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Attracting Investors

The Secret to Raising Money

Raising capital for your start-up or established business is often a long and arduous journey. Some have succeeded. Many have failed. Having had first-hand experience at this, I know what it takes – planning, discipline and tons of resilience.

Andrew Honey

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The setting for this article begins with one of the most frequently asked questions in business, “How do I raise money?” I am sure many entrepreneurs have not started what was possibly a great business simply because they could not raise money and believed they had to when in reality there were a number of alternatives as outlined in this article.

Furthermore, many businesses that failed could have been operating today, delivering good, sustainable profits if they’d followed the advice and ideas as outlined below. The critical success factors we look at for raising money are applicable to all types of funding requirements: start-up, expansion, franchising, BEE & cash flow. There is no simple answer to raising money. However, by following the four-step formula as outlined below, as well as heeding the advice in the tables and the real-life case studies, the likelihood of success will be greatly increased.

1. Build a business plan based on the following eight components.

Clearly outline answers to these points

1. Does this product or service really (not maybe!) fill a market need?
Just because you’re fanatical about something does not mean there are enough customers willing to buy the idea at a price that allows you to make a profit. Answer these questions:

  • Why do customers need this product?
  • Is it a necessity (soap) or a luxury (chocolate)?

The answers to these questions lead to the second, critical question.

2. Is the idea unique?
This question has a number of straightforward yes/no answers. 1) Does this product/service exist in the market or if you’re already operating illustrate why it’s unique? 2) If it does exist can you deliver it to customers in a totally different way? A great example is DVD rentals positioned in convenience stores and at garage outlets. Many entrepreneurs fail because they believe they’ll do what’s already been done in a better way or by offering a better service. If that’s the case, let’s go to need number three.

3. How will your product service be different?
This question is critical because if it’s not 100% unique then the likelihood of success is much, much lower. Draw up a table of all the competitors in your market space and in tabulated format create the following headers: competitors, colour of logo, pay-off line, cost of product/s, marketing, sales methodology, key strengths, differentiators and invoicing. Take a long hard look at how your product/service is different.

4a. Budget: revenue
Work out sales, then re-work at 75% and again at 50%. The 75% and 50% rule is absolutely imperative. You have to know the cash flow factor of selling 50% of your projections because this will be the difference between success and failure. Here’s an example. If you need R100 000 a month to break even and you sell R50 000, in six months you’ll be R300 000 short of cash. NOTE: Include answers to ‘What if’ questions such as a competitor entering the market or a sudden, bad recession.

4b. Budget: costs
Work out your costs, re-work them and finally work them again! Divide the costs model into two stages: the development stage (how many months it will take to get to market – this includes all preparatory work such as registering the business, renting a post box/premises, designing the product (in our case it was layouts of how Entrepreneur magazine would look and its sections), the sales plan, recruitment of staff, furniture etc. (this alone could take 2-3 months depending on staff size and notice periods required) and then work out 12 months of operation. Break the expenses into cost of production (COS) and overhead costs (OH). Get quotes for everything you will need to buy and have them fixed for 6 months. Remember to build in an increase of at least 8% for the second six months.

4c. Budget: cash flow
Work out your cash flow. There are many cash flow models available and people to assist you. But here’s the golden rule. Your cash flow must indicate costs exactly as you’ll need to pay them (every 30 days – assuming you have negotiated 30-day terms) but with the total revenue reflecting collection in 33% batches at 30, 60 and 90 days. (NOTE: Any money collected ahead of this 33% spread schedule will result in an easing of cash flow.)

5. Operational plan
Set out a document of who has to do what by when for all key aspects of the business. Be very specific and pay attention to detail.

6. Sales plan
The sales plan must indicate who the driver is and their key duties. It must indicate the number of sales executives, their monthly targets (that must tie back to the budget), how they will be rewarded and, most importantly, how they will sell – from prospecting to closing the deal and to after sales service.

7. Marketing plan
The marketing plan must indicate the objectives and goals, how you’ll market (advertising, promotions, etc) the mediums (own website, radio, etc) period (which months) and the budgeted cost.

8. The people
Some say entrepreneurs are generalists. It does not matter what they say. What is important is that you have the following facets of the business 100% covered as a shortfall in any one will spell disaster; product/service delivery, sales, marketing and accounting.

2. Personal Resume.

Unpack answers to the points below

Investors are backing a person, the entrepreneur and more broadly, the full management team.

Your strengths

What is it that you’re really good at? Bring this out and use examples wherever possible to substantiate your claim. (Be sure that your document clearly illustrates how you’ve surrounded yourself with the right people as indicated in point 8 on the previous page).

Passion

Your passion and enthusiasm is vitally important. There are many average, tired people in the world, but equally important is the fact that the top 10% are very, very good. Make it clear how you’re prepared to die for the project and how you’ll not let it fail under any circumstance. In fact, it should be abundantly clear that failure is not an option.

Resilience

Right from the outset, let’s be crystal clear on this point. If you’re not a resilient person and you have not had to illustrate resilience in your life to date the possibility that you’ll fail is high. Take a piece of paper and write down five great challenges you’ve faced (really tough challenges) and what you did to overcome them.

Be ruthlessly honest with yourself. Include these resilience examples in your resume.

3. Skin in the game.

Highlight your sacrifices and contribution

Illustrate you’re fully prepared to sacrifice. Demonstrate a willingness to put your money where your mouth is.

Have a spreadsheet that illustrates all that you’re committing or have committed to the business. Sell your house, max your credit cards and show how you’ve put every cent of yours on the line and that should the venture fail you’ll pay the price for years to come. It’s called skin in the game.

According to Jim Casparie, Entrepreneur’s “Raising Money” coach and the founder and CEO of The Venture Alliance, a national firm based in Irvine, California, he has been working with entrepreneurs for close to 25 years, and throughout that time one thing hasn’t changed: Only 5% of all entrepreneurs get funded. The question he asks is “Can it be that only 5% of the ideas generated are good enough to succeed? Why is it that this ‘magic’ number never seems to change?

One of his answers to the question is that he believes entrepreneurs don’t understand the difference between having a need for capital and being ready to ask for it. He believes entrepreneurs are motivated to seek capital based on need, not readiness. What does he mean by that? “When an entrepreneur is driven by a strong sense of need, the message they send to an investor is one or more of the following: I need you to bail me out of my bad management of the limited capital I had. I’m unwilling to invest any more of my money, so I need yours. I haven’t been able to raise money from anyone else, so I need you to save me. On the other hand, when an entrepreneur has ‘done their homework’ and truly understands what it takes to run a business, the message they send is: ‘I’m ready for a partner to help me take this to the next level. I have a handle on my product, my market and my customers and I’m ready to accept an investment that’ll help me grow. I’ve researched the various sources of capital available to me and I’m ready to work with you because you’re the best match.’”

4. Building the relationship.

Focus on building a relationship as early as possible with the key executive/s

Right from the outset build a relationship with the key players on the funding side. Trust and synergistic thinking are critical to potential funding. Impress upon the potential investor your passion along with a clear plan for how you are going to not only succeed but also grow a sustainable and profitable business. Developing a strong sense of trust early in the relationship will prove valuable later on. In many ways a business partnership is akin to a marriage; if you sense reticence, conflicting values or if you are unable to find common ground, don’t waste time – move onto your next contact.

Jim Casparie’s observations highlight why the 8-point business plan, personal notes to the resume, skin in the game and building the relationship points I’ve suggested are so important. They demonstrate to a potential funding partner all the key ingredients that make up a successful funding recipe and partnership.

Andrew Honey is the Group CEO of Entrepreneur Media SA, ThinkSales Corporation and SmartCompany Networks. He is passionate about sales and sales leadership. In 1999 he led Freewind Publications to display outstanding sales service and sales acumen at the annual Marketing Mix Magazine MOMA (Media Owners Marketing Awards) where the company defeated sales teams from large publishing houses such as Media24, Caxton, Associated, Ramsay Son & Parker and Oracle Airtime Sales (M-Net).

Attracting Investors

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.

Nadine Todd

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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

funding-sources

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.

Related: A Comprehensive List Of Angel Investors That Fund South African Start-Ups

“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

Clive

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.”

Related: Attention Black Entrepreneurs: Start-Up Funding From Government Grants & Funds

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

keet-van-zyl

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.

Related: Government Funding And Grants For Small Businesses

“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.”


TOP TIP

“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.”

Related: The Definitive List Of South African Business Incubators For Start-Ups

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.”


TOP TIP

“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

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Attracting Investors

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.

Dan Lauer

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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.

Related: Why You Need A Million-Dollar Pitch Before Your Start a Business

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

cards-of-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.

Related: 3 Components Of The Perfect Elevator Pitch

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.

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Attracting Investors

3 Components Of The Perfect Elevator Pitch

Can you clearly demonstrate value when faced with a time crunch?

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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.

Related: 6 Tips for Perfecting Your Elevator Pitch

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:

  1. Stimulate interest
  2. Transition that interest
  3. 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.

Related: (Video) Crafting Your 30 Second Elevator 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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