Page 359 - James Caan - The Real Deal

34 · Getting the Most out of the Den

assets and their income, so if your business doesn’t make a profit
yet then it’s unlikely to be worth very much. Ideas – even really
great ones – aren’t worth all that much, so when people come to
us at the very early stage of a business, when it’s not much more
than an idea, and say they want £100k for 10 per cent of business,
not only are they valuing their business at £1 million but they’re
actually saying that their idea is worth £900k. No wonder we
laugh. If you want to be taken seriously, then my advice is to think
seriously about what your business is really worth at the time of
your visit to the Den.
I’ve already said this, but it’s worth repeating: there’s no point in
being greedy with the equity you’re prepared to offer in exchange
for our investment. As Peter Moule’s story proves, Dragons can
transform businesses, and our experience and knowledge is often
just as valuable – if not more so – as our money. Take Levi Roots
and his Reggae Reggae Sauce: it was probably one of the most
memorable Den presentations ever, and Peter Jones and Richard
Farleigh have now got him selling his sauce in Sainsbury’s and
Asda. Had Levi Roots heard of Sainsbury’s before he went in the
Den? Of course he had. Could he have picked up the phone and
called Sainsbury’s to get an appointment? I think he probably could
have done, but the key question is this: would Sainsbury’s have
placed an order without Peter and Richard’s involvement? Possibly
not. The Dragons were able to turn his sauce into a business.
In the fifth series I wanted to invest in a baby towel called
CuddleDry, but the founder wouldn’t give me the 40 per cent I
asked for. She would only go to 30 per cent and for the sake of 10
per cent she walked away. I sometimes wonder how much bigger
her business would be now if I had been able to get her products
into every baby shop in the country and if she’s ever had second
thoughts about that 10 per cent.
There’s no time limit on presentations in the Den and occa-
sionally they go on for over an hour (sometimes, though, they’re

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