Pitching 101

Pitching an idea or product or service is irrevocably tied to the entrepreneur, so much so that it is covered as a fundamental skill and taught in all entrepreneurship courses at every level. In our pop culture the pitch is demonstrated on a weekly basis.

Shark Tank, which premiered on ABC August 9, 2009, is now in its 13th season for a total of 295 episodes. For comparison, Seinfeld, which made a habit of highlighting Kramer’s numerous crazy ideas pitches, ended its run at 180 episodes.

People often assume that pitching a new idea is all about obtaining funding to either start or grow a business, but this is not where one should begin. Its primary value begins much earlier in the process. From the initial inspiration all the way through to startup, entrepreneurs should think of pitching as an endeavor to help make their ideas happen.

An effective pitch evolves over time. It is an outcome of effective business planning, which means the further along you are with the development of your idea, the more likely your pitch will resonate with the listener. There is nothing better than a meaningful connection. It is the magic that keeps one moving forward. It can also be the difference between success and failure. I have seen ideas happen because the right connections were made at the right time. This requires a willingness to share our ideas and a hustle to connect with others. Think about your pitch as a progression, levels of development that one must go through in order to best connect your idea with others.

LEVEL 1:

Value Proposition

All business ideas begin with a product or service, but the development is in the crafting of an effective value proposition. It is easy to say what you plan to do, much more difficult to understand why you should. This is an important distinction because customers buy on why. This could be convenience, cost, quality, or a superior experience. It can be something new or even just an improvement to existing offerings. Whatever it is it must resonate(that word) with the customer and your listener. Recently, I had the fortune to travel to Paris with my daughters on a high school trip. Buying macarons was on the must-do-list. We found Laduree, a macaron shop that has been in business since 1862. It was easy to understand their “why.” Their macarons were presented like high end jewelry from retail experience to packaging to product. Dad paid€32 Euros for 12 macarons, which was expensive but a great value. It was an experience we won’t forget. Disconnect value from price, it is not the same thing.

LEVEL 2:

Know The Customer

The next level is understanding your customer. Not just the demographic or psychographic profile, but your customer’s true buying motivations. Your customer has problems, some that they don’t even know yet. If not problems, then certainly your customer has specific needs or wants. You may know a lot about your customer if you have industry or specific. Maybe you have a minimal viable product (MVP) or a working prototype. Great! Even better is actual sales! Share the work to move your idea forward and don’t discount the planning you have already done. Traction is what separates actual entrepreneurs from the dreamers. Over half the U.S. population will have a business idea at some point in their life, but fewer than 15% will ever take any steps to making it a reality.

If lacking experience, then you must be willing to talk to potential customers. If done correctly, this customer discovery can yield opportunities you are not even aware of. In your pitch, presenting data that shows that your value proposition aligns with actual customers who are willing to buy your product or service is golden. This is known as “product market fit.”

LEVEL 3:

Share Traction

What is the difference between an idea and a startup? Traction. It is so important and often overlooked. Make sure to share your traction with the listener. Entrepreneurs who are actively engaged in the business planning process have some traction. If you have proof of market through customer discovery, this is significant traction. Have you validated your business model? If so, share it.

LEVEL 4:
Tell a Story With Data
The art of pitching is telling a story. As an entrepreneur, it helps to be a good story teller! Your goal is to connect with the listener, so when pitching your product or service, bring it all together and tell a story supported by data. Your story is your hook, but your data shows the traction. Together, they work magic. First you need to identify the story you are telling. One way is to tell a version of the hero’s journey. In my opinion, all entrepreneurs are heroes for taking a risk to make the world a better place. Or tell the story of the customer you are designing the business for. The customer with a meaningful problem that your business is going to solve! This isn’t just make believe. Include in your pitch any significant data in support of your story. Focus on no more than two or three points.

Whether engaged in a 30-second elevator pitch, a three-minute abbreviated pitch, or the traditional 20-minute 10-slide pitch to investors, the goal is not to close a deal, but to make a meaningful connection.

You may meet someone who invests, but more than likely you will find someone who provides feedback that leads to real insight. Or someone who provides acritical connection to someone else or a needed resource. Or maybe the pitch leads to a subsequent meeting over coffee. You never know when a critical connection will be made. Because of this, as entrepreneurs it is important to continually pitch our ideas.