One of the most important things that determines the fate of a startup is the pitch. For founders, the simple explanation of what their company is and why it is worth supporting can have considerable impact on their startup’s success, according to Benjamin Chong, Director of the Sydney Founder Institute.
Below are Chong’s five ways to ensure that founders deliver an effective pitch, as described in an article featured in BRW titled Five steps for start-up founders to nail the pitch.
1. Explain Things Simply
It is important to be able to explain the idea behind your business succinctly in a single sentence.
Adeo Ressi of the Founder Institute has a simple formula for creating a one-sentence pitch: ‘My company, (insert name of company) is developing (a defined offering) to help (a defined audience) (solve a problem) with (secret sauce).’ ”
2. Demonstrate Your Traction
Make sure to include how you’re getting traction with customers, demonstrating to potential investors whether your business will thrive.
The reason why traction is important to investors is because it’s an indicator of progress and momentum. Companies rely on revenue and customer response to measure traction.”
3. Give the Investors What They’re Looking For
A successful pitch addresses the primary concerns of the investors.
Investors are looking for the answers to these questions: do you have a top notch team that can deliver the goods? Are you going after a large market – one where you could have lots of customers? What’s the problem you’re solving? Is it a real problem? Could your solution be the answer?”
4. Get Your Audience Engaged
During the pitch, make sure to keep your audience interested in what you have to say.
Keep things short as well as interesting. Show your enthusiasm and keep things light and conversational. Remember the point of pitching is to pique people’s interest so they ask you more questions and set up another meeting!”
5. End Clearly
At the end of your pitch, be straightforward about telling investors what you want.
Make it clear what you’re asking for. It could be expertise, advisors, or capital! Make sure people know why you’re pitching.”
(Business man take baseball ready to pitching from Shutterstock)