By Fernando Berrocal
A business pitch is a presentation created to entice an investor or a group of investors to invest in your business. The goal of your pitch is to secure funding so that you can move forward with your value proposition and bring your product to the market. Remember, the objective of the pitch process is to encourage investors to back people, not products or markets. When writing your pitch, it's recommended to use two different forms that may be combined when necessary.
- The basic concept is based on a methodology developed by a successful business plan coach at Tufts University. This template will aid you in properly developing your proposal.
- Oren Klaff invented the STRONG approach, which considers human behavior elements.
Continue reading to learn how to plan and deliver an effective business presentation that sells using both methods:
The Base Method:
You should have a 10-slide deck with the basic technique, which should include the following items:
- A title slide
- Problem that requires addressing
- Value proposition solution
- Underlying magic
- Your business models
- Sales strategy
- Competition
- Management team
- Basic financials
- Current status and offer
You may use a few extra slides used to individualize the presentation.
This base pitch approach has shown to be quite effective. For example, in the sustainable water pollution space, ZwitterCo has raised millions of dollars in funding. This approach has allowed a blockchain startup to get funds, and it has been seen to work in other areas including food, agriculture, nutrition, biotech, services, technology, engineering, and entertainment. This structure has helped grow a modest venture/private equity fund into a large one, as well as raise funds for significant businesses and projects.
In that sense, it is industry-agnostic. Specific slides might be changed to emphasize important deliverables. It doesn't matter what kind of business you start; the goal is to provide milestones, deliverables, value, and the necessary financing, as well as to ensure that investors obtain a "Return on Investment" (ROI). You should be able to illustrate a breakeven point in 24 to 36 months or important milestones that lead to a multiple of X on value. Investors understand that you will be incorrect no matter what statistics you come up with. Being open is important, like in this example: "We are requesting X amount right now, and we are aware that the forecasts may be incorrect and will most likely be altered." The same might be said for initiatives worth billions of dollars.
The STRONG Method:
The second thing you should master is how to deliver your pitch. In sales and pitch situations, you must understand what motivates people to act in certain ways. Our brains have developed in the following ways: The ancient brain, or "crocodile brain," was created millions of years ago to handle fight-or-flight impulses to keep humans alive. The crocodile brain filters information on a fundamental survival level: if it isn't needed, it's ignored. The crocodile brain filters data in the following ways:
- Ignore it if it isn't dangerous or novel (and exciting).
- If it's something new, try to describe it as quickly as possible while ignoring the specifics.
- If you encounter a truly unexpected circumstance and out of the ordinary, don't send anything up to the neocortex for problem-solving.
Pitches typically come from the neocortex (problem-solving area) of the brain, but they are received by the crocodile brain, which filters the value of information. The crocodile brain seeks out clear data rather than nuances. The crocodile brain will dismiss or ignore your knowledge if you provide too many specifics. To reach the crocodile brain, your message must be basic. To be remembered, you'll need an emotional story. You must also demand attention through your social position. Finally, you must not come out as desperate or needy. Make the situation so that people come to you. This is recommended in a STRONG pitch:
- Set the frame
- Tell the story
- Reveal the intrigue
- Offer the prize
- Nail the hook
- Get the deal
It's time to take frame control after you've figured out how the brain works. In business communication, a frame is a tool that you use to obtain power, authority, strength, and control. Your thoughts will be approved if your frame prevails, but if it fails, you will be at the mercy of other people. It's all about being the alpha and the leader when it comes to pitching. You lose if you're the beta and follower. One of the most crucial skills you will acquire in business is how to utilize power frames.
Be energetic in your pitch. Create a sense of wonder and desire. Make the purchasers perform their due diligence before doing business with you. When it comes to shifting agendas, meeting hours, or who will attend, maintain your status. Recognize that being strong is vital, and it has nothing to do with money. You have a limited amount of time. Before anybody will invest in you or your ideas, you need respect, attention, and prestige. If you're going to an investor's or a customer's workplace, arrive on time. Maintain the assumption that your investment or customer will arrive on schedule. Your time must be respected, and it is up to you to maintain this barrier.
Always end early when pitching. You lose if you go over. Never stay longer than 20 minutes. After that most humans lose interest.
Key Takeaways: When it comes to creating and presenting a persuasive business presentation, keep these things in mind:
- Don't bore your viewers with unnecessary details. Convey a straightforward message.
- Be a moving target. Give them something fresh to look forward to and use your pitch to spark their interest.
- Get right to the point. Every syllable and inflection point in the voice is significant. Never give a pitch that lasts more than 20 minutes.