What makes a pitch perfect?
This is a question many entrepreneurs ask as they prepare to speak to investors. It is also a question we are asked quite frequently at SLA. We’ve heard a number of pitches through our own pitch competitions, both the SLA 2014 and SLA 2015 Entrepreneur Showcase.
We know what moves us. To make sure we are not alone, we’ve also looked at the research and numbers and found that there are 4 items all investors look for in a pitch.
To make the point clear, first watch this video of Aaron Krause of Scrub Daddy. He is no Motherland Mogul but his pitch makes a few items easily identifiable.
The 4 items and takeaways are clear:
Enthusiasm and passion WINS
U.S. based Shark Tank investor, Barbara Cocoron, says she knows within the first 40 seconds of a founder speaking whether she will invest or not. Does your demeanor show that you are confident in your business or are you anxious and fidgety?
When you speak, are you excited about your business? Do you have a genuine passion for your vision?
Your business solves a problem and your solution is of value
Meaning, what is your value proposition? What makes your business stand out from the rest in the market.
What problem is it solving in the world? How are you solving the differently from the rest of the companies in your industry? State this concisely, clearly, and early.
Your business works in the real world
Also known as proof of concept, investors want to know that there is an actual need for your product or service. Have you taken your business to market? Have you made sales? What’s your revenue for this year and/or last?
The only way to know that a business is valuable is by taking it to market and letting the people decide its value with their money.
You are the one to run the business
We all know; coming up with a business idea is easy, execution is key. Why are you the one to make the idea fly? Are you clear in your communication and can you. Have you led a business in the past? Have you taken the time to develop some of the prerequisite skills for running a business; that is, negotiation, project management.
As we see from Aaron Krause’s pitch, not every investor will be immediately wowed by your idea. All you need is one!
One investor who believes in your business, vision, and you. But, in order to bring that one right investor on board, all four items —enthusiasm, value proposition, proof of concept, and business acumen— must be present.