Peter Jones, Jenny Campbell, Tej Lavani, Touker Suleyman and Deborah Meaden are the dragons and Paul Varga, Matthäus Ittner and Tolulope Ogunsina are the co- founders which founded Playbrush which is a smart device that converts any normal toothbrush into a gaming device, it works by plugging it at the back of any normal tooth brush and you connect it to your smart device via Bluetooth and then while brushing your teeth play fun inspirational games, this product motivates and encourages children to brush their teeth and for longer because it measures the period in which you’ve brushed your teeth and the positions to get good brushing results, the product is designed in such a way to ensure that the kids brush their teeth in such a way to get points or medals on the gaming app that it ensures healthy clean teeth, Playbrush has three components to it the software component, and selling the hardware with a margin and software maintenance . Playbrush aims their product at children between the ages of 3 to 12 years old who are starting to brush their teeth but have also received excellent feedback from teenagers, parents and even grandparents. (General FAQ, 2018) Playbrush is in partnership with Unilever which introduces it to the Market in France making their product international and the tooth brushes come with branded quality. Playbrush’s core business idea was started because of kids who do not brush their teeth and give their parents problems Playbrush is a product that helps children brush their teeth more effectively while making it fun at the same time by mixing technology with it because increases the amount of time they spend brushing their teeth. Playbrush aims to have more consumers in the UK
Management and entrepreneurship
Management is the task of accepting responsibility for the innovative approach of resources to subsequently achieve business goals and maximize success (Meyer, 2018) This could be directing the business, using the resources effectively to ensure that the objectives and goals are achieved, it ensures that the business will have a future and lastly decision making, management is related to planning, organizing, leading and control. Entrepreneurship: an entrepreneur starts a business with unique ideas or normally has a special skill or talent which creates a product that consumers will want and even creates a target market for it and in the process take risk that aims to make profit and grow their business to achieve their goals and objectives, Playbrush’s founders are Techno-entrepreneurs they developed a new innovative idea and used it as the core of their business idea.
In the Dragons Den the co-founders of Playbrush are the techno-entrepreneurs who came up with this peculiar idea when they were in college and designed a creative idea using technology and toothbrushes and saw the opportunity to make a profit. They have been directing their business and using all their resources that they had but now have come to the Dragons to raise funds and ensure that their business will be sustainable in the future and offers the dragons 1% of their business in return, Tej Lavani makes the co-founders an offer where he can use his resources to get Playbrush access to all the retail points but wants 6% of their business in return, Deborah Meaden and Touker Suleyman also make them an offer for 5% of their business but they (Playbrush) refuse because of the percentage that they want. Playbrushes founders knew exactly what their objectives and goals are and were confident to refuse because they had a certain vision in mind and made a decision that would steer the business in a different direction even if the dragons would have helped them to reach their goals faster they made a decision to be on a different course because they wanted to be in control, Management also includes delegating and letting each person in the task do something and Paul Varga- put everything together , Matthäus Ittner-took care of all the numbers and Tolulope Ogunsina –built the product
Finance is a segment of economics that deals with resource allocation and resource management, assets and investments (Finance, 2018) Finance is basically the management of money which is the ability of an entrepreneur to obtain the best return from his/her money, the entrepreneurs money should increase. (Meyer, 2018) Management of money includes two categories’ which is investing money to generate a monthly income (which is the generate a monthly source of income) and investing money to achieve capital growth (the investor will need to calculate the return of investment and decide whether they want to invest or not and this depends on a number of criteria like the type of industry, the business brand strength, the management team). Owners’ equity which is the amount of the owner’s money in the business, the assets which is the belongings of the business and the liability’s which is the debt of the business will are play a part when the owner is managing their business.
Playbrush founders are offering 1% of their business to the Dragons in return for £100000. There back history is in 2016 they had 1.2 million turnover and in 2018 already had £2 million turnover and their profit in 2017 was £240 000 and had no net profit and had a loss of £800 000 and projected that this year’s lost should be around £500 000. The loss that Playbrush made in the previous year is a liability to the dragons but the money went to developing and creating new technology so the products could be more efficient and which was aimed at ensuring large future profits so the entrepreneur did manage their money to ensure that there is a return but that meant losing money now in order to gain money in the future. They only had £100000 sales in the UK and the rest was international which were in France and Germany where 70% of their sales have come from and in the future may need more money from their investors. They have stable recurring revenue on the software maintenance. Three of the Dragons want to invest for capital growth because they see the potential of this business idea and the return on investment, entrepreneurs would not accept because of the high % that the Dragons wanted (5% and 10%)
Marketing is a management process which includes activities which strive to create a competitive advantage that should be maintained, marketing also includes having the right product in the right place at the right time, at the right price. Marketing includes the marketing mix which is the product (the features of the product), price (the price consumers would pay for the product), place (channels which are going to be used), promotion (telling the target market about the product), process (that makes it easier for the customer), people and physical evidence. It is important that the business does market research to ensure there is a market for the product they are selling and also helps them understand the needs of target market and which will broaden the target market. (Meyer, 2018)
Tej Lavani offers a deal where he has distribution channels in the UK to all the major retailers and Touker Suleyman who is already in the toothbrush industry which offers distributional channels and warehouses and has a lot of infrastructure that could help Playbrush and do it in a very vast manner. The Dragons could help the entrepreneurs extremely because Touker Suleyman knows the industry and know that there will be an actual target market for this product. The actual product is designed in such manner that it uses technology and comes in all different colours that could extend the life cycle of the product; the price of the product is £29.99 (Frequently Asked Questions, 2018) and last 2X longer. Playbrush is also partners with Unilever which a strategic alliance so Playbrush target market broadens allowing Playbrush to increase their market shares.
The entrepreneurs should not have offered 1% equity when having such big losses; I would have offered them a higher % of the business , I would also have made the presentation more visual with adding graphs explaining why they had made a loss and to show how in the future that it is going to turn around and in the future there would be a trend for Playbrush and that the business will be more profitable by 2019, the entrepreneurs also seemed as they were uncomfortable and didn’t want to be there so I would’ve been more excited and more energy should’ve been involved , another thing I would have done is let everyone speak an equal amount, not just one person speaking primarily.
They could have improved the existing business model by making different games for different segments of the market for example create a Barbie game for the little girls or something that caters for each segment, not just one set game for everyone. On the game I would also had a timer that tells you when you done brushing your teeth so you don’t always have to look at your watch to check how long you still have to brush your teeth or if you get to carried away with playing that you don’t get late for school or work . You have to charge the Playbrush gadget when it goes flat so I would design stop sort of system so it tells you when it is close to being dead so you can recharge it and have fun all the time.