For small businesses starting out, the perfect pitch can be that Sliding Doors moment. It can bring immediate rewards for your business, the success of securing investment, or a new client. It can open up great opportunities and previously out-of-reach networks. A bad pitch can slam those doors shut, keeping your business locked in a struggle for profit and recognition.
The perfect pitch is as much about your business as it is about you. The greatest business idea in the world will fall if it lacks coherent delivery. Vice versa, the gift of the gab does not ensure success if gaping holes exist within your strategy.
So what are the top five tips that any new business should keep in mind?
Have confidence in your presentation
One person who knows what it’s like to go into the dragons’ den – quite literally – and come out alive is Rob Tominey. He and his business partner Aden Levin appeared on the BBC’s Dragons’ Den earlier this year, and following an assured pitch were offered £100,000 investment in exchange for a 15% stake in their tour operating business, Mainstage Travel.
For Tominey, their confident mindset was the key. “So many potential investors will try and unnerve you to see how you act under pressure, or to make you feel like you need them more, so they can get a better offer.” Tominey says the trick is to answer with assurance when you’re grilled with questions. “It helps if you have planned potential answers in advance,” he explains. “Go into the pitch, take a breath and speak with confidence. It can be a bit of a downward spiral if you get nervous.”
Know your product
While it might sound obvious, detailed knowledge of your business or product is an absolute must. As Tominey advises, a key part of the pitch is being able to “answer any question that is fired at you.”
“We live and breathe our company, so we can talk with self-belief and detailed knowledge about what we do,” he says, adding that it doesn’t matter whether your pitch is either memorised or performed off cue cards. What does matter is “knowing your product, inside out.” Tominey adds: “Remember, you probably know much more about your business than the people you are pitching to, so make it a priority to show that fact”.
Demonstrate growth potential
However, it takes more than just a brave face to deliver a perfect pitch. Noam Kostucki is a personal branding coach, advising startups from all around the world on their pitches. He believes that the preparation for a pitch must focus on the growth potential of the business itself. He explains: “It’s about creating a viable business. The moment you have that, the pitching is the easy part.”
This has become especially crucial in the current climate of entrepreneurship, according to Kostucki. “Ten years ago, startups were a crazy idea, yet now, everybody has a startup! Those pitching need something that makes them stand out.”
This is particularly true for tech startups - Kostucki says that investors want proof that you’ll be popular. He says: “Sure, they want to see some financial forecast, that’s a given. But they also want to know: what’s the traction of the business? How many people are currently following you on social media? If numbers are rising, this signifies a good product.”
Drawing upon the success of Facebook, the lesson for small businesses is to demonstrate sure signs of growth. “The idea of Facebook wasn’t revolutionary,” Kostucki adds. “MySpace was already huge, but Facebook’s key to its success was how they marketed themselves, and how they grew it into something that people wanted to invest in.”
Keep it simple
When preparing for a big pitch, the temptation can be to complicate things. For Innocent Drinks however, a company that grew from selling smoothies at a music festival to posting annual revenues of over £200m, it’s all about passing what they call the “granny test.”
“Can you explain your business idea and how it will beat the competition in a simple sentence that your granny would understand?” asks Douglas Lamont, Innocent’s chief executive. “The world of commerce rewards simplicity, clarity and focus. The theory is that if you need three paragraphs to explain your idea and strategy, it’s probably too complicated or unclear to take root in the business world.”
The company has stood by this straightforward principle. “We use the granny test on any new product we’re about to launch,” adds Lamont. “We’ve learned that our products that have failed have done so because they were the ones where we couldn’t clearly explain their purpose and benefit over what else was out there.”
Don’t forget: the person behind the business is as important as the business itself
Often, a good pitch comes down to what appeals to the investors, and this is far more than just a good business plan. Anthony Clarke, chief executive of London Business Angels, says that “at the early stage, angel investors are investing in people.” The potential investor needs to see someone they can trust. According to Clarke, “those that succeed are able to demonstrate commitment, sincerity, competence and reliability.”
Much of the aim of pitching to an investor is establishing a relationship with them. Therefore, a pitch needs to focus on the human side of the business, not just the product. Clarke notes “the most successful investment pitches tend to focus on the overall investment proposition, including the management team as well as the target market and financial forecasts.”
With angel investors usually expecting at least 10 times return on their investment, they need to make a judgement on whether the person pitching can deliver their promise. That means remembering a pitch is as much about you, your skills and your abilities as it is about the proposal itself.
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