The Powerful Pitch:Preparing Entrepreneurs to Pitch to Investors

By

Ray Smilor, PhDSchumacher Fellow in Innovation and Technology

Professor of Professional PracticeNeeley School of BusinessTexas Christian University

Agenda

I. SUCCESs ModelII. Elevator PitchIII. Content of the PitchIV. Delivery of the Pitch

I. SUCCESs Model

Why do some ideas stick in our minds?

I. SUCCESs Model

S – simple

* Core of idea

I. SUCCESs Model

S – simpleU – unexpected

* Get attention

I. SUCCESs Model

S – simpleU – unexpectedC – concreteness

* Specific images

I. SUCCESs Model

S – simpleU – unexpectedC – concretenessC – credibility

* Causes people to believe

I. SUCCESs Model

S – simpleU – unexpectedC – concretenessC – credibilityE – emotional

* Feeling

I. SUCCESs Model

S – simpleU – unexpectedC – concretenessC – credibilityE – emotionalSs – stories

* Compelling connection

II. Elevator Pitch

II. Elevator Pitch

• Purpose: Convey essence of business by time elevator reaches 20th floor

II. Elevator Pitch

• Purpose: Convey essence of business by time elevator reaches 20th floor

• Time: 120 seconds – 2 minutes

II. Elevator Pitch

• Purpose: Convey essence of business by time elevator reaches 20th floor

• Time: 120 seconds – 2 minutes• Expectation: Grab attention and get follow-up meeting

II. Elevator Pitch

• Purpose: Convey essence of business by time elevator reaches 20th floor

• Time: 120 seconds – 2 minutes• Expectation: Grab attention and get follow-up meeting• Requirements: Must be concise, focused, effective

II. Elevator Pitch

• Purpose: Convey essence of business by time elevator reaches 20th floor

• Time: 120 seconds – 2 minutes• Expectation: Grab attention and get follow-up meeting• Requirements: Must be concise, focused, effective• Essential to success

II. Elevator Pitch

2 key questions from investors:

1. Why is this an opportunity?

2. Why should I bet on you?

III. Content of the Pitch1. The problem – customer-focused

III. Content of the Pitch1. The problem – customer-focused2. The solution – solve a problem/meet a need

III. Content of the Pitch1. The problem – customer-focused2. The solution – solve a problem/meet a need3. The market – describe customer concretely

III. Content of the Pitch1. The problem – customer-focused2. The solution – solve a problem/meet a need3. The market – describe customer concretely4. The competition – acknowledge

III. Content of the Pitch1. The problem – customer-focused2. The solution – solve a problem/meet a need3. The market – describe customer concretely4. The competition – acknowledge 5. Competitive advantage – tell what is hard for others to duplicate

III. Content of the Pitch1. The problem – customer-focused2. The solution – solve a problem/meet a need3. The market – describe customer concretely4. The competition – acknowledge 5. Competitive advantage – tell what is hard for others to duplicate6. The revenue model – explain how you will make money

III. Content of the Pitch1. The problem – customer-focused2. The solution – solve a problem/meet a need3. The market – describe customer concretely4. The competition – acknowledge 5. Competitive advantage – tell what is hard for others to duplicate6. The revenue model – explain how you will make money7. Operations – say how you will produce your product/deliver your service

III. Content of the Pitch1. The problem – customer-focused2. The solution – solve a problem/meet a need3. The market – describe customer concretely4. The competition – acknowledge 5. Competitive advantage – tell what is hard for others to duplicate6. The revenue model – explain how you will make money7. Operations – say how you will produce your product/deliver your service8. The team – demonstrate credibility

III. Content of the Pitch1. The problem – customer-focused2. The solution – solve a problem/meet a need3. The market – describe customer concretely4. The competition – acknowledge 5. Competitive advantage – tell what is hard for others to duplicate6. The revenue model – explain how you will make money7. Operations – say how you will produce your product/deliver your service8. The team – demonstrate credibility9. The finances – describe what you have raised and what you need

III. Content of the Pitch1. The problem – customer-focused2. The solution – solve a problem/meet a need3. The market – describe customer concretely4. The competition – acknowledge 5. Competitive advantage – tell what is hard for others to duplicate6. The revenue model – explain how you will make money7. Operations – say how you will produce your product/deliver your service8. The team – demonstrate credibility9. The finances – describe what you have raised and what you need10. The close – make strong closing by reiterating key points

III. Content of the Pitch

3 Things NEVER to say:

III. Content of the Pitch

3 Things NEVER to say:

– All I need is 1% of the market.

III. Content of the Pitch

3 Things NEVER to say:

– All I need is 1% of the market.– There is no competition.

III. Content of the Pitch

3 Things NEVER to say:

– All I need is 1% of the market.– There is no competition.– Everyone will buy.

IV. Delivery of the Pitch

Keep it simple:

– Essence of business– Speak in plain terms– Avoid industry/technical jargon

IV. Delivery of the Pitch

Say the unexpected:

– Pose unusual question– Present a stunning statistic– State an interesting analogy

IV. Delivery of the Pitch

Be concrete:

– Point to human actions– Provide sensory information– Avoid clichés

IV. Delivery of the Pitch

Demonstrate credibility:

– Investors bet on people– Explain capabilities– Present team’s credentials

IV. Delivery of the Pitch

Show emotion:

– Let interest/passion show– Be genuine/authentic– Reflect own values

IV. Delivery of the Pitch

Tell a story:

– Explain how you got into business– Indicate why product/service is important– Communicate benefit to customers

The Powerful Pitch –

Pitch to everyone, everywhere at any time!