The Art of the Pitch
A business pitch is a presentation with direction and purpose delivered to a person or a group of people. A business pitch must be well crafted for useful content that is specific to the audience. For all entrepreneurs, a business pitch is crucial for getting a business running, however, for many people it is one of the most terrifying task because it involves speaking in front of an audience. Dale Carnegie, public speaking guru offered simple advice: “Tell the audience what you’re going to say, say it; then tell them what you’ve said”.
There are three main informational layers of a good pitch; Value proposition, market and financial plan, and finally the executive team and advisors (see figure).
Let’s use a car analogy. The car “engine” of a pitch is the value proposition (key benefit) backed by research. All pitches should begin with this because the audience will want to know what is the problem and what value is added. A business pitch must explain what is the unmet need followed by how is it going to be fixed. It is also crucial to make a human connection at this point. If there is an experience or story to share, this is the time to explain. A successful human connection may stir up emotions to allow a favorable connection to the problem.
Next, is the market research and financial plan or the “wheels” of the the pitch. A business needs capital to get from point A to point B. This will also be a good time to share any past successes of the company such as key hires, product milestones and any new partnerships. Details of a financial plan will vary based on the audience. Angels and venture capital investors will want to know how much money is needed, what will is be used for, and how much return on investment will be expected. Friends or family will most likely want to be assured of some payback in the future.
Once it is clear what the problem is and what resources are needed, the “driver” is presented. This is your all-star team and advisors. Set realistic goals and share how the team will accomplish it. Be specific on how the skill sets of the team will accomplish product milestones.
There should be multiple versions of a business pitch designed specifically for time limits and audience. A business pitch should be practiced multiple times to be as concise and specific as possible. The art of the pitch is to speak about the value proposition supported by research, a market and financial plan, and to establish a clear connection on how your team and advisors will mitigate the business risk.