Peter Jones Is Amused By 22-Year-Old Entrepreneur After Being Branded "Too Old" | Dragons' Den

Summary

Edward Hollins, a young entrepreneur, pitches his business, Driven Media, which turns commercial trucks into mobile billboards. He seeks a £30,000 investment for a 10% stake in his company. Despite the concept's potential, several Dragons express concerns over high costs and basic business figures. Eventually, Jenny Campbell, impressed by Edward’s drive and the business model, offers the full investment for 20% equity. Edward accepts the deal, securing a promising future with mentorship and support to scale his idea.

Takeaways

• 😀 Edward Hollins is a young entrepreneur who started his business, Driven Media, at age 10 and has a strong drive to make it a success.
• 😀 Driven Media turns commercial trucks into mobile billboards by wrapping their trailers with advertisements, offering a cost-effective form of advertising.
• 😀 The average truck advertisement is seen by 55,000 people per day, making it a highly visible medium for advertisers.
• 😀 Edward is asking for a £30,000 investment in exchange for a 10% equity stake in his business.
• 😀 The cost per thousand (CPM) for truck advertising is £0.75, making it one of the most affordable advertising platforms in the UK.
• 😀 The business is still in its early stages, having been operating for 20 months and generating £18,000 in revenue in the past 12 months.
• 😀 Driven Media's business model involves signing contracts with advertisers for £7,800 per trailer for a 12-month period, with production costs of £5,500 per trailer.
• 😀 Edward has access to over 1,000 trailers, though only four are currently being used in the business.
• 😀 Investors, including two friends, have invested £5,000 each for a 10% stake each, valuing the business at £50,000 for them, which conflicts with the £300,000 valuation presented to the dragons.
• 😀 Despite concerns about the valuation, Edward shows promise as an entrepreneur, but some dragons (e.g., Peter Jones, Touker Suleyman) decide not to invest, citing the business's early stage and lack of precise financial projections.

Q & A

What is Edward Hollins' business idea in the script?

Edward Hollins' business idea is Driven Media, a company that turns commercial trucks into mobile billboards, offering truck advertising as a cost-effective media space.

How does Edward describe the effectiveness of truck advertising?

Edward explains that truck advertising is highly effective because people are highly receptive to ads while driving or being driven. Additionally, each trailer is seen by around 55,000 people daily, making it one of the most cost-effective advertising platforms in the UK, with a cost per thousand impressions of 75p.

What unique feature does Driven Media use in its business model?

Driven Media uses GPS tracking technology to monitor truck drivers' activity, ensuring they meet a minimum of five hours of driving time per day, five days a week. This technology also allows them to track the trucks' movements to prevent inefficiency.

How long has Edward been running Driven Media, and what were his business figures?

Edward has been running Driven Media for 20 months. In the last 12 months, the company turned over £18,000, with a profit of around £2,000 per contract signed.

What are the main costs associated with each advertising contract?

Each contract involves an advertising fee of £7,800 for one truck for a year. The production cost of wrapping the truck costs around £5,500, leaving £2,000 as profit per contract.

What was the concern raised by the investors about the costs of truck advertising?

Investors, particularly Touka Suleiman, raised concerns about the high cost of the truck advertising compared to other options, like Luton vans, which are cheaper to advertise on. He suggested looking into lowering costs by sourcing printing materials directly.

What was Edward's response to the suggestion to reduce production costs?

Edward responded by mentioning that he already prints fabric in Turkey, where it's much cheaper, costing him $2 per meter for weather-resistant vinyl.

Why is Edward struggling to sign up advertisers for the available trailers?

Edward explained that the main barrier to signing up advertisers for the trailers is a lack of awareness of his service in the market.

What future projections did Edward make for his business?

Edward projected that his business could reach a turnover of £250,000, with a gross profit of £120,000 and a net profit of £80,000.

How did the investors respond to Edward's pitch, and who made an offer?

Several investors expressed concerns about the early stage of the business and the lack of basic financial details, leading them to decline the offer. However, Jenny Campbell made an offer, agreeing to invest £30,000 for a 20% equity stake in the business. Edward accepted the offer.