91Èȱ¬

Sandy and Sarah want an investment for their dog crèche which allows professionals to leave their dogs while they are at work. But will they be barking up the wrong tree with the Dragons?

The duo is ably assisted by dogs Womble and Mollie as they pitch their idea. With an inclusive service and projected net profits of £30,000 in the first year, going up to £500,000 in two years time they seemed to have wowed their prospective investors.

Peter Jones questions them on the amount of profit they currently make – revenues of £3000 a week and costs of only £5000 a month gives them a healthy monthly net profit of £7000.

Duncan Bannatyne digs in further and discovers that they have only been open in Edinburgh for 12 weeks and are crucially not yet VAT registered. Duncan suggests that this is a big error and will greatly reduce their projected profit margins.

He gets even further annoyed when told that neither Sarah nor Sandy draw a salary. Duncan believes that their costings are all wrong and that they haven't taken into account the cost of wages and other staff benefits for the proposed centres.

With that in mind Duncan enquires how much profit a second crèche would make. The duo are left silenced and dumbstruck as they can't provide an answer and Duncan swiftly declares himself out.

Peter quickly follows Duncan's lead – he says because they have not evaluated their company properly there's a good chance that a second centre could be dead in the water very quickly.

Theo Papthis and Deborah Meaden quickly follow suite and it's left to James Caan to also declare himself out, with the advice that the pair have done a great job in convincing the Dragons that it doesn't work.

The deal done in the Den:

No investment

Last updated: 23th August 2010