Professional Documents
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Here’s a collection of some knowledge (and scars) we’ve accumulated over the years to point out the
noteworthy wipeouts, awkward moments, and empty handshakes of new venture pitching.
Maybe seeing what doesn’t work will help you head in the right direction. Ready?
#1
Well, if your first move is a long winded template style business plan you purchased from the digital
equivalent of K-mart, chances are you’re fishing with the Rocket Fishing Rod. We hate to play dream
crusher, but you aren’t on a TV commercial, and these ponds aren’t stocked with starving fish.
#1
An investor’s belief in your ability and your concept’s strength starts with the very first time they lay eyes
on your business materials. Seriously, how is one to believe that your business will inspire consumers if
your materials look like like they were pulled together on a Commodore 64?
Talking Up Your Awesome New Product
#2
One surefire way to lose your audience is to jump right into talking about your amazing product. Yep,
without the proper context your long winded rant about the crucial need for a rapid charge system for a
14.4 volt lithium ion battery is going to fall on deaf ears.
Chances are the person you are speed pitching isn’t the target consumer. Think it through, if most
investors aren’t currently feeling the exact itch your product scratches, you need a different approach.
#2
Talk up the need for big holes first and then everyone will want to hear all about your six-ton super drill.
#3
We call this the tilt-a-whirl demo… a dizzying array of irrelevant features and functions. Don’t worry,
everything that plugs in will usually crash anyway, so be sure to have an audible up your sleeve.
#3
Let us experience their joy when you save the day and chop the big bad wolf in half with an axe. And
don’t get distracted by all the pretty things to talk about (or look at) along the way, just get to the payoff
in a clear and concise manner.
#4
Make sure your assumptions aren’t wildly off base either, or you’ll be hard-pressed to last long enough in
a pitch to actually get the opportunity to defend them.
#4
Are you able to demonstrate that there is a thirsty crowd willing to pay for what you are offering? Yep,
we said pay. Or are you living a K-Fed fantasy?
#5
Show a Clear Economic Model
Okay, this is important. If it takes a complex chart and excel to explain how you make money, you’ve
missed the mark. We love to see a simple unit economic model for each stage of the business. Oh,
don’t be afraid to show year to year percent changes in costs, revenues, and profit (loss) so we can get
a handle on how you see things changing over time. Are your prices realistic, or based on a hunch?
Psst, you can develop the best, most innovative product or service, but if nobody knows about it nor is
inspired to give it a try, then you’re just swimming around aimlessly in crowded waters.
Bottom line: if your brand isn’t differentiating and motivating, it’s game over.
#6
There Can Only Be One
If you’re going to inspire consumers to buy your product, you have to nail your customer-facing brand.
Is it compelling? Does it stand out? Does it resonate with your desirable target? Be able to confidently
describe how you can connect with your consumer because your understanding of their emotional and
rational needs is unmatched. No one said pimpin’ was easy. It’s a competitive game. So step yours up
and show investors that you know how to bring your brand to life in a relevant and inspiring way.
#7
If you don’t solve a serious problem, then consumer inertia (an object at rest tends to stay at rest) is
going to be a formidable foe. While you should have a solid plan to out maneuver your competitors, to
assume you have none is flat out foolish. That’s when someone will emerge from the shadows to show
you how the game is really played.
#7
From understanding the needs of the consumer you should be able to work backwards and position
your business to dominate the competition. In a competitive arena, devising a clever strategy is only one
half of the equation. Successful start ups out execute others by accomplishing more with less.
#8
Chances are consumers have no idea what you offer, and their first reaction will likely be suspicion,
doubt, and fear. Before you can motivate someone to buy, it’s critical you take the proper steps to
excite and educate your target consumer on the front end.
Grow Your Brand With The Right Fertilizer
#8
If there are consumers that need what you’ve got, then you should be able to get some early adopters
to jump on board and champion your cause. Even a small group of early adopters can go a long, long
way towards building out an army of virtual sales reps who leverage their independent voice and
supreme credibility to champion your solution to the masses.
First rule of marketing Fight Club? Recognize that your consumer is in charge. Authentic brands earn
respect, they don’t purchase it.
You’re Going Into Battle… All Alone
#9
When you look in the mirror you see a one man army ready to take on the entire universe. But there’s
one small problem. You work alone and your team consists of nothing more than your hosting provider
and your cat named Boba Fett. Investors look for businesses with strong leaders. If you’re really a
“leader” and nobody’s behind you, than maybe you’re just out for a walk (in the wrong direction).
#9
Give Your Dream Team Some Exposure
Ordinarily name-dropping is seen as “trying too hard”. However, if you have some impressive individuals
on your roster, don’t be afraid to show them off to investors. While conversations about capital are best
kept in a small circle, meeting the dream team is a great way to showcase your company.
If you don’t have all the roster spots filled, you should do some homework and line up a few more all
stars to come on board as the company scales up. Go out and secure the best of the best at every
position on the team. This includes key customers, strategic partners, and expert advisors.
#10
Try to balance off your desire to get back in the race with the cautious nature of the person being asked
to pay for the race car. They have a right to make sure you know what you are doing, and that the race
is one worth entering.
#10
Enthusiasm is great. Hastiness is not. Take a breath and make sure you’re building out a high level
roadmap to explain not only each phase and milestone, but also the timeline and budget requirements.
#11
Listen up, the fundraising process is built on trust. So it’s probably not wise to begin the courting process
by throwing out wild over-exaggerations and clearly inaccurate data.
#11
Trust is earned by being open and honest, not by tossing out delirious valuations. It’s understandable to
have passion and enthusiasm for your concept. But when selling your vision, keep your hype under
control. If you are asked a question that you don’t know the answer to, it’s okay to say, “I don’t know.”
#12
You need to be ready for anything. Who knows…maybe a little dribbler down the baseline could make
or break your entire career, and cost your team a World Series title. (Sorry Red Sox fans)
#12
Execute the brilliant basics first; a good overview presentation (30 min), a basic demo (live or video), and
very basic financial model. A strong pitch is your best move at accelerating investor confidence. If you’re
fortunate to get this far, failure is not an option (don’t be pitchy, dawg). Time to step up to the mic.
Additional Resources & Inspiring Links
Breaking Through the Broken (A North Whitepaper)
North Venture Partners
Other goodies: dontgosouth.com
Failblog.org (funny stuff) sharpen@dontgosouth.com
Customer Development (Eric Ries/Steve Blank)
Seth’s blog (Seth Godin Blog)
Futuristic Play (Andrew Chen Blog) 1729 Telegraph Ave.
Oakland, CA 94612
(510) 465-0800