The quality of a kiss after a first date is critical. A great kiss helps ensure you get a second date. A bad kiss is the kiss of death.
Entrepreneurs courting investors face a similar situation. They need to make the most of a first date (i.e., an initial pitch) to entice investors to want to spend more time together, to learn more about the ideas. In this case, the “kiss” is the manner with which an entrepreneur pitches an idea, and the impression left.
I have had the privilege of guiding numerous entrepreneurs, and I have found the following to be true (in too many cases):
1) Entrepreneurs are clearly passionate about their ideas.
2) They are incredibly knowledgable about how their products or services work.
3) Due to #1 and #2, they often struggle to share their ideas in a compelling manner. It's not that they are sub-optimal communicators. They simply have so much passion for their ideas, and so much they want to say about them. As admirable and understandable as this exuberance is, it tends to create a lot of surface-level noise that -- unfortunately -- clouds the power of the ideas. The "What's in it for the target audience and me?" is lost in a lot of less-important details. As a result, the pitches don't always resonate as strongly as they should. And that's a shame.
In order to deliver a truly compelling pitch that stands out, entrepreneurs need to learn to KISS* better. That is, they need to:
Keep It Simple & Scintillating.
Learn to KISS better by following this simple 3-step approach:
1) Truly understand the target audience "pain point." This could be the problem you're helping to solve, or the untapped opportunity you're helping to seize. Learn as much as you can regarding how the target audience thinks about, and articulates, this paint point. Use what you learn as context to frame your idea. The more familiar and accurate the context, the better the set-up.
2) Frame your solution in terms of its benefit, not features . At P&G we had a saying,"Features tell, benefits sell." Your first pitch should focus on the big picture (the benefit), not the small details (the features). Until you know if investors are interested in the essence of your idea (i.e., the "What's in it for the target audience and me?"), there is no sense sharing detailed information about how it works. For example, don't talk about how the cutting-edge technology of your product works; talk about how it's going to make people's lives better, and make money for investors. The other details will only serve to overwhelm the power of the idea, and make the discovery and assessment of it too much work.
3) Develop a hyper-focused 5-minute pitch. All ideas -- regardless of potential payout -- can and should be pitched in 5 minutes or less, the first time around. Start by clearly highlighting the "pain point" on which you are focused. Then communicate the strategic core of the recommended solution: WHAT it is and WHY it makes sense. Follow this with a brief overview of HOW it might work, to give investors some confidence you can make it happen. End with a short "anticipated success story" that paints a picture -- in the most concise-yet-compelling manner possible -- of the results you expect your idea to deliver for the target audience and the investors. To capture anticipated (and actual) success stories, I personally favor the format: Situation > Solution > Success. In all, share just enough scintillating information with your prospective investors to pique their interest and make them want to hear more, in a follow-up meeting.
Don't let a bad pitch be the kiss of death for your brilliant idea. Learn to KISS better, so you're sure to get a "second date."
These are my thoughts on how start-ups can connect more strongly with their target audiences. I would love to hear yours.
Thanks for reading.
p.s. If you'd like to connect more strongly with your target audience, I'd love to help. Please message me at Todd@LINKTrainingAndConsulting.com, or call me at (513) 240-8383.
* (Modified from the KISS principle, first utilized by the U.S. Navy in 1960, which is an acronym for "Keep it simple, stupid." The KISS principle states that most systems work best if they are kept simple, rather than made unnecessarily complicated. )