BBC - Dragons' Den Online - Andrea Alli - Flexi Shoe Rack

Andrea Alli -- Pitching - Flexi Shoe Rack
Innovative flexible, space saving shoe storage system

During an engaging demonstration Andrea and Babs explain that since July 2009 their company has had a turnover of £62,000, but the high cost of manufacturing in the UK is preventing their expansion.

Investment is needed so that the manufacturing can be done overseas in China.

The product grabs the attention of both Dragons and they inspect the shoe rack and its 'no tools needed' design. Impressed by the concept, Shaf admits his surprise at the sturdiness of the rack as it looked to him like it would "fall over if it is blown on".

Julie asks if they are working on this business full time and whether they have ever run a business before. Andrea confirms that they are only working on this one project and that she gave up her eBay business three years ago when she came up with the idea of the Flexi Rack.

Shaf queries what happens if the couple have a row which draws some nervous laughter and the insistence that they are working towards the same thing. Julie poses a related financial question by asking whether there is the option for one partner to buy the other out should things turn sour between them.

Andrea and Babs admit there is no such deal in place, showing some possible naivety behind the business plan.

Numbers-minded Shaf digs into pricing. Babs reports retail costs are between £30 and £60, depending on which size you buy. A 12 click pack costs £40 which Shaf thinks is expensive. Reluctantly, Andrea and Babs agree and explain that that is why they need the money to relocate production to China and so drive costs down.

Babs then explains that a 'major high street retailer' has expressed an interest in the rack for an order of 10,000 units, but only if a retail price of £20 can be met. Shaf has reservations with this, and wonders why the entrepreneurs don't just go to a bank with a guaranteed purchase order to raise funds. Shaf explains that any bank would happily give them the money if a guaranteed order is in place.

While admitting she'll be a likely buyer of their product, and will follow their future process with interest, Julie Meyer nonetheless declares herself out. They may be creating a market for a bigger manufacturer with more money behind them and she hasn't seen enough to convince her to overcome her gut unease at working with couples in business.

Shaf is still concerned about the nature of the major retailer interest and returns to the topic of bank funding with a purchase order. Babs explains that the order isn't guaranteed as yet but Andrea concedes they might be able to look into this. This information is enough for Shaf - he declares himself out.

Andrea and Babs leave the Den with no investment, but with some invaluable advice about funding that will leave them 100% equity in their business.

Category:

Howto & Style

Tags:

• BBC
• Dragons' Den
• Shaf Rasul
• Julie Meyer
• Andrea Alli
• Flexi
• Shoe Rack