Design of Business

Business, Culture & Entrepreneurship

Tag: presentations

3 Questions to Address that Will Make Your Pitch Deck Sizzle

Once again as I begin meeting with young (two high school sophomores) and not so young (their kids are in high school), the issue of making a short, yet compelling pitch to investors arises. Though a wide variety of folks have created excellent posts on what an ideal pitch deck should look like, I reckoned it is worth reminding folks of two things:

  • What is it that venture capitalists or for that matter any institutional investor (including some angel investors) are looking for
  • How best to address their needs but also attain greater clarity for yourself

Following a recent NY Times article and Jason Calacanis’ sarcastic response to it, Jason Fried wrote a nice post, about what it is that drives venture capitalists. In order to increase their probability of delivering double-digit returns year after year, amongst numerous other criteria, there are three critical things investors are looking for. These are:

  • HUGE market If the market is large enough, the probability that high and rapid growth is feasible increases
  • Proven team If the team has demonstrated success, the risk that they will NOT deliver is decreased
  • Unique competitive advantage The product/service/company brings something to the game that sets them way apart, giving customers a reason to buy – sometimes this is demonstrated by customer traction

While there are any number of other things are good to have such as customer traction, rapid sales growth potential, advisors and other investors, having two of the top 3 is critical. If you have a proven team and key competitive advantage and are NOT serving a large market, the investors can help direct you to the large market. Similarly if you are targeting a huge market and have a proven team, you can seek out a unique competitive advantage. If you have only one of the three, it can be an uphill sell to investors.

With the above as context, your pitch had better address upfront four questions

  • What is the problem or need you address? And who is your target customer whose need or problem you are solving?
  • How BIG is this need (or market) – units, numbers or revenue potential
  • How is it being addressed (or not) now and what makes your solution different? In other words why would customers buy from you?

These usually should be your first 3 or 4 foils. And they address two of the top 3 concerns for your investors – market size and unique competitive advantage.

You’d follow this with what you’ve actually accomplished. The trials you have run, ideally the customers you’ve already signed up or paid for your product or service, the feedback you are getting, the growth or traction you are seeing. In other words, you are real business with growth potential. And what are your next steps or milestones for the next 18 months broken down by quarters and what is your ask, “We are looking to raise a $2M (or $20M) round and how you plan to deploy the money you raise.

Depending on the audience you address, you can open with the team — “We’ve spent the last 30 years buying advertising and therefore know the problems advertisers face” to segue into the problem. My own preference is close the presentation with what makes your team the right one for this. By this time you’ve shown—not just through your presentation, your responses to their questions and your overall energy level rather than merely telling why you are the right folks to do this. Never hurts to be explicit though!

It’s worth keeping in mind, that your pitch is a living document. As you learn from each meeting you have, try to incorporate those insights. You don’t have to react to every single input, but when more than two or three people have the same question or input, it’s worth looking at what it is in your pitch that’s either not addressing it or possibly has it wrong. And don’t forget to share you pitch with your own team—you might be surprised both by how much of it is news to them, as well as the discerning feedback you might get from them. Get out there and break a leg!

Crafting that Compelling Story – A 3-Point Cheat Sheet

Regardless of our job role, one skill every one of us needs is storytelling. The truth is we are all born with it, but let’s just say some of us are a little rougher around the edges. Having spent most of my time around tech folks, I suspect we probably beat this skill out of them which is why so many presentations we sit through or documents we read, make us at the very least drowsy — some even maybe put us in a coma. These same people, when you observe them talking to friends or colleagues can be great raconteurs. Some of this comes from just not having performance anxiety that presentations induce in all of us. So without having a few libations how do we spin a good yarn? And particularly in a business context how do ensure that we’ve provided our listeners or readers something of value – that elusive takeaway?

Here’s what I’ve learned.

A. Begin with the end in mind I’ll use the example of a seminar or webinar that you intend to host. Write down the one takeaway that your listener or audience walks away with – it could range from broad statements or highly specific

  • Entrepreneurship is hard – so you’d better be certain, what it is your passion? And why you are doing this?
  • Good leaders recognize strategy is as much about deciding what NOT to do, as it is about what it is you’ll do
  • Writing 1000 words every day is the key to finishing your book – then all you have to do is edit it
  • Measuring ROI on your GIS project can seem hard but it’s not rocket science – here’s how our customers are doing it

B. Use the power of three  While scientists and psychologists thought that the human brain can hold only 5-7 things at a time, newer research suggests that number might actually be (gasp) 4! So why risk it? I find if you break down things into three chunks, they are a lot easier to hold at least in my easily distracted mind. Now break it down into three chunks. Sticking with the entrepreneurship or leadership theme,

  • Context: Set the stage – often best set as a story – that usually illustrates or reinforces a widely held belief. How Steve Jobs had a mythical touch when building products or how Unilever or P&G were masters of strategy leading to their success; Or why government projects are always a boondoggle, like the Big Dig in Boston
  • Counterpoint – core premise: Is that really the case? Here are eight products that Steve Jobs launched with much fanfare and failed miserably at; here are the huge missteps P&G made and here’s what we’ve learned from NASA’s space mission, which has had minuscule failure rates – so here’s the takeaway – entrepreneurship is hard, there will be naysayers, you’ll fail before you succeed, so you’d better know what your passion is about, if you wanna be able to stick with it
  • Break it down: Offer an actionable set of things that they can do – how can they realize this core premise you’ve made? Maybe it’s a checklist – that helps them understand themselves better? It’s reading of case studies – of how other entrepreneurs succeeded (or better yet failed and recovered), followed by a checklist.

This can work, whether the topic’s losing weight, giving a speech, or how to measure the return-on-investment on a project.

C. Challenge your audience This is what we marketers term the Call to action!  This could be as simple as inviting questions that allows them to challenge your assertions or having them take the first step (“What will you do differently tomorrow morning, because of what you learned here”) The key here is that this doesn’t remain your story but one that compels them to action – ideally an action that benefits them. Of course, if it benefits you whether purely psychically (I did some good!) or professionally (lands you a consulting gig or job) that’s icing on the cake. As my father tried to teach me, “Give first before you ask.”

Here’s a great presentation on how one technical guy (Claudio Perrone aka AgileSensei) went from being just a dude to a compelling storyteller to even cynical technical folks).

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Making Presentations – More than meets the eye

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