Next up tonight a Blackpool boys James Heaton and Alex Beckett long-term friends and business partners
Together they're ready to throw down the gauntlet in a bid to win investment
Absolutely fine with a bit of a challenge in there don't mind taking on the Dragons if they need take it on. No problem
Whoa, look at this ice
That's actually a nice car. You should get one for the countryside. Yeah, that's how you really wind your neighbours up
And the entrepreneurs have already devised their strategy for success just believe in yourself and just take your time speak slowly
Cheers, mate. I'm not say to you. Don't are you ever?
Hello dragons, my name is Alex. This is James
And we are the co-founders of elite competitions the UK's most interactive prize competition company
When we come to you today ask him for 50,000 pound for a 10% share in our business
So, let me tell you a little bit about how it works
Firstly you head over to our website you then choose the competition that you wish to enter choose one of the available
Numbers and answer our skill-based question. We then use a random ball machine to choose the winner
This is where the interactive aspect comes from. We live stream in the draw on Facebook and on our web sites
This is so that the customers could see all the numbers being loaded into the machine in numerical order
Once we have the winner. We then delivered the president within 5 working days before free
So since trading six months ago were turned over five hundred and forty five thousand pound
With a 30% gross profit margin and a 20% net profit year on projected is 1 million turnover
year 2
3.3 million turnover and year three six point six million turnover with a 40% gross profit margin and a 30% net profit margin
We've got twelve thousand signed up on the site
Alongside that we are in our final stages of app development go on the App Store
Also, we're going to be introducing the elite Club, which is going to be a membership only monthly prize jackpot draw
Thank you very much for your time
If you have any questions, please feel free to ask and we'll answer the best we can. Thank you
Hoping to win a dragon partner for their online competitions business are Alex Beckett and James heap
They're seeking 50,000 pounds in return for a 10% stake
Taze lau barney is keen to discover how it all began
So guys can you tell me a bit about your background and how you got into this
Yeah, so I've always been into motocross. So it was my idea that kind of saw this to fruition
They say I came across our competitor. I entered on to their competition and I really didn't see any user experience
I got an email confirming there was nothing following that all it was a little bit confusing
I thought I can do about job with up
And I leave my a-levels in Business Studies and then actually went to do profit developing for myself
So I did five houses on my own and Alex contacts me and offered me the opportunity
And I couldn't refuse so talked him up on it, right?
So is the company owned by just both of you or do you have any other shareholders? Yes, it's also on my mom
Alex James hi
What is your actual revenue model solo
You've got big hero prizes like the car give me the ticket prices for the entry level and the hero level
yeah smallest or something like an apple imac like seven pound 52 Sam pound and
And then the bikes would be generally between 10 and 15 pound and then a car will be 230 pounds
And how often are you running these competitions six times a week?
Guys in terms of the number of competitions you're running six a week
How many will you scale that up to to get to your target? We've got a scalability to run the competition's every hour
um
We are literally on our final development stages of the app when this app comes out and we're doing the monthly subscription
You got to realize that if I can get 10,000 people signed up for 20 pound a month
That's gonna be 2.4 million turnover just on the monthly subscription inside I think
James and Alex's projections seem to be going down. Well with Tej Lavani
Now Jenny Campbell is keen to establish if there's is a business that's playing by the rules
Alex James. Hi, okay. I like my cars my bikes and my four-legged horsepower as well. So anyway
So this is gambling
No, I mean we won as a genuine past competition business
Which means we abide by the gambling at 2005 bob is not cost as gambling. No
So what have you had to go through to get this regulated and approved? So basically we've liaised with the gambling Commission. Yeah
There's answering the skill-based question for one
Have to answer. Its to be a reasonable level of skills. Yeah, okay
James Alex hi. Hi, it's really good, and it's very exciting
But what about people that don't have the money to buy such a car? So it's really clearly appealing
And they become addicted to this
They can contact us and ask those two
Abun them from the website anytime so that we won't let them enter the draw. What would they do that?
Well, if they've if they feel like I've got a problem in the after contact us and exclude them from the website
No
I'm just sitting here thinking if I enter the competition for a car
Say 40,000 pounds of money has come in to the two of you
But a whole multitude of people we've lost
One person is the lucky one
Transfer yet point taken yet
If there's a winner and there's load of losers. I know it's life by the way, I get it. Yeah
Yeah, but it's whether I want to be part of that
Peter Jones's moral compass is struggling to circumnavigate the competition's business
But will the dragon who was once a player in the gaming sector be tempted to cash in a second time round
Alex James, I am actually the perfect dragon for you
And I'll tell you why
Having spent my early life working with the gambling act when I had amusement arcades
I think you've got that pretty much covered and in terms of marketing
I came out of the gaming industry you then moved into sales and marketing?
So I am on the perfect dragon for you
But I'm not gonna make you an offer
And
That's because when I was in the gaming industry, the maximum that you could pledge was to pound 40 cash or four pound 80 tokens
Tiny money wasn't gonna make any difference to anybody's lives in terms of what they were pledging
You have an extremely good business and if it wasn't for my
Personal gut reaction to this you would be a great investment. I like you
I love that you've spotted this opportunity
But you are moving too far on the side of high stakes for people who can't afford it
With a really really attractive price
So, I'm really sorry guys I won't be investing I'm out a
Blow for the entrepreneurs as their self-confessed perfect Dragon Deborah, Medan
refuses to play ball with an offer and
It looks like Peter Jones is ready to reveal his hand
Guys
I'm gonna say where I am. I think business is a big gamble as it is
But for a similar sort of principles where Deborah was saying
But my issue with this is just purely a feeling of all of those people. They have a chance to win
But I just feel that level when you're taking it to the big cars and the big holidays
It just makes me feel uncomfortable
But yeah, it's taking nothing away from the two of you who I genuinely think are superb young entrepreneurs
But sadly James and Ikes I'm not gonna invest today and say I'm out
But good pitch Thanks
I'll tell you what, I think guys you've done very well so far
Your model is very transparent and people understand how many tickets there are so they know that you're not ripping people off
Yeah, and I think it's important to keep that clear, you know, clean image and build reputation
So that people know you for that you agreed?
Anyway, you need help is maybe in sourcing the the prizes getting them at a better price for sure. Yeah
You could be talking a lot more women and women's gifts items put handbags other various women's types of products
We have actually thought of that at the minute and as we're building it off each week
We're just kind of doing the prizes that we know ourselves will sell out
Can I just say why would a woman not want a motorbike or a car? No, yeah
Yeah, I don't rather I don't neither
So, I mean look I like you guys
You've got a good attitude and I think you can take the business further and I can definitely add value
So I'm gonna give you an offer
ok, Thank you
I'm gonna offer you all of the money, which is fifty thousand pounds
But I want 25% of the business
Thanks
Finally an offer as Tej Lavani wages his claim for a quarter of the business
Will Tuco Suleiman raise the stakes with a rival bid?
Guys how much money you at the bank at the moment? aaa five hundred thousand, that's good. Yeah
Looks like you guys are not looking for funding
You're looking for a good dragon
yeah,
I believe that I could definitely procure lots of product for you help you and your website and
Sort your visibility out. Yeah for sure though. You've nailed it. Yeah, I've nailed it
So I'm gonna make you an offer I
I Will give you all the money
For 25%.
Yeah, Thank you
Guys the reason I like you two is because you recognize that for this to
Grow in a sustainable way. You've got to do it in the right way
You know my background in that, you know
I'm the ex banker and the ex financial services person and I do believe keeping things on the right side of regulation and
I'm a northern girl northern boys, and I'd like to meet your mom
So I'm gonna make you an offer
And I'm a fair person not greedy I
Will offer you all of the money for 20% of your business?
Thank you
Strategic play by the dens resident petrol head who undercuts her fellow dragons by five percent. You want to go back to
Okay, three competing offers are now in play
Tej Lavani and Touker Suleyman
want 25 percent of the business
15 more than the original offer
While Jenny Campbell is asking for a more competitive 20 percent
Will the duo be prepared to chance their arm at negotiation
They honored by the weight off somewhere yeah, thank you very much for the offers. Basically we would like if possible
Two dragons on board
If you want two dragons, I'll share it with Tej 12 another percent
That if Tej will agree I'm happy to share were to occur as well. Yeah
Also if it would be possible we were wondering if you would do 10% each for half the money and we'd have a deal I
Think what we'll do when I get my money back I'll give you back to an off percent has degrees the same way
Yeah, I agree with that that's fair
So guys
Thanks so much Jenny what we're gonna tell you these two great it's very much really amazing
What our guys the entrepreneur's strategy has paid off and they exit the den with two dragons in play
I'm absolutely gorgeous with good result. Yeah
Can't wait start working with him Peter, Can I sell you a ticket to buy a Ferrari. They were good guys good guys
Can we drive that? Alright? Yeah, it is more than one way to give away but having two dragons onboard overpowered bath