In the past, it was necessary for entrepreneurs looking to raise finance to submit 100-page business plans. But modern-day investors demand, at a minimum, a well-crafted financial model and a pitch deck.
Increasing volumes of applications for funding and more sophisticated investors have driven this trend towards more succinct funding requests.
What does this mean for you? A new form of lure and bait is being used by hopeful entrepreneurs to reel in funders. Enter the deck.
At its simplest, a deck is a screening tool that serves as the key to your first meeting with a potential investor. It is not a comprehensive analysis that is bound to put off busy investors with limited time on their hands.
The purpose of the deck is to make the job of investors easier — and to make it impossible for them to say no.
Done properly, a great deck should explain why the problem you are looking to solve creates a meaningful market opportunity, why your solution will be able to solve this problem in a way that competitors and substitute solutions can’t, and why your team has created, or is able to create, a business model with matching unit economics capable of turning any future market share into tangible economic value.
Your deck should solicit sufficient interest from investors to yield follow-on meetings, conversations and discussions — opportunities for you to present your vision, and explain why investors are likely to profit from it.
Related: DTI Funding
DocSend, the sales enablement and analytics software provider, recently teamed up with Professor Tom Eisenmann from Harvard Business School to conduct research into the use of pitches and the factors that contributed to their success.
Core takeaways were:
- Keep your deck to 20 pages or less
- Contact 20 to 30 investors
- Highlight your team slide — it is one of the three most viewed and important slides
in your deck
- Financial performance or forecasts will be the most used slide in your deck
- Don’t insert deal terms into your deck. Investors want to structure deals according to their preferences.
Your deck should include information that addresses the topics below, and in the order set out to ensure optimal and logical informational flows:
- Why Now?
- Market Size
- Business Model
The following example is based on a fictitious company and is not unlike Silicon Valley, the acclaimed comedy series on HBO. Assume Peter Hendricks, founder and CEO of Pied Piper is on the road to raise finance.
Using the construct and framework we’ve already set out, his story might look something like this:
“Pied Piper’s mission is to connect to the world through low cost, compression enabled data-driven interactions. We believe compression-driven, neural enabled networks offer opportunities for users and companies to interact more frequently, more cost effectively, and in a richer way than previously possible.”
Key Takeaway: Allow the reader to understand that the commercial vision drives your mission.
“99% of the world’s data has been created in the last two years. Along with the growth and explosion of data creation, capital expenditure on infrastructure has had to increase to keep abreast. Given the frequency and volume of digitally-driven data enabled interactions daily, weekly, monthly and yearly, consumers and companies are spending unheard of amounts on data and Internet costs to enable product usage and enablement.
This results in:
- Annual expenditure of R20 billion by data-heavy companies, and an estimated R82 billion by consumers using Internet-based applications and tools.
- Companies and consumers spending about R60 billion more than they should on data and hosting costs, due to cumbersome infrastructure and ineffectual architecture.
- Average users waste about three days annually waiting for files to load and data to buffer.”
Key Takeaway: Use data and numerical analysis to support your narrative. This will make your story more believable and justifiable. Remember, it’s all about justification.
“Our ever-growing data and Internet bills, capital investments and consumer facing latency could be solved by flexible, well-crafted compression software that reduces file sizes through the entire data lifecycle. Reducing file sizes will reduce data needed to remit, thereby reducing data costs, while lessening the need for capital investments to support data storage and transmission. As such, we believe compression holds the key to unlock R45 billion in excessive consumer and corporate data spend, in addition to providing opportunities for these expenditures to be diverted from commoditised necessities to higher-yielding alternative investments.”
Key Takeaway: Without divulging product or situational information, craft a story about how the problem might be solved. Demonstrating the effect of such a solution numerically will emphasise your point about the seriousness of the problem to any prospective investor.
“We believe data and Internet services are becoming increasingly commoditised, thereby reducing corporate and consumer willingness to pay outrageous amounts for data consumption. Furthermore, we believe the current problems with data consumption will be compounded by the growth in mobile adoption and additional subscription for communication and social media applications. The congruence of these events and occurrences will create a large and rich opportunity for compression based applications that will reduce file sizes, slash data costs, and improve security.”
Key Takeaway: The purpose of this section is to explain why market and technological conditions are, or will become, conducive to companies and consumers using your product, or products/services of a similar nature.
“By looking at our core target markets, we currently preside over a R3 billion market opportunity.”
This estimate is based on the following supportive factors:
- Our target corporate clients are media, financial services, medical and telecommunications companies, and we have segmented our consumer target market according to age and smartphone adoption.
- In South Africa, we are currently targeting users aged 18 to 40, LSM 6 to 8. Given the application of our technology, we expect these users to be moderately tech savvy. Based on this segmentation, we estimate
a primary population of 4,5 million potential users.
- From a corporate perspective, three media companies, two medical companies, four financial services companies and two telecommunication companies have a need for our product, and are willing to subscribe to our offering.
- Based on our business and pricing model, we estimate our corporate cluster to be valued at R2,5 billion, and our consumer cluster R0,5 billion, based primarily on advertising opportunities.
Key Takeaway: You will often hear entrepreneurs say: “If I can just get 1% of this market, we will generate billions in revenues.” That is top-down analysis and investors will tear that line of logic apart. Always use bottom-up analysis. No matter how hard it is to find data or information that relates to your external market, reverse engineering defensible numbers is more often the wiser and more defensible route. Bottom-up analysis allows for an articulation of the number of customers in the market for your product or solution (defined according to the problem identified and the number of people or businesses experiencing the problem and in need of a solution), multiplied by the potential revenue in serving each customer individually.
“We believe Pied Piper is deeply differentiated from competing offerings, thus enabling us to capture market share more easily and directly than some of our competitors. We believe our freemium model will allow for wide adoption, with additional attractiveness driven by our wide product and service capability. While our competitors are only able to compress specific segments of data, the Pied Piper platform allows for data and informational optimisation across all categories.”
Key Takeaway: Use a series of tables or matrices to measure relative offerings from competitors or substitute products in highlighting the unique characteristics offered by your product or service. Your competition slide should state simply and convincingly why your product solves the problem in a way that competitors can’t. You should cover the following areas in your matrix analysis: (1) Price (2) Distribution (3) Funding raised (4) Business model (5) Key product features.
Related: New Ways SMEs Can Find Funding
Outline what your product does.
Key Takeaway: Closely tie your product story into the PSM (problem, solution and market size). Explain why your product is able to solve the problem outlined without repeating your solution narrative. Your product story should be a molecular analysis of your technology, explaining why it constitutes a viable and defensible solution. Moreover, your product narrative should be packaged and told in a manner that resonates with your market and opportunity analysis inasmuch as it must fit the customer base outlined, and the budgets from which potential customers will subscribe to your offering.
“Our business model is two-fold and relates to our key target breakdown according to consumers and companies.
- We plan to deploy a SaaS based model for companies, where they pay a tiered amount of R1 million monthly, which will increase in line with utilisation. This allows us to align our interest with that of our clients, allowing us to benefit alongside them from the success of our product.
- For consumers, we will deploy a freemium model to provide users with free access to our platform, allowing for low costs of acquisition and registration of a large base of potential users. We plan to use this base for cross-selling and up-selling of additional product and platform features, thereby monetising our consumer-based users.
Key Takeaway: The business model slide is a bridge to the information set out in your financial analysis. State and explain how your business proposes to monetise its offering, carefully setting out the underlying unit economics and key value drivers. Astute investors are always on the lookout for untenable business models, so be sure to know your key value drivers.
Richard Hendricks — CEO
- Experience: Software developer for Hooli
- Education: Computer Science degree from Stanford University.
Jarred Dunn — Business Development
- Experience: Senior Vice President at Hooli focusing on strategic markets
- Education: MBA from Stanford University.
Erlich Bachman — CMO
- Experience: Founder of Aviato
- Education: Computer Science degree.
Betram Gilfoyle — CTO
- Experience: Full stack software developer for a number of successful start-ups and corporates
- Education: Bachelor’s degree from University of Montreal.”
Key Takeaway: The purpose of your team slide is to demonstrate why you and your core team comprise the necessary skills and experience to make your venture a success. Provide a short description of the backgrounds of your key team members and their skill sets, linking these to their current roles and responsibilities within your business. Such competencies should relate to critical and important areas of your business or your key success factors. Think carefully about critical areas in your business, key human resources needed, and why your current team fills such gaps and requirements.
“Pursuant to our go-to-market strategy, we aim to achieve the financial performance set out below:
- Break-even is at R12 million in revenue, equating to one corporate customer or about 0,48% of the total market.
- With an investment of R10 million, we believe we will reach a valuation of R400 million in five years, thereby offering a 10X return on our valuation of R40 million today.”
Key Takeaway: Slides on your financial performance or outlook should not go into detail that you can’t justify and defend. Ideally, your financial slide should set out any historical financial performance (for those of you in the seed or pre-seed stage, you probably don’t have any past financial information – don’t worry), with a reasonable outlook for future prospects.
Thus: Last year’s financial performance, if relevant, with a two-to-three year P&L and cash flow outlook. Your finance slides should also include a robust break-even analysis across a series of different scenarios. If you are not familiar with break-even tables, get someone knowledgeable to assist you. (Break-even analysis is crucial to understand, as most investors would want to unpack this early on. Investors use break-even as a simple metric to unwind applicable risks, determine the number of customers you would need to acquire or products you would need to sell, and test the reasonability of your required customer base relative to the size and dynamics of the relevant market.)
In closing, your deck should be short, to the point, and relevant for investors looking for 10X growth in their investment.
You will therefore need to explain why the market is large enough, why your product actually solves a problem, and why you will be able to turn any investment into a real financial return.
Lastly, make sure you understand your business and materials thoroughly, as investors are sure to probe deeply. Nothing will end your meeting faster than a wrong number, a misunderstanding of your business, or if investors sense that you are waffling.
Looking For Funding? First, Understand What Funders Look For
Are investors interested in ideas? Traction? The team? The founders? They’re interested in all that and more, say VCs Keet van Zyl and Clive Butkow.
Put two venture capitalists and an entrepreneur (who pitched her business to almost every VC in South Africa before securing corporate funding) in a room, and you’ll hear the truth about funding: What investors look for, the realities for business owners looking for funding, and what you can do to increase your chances of securing funding — or better yet, build a great business without it.
In June, the Matt Brown Show hosted a series of events, called Secrets of Scale at the MESH Club, focusing on what it takes to scale a business. Matt’s panellists included Clive Butkow, ex-COO at Accenture and CEO of Kalon Ventures, a tech-focused VC firm; Keet van Zyl, a venture capitalist and co-founder of Knife Capital, and Benji Coetzee, founder and CEO of tech start-up EmptyTrips. To add a twist to events, both Keet and Clive chose not to invest in Benji’s business when she was on the funding trail, even though they believe strongly in both her and her idea.
Here’s what we learnt from their experiences, insights and advice for local business owners.
Funders back the jockey, not the horse
This is a truth that Benji has experienced first-hand. “After months of trying to find an investor, I decided that VCs don’t know what they want,” she says. “The ladder of proof just keeps getting longer — big white space, addressable market, an MVP (minimum viable product), traction, first users — there’s a long checklist and you just need to keep ticking those boxes. Great concept, great team, we love it, keep going. I can’t tell you how many times I heard that.”
What Benji learnt was that the corporate funders who would eventually choose to back her were interested in two core things. First, did she have skin in the game? By that stage, she had invested R3 million of her own funds into the business, and so the answer was decidedly yes. She was already backing herself.
The second was that they wanted to back her — not necessarily the business. They were interested in her passion, dedication, experience and networks. “You still need everything I mentioned before,” she says. “But ultimately an investor backs the entrepreneur, not the business.”
Clive agrees. “There are a lot more million-rand ideas than million-rand entrepreneurs,” he says. “At Kalon, we’ve seen 600 companies and we’ve made four investments. That’s one to 100 odds, which is pretty standard in this industry.
“That doesn’t mean the 596 businesses we saw weren’t good businesses. Some of them were fantastic. They just weren’t investable businesses because we knew they wouldn’t give us a 10x return. They also weren’t 600 unique businesses — they were 100 unique businesses six times. There are very few unique ideas or even businesses out there — and so it’s the entrepreneur who makes the difference, and who you ultimately want to back.
“We look at three things in an investment. Is the deal investable? Is the person investable? Is the risk investable? If all three answers are yes, we can take it further. You need to have a great jockey; you need to have execution capability; and you need to have traction in a large target addressable market.”
Funders are interested in traction
For Clive, traction trumps everything. “I look for the 4 Ts: Team, Technology, Traction and Target Addressable Market. Without traction though, the other three aren’t worth much.”
“Every single business we’ve invested in had customers, and wasn’t just an idea,” agrees Keet.
The best way to prove traction and to get funders invested is to start introducing yourself before you need money, and then keep them up-to-date on what you’re doing and achieving.
“We receive five business plans via email a day for funding, and we ignore them all if they haven’t come through our network,” says Keet. “This isn’t unusual. 93% of deal flow in South Africa comes from within the VC’s network.”
Don’t think of a VC’s network as an exclusive ‘invite only’ club though. “Building a network is all about attending ecosystem evenings and embracing targeted networking,” says Keet. “We’re all on Twitter. Get to know us. I’m passionate about the journey of an entrepreneur — send me a newsletter telling me who you are, and three months later where you are now. That’s my passion. I love that stuff.”
More importantly, it’s not just a business plan — instead, you’re letting potential investors into your story, and giving them the opportunity to share in your journey.
“It’s not that difficult to get into networks and bump into people at events,” says Keet. “And then it’s much easier to send a follow-up email saying, ‘Hi Keet, we met last week at the MESH Club at the Matt Brown event, can we have a coffee?’ It’s tough to say no to requests like that.”
Clive agrees. His advice is to always meet your investors before you need money. “We don’t have the bandwidth for cold emails, but we do enjoy sharing stories and business journeys.
“Think about it like this: We don’t invest in dots, we invest in lines. Tell me where you are now and where you’re planning to be, and then keep updating me. You’re then able to prove that you can stick to your goals, execute on them, and hopefully even exceed expectations. Get that right, and funders will come to you.”
Clive also says that smart VCs play the long game, often supporting businesses even if they don’t believe the time is right to invest in them.
Both VCs used Benji as an example of this strategy in action. While neither fund was able to back EmptyTrips, both Clive and Keet have kept in touch, followed Benji’s growth trajectory, and supporting her where possible, either with advice or connections.
“Keet opened me to the angel network,” says Benji, “and his partner, Andrea, introduced me to Lionesses of Africa. It was that involvement that allowed us to build a relationship with Siemens and Deutsche Autobahn. VCs aren’t just about funding — they enable ecosystems too.”
Before you look for funding, make sure you actually want (or need) it
The most common question people ask Clive is, ‘How do I raise VC funding and from who?’ According to Clive, this is the wrong question to be asking. “Equity funding should always be a last resort,” he says. “The question business owners should be asking is, ‘do I need funding?’ The best way to build a business is through customer funding. Some businesses are capital intense, but I’ve built many tech companies with no external capital. Customer funding is gold.”
Even though Benji has needed additional capital to build her business, she has also learnt the value of starting with what your clients want.
“Businesses change and evolve. We started out wanting to fill trucks on the empty legs of their trips. I now manage more trucks than Imperial’s CEO, but we don’t own a single vehicle, because we’re a platform that connects transport operators with companies that need transport solutions. We’ve since built an open spot market and we offer insurance solutions.
“We spend so much time asking what VCs want — and I was guilty of this too — when we should be asking what our clients want and need, and then building those solutions for them. That’s how you get clients to fund your business.”
Creating traction, knowing what clients want, building a use case: These are all essential steps in the overall process, and they will either lead you to funding, or help you build a business that doesn’t need external capital.
Focus on what moves the needle
“The real trick to growth is focus,” says Clive. “Don’t try to do too many things. Go deep and drill for oil and gold. Once you’ve scaled a business and you’ve become the best at something you can start to expand. Too many entrepreneurs are easily distracted. Most start-ups don’t even know what they’re building until they start getting real customer feedback. If you’re doing too much it’s difficult to take that feedback in and adjust what you’re doing.”
Keet agrees. “Find your strategy, determine the key metrics you need to grow in, and then focus on growing those metrics — and only those metrics — aggressively.
“From a scalability perspective, the entrepreneur’s ability to execute their strategy is paramount. You need a good product, a large market, and to know where you’re going. You also need to be able to grow five key areas simultaneously: Customers, product, team, business model and funding. These need to grow in proportion if you want to succeed — which is where the ability to execute becomes so vital.”
“Scaling a business is always about the practical stuff,” says Benji. “Consultants and VCs always have acronyms — the 4Ps, 5Cs — I have the 5Es.
“First, you need an explicit purpose. Be clear on what you’re doing and why you’re doing it. Next, you need an effective model that makes financial sense. You need to achieve sustainability sooner rather than later, because the sooner you can fund yourself the better.
“Next is execution support, and this is all about having the right team behind you. You need to be able to execute fast — and that takes a team. It doesn’t have to be perfect; just get it done — done is better than perfect. That way you’re first and will hopefully stay ahead. I often call our customers to apologise for something we’re fixing on the platform and they’re always okay with it, because we’re the only one doing this, and we’re still building it up.
“This is followed by what I call ‘enveloped co-opetition’, which basically means working within your ecosystem. Work together with neighbouring industries. Grow together and support each other, even if you are also competitors. This actually opens doors.
“Finally, you need emotional resilience, because this is tough, and you need to keep at it if you want to succeed.”
“We tend to fund older entrepreneurs who are more mature, understanding and generalists. You need resilience and the tools to succeed, and that often comes from having spent time in corporates, building up experience and a skills set.” — Keet van Zyl
Open additional revenue streams
As Benji mentions, the sooner you can fund yourself the better, so building a sustainable business is key. In addition to this, opening additional revenue channels can help pay the bills while your business gains traction.
“Scalable businesses are based on products or platforms, not services,” says Clive. “However, you can fund the product business with cash flow received through services. Ideally though, as the business grows, you want to increase your product revenue and decrease your services-derived revenue.
“Think of your services revenue as short-term, augmenting the business model while you’re building it.”
Benji, who is still consulting, agrees. “My consulting work ensures I have revenue coming in to support the business if we need it,” she says.
“Look for anything your company does — or can do — that can be monetised,” advises Clive. “But most importantly, critically analyse your business offerings. If you’re solving a real problem, your business can be customer-funded, particularly if your customers love you. I’ve seen cases where customers will pay upfront because they need your solution that badly. That’s the business you want to build. It’s also something VCs look for, because it shows you have real product-market fit.”
“Focus on learning, not earning. Take the long-term view and build the skills to become an employer. Learn as much as you can about business. There are unlimited opportunities to learn available to us today. Become a generalist to succeed and focus on being a leader, and then hire the specialists.” — Clive Butkow
The 3 Most Essential Points To Keep In Mind For Your Next Accelerator Pitch
No surprise that a great source for inspiration and lessons on speaking technique are TED talks.
Startup accelerators have been around since about 2005, when Y Combinator was founded in Cambridge, Mass. Since then, they’ve exploded in popularity – expanding from start-up hotbeds like Boston and Silicon Valley to assorted locations around the globe.
Milwaukee, though not traditionally known as a tech hub, is home to Gener8tor, an accelerator that recently launched an artist fellowship program. Sydney is an international city in its own right, but it’s also attracting tech entrepreneurs with its Future Transport Digital Accelerator.
And, while Cairo certainly has a rich history, it’s also preparing for the future of innovation with the Flat6labs accelerator, which celebrated its 10-year anniversary in 2018.
As the number of accelerators has grown, so has the number of applicants. For example, for the Ameren Accelerator, our own 12-week program for energy-tech startups here in St. Louis, we went from about 200 applications in 2017 to in excess of 330 this year. Such explosive growth, however, can be a double-edged sword for those hoping to earn a spot in an accelerator:
More opportunity may abound, but the competition is also stiffer than ever.
Standing out in a sea of applicants
Responding to the increase in applicants, accelerators these days are asking tougher questions: “How close are you to revenue?” “What’s the business model?” “How do we [investors] ultimately make money?” Therefore, if you’re one of the applicants, you need to not only know the answers to all these questions, but to deliver them clearly, succinctly and in a way that sets you apart. That’s a tall order, to be sure, but if you follow these three key steps, you’ll be on your way to nailing your pitch.
1. Cut out the “maybes” – focus on the facts
Most startups fail because they don’t solve a problem. Just look at Juicero, the now-famous startup that raised about $120 million before it shut down last September. That $400 juicer simply wasn’t filling a need, and as a result, couldn’t find a solid customer base. Juicero is not the first or the last company to make this mistake. According to an analysis by CB Insights, 42 percent of start-ups go under due to “no market need.”
Accelerators always want to know that there’s an actual customer need. In fact, this is critical. Don’t recite a laundry list of problems your solution might solve; instead, focus on the most important one – and detail step by step how you came to that conclusion. The best way to prove your problem exists is through market research. Engage directly with potential customers by conducting surveys on pain points, wants and needs. When you come with hard research in hand, accelerators will take you much more seriously.
2. Lay your cards on the table
Once they’re convinced of the problem, accelerators want to understand your solution. That sounds simple enough. Yet according to research from Marketing Experiments, companies often struggle to identify and articulate their value proposition.
A good value proposition is easy to understand, concrete and unique; it doesn’t rely on fluff, superlatives and jargon. So state your solution, and more importantly, state how it’s different from all the other ones already out there. Ideally, people will be able to understand your value proposition in fewer than five seconds.
Take Uber’s value proposition, for example: “The best way to get wherever you’re going.” This simplistic copy accurately captures its offering. And its homepage copy expertly sums up what makes the service more appealing than a traditional taxi: “Tap a button, get a ride; always on, always available; you rate, we listen.”
Additionally, accelerators want to know what you, as the founder, bring to the table. Show up, add to the chemistry and culture and be an active participant. At the Ameren Accelerator, we specifically look for leaders who come in ready to roll up their sleeves and drive growth.
3. Stay on track and weave a story
There’s nothing worse than an applicant who drones on and on. Try to keep your pitch clear and simple. For inspiration, look at TED Talks. Though those speakers pitch ideas rather than businesses, they are coached to become master storytellers. Most talks are fairly brief – they can’t be longer than 18 minutes – but more importantly, they’re succinct. An analysis of the top 20 TED Talks showed that all speakers stated their “big idea” within the first two minutes. Follow this format in your accelerator pitch.
Additionally, rather than spouting off statistics to make your point, try telling a dynamic story, lacing supporting facts throughout. Stanford University professor Jennifer Aaker tested the power of stories through an informal study. She asked her students to give one-minute pitches and then had the others write down what they remembered from each pitch. Sixty-three percent of participants could remember the pitches that were stories, compared to the mere 5 percent who could remember statistics.
Since I started working in this field, I’ve seen enormous growth in the number of accelerators across the country and around the world. However, those who wish to participate in these programs are up against fierce competition, and gaining one of these accelerators’ coveted spots will take more than passion and a potential patent. By following these three tips, you’ll set yourself up for success on your next pitch.
This article was originally posted here on Entrepreneur.com.
3 Components Of The Perfect Elevator Pitch
Can you clearly demonstrate value when faced with a time crunch?
After filming two seasons of Entrepreneur Elevator Pitch, I’ve come to realise that there are three key elements to delivering the perfect pitch.
Our show is unique when it comes to pitching: Potential entrepreneurs have just one minute to pitch their idea, service or product. Those 60 seconds have added pressure because the contestants are being filmed, and they are talking to a camera (instead of people) while riding up to the penthouse suite in an elevator.
In real life, with a different set of distractions, it’s essential to know how to deliver a convincing elevator pitch. Whether you are pitching a product, a service or yourself, here are the three essential components in a pitch:
- Stimulate interest
- Transition that interest
- Share a vision.
Can you stimulate interest?
The first step, stimulating interest, is the most important. In fact, an “elevator pitch” is usually determined by the limited amount of time you have, and circumstances may only give you the opportunity to stimulate interest. If you do a good job of stimulating interest, this can yield a second opportunity, where you transition that interest and share a vision with those you are pitching to.
Keep in mind that people generally buy based on emotion, using logical reasons as their impetus for action. So, make a point to connect with them emotionally in order to stimulate their interest. Don’t be afraid to show your feelings; demonstrate high energy and excitement for your idea, business or service. Your passion and belief need to come through in your pitch!
Use the 100/20 Rule to your advantage: Have the energy that you are providing R100 worth of value and only asking for R20 in return. This attitude will generate enough attention, giving you the opportunity to transition the interest that you’ve garnered.
Make the transition
But people don’t buy exclusively on emotion. There needs to be some logic in the decision to make a purchase. Therefore, you must address some sort of pain, fear or guilt in your pitch, that those without your product or service may experience. And if you can illustrate how you (efficiently) solve a big problem, you’ll have more statistical success in your elevator pitch.
Making a genuine connection can help you transition interest. Learn to make yourself equal, then make yourself different.
Simply having connections to the same people or a point of similarity in your backgrounds will help bridge the gap with those you are pitching. Then you can emotionally connect, following that up with the logic portion of your pitch.
Transition the interest you’ve generated with a clear explanation of what differentiates you. Build credibility by discussing your sales, distribution, revenue, awards and/or successes. All of these different ways to “attract” allow you to segue from emotion to the logical reasons to buy.
Of course, it is of the utmost importance to be honest when you are pitching. The truth always comes out, so ensure that you aren’t over-promising with your pitch. Don’t create a void that you are unable to fill.
What’s your vision?
Finally, in order to excel when sharing a vision, you need to have a value proposition that backs the 100/20 Rule. Make the value that you bring to the table as clear as possible. The value you’re asking for in return also needs to be clear. If you don’t display confidence in what you’re asking for, you won’t instill confidence in those you ask.
Tell others exactly what you want, why you want it and what you’re willing to give in return. You should have already proved your valuation when transitioning interest, then reiterated that valuation as you progressed in the pitch.
Take the people you are pitching through the reasons why you can be of value to them, the impact that you can have on their life or organisation and the capabilities you (or your product/service) possess that makes working together beneficial for all involved.
Practice your pitch, then get rich
After following each of these three steps, close with one simple question to gauge whether you are aligned or not: “Can you see any reason you wouldn’t want to move forward?”
If you utilise your pitch to stimulate interest in your product/service/self, transition that interest, then share a vision with those you are pitching to, the answer is almost always a resounding “no.”
And if you get objections or rejections, so what? Address whatever objections there are and if you still can’t get aligned, that’s OK. Take the perspective that the universe has a set number of rejections you need to get to before you find the right partner.
Related: How To Pitch
Be grateful for an opportunity to prove others wrong, and believe that if you keep working on your pitch, product, service or self, everything will come to you in the right way at the perfect time.
This article was originally posted here on Entrepreneur.com.
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