RICHARD: We’ve only got three minutes, okay? So give me the pitch.
SARAH: Yep. Well, no problem. We actually started ‘cause my nan wasn’t eating. Umm, we tried to find a service that would make sure she was having a good meal, every single day.
RICHARD: Oh right, sorry. , hot, meals-on-wheels. Okay, yeah, yeah.
SARAH: Yes and we actually couldn’t find any service in the area, so we created the only hot meals-on-wheels service for the elderly in that area. This is what we can offer for two courses. They get a proper meal.
MAN: Every penny that has been made has been reinvested. We now have a full commercial kitchen that could handle anything that was thrown at us, basically.
RICHARD: Yeah, and how about the delivery side of it? How many vans do you need to get to your customers? How many customers are there? What’s the scale of it?
SARAH: We estimate that each delivery van should do between like basically between 20 drops.
RICHARD: A day?
SARAH: A day. Yes.
MAN: Over lunchtime.
RICHARD: Yeah.
SARAH: Over lunchtime.
RICHARD: And a drop is like, worth about three quid is it? You’re saying……
SARAH: £4. So, each drop is £4.
RICHARD: So each van can do eighty quid a day’s worth of revenues.
MAN: Correct.
SARAH: Yep.
RICHARD: Is there any money in it? ‘Cause you’ve gotta pay for van, driver, petrol, food……
MAN: In numbers, basically overall, once we’ve paid all the bills, we make a gross profit of approximately 60%. So 60% of a couple of grand is not a lot…
RICHARD: Yeah.
MAN: …But if you can get twenty vans on the road in the area….
RICHARD: Yeah.
MAN: There’s money there.
RICHARD: I’m just nervous. Your maximum revenue is like £80 per van, per day. I love the idea of it. I just don’t buy the economics. They’re gonna do twenty visits a day, that’s gonna be eighty quid a van. I just don’t think there’s gonna be money in it, long term. I think when you’re doing it one van by yourself, where you’re cooking and delivering, I think: fair enough. But when you’re tryin’ ‘na build a business around those economics, it aint gonna happen. So as much as I love why they’re doing it, as a business for me, it’s a no.
Quick tips for tutors
- A two-minute video showing a small business pitching to a potential investor
- May be used to stimulate discussion around what makes a good pitch
- Can be discussed for comparison alongside other clips of pitches in this topic.
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