How to Successfully Pitch on Dragons Den: 12 steps

How to Successfully Pitch on Dragons Den: 12 steps

Could you pitch on Dragons Den? Well many have failed, but here is a list of the ten areas you'll need to succeed in to stand a chance of an investment.

1. What would you do with the invest money?
Don't say spend it! Or pay my wages! The Dragon's want to hear at least 3 broken down areas: Marketing, Stock and Development. Also make sure the 3 totals do add up to the total investment!

2. What orders do you have?
Friends and family really count for nothing as they are no doubt buying as a charitable gift and then laughing when you’re gone. Produce hard facts or documented promises from big companies, this always gets the Dragon's interest.

3. Make sure it's patented
If it's not protected then what's to stop the Dragon himself copying it. They love to feel the item or invention is exclusive and unique. So get it patented before going into the dragons den.

4. Know your potential market.
How large is the market? You must know the market potential as you may have a product that provides 200% profit, but if no-one wants it then how will the Dragons ever make a return on their money. Be realistic, is there a true hole in the market?

5. What is the profit margin?
The dragons are most interested in profit. If you can't answer this question then don't embarrass yourself by turning up. Net profit, profit margins, turnover are all essential elements of the preparation for the den and no matter which way round they are asked they must add up.

6. Be upfront about other business and debts.
No Dragon likes outstanding debts or other businesses tied up with the entrepreneur. If this is the case be upfront, Dragons will tare into you if they discover these hidden skeletons in the cupboard, and they'll be out before you get a chance to explain your defence.

7. Justify a sensible valuation of your company.
The rule of the den is to pitch the investment required for a percentage of the company. This gives a clear figure as to the value of the company. We all know that dragons want a serious chunk, but they'll refuse to invest if you aren’t realistic in the first place.

8. Know your projected profit.
Generally they will want to see a good return within a maximum of 3 years, so its best you have a good idea as to what you can accomplish with their money within a 3 year time line.

9. Never take more than 3 minutes pitch.
The dragons are an impatient lot, and loose interest very quickly, so get them involved from the start and always speak with enthusiasm and confidence. You'll answer a lot more than 3 minutes worth of information if they are showing an interest in the entrepreneur.

10. Have "business accruement" or a friend
This is one of the most failed areas on Dragons Den. If you aren’t good with figures then under the dens rules you can invite a financial expert to provide you support. The worst case scenario is having wrong answers. The dragons aren’t stupid, so don't ever think you can pull the wool over their eyes.

11. Does it solve a real problem?
Some inventions supposedly solve a problem that doesn’t exist. Or they solve one problem but cause an even bigger problem. You will be interrogated and grilled, so make sure you have found a real answer to a real problem.

12. Don't argue!
If there is a disagreement or misunderstanding, keep it professional, never argue or fly accusations at the dragon as they don't suffer fools gladly and they won't want to work with someone they can't get on with, so smile sweetly and explain calmly.