Pitching Skills for Investments is an asset for the entrepreneur.
An entrepreneur, either at an early stage or at growth stage has to approach investors for funding. Pitching skills may be present in varying degrees in each one. This can be developed by practicing. It is important as this decides whether investors will open or shut their gates for further discussions..
Image source:Serge Bertasius Photography
A pitch is basically delivering a business plan verbally. A pitch typically takes the form of an entrepreneur or group of entrepreneurs presenting or describing their ideas to prospective investors.
Even harder is convincing the others that your idea is good. The act of convincing others to do something with your idea is called “Pitch” – applied mostly in terms of a new business, site, startup, which means just the act of trying to get the attention of investors to your Next-Google-idea.
Investors want to see a confident entrepreneur, but don't confuse that with an arrogant entrepreneur. They want to see a thoughtful, pragmatic development and a market launch plan. Yoram Solomon Founder Large Scale Creativity
which has to be replied in a short span of time. A PPT presentation covering the points can come in handy as a reference during the pitch.
What Problems of the customer the business solves?
· Who is the target Customer?
· Where is the fishing hole?
· What is unique about the idea?
· Is there a patent?
· What is the marketing game plan?
· Key Resources
· What’s the market opportunity?
· Size of the market opportunity
· Business strategy to capture the opportunity
1.Watching Shark Tank, it can be observed that everyone says theirs is a unique idea. The aver that no one has come out with the solution they are offering. The balloon bursts when one of the shark says they are already supporting a similar idea.
2.The idea takes an unduly long time to get traction.
3.The valuation is not matching the turnover and profitability.
4.Painting a rosy picture on the market size.
5.They expect to capture only a small portion of the huge market.
6.Complete lack of strategy in terms marketing and sales channels
7. They assume that their product or service will command a premium in the market and hence higher margins
8. Their pricing strategy gives them low margins per piece hoping they will get higher volumes.
is a honest wrong belief that one of their competitors will close or yield their
market share as this new entrepreneur believes
he is offering a unique solution.
An elevator pitch, elevator speech or elevator statement is a short summary used to quickly and simply define a process, product, service, organization, or event and its value proposition.
The name 'elevator pitch' reflects the idea that it should be possible to deliver the summary in the time span of an elevator ride, or approximately thirty seconds to two minutes.
The entrepreneur should be able to use elevator pitch in a first introductory meeting and this should lead to further connect or presentations for investments.
The following interesting story reflects the importance of elevator pitch.
Selling to the world’s best investor or how to pitch your company to the best investor in 30 seconds or less. -Barret C. Helzberg,Jr. former CEO of Helzberg Diamonds
Helzberg wanted to sell his family business to a worthy buyer who will nurture and grow the business to greater heights.
One day in 1994, when he was close to Plaza Hotel New York, he heard a woman calling the name of Warren Buffett to whom he wanted to sell his company. The moment the woman completed her conversation and Warren Buffett was about to cross the road he met him and introduced himself. He also expressed a desire to sell his Diamond Business to Warren Buffett’s company Hathaway Berkshire. Warren Buffet asked him to send a proposal.
Hertzberg got a call from Hathaway and finally sold his company at a price far in excess of his expectation.
Warren Buffett mentioned that he can spot a jewel and the business he bought is another jewel in his bag of companies.
Pitching skills are required for any one aspiring to be an entrepreneur. This helps to communicate effectively in a short span of time and keeps the investor hooked. Many a times one may fail in this first step itself.
The following advice is appropriate to follow for succeeding in pitching.
Don't Pitch VCs Until You've Bootstrapped for a Decade, Says One Unicorn
Early funding can lead to early death, says Qualtrics founder Ryan Smith.