Funding From Synergistic Company
Yeigo: Chasing Big Investors, Refining their pitch and nurturing relationships paved the way for funding for this telecoms start-up.
Rapelang Rabana, founder and managing director of Yeigo Communications, knows how tough it is to get funding. It took perseverance and business suss to get her company’s great idea in front of an investor who would recognise its potential. But in the end, she and her team tasted success – in the form of a multi-million rand investment.
“We sought investment for most of 2006. We spoke to some of the government agencies, the banks, the IDC, and considered some of the VC / private equity funds but didn’t actually approach them,” she recalls. Like countless other start-ups, she battled to get anyone to invest. “There is always interest and support from most people you speak to, but seldom a firm commitment,” says Rabana.
She believes there were two major reasons why Yeigo couldn’t secure funding through the channels it initially targeted. “Firstly there is insufficient availability of funding for start-up companies: government has tried to set up a number of agencies to support small businesses but the caps on these funds are extremely low, usually peaking at around R250 000. So for a company needing millions, they are not a feasible option,” she says. To get access to larger capital, Rapelang points out that start-ups inevitably have to approach banks and other financial institutions. But this often ends in a dead-end street: “As a new graduate with no assets, you cannot meet the banks requirements,” she points out.
Of venture capital or private equity funders she remains sceptical: “There are some fledging VC or private equity funds that might consider a start-up, but you will find that because capital markets have not yet matured, their approach is not conducive to a prosperous relationship, and they often take hugely aggressive equity stakes that leave very little incentive for the people working in the company.”
The second reason she puts forward is the insufficient availability of skills to assess risk in software research and development, or in companies whose value is largely derived from intellectual property. “Even as more capital becomes more readily available, without the analysts who have skills to assess risk, value and potential in technology-based companies, investors cannot reach a decision. The banks couldn’t assess our risk – they told us as much,” she says.
The company did eventually obtain a development grant from the IDC through the SPII (Support Programme for Industrial Innovation) but, as Rabana points out, “It was a retrospective grant that requires you to spend the money first before the IDC pays out, so it doesn’t help at all with cash flow for a start-up. Furthermore a bank still won’t fund you to the tune of the grant even though the IDC signs a contract committing to payout.”
However, she learned valuable lessons from the long process of rejection and lack of success. The biggest of these she describes as, “Wasting time with groups who did not have the capacity to fund us because of either of the two reasons I mentioned, and writing business plans that were too long.”
She believes her eventual success in finding an investor in Ivan Ferrar was as the result of three things. “Firstly, we knew how to commercialise the technology. We had business models before we had a product, while most technology companies work the other way round. Then we were addressing a serious need and were overthrowing old business models. Disruptive technologies inherently have significant growth potential,” she says. Her third reason is an interesting one and relates to her team. “I think it’s definitely more compelling when a group of people have been working on something for over a year without pay, than if its just one person. Being alone, in my view, can be a serious vote of no confidence, but as an initial group of three, we had already attracted two top graduates for no pay and grown to a team of five. The intellectual capital in the company was already quite high and it was clear we had momentum.”
The contact with Ferrar came not out of any explicit action on the Yeigo team’s part, as Rapelang explains: “It was more about finding mentors and advisors and building a network in the belief that there must be other options, other people who would understand and appreciate what we are trying to do. And eventually you end up meeting the right people.”
Her advice to entrepreneurs follows a similar line. “It’s all about relationships, especially at the start of your first venture. Spend more time building relationships, talking to people, having lunches that don’t really seem necessary and going to events that are well out of your comfort zone. Just get out there!”
What To Learn From Yeigo
- Persevere and find an investor who recognises your potential
- Don’t waste time with groups that do not have the capacity to fund
- Work with a strong team
- Work without pay shows strong commitment
- Build relationships, especially at the start of your first venture.
Spend time talking to people, having lunches that don’t really seem necessary and going to events that are well out of your comfort zone
Self Funding & Equity Sacrifice
High risk debt finance reaps high reward for IT guru Vinny Lingham who risked everything to fund his business.
Getting investors to see the potential in your idea can be a frustrating process but one that almost every business owner looking for investment has to contend with. It’s one that Vinny Lingham, founder of Internet search engine marketing and technology company incuBeta, remembers ruefully. When he approached the banks to fund his business idea, they didn’t understand what he was talking about. “They wanted to see ‘stock’,” he laughs, looking back, “It was clear that they just didn’t understand what Internet search marketing was and how it could make money.” It’s a common complaint of start-ups operating in the IT sector; it’s precisely because their ideas and products are so far ahead of the game (and therefore represent a great investment opportunity) that traditional funding institutions fail to grasp the concept and therefore reject their applications.
“The paperwork was onerous as well and I could see that the process was going to be very lengthy and time-consuming. But I didn’t have time – technology develops so quickly and the market was getting ahead of itself so I had to get off the ground,” he adds. Impatient to get going, Lingham did something most people wouldn’t dream of – he sold his house to fund the business.
He knew the risk he was taking was substantial but he also believed so strongly in incuBeta’s ability to be successful if it could only be given the chance. “I sold the house because I knew I had two options in life. I could either marry my fiancé and pursue a family life and normal career, in which case I would never start my own business because the risk would be too great and I’d have children depending on me. Or I could take a huge risk while I was young, with no children. I just knew that if ever there was a time to take the risk it was now,” he relates.
Did the thought of failure ever cross his mind? “Certainly it did, but I thought if I lost the house and the business failed then I’d just get a job and rent accommodation for the rest of my life. To me the thought of not owning my own business was worse than the thought of losing my house and never being able to buy another one,” he replies philosophically.
As it turned out, failure was something Lingham didn’t have to face. He combined the R125 000 from the sale of his house with another R75 000 from his credit cards and poured it into incuBeta, which made profits almost immediately.
“Although the business made profits from day one it also had cash flow problems from day one, because it grew so fast and we would have to wait to be paid,” adds Lingham. In order to overcome these problems, Lingham started giving away equity in return for funding early on, initially bringing in two friends as founding partners, one of whom the business owed R700 000 at one point. Through one of these partners, Eric Edelstein, he made contact eight months later with an angel investor, giving away approximately 13% in equity in exchange for a further R700 000.
“I always had the philosophy that you grow a business a lot quicker if you give away equity for investment,” says Lingham but adds a word of advice in this regard, “Be careful of giving away so much that you don’t feel as if you own the business at the end of the day. The question you need to ask yourself is what percentage you do need to retain in order to feel ownership of the company. The rest is dispensable to get you where you want to go.” Looking back, he says, “I don’t think I made bad decisions but in some cases I could have held on for longer. The longer you hold out for investment the less equity you need to give away.”
What To Learn From Incubeta
- Don’t allow frustration to get the better of you. Persevere
- The paperwork is onerous but see it as a part of the process
- Be prepared to take a personal risk such as selling your house
- Use all necessary means of funding such as credit cards
- Be prepared to give away equity (only if critically necessary) and hold out longer to improve cash flow and hence to give away less equity
Funding Through Cash Flow
Creative media company RE:Public finds success and funds growth through cash flow.
How many times have you heard people say that their business ‘funded itself’, that the cash flow generated in the business provided the capital needed for it to continue to exist? How do they do it, you may wonder. And before the business started generating cash flow, where did the ‘seed’ money come from? After all, everyone has to start somewhere and you can’t create something out of nothing, right?
Wrong. It is possible to start a successful and sustainable business without external funding. It’s not easy, but it is certainly possible. People like Sacha Matulovich and Pepsi Pokane, co-founders of creative media company, Re:Public, are testament to the fact. The company’s turnover this year is expected to be in the region of R25 million. It’s been in operation for only four years. And it has never had an external funder.
From day one, Re:Public has funded its own growth with cash flow, thanks to some hard work and creative risk-taking on the part of Matulovich. When he started Re:Public in 2003 doing design and branding work, he targeted start-ups. “My angle was to create brands from scratch for these companies who needed marketing. Being small struggling businesses themselves, many of my clients couldn’t pay cash for the work I was delivering. But instead of seeing this as an obstacle, I approached it as an opportunity and took a profit share in the businesses I was branding. So I worked on risk instead of being paid,” he relates.
It was a risk that paid off. One of the companies whose brand he had created in return for profit share started making money and it was this income that funded Re:Public’s early days of growth.
When Pokane joined the company Re:Public received its first contract with the SABC and the pair thought that funding would come rolling in. But, like many entrepreneurs, they were to be disappointed. Matulovich remembers: “We thought, ‘Oh great! We have an actual contract – time to go to the bank!’ But the bank just looked at the contract and said ‘That’s fascinating. What securities do you have?’ At that stage, I was 24, didn’t own property and had nothing except for the cash flow in the business.”
So Re:Public went back to funding itself through cash flow. Not a capital-intensive business, its biggest cost was salaries. Matulovich and Pokane often didn’t take salaries or waited a couple of weeks to draw them. “You are forced to make every cent you receive work for the business in terms of capacity, equipment, training or new business development.”
Re:Public managed to avoid cash flow catastrophe by accepting that some aspects of the business would have to wait for funding. It forces you to run a tight ship, expenses-wise, and that can be frustrating but it’s essential,” he concludes.
What To Learn From Re:Public
- Be creative to find ways to fund your business through cash flow
- Sacrifice salaries to save on cash flow
- Only buy what’s critical to running the business – forego fancy furniture and other luxuries
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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