Management HW
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perfecting_your_pitch.pptxDavid J. Causgrove
Instructor in Marketing and Management at Penn State Erie
Kurt E. Hersch
Instructor in Management and Entrepreneurship at Gannon University
Perfecting Your Pitch
What we hope to accomplish tonight
Create a solid investor pitch
Session is going to be very interactive
The Power Point Presentation
How to avoid “death” by Power Point
Tips on effective pitching
How to make your Pitch stand out
Central Point to the Pitch
The purpose of the pitch is to sell, not to teach.
Your job is to excite, not to educate.
Your Pitch has to accomplish two things.
Tell a good, clear, easy to repeat story – the story of an exciting new startup
Beat out the other companies that the funders are also considering
Cover Slide
Company Name
Location
Tagline
Presenter’s name and title
Key Objective:
Everyone in the room should know the basic idea and value proposition o f the company, including the target market, before the next slide is shown.
Slide 1: Company Overview
The best way to give an overview of your company is to state concisely your core Value Proposition: What unique benefit will you provide to what set of customers to address what particular need?
Key Objective: At this point, no one should have any question about what your company does, or plans to do.
Slide 2: Problem/Opportunity
You need to make it clear that there is a big, important problem (current or emerging) that you are going to solve, or opportunity you are going to exploit.
Show that you really understand the particular market that you are targeting.
Quantify the Problem/Opportunity
Key Objective: But you do not have to tell investors that there is a lot of cell phones, or that teenagers like to socialize. Save yourself, and the investors, the pain of restating the obvious.
Slide 3: Solution
What specifically are you offering to whom?
Use common terms to state concretely what you have, or what you do, that solves the problem you have identified.
Key Objective: Avoid acronyms, terms, or inside jargon that won’t mean anything to most people.
Slide 4: Benefits/Value
State clearly and quantify to the extent possible the three or four key benefits you provide, and who specifically realizes these benefits.
Slide 5: Competitive Advantage
You may be good but are really better than everyone else?
You need to convince investors that lots of folks will buy your product or service, even though they may have several alternatives.
Use this slide to summarize three or four key reasons why customers prefer your solution to other solutions.
And how can you sustain you Competitive Advantage? (Intellectual Property – Patents)
Slide 5.1: Competitive Advantage Matrix
Depending on how important the analysis of competitive players is in our market segment, you may need a detailed list of competitors by category with their strengths and weaknesses in comparison with your company.
Whether or not you present this slide, it is important that you do your homework on the competition, and that you do not misrepresent their strengths or their weaknesses.
Slide 6: Go to Market Strategy
The single most compelling slide in any pitch is a actual pipeline of customers and strategic partners that are already doing business with you (signed contract – made a sale)
If you do not have a pipeline, there is nothing unique or innovative about your strategy, and you do not have paying customers or a signed vendor contract, then drop this slide and make the elements of your business model very clear in the next slide.
Slide 7: Business Model
How do you reach your Target Market?
Who are your key Suppliers/Partners?
How do you make money?
Explain your pricing, your costs, and why you are going to be especially profitable.
Many investors will want to test the depth of you understanding of your business model.
Slide 8: Financial Projections
You should show the two or three key metrics that drive revenues, expenses, and growth.
Key Objective: The most important thing to convey in this slide is that you really understand the economics and evolution of a growing, dynamic company, and that your vision is grounded in reality. Your financials should tell your story in numbers as clearly as you are telling your story in words.
Slide 9: Financing Requirements/Milestones
On this slide you should outline how you plan to take in funding and map the funding against your key near-term and medium-term milestones.
This is your operating plan for the funds you are raising.
Key Objective: Investors want to know that you are asking for the right amount of money to get the company to a meaningful milestone.
Slide 10: Summary Slide
Your key objective on this slide is to solidify the core value proposition of your company in words that are memorable and unique to your company.
This is a good place to reinforce your tagline, or mantra.
If you had to do your pitch in one slide (with 30 point font) this is that slide.
Which Slides to choose on October 29th
5 minute presentation, no more than 5 slides!
Look at which of the slides will make the strongest case for you receiving the funding.
Closing Tips on Effective Pitching
Keep your text very, very short. Really. Please. Use charts and pictures if you can.
Focus on making sure your statement of your company’s value proposition is crisp, clear, and unique.
What investors really need is a concrete example of how people will actually use your product or service.
Closing Tips on Effective Pitching
Average entrepreneur pitch: 38 slides. Average investor attention span: 10 slides. Do the math
Do not lie. The best salespeople are credible and trustworthy. It is more important that investors trust you than that they understand every nuance of your business.
Never ever put so much text on a page that the investor has to read it.
Remember: Sell, sell, sell!
Thank You
Dave Causgrove – Contact Information
814-898-6551 (office)
Kurt Hersch – Contact Information
814-871-5865
