In this episode of Dragon’s Den, Jason is asking for £100,000 for 10% equity in his company Redcote Leisure.
I’m looking for a £100,000 investment in exchange for 10% of my company, Redcot Leisure. We manufacture and retail micro campers, micro camper conversions, and accessories for micro campers. This is our Vario layout in the sleeping setup.
So, what is a micro camper? It’s a van-derived car, such as a Citroen Berlingo or a Peugeot Partner, and our conversions retain the five traveling seats. This means it can be used as your everyday vehicle or as a camper van.
My plan is to open more branches across the UK and eventually expand into Europe. Thank you for your time. If you’d like to come and have a look at the micro camper, please do. If you have any questions, please let me know.
Micro campers, as well as conversion kits and accessories, are the offerings from Jason Gladhill, who is seeking £100,000 in return for a 10% share in his business.
I just want to see if it’s long enough. Can we shut the boot on it?
Jason is seeking £100,000 in return for a 10% share in his business. Let’s see what the dragons think.
Jason, I have to say, it was very comfortable. So, what vehicles does this fit?
Any van-derived cars, so anything based on a van with sliding doors and good head height. The great thing is, you can park it anywhere, even in a multi-story car park.
How many have you sold so far?
You can buy the complete vehicle as it is, with everything done, for £11,905.
That’s mad.
Good mad, bad mad?
Really good mad!
Especially when you know a motorhome of the same age would probably cost you £35,000.
A full conversion, including electricity, a fridge, blackout blinds, a cooker, and a kettle, is £2,000 for most vehicles. Customers can order online and either have it sent directly to them or visit one of our branches for installation.
What’s been your turnover in the last 12 months?
£858,000
Gross margin, 374.. and the net margin, 224.
Well, you’ve done really well.
Comparative affordability plus healthy profits equals praise from Peter Jones. But what will Sara Davies think?
I absolutely love this sort of stuff. My dad built me a camper van last summer, and we love it. The great thing is, I don’t think the buzz in this market shows any sign of slowing down. Normally, you need a lot of money to buy a motorhome, but this opens the door to people for relatively cheap money. It’s their everyday car, so it’s just one vehicle doing a bit of everything.
I think it’s absolutely brilliant. So, you want to scale up. What’s the plan for the £100,000?
A couple of things: we’ve done very little advertising, and we also want to purchase more expensive vehicles and increase our stock levels.
What’s your current stock?
About £350,000, with £75,000 in cash in the bank.
So, you don’t really need the £100,000 from us?
No, I’ve done all this on my own. I haven’t had a mentor, and that’s what I think I need to take it to the next level.
One man band, Jason, feels a dragon’s backing could make his business really sing. But Deborah Meaden has a pressing question.
Jason, what’s the brand?
Redcot Leisure.
That’s the name of your company. What’s your brand?
Good question. I know that in marketing, you want something unique and memorable.
What about Camp Car?
He was joking! There’s no way anyone would call it Camp Car.
What a great business you’ve created in a very short space of time. I think you are a micro camper van dealer, but you could have created a brand like Camper Box, selling to multiple dealerships worldwide. What you’ve done is great, but I don’t want to be involved in a one-man dealership selling camper vans. For that reason, I’m out.
The trade in secondhand vehicles has failed to get Peter Jones’s motor running. Will Deborah Meaden be more willing to invest?
Congratulations! You’ve come up with a great idea and you’re making good money. However, the car bit worries me because half of your business is in vehicles, and that’s not a business I particularly want to get into. I’m really sorry, but I won’t be investing. I’m out.
You have a great business, but I only invest when I’m passionate about the problem being solved. In this case, I’m not passionate enough about the industry to be the right investor for you. So, for that reason, I’m out.
I was going to try and play it cool, but I absolutely love this business. I think you’re brilliant. As excited as I am, my dad will be even more excited. I’d like to offer you £100,000 for 15% of the business. My plan is to involve my dad as a hands-on mentor, and I’ll help with marketing and scaling the business.
You’ve done a great job so far, but I can see this business reaching another level. I’m involved in a property project with a modular system, and you could benefit from the ideas there. I’ll offer you all of the money, but I also want 15% of the business.
Is there any way we can get nearer to 10%? I think that’s a fair valuation.
The idea was to give my dad 5% for mentoring, so I could drop my stake to 5%, making your total 10%, if you return my money in 18 months.
Of course, I would match that.
I’ve made my decision. I’d like to accept Sara’s offer. Thank you.
Excellent! I’m possibly the most excited I’ve been about an investment while sitting in this chair.
Jason has done it. He leaves the den with £100,000 and the backing of a dragon whose enthusiasm for his business appears to know no bounds.
I was having that one. I didn’t care what any of you said!
Sara had more passion, but now Jason has not only a dragon but a dragon’s dad, which is amazing.
- Setup – The way something is organised or arranged, such as equipment, furniture, or a system.
- Example: I have a good work setup in my home office.
2. Expand into – To grow or increase into a new area or market.
- Example: The company plans to expand into Asian markets next year.
3. Side hustle – A job or business that someone does in addition to their main job.
- Example: She started a side hustle as a freelance graphic designer.
4. Try out – To test something to see if it works well.
- Example: I want to try out the new recipe I found online.
5. First-hand experience – Direct personal experience.
- Example: He wrote a book about his first-hand experience in the war.
6. DIY (Do It Yourself) – Projects or repairs that you do yourself instead of hiring a professional.
- Example: She enjoys DIY projects like building furniture from scratch.
7. Exhausted every option – Tried all possible solutions without success.
- Example: After they exhausted every option, they decided to move to a new city.
8. Draw up – To prepare a plan or document in detail.
- Example: The lawyer will draw up the contract for the sale.
9. Go all in – To commit completely to something.
- Example: He decided to go all in and invest all his savings in the startup.
10. Gross margin – The difference between revenue and cost of goods sold.
- Example: The company’s gross margin improved after they reduced production costs.
11. Net margin – The percentage of revenue remaining after all expenses.
- Example: Despite high sales, their net margin was low due to high operational costs.
12. Scale up – To increase or expand in size or scope.
- Example: The business plans to scale up production to meet increasing demand.
13. Stock level – The quantity of goods available for sale.
- Example: We need to check our stock levels before placing a new order.
14. Up and running – Fully operational.
- Example: The new website will be up and running by next week.
15. Hands-on – Actively involved in a task.
- Example: She prefers a hands-on approach to managing her team.
16. Mentor – An experienced person who guides and advises someone less experienced.
- Example: He became a mentor to new employees, helping them navigate their roles.
17. Show his hand – Reveal one’s intentions or plans.
- Example: He finally showed his hand and admitted he wanted the promotion.
18. Come on board – To join a team or group.
- Example: We’re excited for you to come on board and bring your expertise to our project.
- What do you think of the idea?
- Are camper vans popular in your country? Do you know anyone who lives in one?
- Do you think the camper van trend will continue in the future?
- How do you like travelling? Staying in hotels, AirBnbs, Camper vans?
- What business would you create if you could?
