Dragons' Den: episode three, reviewed

The business made £2.4m turnover in 2008/09 with £100,000 net profit, and was on track to make £240,000 net profit next year thanks to a handy contract with the NHS worth between £2m and £20m per year. They also counted various county councils, fire services, Subway and Revolutions Vodka bar chain among clients. They'd recently acquired another business to get into the CCTV side of things. And their ambition was 'to turn the business into a domestic and commercial brand'. Not too shabby, then.

They presented well - calm and confident, but never cocky. They were modest and likeable. And they knew their stuff inside out and backwards. As Deborah put it when they left the den: "That to me was a model pitch. They weren't pitch perfect, they were honest."

The pair asked for £75,000 for 10%, and after only a couple of questions James Caan offered precisely that in possibly the quickest offer we've ever seen. Deborah Meaden followed soon after, saying: "Often I'm looking for reasons to invest in a business during the pitch. Half-way through yours, I'm finding it very difficult to find reasons not to invest."

Duncan Bannatyne was next up, but he made the interesting point that 10% wouldn't be enough to drive him, so offered £100,000 for 20%.

Theo Paphitis and Peter Jones latched onto this, and eventually Wesley and Peter accepted a joint offer from both Dragons for £100,000 for 20%, which would drop to 15% once the £100,000 had been returned. Which worked out quite nicely for them, as Peter Jones happened to own the number one business in the security camera technology industry. (Though the offer was pretty rosy for the Dragons too.)

So what exactly was it that made the Dragons all go gaga for FGH Security? James Caan liked the 'sophistication' of the business, citing its acquisition - a level of maturity rarely seen on our screens in this programme. Others were impressed by the figures and the pitch. Crucially, everyone really warmed to both Peter and Wesley - which, as we saw last week, counts for a huge amount. Modesty, likeability and a very promising-looking business don't often go hand-in-hand in the den, but when they do, the Dragons' can't resist it.

That's not to say a business should always aim to be all things to all people, though. The other business that got investment this week was Golfers' Mate, a tool that repaired damaged golf pitches. The owner had to restart his pitch three times he was so nervous, and got slated and rejected by all the Dragons (and a series of jokey answers to their questions didn't help either). All the Dragons but one - James Caan, whose love of golf enabled him to see the potential in the product and seal the deal for £100,000 for 30%.

Key lesson there? It's not just about your pitch and product and personality - it's about finding the right investor too. You can rejected by loads before finding someone who sees a spark. So don't give up hope first time round just because you can't be that rare example that gains approval from everyone.

Read our feature on how to find a business angel for more advice on finding investors that suit your business.

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