Why pitch your business

From there, convey the opportunity and detail:. They dislike projections that are unrealistic. They've seen too many companies miss their targets and get in trouble. To clinch your pitch, highlight your exit strategy and the options available. Every investor prioritizes different data and information. Yet, if you start by choosing the right investor and then align their needs with your proposed market opportunity, value proposition, and exit strategy, you have a chance at landing the pitch.

How to Effectively Pitch a Business Idea. He cared little about the production details for the dark, violent cartoon series he imagined; rather, he was utterly absorbed by the unfolding story.

Imagine it in slow motion. There is the shattering blast, the tidal wave of red, the acrid smell of gunpowder. In the business world, artists are similarly nonconformist. Consider Alan, a product designer at a major packaged-foods manufacturer.

He had come to pitch an idea based on the premise that children like to play with their food. The proposal was for a cereal with pieces that interlocked in such a way that children could use them for building things, Legos style.

With his pocket-protected laboratory coat and horn-rimmed glasses, Alan looked very much the absent-minded professor. As he entered the conference room where the suited-and-tied executives at his company had assembled, he hung back, apparently uninterested in the PowerPoint slides or the marketing and revenue projections of the business-development experts. His appearance and reticence spoke volumes about him.

His type was unmistakable. Ignoring protocol, he began constructing an elaborate fort, all the while talking furiously about the qualities of the corn flour that kept the pieces and the structure together. Finally, he challenged the executives to see who could build the tallest tower. Unlike showrunners and neophytes, artists are fairly transparent. Indeed, it is very difficult for someone who is not an artist to pretend to be one, because genuineness is what makes the artist credible.

Neophytes are the opposite of showrunners. Instead of displaying their expertise, they plead ignorance. Neophytes score points for daring to do the impossible, something catchers see as refreshing. Unencumbered by tradition or past successes, neophytes present themselves as eager learners.

They consciously exploit the power differential between pitcher and catcher by asking directly and boldly for help—not in a desperate way, but with the confidence of a brilliant favorite, a talented student seeking sage advice from a beloved mentor. Consider the case of one neophyte pitcher I observed, a young, ebullient screenwriter who had just returned from his first trip to Japan.

He wanted to develop a show about an American kid like himself who travels to Japan to learn to play taiko drums, and he brought his drums and sticks into the pitch session. The fellow looked as though he had walked off the set of Doogie Howser, M. But I think my inexperience here might be a blessing. He showed the catchers a variety of drumming moves, then asked one person in his audience to help him come up with potential camera angles—such as looking out from inside the drum or viewing it from overhead—inquiring how these might play on the screen.

Many entrepreneurs are natural neophytes. Former gymnasts with petite builds and spunky personalities, they cartwheeled into the clothing business with no formal training in fashion or finance. Instead, they relied heavily on their enthusiasm and optimism and a keen curiosity about the fine points of retailing to get a start in the highly competitive world of teen fashion. On their shopping outings at local stores, the McDermott sisters studied merchandising and product placement—all the while asking store owners how they got started, according to the short documentary film Cutting Their Own Cloth.

The McDermott sisters took advantage of their inexperience to learn all they could. Why do you put this dress here and not there? What are your customers like? What do they ask for most? Once they had struck up a relationship with a retailer, the sisters would offer to bring in samples for the store to test. Eventually, the McDermotts parlayed what they had learned into enough knowledge to start their own retail line. By engaging the store owners as teachers, the McDermotts were able to build a network of expert mentors who wanted to see the neophytes win.

If they rely too heavily on stereotypes, idea buyers might overlook creative individuals who can truly deliver the goods. Which of the three types is most likely to succeed? Improving Your Answers Once you have answers to each of the seven questions your challenge is to make the answers as clear as possible.

Basically, make it sound dumber than you think it should. Write up a two sentence explanation of what your startup does then email it to a smart friend. Ask them to explain it back to you in different words.

If they ask any clarifying questions, you need to revise your pitch. We work on it every group office hours for the entire batch. You need to be clear. Fundraising Investors. The Seven Questions 1. Make it easy for me to help you. I want to help you. Related articles also by Michael Seibel. This will engage your audience right out of the gate. If you can relate your story to your audience, in this case, the investor, even better. What industries have they invested in previously? What pain points do their previous entrepreneurial endeavors have?

Do some research about the investor, so you have a good sense of what they care about and can tailor your story to them. Keep it short, concise, and easy for the investor to explain to others. Avoid using buzzwords unless your investors are very familiar with your industry. This will not only impress your audience, but it will help you think more strategically about your roll-out plan.

If you can, try and develop a user persona or your ideal customer when speaking about your target market. Investors tend to care about this slide the most.

How will you make money? Be very specific about your products and pricing and emphasize again how your market is anxiously awaiting your arrival. Early in the presentation, you want to build some credibility. This is your opportunity to blow your own horn. Impress the investors with what you and your team have accomplished to date sales, contracts, key hires, product launches, and so on. Show them a roadmap of next steps, additional milestones and even mention how funding will help achieve them.