Home  Contact Us
  Follow Us On:
 
Search:
Advertising Advertising Free Newsletter Free E-Newsletter
Magazine
  
      2024       2023       2022       2021       2020       2019       2018       2017       2016       2015       2014       2013       2012       2011       2010       2009       2008

MANAGEMENT: Key tips to pitch your company and approach potential buyers
Share to

e0d39746c7812791ef711f4ac06c372c0e4d3ddb originalBy Marwan Emile Faddoul


About a month ago, Mr. Leo a mid-age entrepreneur who is running his own company in one of the incubators that I consult, came to me and said: "Marwan, I have approached many investors but none of them seems interested in my new idea, even though I gave them a very deep and detailed presentation and made sure that I shared everything I have". Mr. Leo's idea was a good innovative idea related to biotechnology and he had a good chance getting pitched by investors.


Since pitching is one of the most important criteria that any entrepreneur should master, I asked Mr. Leo to share with me his presentation. So he did and after 30 minutes talking, I asked him to stop. His presentation was simply not good enough, too much talking non sense, a lot of slides not related to his main objective and most of the slides were not well structured and full of text.

hl02Knowing that he is coming from a technical background and that he doesn't have much experience in dealing with people, I decided to go back to basics and share with him the important elements that should be implemented when pitching. And I started talking...


Mr. Leo, since you have the beta version of your next big thing, the most important step for your business now is for you to pitch your product to potential buyers. This matter is not only for raising money but for reaching agreements that could yield to many outcomes including sales, partnerships and new hires.


BT 201610 170 01 Management find the best buyer1To reach your objective in a shorter, simpler and more effective way, the first thing you need to do is to be prepared as any obstacle that you will encounter during your pitch moment is your fault. You are the one to be blamed simply because there is no recovery for a bad start.


The second thing on your list is to set the stage for everyone to have the same expectation and for you to be ahead of the game. Mr. Leo, for your next pitch know how much time you have, as you need to respect the value of your audience's time by not running over your limit. Moreover, know the three or four most important pieces of information that you can provide. Also, make sure to quickly go through your presentation and handle questions at the end as by doing so you will make the audience commit to not interrupting you so that your pitch can flow better.

hl03Thirdly, explain yourself and what your startup does in 6 minutes, not more, where you go straight to the point on each element of your introduction. After your introduction, observe your 10/20/30 rules where you present 10 slides in 20 minutes with a minimum of thirty-point text. Mr. Leo stopped me and said: "I would like to know, the matter behind the 20 minutes?" He kept silent for few seconds then said "I thought they give a minimum of one hour pitch". I told Mr. Leo that there are three main reasons for that. Firstly depending on your laptop, you need time to make it work with the projector. Secondly, if your previous meeting was running long, which is what usually happens, you may not have the full hour especially if your meeting might have to end on time. Thirdly, you want ample time for discussion. So 20 minutes is all that you will get and you must eventually master your presentation within that period of time.


I then explained to Mr. Leo about the thirty-point text. I told him that the large size of the font and the paucity of text are because slides are to lead, not read. I continued saying: "people can read faster than you talk and if you put too much detail on the slide, the audience will read ahead of you and not listen to what you are saying".


BT 201610 170 04 Management what is happening boardroomI later on moved to the 10 slide presentation explaining to Mr. Leo that the purpose of a pitch is to stimulate interest and to get a second meeting, therefore a 10-slide presentation will help keep his idea compelling.


I continued, Mr. Leo, when developing your slides present the problem and the opportunity and avoid citations of consulting studies about the future size of your market. Moreover, make sure to paint a picture of the world that you are offering and explain how you alleviate pain. Don't forget to cite the technology behind your product as well as the way you make money.


When you are preparing your slides explain how you are going to reach your customers and summarize your marketing leverage points. Also, provide a complete view of your competitive landscape, where people will know why you are good, NOT why your competition is bad. This will add to the current status of your product, its future prospect and the way you will use the money you are trying to raise.


Finally, you need to mention your management team, your financial projections and key metrics. These financial projections and key metrics help venture capitalists understand the scale of your business, examine the assumptions of your business model and determine how much capital you will require.

BT 201610 170 03 Management contract agreement sign ss 1920In conclusion, make sure to apply these 9 tips that will help you bring your pitch closer to perfection:

- One, don't read your slide when you are presenting, the text on your slide should simply be your anchor point.
- Two, you have a wonderful logo, make sure to add it to your master page and let it appear on every slide as part of your brand awareness campaign.
- Three, do not only use words and blocks of texts. Use diagrams to explain how your business works and graphs to explain trends and numerical results.
- Fourth, use only one level of bullets, as each slide should communicate one point, with bullets to support that point.
- Five, use a dark background, as it helps communicate seriousness and substance. On the other side a white or light background looks cheap and amateurish.
- Six, make printable slides to insure that your slides work when printed too, especially because some investors require a hard copy of your presentation.
- Seven, when pitching make sure to let one person do the presentation, as investors care to hear the person in charge talking not an entire team.
- Eight, when making a statement you or any person who is presenting should ask himself the "So what" question, because the significance of what you are or he is saying is not always self-evident.
- ... and don't forget to discuss a real-world use or scenario of a feature of your product.


When I finished sharing my point of view on the matter, Mr. Leo looked at me and said: "I wish we had that conversation weeks earlier". I told him that developing a proper presentation and knowing how to present it is important. However, none of it matters if we don't practice an average of 25 times to make our pitch perfect. Mr. Leo, you were able to learn on your own and to improve your presentation a bit every time. So now, take advantage of the tips that I gave you and keep practicing. He thanked me and left.


While leaving I said: "One more thing, make sure to disclose at an early stage of your fund-raising process, any crude in your company that you haven't or can't clean up immediately. This will help you retain a strong credibility with investors." He smiled and each one of us took his separate way.


---END---

    Subscription    |     Advertising    |     Contact Us    |
Address: Magnetic Plaza, Building A4, 6th Floor, Binshui Xi Dao.
Nankai District. 300381 TIANJIN. PR CHINA
Tel: +86 22 23917700
E-mail: webmaster@businesstianjin.com
Copyright 2024 BusinessTianjin.com. All rights reserved.