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Dragons' Den Online
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Dragons' Den Online
Lynne delivers a polished pitch and impresses Julie Meyer by noting that her product is already available in 72 Waitrose stores.
When Shaf Rasul asks whether the character logo on her packaging is trademarked, the north east based entrepreneur replies that the artwork is her brother's and that he has given her the copyright. Shaf persists in asking what is in place to stop someone else replicating what she is doing.
Lynne concedes that she cannot patent a purse and that therefore, someone could copy her idea.
Shaf points out that Lynne's only advantage then is to be first to market as she doesn't have the economies of scale that other manufacturers would have.
Invited by Julie to tell her own back story, Lynne says she was initially a nurse before opening up her own residental home for the elderly. After 13 years in the business, she closed down after legislative changes made it no longer financially viable.
She then set up a retail shop in a small village but again that had to close when she realised it was in the wrong location.
She is currently working for Business Link while building her Totally4girls brand.
In answer to Shaf's query as to where she sees her business in three years time, Lynne hopes that based on securing a quarter of 1% of the UK women's market she would be trading at £205, 000 gross and £92,500 net profit.
She adds that to date she has sold £29,000 worth of goods, with the Waitrose contract worth about £12,000 of that.
Lynne points out that her contract with Waitrose is a straightforward sale but that the products she has inside her packaging come through a company named Natracare.
This news alarms Shaf as it implies that it is Natracare, not Lynne, who has the agreement with Waitrose.
On close questioning from Julie, Lynne reveals that she only has a verbal agreement with Natracare, based on trust.
What particularly worries Julie is that in the event of a dispute there may not exist an audit of the paper trail between Lynne and Natracare.
Julie concludes that while she likes what Lynne is doing, she is uncomfortable about the way she is doing it.
"As this is your third business you shouldn't be making first time mistakes. It feels naive or sloppy". The American Dragon declares herself out.
Shaf says that as the father of a young daughter he can see the attractiveness of the product but as an investor he is concerned by the lack of patent protection and of written contracts with Natracare.
He adds that in sales there is a 80:20 rule, whereby 80% of your business will come from 20% of your customers.
Since in Lynne's case almost 100% of her revenue is being generated by Natracare, he suggests it would make sense to approach them as a potential investor and strike an equity deal with them.
Lynne concedes the thought never entered her head.
With this advice, Shaf declares himself out. Lynne leaves the Den emptyhanded but with some valuable advice from the Online Dragons.
The deal done in the Den: No investment.
When Shaf Rasul asks whether the character logo on her packaging is trademarked, the north east based entrepreneur replies that the artwork is her brother's and that he has given her the copyright. Shaf persists in asking what is in place to stop someone else replicating what she is doing.
Lynne concedes that she cannot patent a purse and that therefore, someone could copy her idea.
Shaf points out that Lynne's only advantage then is to be first to market as she doesn't have the economies of scale that other manufacturers would have.
Invited by Julie to tell her own back story, Lynne says she was initially a nurse before opening up her own residental home for the elderly. After 13 years in the business, she closed down after legislative changes made it no longer financially viable.
She then set up a retail shop in a small village but again that had to close when she realised it was in the wrong location.
She is currently working for Business Link while building her Totally4girls brand.
In answer to Shaf's query as to where she sees her business in three years time, Lynne hopes that based on securing a quarter of 1% of the UK women's market she would be trading at £205, 000 gross and £92,500 net profit.
She adds that to date she has sold £29,000 worth of goods, with the Waitrose contract worth about £12,000 of that.
Lynne points out that her contract with Waitrose is a straightforward sale but that the products she has inside her packaging come through a company named Natracare.
This news alarms Shaf as it implies that it is Natracare, not Lynne, who has the agreement with Waitrose.
On close questioning from Julie, Lynne reveals that she only has a verbal agreement with Natracare, based on trust.
What particularly worries Julie is that in the event of a dispute there may not exist an audit of the paper trail between Lynne and Natracare.
Julie concludes that while she likes what Lynne is doing, she is uncomfortable about the way she is doing it.
"As this is your third business you shouldn't be making first time mistakes. It feels naive or sloppy". The American Dragon declares herself out.
Shaf says that as the father of a young daughter he can see the attractiveness of the product but as an investor he is concerned by the lack of patent protection and of written contracts with Natracare.
He adds that in sales there is a 80:20 rule, whereby 80% of your business will come from 20% of your customers.
Since in Lynne's case almost 100% of her revenue is being generated by Natracare, he suggests it would make sense to approach them as a potential investor and strike an equity deal with them.
Lynne concedes the thought never entered her head.
With this advice, Shaf declares himself out. Lynne leaves the Den emptyhanded but with some valuable advice from the Online Dragons.
The deal done in the Den: No investment.
- Duration:
- 10 minutes
- Available until:
- 12:00am Friday 1st January 2038
- Category:
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