How to learn from the Dragons' Den

Did they make the right choice? Well, they had a good product and if they'd negotiated a bit harder they might have pushed Deborah down to a lower percentage. They also didn't question the Dragons on the breadth of experience they would have brought to the table.

James Caan for example, with no retail experience to speak of with which to back up his bid, may have been persuaded to buy-in for a smaller cut.

Even so, taking into account the success they'd enjoyed to date with selling the product in 40 independent retailers and the Mothercare chain, it seems likely that success is on the horizon for Polly and Helen even if it takes them a little longer to achieve it.

Along with unrealistic valuations, another thing the Dragons are never impressed with is an entrepreneur who is asking for investment in order to be paid a salary.

'Tangle Tweezer' (hair brush business)

This was just one of many mistakes in a pitch by hair colourist Sean Pulfry. Sean was looking for £80k investment in return for a 15% stake in his hair brush business, Tangle Tweezer.

Business investors expect to see proof that they're making a good investment, be it in the form of a product, or a good business person. If their money is paying for someone to spend more time working on the business, that person needs to show through his or her performance that they are worth it.

Unfortunately Sean failed to demonstrate much business acumen and the Dragons weren't impressed with the product. He was brought up short several times on the fact that he hadn't done any worthwhile research into the demand for his product in its intended market. In fact Sean had given away 350 free samples of his hair brush but not followed up on getting any feedback.

Shuc (portable showerhead holders)

Possibly the worst sin committed in the Den is when a so-called inventor has come up with a product that solves a non-existent problem. And taking the brunt of the Dragons' ridicule last night was Jill Parkinson, for her portable showerhead holder, the 'Shuc'.

Invented to ease problems experienced when washing with a handheld shower, Jill's product had the Dragons baffled from the start.

The bafflement continued when she revealed the projected sales figures that could give one 'lucky' Dragon a fast return on their £120k investment but for a rather small 18% of the business.

In the end it wasn't even the minimum 2,000 units a month that she would have to sell to turn a profit that proved she wasn't on to a winning product.

It was the fact that she and her partner had already invested £200,000 of their own money in the business with little to show for it in terms of sales. If an investor entered the business at this point, they would effectively be starting from a position of debt. So, a crushed Jill left the Den empty-handed.

Unfortunately, this episode has yet again shown that even a good business idea does not always equate to a good investment. And, blinded by the time, capital and love they have invested in their inventions, many entrepreneurs find themselves in too deep before they've even begun.

Concentrate (children's products)

Fortunately there was one winner in this particular episode. Mark Champkins impressed the Dragons from the start of his pitch with credentials including being a trained engineer and an award winning inventor.

While his 'Concentrate' children's products (including a drinks holder and lunch box) didn't entirely match up to the promise of helping kids to concentrate at school, they did show enough promise to secure a surprise 11th hour investment from Peter Jones, who in previous series has displayed a soft touch for children's products.

As often happens in the series, the entrepreneur himself can be a more interesting proposition for a Dragon than the product they have developed.

In Mark's case, his product was investment-friendly, his presentation style enthusiastic and his pitch well prepared. He was also brave enough to stick to his guns and negotiate a 35% offer conditional on his profits in the first three years.

So, in summary, what can your start-up or growing business take away from the entrepreneurs' night in the Dragons' Den?

The key message seems simple, but many fail to execute it properly: get your financial plan right and do thorough research. If you've got that far, the rest is down to honing your presentation skills and pursuading the banks and other lenders that your idea will make money.