Rachel Watkyn secured £60,000 from Peter Jones and Theo Paphitis on Dragons’ Den in exchange for a 40% stake in Tiny Box Company, after entering the programme with no previous experience of running a business. Founded in 2007, the company grew from her difficulty finding ethically produced packaging for her jewellery business into what she describes as the UK’s largest online gift packaging e-commerce company, with an annual turnover of £10 million. Watkyn’s journey included tough questioning in the Den, rapid growth following the television appearance and years of work to establish the sustainable packaging business.
How did Watkyn turn an ethical packaging gap into a £10 million business
Watkyn founded Tiny Box Company in 2007 after struggling to find sustainable packaging for her ethical jewellery business. In an interview with the small business publication SBS, she explained that she had been unable to find suitable boxes produced ethically and was surprised by the difficulty of ordering small quantities from packaging suppliers.“I saw the gap in the market and knew that was my in,” Watkyn said in the interview. The company was established to make sustainable and ethical packaging more accessible, particularly for small and medium-sized enterprises. Watkyn said the idea came from her own experience as a business owner rather than from an established career in packaging. Her jewellery business required packaging that reflected its ethical approach, but the options available did not meet her requirements.The difficulty revealed an opportunity to serve other businesses facing similar problems. Tiny Box Company subsequently developed its offering around gift packaging, with sustainability and accessibility central to its original purpose.
How did Watkyn secure £60,000 on Dragons’ Den for a 40% stake
Watkyn’s appearance on Dragons’ Den came about after her business partner at the time applied to the programme without telling her. According to Watkyn’s account on her official website, her partner wanted to return to his broadcasting career and saw the application as a way to secure new business partners before leaving.When the BBC contacted the business about the proposed investment, Watkyn discovered what had happened. She recalled that her partner’s advice was simple: “Blag it.”Watkyn said she entered the Den without believing the business had much chance of securing investment. She had no patents, limited trading history and no previous experience of running a business or working in the packaging industry. Nevertheless, after extensive questioning about the business model, margins and future prospects, she secured £60,000 from Peter Jones and Theo Paphitis for a 40% stake in Tiny Box Company.The pitch took place in 2008, according to Watkyn’s account. She later reflected that she had accepted the deal without fully appreciating the value of the ownership she was giving away. However, she said she would not change the decision because the experience helped demonstrate what she could achieve as an entrepreneur.
How did Dragons’ Den boost Tiny Box Company’s credibility
Watkyn said the investment programme’s most significant effect was the credibility it gave Tiny Box Company. Following the broadcast, the business received more website traffic and enquiries, helping it gain greater visibility among potential customers.However, she stressed that appearing on television did not remove the challenges of running a business. In her account, she explained that the company’s growth accelerated more quickly than she had been prepared for, leaving her to manage expansion while learning how to operate the business at a larger scale.“For years, I paid myself a minimal salary while trying to keep up with the growth and learn fast enough not to break the business,” Watkyn wrote on her website.Her experience also changed how she viewed the investment agreement. Looking back, she said she should have conducted more research, developed greater confidence in the business’s value and understood her own worth before entering the Den. Despite those reservations, she credited the experience with showing her that she could build a successful company with or without external backing.
How is Tiny Box Company adapting to packaging trends
In the SBS interview, Watkyn described Tiny Box Company as the UK’s largest online gift packaging e-commerce company and said it had achieved a turnover of £10 million. She also identified competition and changing customer preferences as continuing challenges for the business.Watkyn explained that packaging demand creates opportunities, but suppliers must distinguish themselves in a competitive market. She said changing trends require the company to adapt its designs and product ranges, including its Christmas collection. At the time of the interview, she had observed a shift towards simpler designs and away from more luxurious packaging.Her plans included continuing to grow the company, introducing new processes and entering new markets to maintain its position in sustainable packaging. She also described mentoring smaller businesses as an opportunity to share her experience while learning from other entrepreneurs.
What lessons did Rachel Watkyn learn about investing
Watkyn’s investment experience subsequently became part of her work supporting other businesses. She said that when considering an investment, she placed particular importance on the people behind a company, their drive and their ability to work together. In her view, a promising idea alone is not enough without a team capable of moving the business forward.From struggling to source ethical packaging for her jewellery business to securing investment on Dragons’ Den, Watkyn’s account traces the development of Tiny Box Company from a response to a practical problem into a business reporting £10 million in annual turnover. Her own recollection also makes clear that the investment was only one stage in that development, with the responsibility for building and sustaining the company remaining with her and her team.
