The Dragons Fight Over Proper.com | Dragons' Den | Shark Tank Global

Summary

In the video, entrepreneur Adam Weaver pitches his business, proper.com, seeking a £50,000 investment for 5% equity. The company, specializing in automotive accessories, has shown significant growth with a first-year turnover of £155,000 and a third-year turnover of £2.15 million. Despite initial hesitation from investors due to concerns over cash flow and equity, Adam secures a deal with Duncan, who offers the full amount for a 20% stake, valuing Adam's business at £250,000. The decision is based on Duncan's online business experience and Adam's instinct.

Takeaways

• 😀 Adam Weaver is the founder of proper.com, a business specializing in automotive retail accessories.
• 💼 Adam has a background in business consultancy and recruitment, which he leveraged to start his business quickly and profitably.
• 🚗 The company focuses on niche products in the automotive sector, such as accessories for pickups, vans, motorbikes, and scooters.
• 💹 In its first year, proper.com achieved a turnover of £155,000 with a net profit of £7,000, scaling up to a turnover of £2.15 million and a net profit of £205,000 in the third year.
• 📈 Adam predicts a turnover of just over £500,000 and a net profit of around £900,000 in the next 12 months and the year after, respectively.
• 🌐 The business has diversified its product range and won distribution rights for top products in the market.
• 💸 Adam sought an investment of £50,000 for 5% equity to help with business development, particularly for stocking up on inventory.
• 🏦 The business has a cash in bank of £50,000, stock worth £400,000, and loans of about £200,000, indicating a need for working capital.
• 📉 Adam faced challenges with the bank, which only granted him £150,000 of the £250,000 he requested and removed his overdraft facility.
• 🐉 The 'dragons' or investors questioned Adam's financial planning and the need for the requested investment, leading to a negotiation on equity stakes.
• 🔄 After a series of negotiations and counteroffers, Adam chose to accept an offer from Duncan, who asked for a 25% equity stake for his £50,000 investment.

Q & A

What is the name of Adam Weaver's business?

Adam Weaver's business is called proper.com.

What is the primary focus of proper.com?

Proper.com specializes in selling accessories for vehicles such as pickups, vans, motorbikes, quads, and scooters.

How long has proper.com been in operation?

Proper.com has been in operation for almost four years.

What was the turnover and net profit of proper.com in its third year?

In its third year, proper.com had a turnover of 2.15 million and a net profit of 205,000.

What was the initial investment Adam Weaver made to start proper.com?

Adam Weaver initially invested £3,000, which was from the sale of a car, to start proper.com.

How is the ownership of proper.com divided?

The ownership of proper.com is divided 50/50 between Adam Weaver and his fiance.

What is the forecasted net profit for proper.com in the next 12 months?

The forecasted net profit for proper.com in the next 12 months is just over £500,000.

What was the reason Adam Weaver asked the bank for £250,000?

Adam Weaver asked the bank for £250,000 because he assessed that he stood a chance of borrowing that amount, not necessarily because he needed it to survive.

How many unique visitors does proper.com's website receive daily?

Proper.com's website receives about 3,500 unique visitors daily.

What is the average daily transaction value for online sales on proper.com?

The average daily transaction value for online sales on proper.com is about £92.

What percentage of proper.com's sales come from telephone sales?

The sales staff at proper.com are targeted for about £800 net profit a day, which is approximately 50% of the total sales.

What was the final deal Adam Weaver accepted on the show?

Adam Weaver accepted an offer of £50,000 for 25% equity in proper.com from one of the investors.