With a growing number of people seeking entrepreneurship as an alternative path in this rough economy, there is increasing competition for the key resources that can make or break the startup venture.
New entrepreneurs are competing for essential resources, such as the funding, the customers and the staff they need to build a successful business. Attracting these resources often relies on how well the entrepreneur can deliver “the pitch” for his new business.
An effective pitch starts with a hook — something that grabs the attention of the person one is talking to about a business. The most effective hook lays the groundwork to show the underlying need in the market for what the new business aims to offer.
A common mistake we see in pitches is that the entrepreneur waits much too long to tell what the business does. I had my students watch some examples of pitches the other night in class. You can find lots of good ones and bad ones on YouTube.
We were amazed that some of the people making a pitch waited more than halfway through their pitch to tell what their product or service is and what it does.
Answer key questions
Remember this: Early in a pitch the entrepreneur should present a clear mission statement. Who are you? What do you offer? Who is it for? What makes you unique?
The pitch must also show that there is “pain in the market” — that there are people who are in need of what you are offering and are willing to give you their hard-earned money to pay for it.
Who needs your product? Why do they need it? How many of them need it? What are you doing differently from your competitors?
The pitch needs to be presented clearly. It should be an unambiguous answer to some key questions that a skeptical listener is likely to have about the business. How will you make money?
The presentation of the pitch needs to be compelling. The entrepreneur should show his enthusiasm. Make it a personal message to those listening, and make eye contact. Never use note cards — this tells the world that you are not confident and that you don’t know what you are talking about.
While it is important to be enthusiastic, you still must be authentic. Putting on an act rarely gets an entrepreneur very far. Be yourself in how you talk, in how you dress and in how you interact with others.
Finally, a strong pitch always ends with a clear message. What is the one thing that you want them to remember? What do you need from them? What do you want your target audience to do for you?
In this economy, entrepreneurs face competition on every front as they launch a new business. An effective pitch can help distinguish you from all the others trying to grab the attention of investors and customers.
This article is phenomenal in how it forces you to look at what your pitch needs to included. I often struggle with clouding my pitches with too much information or becoming to vague with what my business does. That often leads to potential clients losing interest in our conversation or them misinterpreting my pitch.
I will definitely be working on putting this into practice over the next few weeks in class and building a solid pitch that I can take anywhere and feel confident about.
Hopefully, small businesses owners deliver a successful pitch and are able to get their businesses off to a good start. My company, Regus, http://www.regus.com, is running a contest that will certainly give any new business a welcomed boost. As part of our contest, we are accepting entries at http://www.showusyouroffice.com and are asking professionals to tell us about their less than ideal workspace. The winner will receive a fully furnished and equipped office for one year in the U.S at one of our 400+ U.S. locations. Good luck!
Speaking of entrepreneurship, I would also want to share my fascination over China’s educational system. They have been training their students to become an entrepreneur in the future and not just an ordinary employer. They expose their students much on business and its way of operation. No wonder why there are just too many successful Chinese businessman around the world.
Hewlett from Gaine électrique