. From your research, have a clear breakdown of how you will spend the money and provide the Dragons with a strong incentive to invest.
Download this role play
Download and print out your own iTeddy PDF. Play the role of the Dragons, or step into the shoes of Imran Hakim.
If you're having problems downloading the PDF, download Adobe Reader 9.
The BBC is not responsible for the content of external websites.
iTeddy - What Would the Dragons Focus On?
If you decide to play a Dragon you need to be aware of the opportunities and pitfalls of investing in iTeddy. What sort of issues must you consider? Whether you select to play one of the real Dragons or "yourself" here are issues you need to consider.
- Deborah Meaden: likely to... scrutinise your patent
- Duncan Bannatyne: likely to... focus on the reach of your trademark
- James Caan: likely to... look at your design registration
- Peter Jones: likely to... consider copyright issues regarding using media material in your mp4
- Theo Paphitis: likely to... imagine how his children or grandchildren might use this
- Sharpen up on your knowledge of the Dragons
Have you read the Glossary?
Before you formulate your questions use our glossary to help you through the Dragons' Den role play. Browse the topics now and get a little help from Evan.
When the entrepreneur pitches, you need to have a series of relevant questions to ask them. Remember it is £140,000 of your money that is being asked for and you've got to decide if the risk and the equity stake will offer you a return on your investment. You're not a charity!
Download this role play
Download and print out your own iTeddy PDF. Play the role of the Dragons, or step into the shoes of Imran Hakim.
If you're having problems downloading the PDF, download Adobe Reader 9.
The BBC is not responsible for the content of external websites.
How Well Did You Do?
Watch the video to see Imran's pitch in the Den.
Patent
One of the key lessons from the iTeddy pitch concerns patents and intellectual property. Players should have considered the key technological aspects that underpin the product and designed their patent around these. Their patent should have been broad to prevent anyone else being able to make anything similar. Imran's patent covered 'a personal media player integrated into a soft toy'.
Trademark
Players should have considered whether a trademark would be beneficial to their business and attractive to an investor. If they decided to apply for a trademark, they should have considered the words it would cover. Imran chose to register trademarks for ‘iTeddy’, ‘iteddy.com’ and ‘iteddy.co.uk’.
Design registration
Role players should have considered the merits of registering a design and decided whether this was something they would like to pay for with investment. Imran registered a design for the iTeddy.
Domain names
Given the additional revenue stream from downloads, the domain names are extremely important. Role players should have decided what domain names they would purchase with the investment. Imran registered www.iteddy.co.uk, www.iteddy.com, www.i-teddy.co.uk and www.i-teddy.com.
Where are they now?
Imran was successful in the Den in securing an investment of £140,000 for a 40% share in the business split equally between Peter Jones and Theo Paphitis. In its first year of trading, iTeddy signed an exclusive deal with Argos and turned over £1,500,000. It is now selling in 45 countries around the world.
Next on TV
BBC Two and BBC HD
21:00 15 Jul 2009
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Dragons' Den Online, 22nd May:
Chris Truelove and Warren Cole
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How to Play Enter the Den
Download a role play
Download and print out your own:
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If you're having problems downloading the PDF, download Adobe Reader 9.
The BBC is not responsible for the content of external websites.
Hint: Read the Glossary for help
Brush up on your business speak to help you through the Dragons' Den role play.
Try Intellectual Property, with a little help from Evan.
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