If you have seen an episode or two of Shark Tank, you may have noticed that its business pitches draw on similar language and structures. You may have also wondered if this was true of all pitches. In truth, there are numerous ways to pitch a business idea, from brief elevator pitches to 10-minute presentations. In my time with Varsity Tutors, I have learned one important thing about selling an idea – the same advice applies to pitches of various lengths and to different audiences. This advice, listed below, can help you present your idea in the best possible light.
1. Start with the “why”
It can be tempting to begin your pitch with a description of your product’s best features, such as jumping into the many technical features of your company’s latest smartphone. However, this approach has less impact than one that starts with the “why.” What problem does your product or service address? Why is your product the best solution to this problem, and why is your company uniquely suited to make the product?
In his book The Art of the Start, Guy Kawasaki (the former chief evangelist for Apple) recommends that you begin with a question or statement that establishes a point of commonality between you and your audience. Here is one example: “Have you ever wanted to order takeout from your favorite restaurant, only to realize that it doesn’t deliver?” Once your audience begins to think, “Yes, I face that problem too,” you can delve into the specifics of your product or service.
2. Practice early and often
The phrase, “Practice makes perfect,” is especially true in this instance. Consider how the popular conference series TED prepares its speakers – each speaker must write an outline of his or her speech, as well as create a slide deck. TED organizers then review these drafts, and speakers use their feedback to iteratively hone their talks to the concise presentations you see online.
TED speakers are often trying to convince their audience of a particular idea. The same can be said of business pitches, which makes frequent practice invaluable. Try to test your pitch on different audiences, and analyze details ranging from your body language to your word choice. Also ask your audiences for feedback – you may not realize that you fidget when you speak, for instance, or that you repeat a given word one too many times. Modern technology also makes it relatively easy for you to critique yourself – simply pull out your smartphone and record a video of your own pitch.
Practicing your pitch can also help you present it without having to refer to notes. Piecing ideas together in the heat of the moment, or struggling to locate facts and figures, is unlikely to inspire confidence in your potential funders. If you project confidence, however, you will be better positioned to sway your audience to your perspective. Ben Horowitz, of Andreesen Horowitz fame, reportedly asks himself, “Does the founder have the courage to build the company?”
Remember that your ultimate goal is to feel comfortable no matter who you pitch to, as well as to eliminate as many kinks as possible before millions of dollars are on the line.
3. Know your data
Your presentation will naturally include figures like the size of your intended market, your price points, the cost of goods sold, etc. Try to avoid unrealistic projections, especially when discussing market size. Before you claim that you can definitely secure a 5% market share in China, you must prove that you can sell a single unit of your product.
Just as important as the numbers you cite in your pitch are the numbers you have ready in your mind. Your audience will probably ask hard questions about the figures you present. Receiving questions from your audience can be a positive sign, as it means that they are interested enough to inquire further. But it also means that you have to think on your feet. As you plan your pitch, consider how you might answer these questions: “How much does it cost you to acquire one customer? How much did you make last year, and what was your margin on that revenue? How much would it cost to scale your company to double its current size?” One possible way to prepare is to ask your test audiences to generate questions. Chances are they will think of several that have eluded you thus far.
While the nerves associated with delivering a pitch may always be present, choosing the right approach, supporting that approach with the right data, and practicing as often as possible can help you win over potential investors. These strategies can make a good pitch great, and a great pitch can redefine the future of your business.
Chuck Cohn is the CEO and founder of Varsity Tutors, a technology platform for private academic tutoring and test prep designed to help students at all levels of education achieve academic excellence.
