- Investment: £50,000
- Investor: Peter Jones and Touka Suleiman
- Equity Offered: 30% total (15% each for £25,000)
- Business: Bobhead Brothers - Stylish motorcycling clothing and accessories
- Target Audience: New age bikers
- Challenges: Ensuring full-time commitment, financial discrepancies, and scalability concerns
The Pitch:
Damien and Sebastian Harris, known as the Bobhead brothers, entered the Dragons' Den seeking a £50,000 investment in exchange for 10% equity in their business. Their company specializes in stylish, affordable motorcycling clothing and accessories, catering to a niche market of new age bikers. They highlighted their strong social media presence, boasting 150,000 followers across various platforms, and demonstrated steady growth with £206,000 in sales last year.
Financials and Offer:
The brothers revealed their business's financials, including a gross profit of £83,000 and a net profit of £63,000. They emphasized their e-commerce strategy and the effective use of social media advertising to drive sales. Despite some initial skepticism regarding their overheads and profitability, the Dragons were impressed by the quality and affordability of their products.
Ultimately, Peter Jones and Touka Suleiman made a joint offer of £50,000 for 30% equity, with each Dragon contributing £25,000 for a 15% stake. This offer was contingent on the brothers' full-time commitment to the business and a strategic approach to scaling operations.
Challenges Highlighted by the Dragons:
Several challenges were pointed out by the Dragons during the pitch:
- Full-time Commitment: Both brothers currently held other jobs, raising concerns about their ability to focus entirely on growing their business.
- Financial Discrepancies: Questions arose about the accuracy of their financial statements, particularly regarding overhead costs and profitability.
- Scalability: Some Dragons viewed the business as a lifestyle venture rather than a scalable opportunity, limiting its attractiveness as an investment.
Conclusion:
Despite the challenges and initial skepticism, Damien and Sebastian Harris secured a deal with two seasoned investors. Peter Jones and Touka Suleiman's expertise and financial support will be pivotal in accelerating the Bobhead brothers' business growth. The investment will help them refine their strategy, increase production, and enhance their market presence. With this new partnership, the Bobhead brand is poised to rev up its success in the motorcycling world.
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