January 19, 2020
Dragons fall out over drone business in savage negotiation! | Dragons’ Den

Dragons fall out over drone business in savage negotiation! | Dragons’ Den

I think today what I’m doing is actually a
dragons first and I hope to blow them away with my entrance.
I think the Dragons faces will just be in shock. It’s a really really exciting knew
industry and I just hope one of the Dragons sees the potential. Hello dragons, my name’s mark I’m the
founder of drone safe register. We are a UK network of CAA approved drone pilots
for hire and we are the UK’s most visited website for drone hire.
We currently have just under 400 members and we charge a subscription and we’re
here today to ask for 60,000 pounds for a 20% share in our business. I look
forward to any questions. A concise pitch from company boss Mark Boyt who’s
willing to hand over 20% of his online drone pilot register in return for
60,000 pounds of the dragon’s cash. Debra Medan is ready for liftoff with
the questioning. You couldn’t wait to get that over could you? Yes. You look much more comfortable driving the drone than you did doing the
pitch. So that’s fine we can ask questions. Right I actually don’t particularly like drones and I particularly don’t like
those ones that take photographs of my property yes but that doesn’t matter
down to business. So you’re a drone hire business. Okay C – A – A – approved pilots, yes. Right so you don’t hire me a drone, if I
want a drone I hire you with a drone. Yes you hire one of our members which
can be found nationwide. There’s a huge problem in the UK at the moment, there’s
lots of illegal drone operators operating. We provide legal drone
operators. There’s 4120 approved operators in the
UK and we’ve probably got you know 20% of the market that there is at the
moment. Great so well I’m looking for a drone
operator in my region yes you’re actually offering us, I think, the
platform? Correct. Excellent a safe and legal platform – you should have had me doing your pitch. No I’m so sorry you know this is the most nerve-racking thing I’ve done in my life. Deborah Medan draws out a bit more
detail about the nervous entrepreneurs business and Tej Lalvani wants to
determine why a drone directory would get potential customers calling.
Drones are very cool I love them. So in terms of the type of business that
people use drones for what is the largest segment. The largest segment at the moment is inspection work because it’s safer you know. We did a church spire
inspection they were quoted 14,000 pounds to put scaffolding up after
lightning strike. When we did it for eight hundred pounds. So inspections is the
main requirement and then after that? Inspection, I’d then say property marketing. Right you know 700,000 homes for sale in the UK currently – but you know our
members don’t just rock up at a job and obviously start filming, you know. We
are the best in the UK, we have some of the top top people and some of
the jobs they pulled off have been amazing. What is the most expensive job you’ve had in your platform that you’ve got so far. I think one member had eighteen thousand pounds. So 18,000 what was that for? There was a Bollywood film. A Bollywood
film. Mark, so how do you generate money? So we invite
professional members to join for 180 pounds a year. How many of those 400 members are paying you currently 180 pounds a year? I would say probably 80%. So 320 members? Yes. Actually that’s quite a lot isn’t it? They’re paying you 180 pounds? Yes yeah. So that’s one area of income what’s another? We also invite hobbyists to join
which is 14 pound 95 a year. How many of those have you got? We’ve only got four
hundred at the moment of 40 95 which is about six thousand a year. The hobbyist
is more like a lost-and-found service. We had one recovered from the North Sea
about three months ago. Someone sent us an email and we found a drone so it does
work. And then what about your commission? Do you take Commission? No
at the moment we don’t take any Commission. Why wouldn’t you do that? Why wouldn’t you push and drive people to your site, to actually make those
bookings? Which is why I’m here, you know. I’ve taken it so far and I’ve done it
all on my own and that’s why I’m here in Dragons Den
so hopefully get some guidance from people run national companies. An appeal
for help from the aerial entrepreneur who admits he’s still finding his feet
when it comes to maximizing profit. Touka Suleiman now wants to find out if marks
idea can really take off. So today you’re pitching for your platform, charges no Commission, so non-subscription. Correct. So how big can
it get? Give me some numbers for next few years. We’ll turn over
– look at I’m not a post graduate so I can’t come out with with
figures you know instantly. I’m not particularly great at figures but we
should have about 600 members by the end of next year. So in total next year what
you turn over next year we should to know about 200,000 and your net profit?
And net profit out of that should be about sixty to seventy thousand depends on how much money we spend on marketing. Okay. Look mark I’d say where I am I think
it’s a good little business for you, but you can only get it so big. A lot
more investment and I know nothing about drones so I’m afraid I’m not going to be
on that flying journey with you okay and I’m not gonna invest I’m out. Thank you
very much anyway, thank you. Tuka solomon exits the drone investment
opportunity, and Tej Levani is wondering if its niche appeal could be an obstacle in
the flight path of this business. I think what you’ve done is great but the
market size is my concern. You said there are about 4,000 CA approved pilots so even
if you were to get half of those that still only makes your business four
hundred thousand pounds a year so what happens from there. We can increase the
hobbyists of registrations which we haven’t sort of marketed yet at the
moment. It is a very small niche market I agree, but it’s only gonna get bigger –
it’s only a bigger we’re you know we’re at the very very start of it and we’re two and a half years ahead of anyone. Look I really like what you’ve
done with the business but I think right now it is limited in terms of where you
can get to. But I’m excited by this industry so I am
gonna make you an offer. Wow. I believe in terms of creating a
brand and awareness is gonna require time so I’ll give you all of the money, okay
but I want 35% of your business. Wow. I’m as surprised as you. Please don’t say that. Despite his reservations about the
market tej Levani feels a buzz from the business and tables a bid. Debra Medan
might not be a member of the drone appreciation society but does she think
Marc’s idea can fly. What I love about this is that you’ve taken your passion
and had this instinct I suspect that there was a business in this thing that
I do and you found it but I am NOT an enthusiast. No
I therefore don’t think I’m a good match for the business. I mean you’ve got to do
things you enjoy you know yeah. So I’m really sorry but I won’t be investing I’m
out. Thank you very much anyway. Mark I like
it. Thank you. I heard you say earlier I’m not a
postgraduate well I’m not either I left school at 16 so don’t put yourself down.
You’ve launched a great business here it is a niche but it’s got potential. I can
add a lot of value to this. So I’m gonna make you an offer.
Wow, okay thank you. I’m going to offer you all of the money for 25% of your
business. Thank you very much. Jenny Campbell swoops in with a killer
offer massively undercutting her fellow dragon. Only Peter Jones remains will it
be fight or flight for the tech tycoon. I could talk to you for hours
about this yeah I live this world almost every day. What drone do you use? It’s quite new it’s called a DJI inspire – the reason why DJI came to this country and
the biggest supplier of drones actually in Europe is a company I own so
that drone probably originated from us. So I know this market yeah really well.
So when you came in I can’t tell you how excited I was. Excellent.
Brilliant. – because I absolutely loved it and there is no ceiling to this business
if you join forces with me. If I was to make an offer. What I’m gonna do is I make it really
difficult for you. That’s not true I don’t think I’m gonna make it difficult
for you – I’m gonna offer you all of the money but I want 50% of the business. – and I’m not embarrassed to say that
because I actually think that 50% of where this business could go in the next
three months is immeasurably different to anything any other dragons apart from
me can do. All bluster – and they’re the facts because
these guys don’t know what they’re talking about when it comes to drones. Well I do know that I can build a brand quicker. Of course you can’t. You haven’t got any access to do that. Alright guys stop arguing.You’ve got no chance. I can’t let 50% help works you know. That’s why you’ve got a choice you. You can go and have your sealing and accept that and that’s what’s right for you. There’s
no ceiling mark. After some intra dragon squabbling mark now
has three offers to consider. Tej Lalvani wants 35 percent of his company,
25 percent Jenny Campbell is asking for a much smaller piece of the pie. Whilst
Peter Jones is demanding a hefty half of the business. Mark came into the den
offering to give away just 20 percent of his company is he prepared to compromise
to secure a deal. Would you look at 40 percent Peter. Would I
look at 40%? Yeah. I’d look at 45 so you still keep control
and it’s your business but you’ll become quite a wealthy man. 35 percent and I’ll
help build your website, I’ll help build your brand nationally so that you can
get all that traction. I’ll Shake your hand at 40 today. Sorry to to the both of you –
I’ll shake your hand at forty today. You’re in danger of alienating
the other dragons. I’ll accept your offer
Okay super, thank you very much yeah. Thank you very much fantastic I’m gonna
show you this. After a three-way dragon dogfight Peter Jones dramatically
reduces his demands to ensure he secures the deal. The entrepreneur exits with the
60,000 pounds he was seeking – and a tech Titan as a co-pilot. The most
nerve-wracking thing I’ve ever done in my life walking in there, but actually
got the dragon I wanted so absolutely chuffed to bits. That was greedy. Drones
that’s my baby. I do love you but you have no chance
Well I’m not speaking to you for the rest of the day.

31 thoughts on “Dragons fall out over drone business in savage negotiation! | Dragons’ Den

  1. Lol that was so awkward when Jenny tried talking about how he was alienating her and they just made the deal talking over her.

  2. out of all the dragon dens / shark tank i ve seen… UK's have the ugliest crew besides Peter.
    Rest look like their skin about to fall off their body or they been on meth 3 days straight before the show

  3. Peter is so arrogant , he thinks he's worth an extra 25% I wudda taking tej offer I wudnt take Jenny's offer if she only asked for 5%

  4. Why are the other dragons annoyed. They have zero experience in the drone market. Peter Jones is clearly the right choice here.

Leave a Reply

Your email address will not be published. Required fields are marked *