Written by Michael Feder
Reviewed by聽Kathryn Uhles, MIS, MSP,聽Dean, College of Business and IT
A business pitch is a short, persuasive presentation designed to spark investors鈥 interest in your offering, whether it鈥檚 a product, service or project concept. Entrepreneurs with a new app idea for a startup or established business owners hoping to expand their ventures will use a business pitch to their advantage. Pitching a business idea is one way to get investor funding from venture capitalists or angel investors.
Here, we speak with Joseph Aranyosi, associate dean of the College of Business and Information Technology at 澳门天天彩开奖记录, about effective business pitches.
Aranyosi explains: 鈥淎 successful business pitch should get to the point quickly. Start by identifying the issue that your product or service will solve, briefly outline your solution and explain why you think it will perform better than other options. If you want investors to believe in you, you have to believe in yourself, so practice, show confidence and be prepared to back up what you say with facts and figures.鈥
础听Bachelor of Science in Business can provide the practical experiences to master the art of the business pitch, from a simple elevator pitch to a full pitch deck. Additionally, a聽Master of Business Administration will impart even more skills for pitching, from developing a business model and attracting investors to executing your business plan. However, education alone isn鈥檛 enough; practice and real-world application are necessary to perfect this skill.
Preparing to write your business pitch requires strategic thinking. It should showcase your idea and business model to potential investors, business professionals or a general audience and convey its potential value to generate support. To do so, a business pitch should:
The pitch deck should engage the audience, build anticipation and deliver a satisfying conclusion to attract investors.
Aranyosi explains: 鈥淎 pitch deck is basically your presentation materials (e.g., Microsoft PowerPoint, flip charts, models, graphs, financial statements). Think of a pitch deck as any supporting resources used to deliver your pitch.鈥
Before writing your pitch deck, familiarize yourself with who you鈥檒l be presenting it to. Then,聽tailor it to suit their needs, preferences and expectations.
Aranyosi shares: 鈥淎 good pitch will anticipate questions or concerns that investors will have so you can address them before they鈥檙e even brought up. To do this well, you need to research specific details about your industry, your investors鈥 backgrounds, your competition and other successful, and failed, ventures. Don鈥檛 assume 鈥 do your homework, since you鈥檒l only get one chance to impress your audience.
Joseph Aranyosi
Associate Dean,聽 College of Business and Information Technology聽
鈥淔or example, most new restaurants fail, so a restaurant pitch will need to outline what鈥檚 new and unique about your proposal, provide clear financial budgets/forecasts, describe your experience in the area, and explain why investors should trust your judgment that you can beat the odds and be successful where others have failed.鈥
Anticipating your audience鈥檚 needs shows you鈥檝e done your homework and keenly understand the marketplace. It also helps align your business proposal with their interests or strategic goals.
A few sources for such information are:
A common saying is, 鈥,鈥 particularly when delivering an elevator pitch for investors. Extensive research bears this out, and many factors contribute to how impressions are formed.
In a business pitch, your hook or opening significantly impacts the impression you make.
Here are a few聽:
If your pitch deck captivates your audience from the get-go, you are more likely to have their attention and curiosity for the remainder of your presentation.
Outlining the problem and solution聽is the cornerstone upon which the rest of your pitch is built, and it鈥檚 critical for a couple of key reasons. The problem statement lays the groundwork for your pitch. It聽presents the reason for your business聽and underscores necessity. The solution directly addresses the problem you鈥檝e identified. It needs to be compelling and viable, illustrating how you will聽alleviate the pain point.
Keep the following tips in mind as you define your problem and solution:
The clearer and more compelling your problem and solution are, the more persuasive your pitch deck may be.
In the following passage, Aranyosi provides details and examples:
鈥淎 good pitch is clear, confident and compelling, focusing on the problem, solution, market and your team鈥檚 ability to execute the plan. It clearly answers the WIIFM
question for investors 鈥 鈥榃hat鈥檚 in it for me?鈥 A bad pitch lacks structure, confidence, relevance and research, and it fails to effectively communicate a value proposition.
鈥淕ood example: 鈥楬ave you ever been frustrated by [problem]? What if I told you that you could eliminate those issues forever using [solution] and that it鈥檚 relatively cheap and easy to manufacture? Would you be interested?鈥
鈥淏ad example: 鈥楽o, my neighbor was telling me the other day about [problem], and I got to thinking that a lot of people would probably be willing to pay good money for [solution]. That鈥檚 why I鈥檓 asking you to invest.鈥欌
Although some entrepreneurs are tempted to add plenty of detail to their pitch decks, thinking it will provide a fuller and more compelling picture of their product or service, piling on information may not be the best route. If your audience doesn鈥檛 understand your industry or the technical aspects of your product or service, for example, and your pitch deck is overloaded with buzzwords or overly complex concepts, you risk losing their attention or confusing them.
Instead, a concise pitch deck shows your audience you value their time and can effectively convey your message without long-winded explanations that bore investors and waste their time.
Aranyosi explains: 鈥淩emember that although you may have been thinking about your proposal for a while, this will be the first time that your investors will be hearing it. So, keep it short and simple, highlight the most important and compelling points, and practice in front of friends and family so you鈥檒l have a better idea of the kinds of questions you鈥檙e likely to encounter.鈥
Here are more tips to help:
The simpler your message, the more likely your audience will understand, remember and jump on your business venture.聽
A unique value proposition (UVP) is your stand-out factor 鈥 the reason why customers should choose your product or service over others in the market. Here are a few strategies to effectively communicate your UVP to investors:
The goal here is to provide your audience with a strong impression of how your business is different from or better than the rest.
Data and evidence add credibility to your claims when pitching an idea. They demonstrate that your business idea is not just a theory but a viable, well-researched opportunity.
Here鈥檚 a look at how you can use data effectively:
The key when delivering a business idea is to weave in your data and evidence in a way that supports your claims without turning your pitch into a dry presentation of numbers.
Tackling any concerns your audience may have underscores an important factor: You must be forward-thinking and realistic about business decisions rather than loosely clinging to a distant dream.
Here are a few ways you can anticipate and address objections:
By anticipating potential objections, you can deliver a pitch resilient to scrutiny.
Aranyosi shares: 鈥淚n my opinion, a great pitch follows the Boy Scout motto: Be prepared! Expect that you鈥檙e going to get some tough questions, and do your research so you鈥檒l be ready to answer them appropriately. Also, be passionate about your proposal and remember to enjoy yourself. It鈥檚 hard to get other people excited if you aren鈥檛 enthusiastic about your own ideas. Investors aren鈥檛 just investing in your proposal 鈥 they鈥檙e investing in you.鈥
One skill you might attain while working in sales or management roles is how to pitch. From honing your delivery to creating visually exciting, a lot goes into pitching.
Visuals can capture and maintain attention, facilitate understanding and make your message more memorable.
For instance:
Maintain a clean and consistent style across your visuals and leverage the power of color and contrast to highlight essential points. Finally, test your visuals鈥 compatibility with your presentation equipment beforehand.
Aranyosi shares: 鈥淚鈥檝e seen it happen several times where presenters don鈥檛 verify that their audience is ready, that they can hear them and that their presentation is showing properly (e.g., potential investors are on a bathroom break, presenters are on mute, slides aren鈥檛 showing on screen). Presenters should always start with introductions, social pleasantries, and a few questions to ensure that everyone is ready and comfortable enough to chime in if issues like this occur.
鈥淪ometimes, an audience member may have a pet peeve that you鈥檙e unaware of (e.g., presenting with your hands in your pockets, using clich茅s, crooked ties). Presenters should constantly monitor the room for nonverbal feedback or other cues that can let them know that they need to modify their behavior or approach. Mimicking gestures and speaking styles is a great way to help build rapport with your audience, as long as you鈥檙e not making it obvious that you鈥檙e doing this.鈥
As you practice your pitch more often 鈥 especially the elevator pitch 鈥 you may feel that it becomes so ingrained in your mind that it becomes akin to muscle memory. Doing this might also alert you to certain issues you may have with public speaking.
Here are a few of the聽best tips for public speaking:
Handling questions and feedback well is vital to delivering a successful business pitch. When doing so, keep the following tips in mind:
Aranyosi explains: 鈥淜nowing your data inside and out can also prepare you for the Q&A segment of a business pitch. Being able to support your answer with facts lends credibility to both you and your proposal. You should be able to explain why you made the specific decisions that you did, but you should also be prepared to explain why you rejected other ideas. This will clearly demonstrate that you鈥檝e researched the problem, market opportunities, and viable solutions, and that you鈥檝e put sufficient thought into your proposal.鈥
If you鈥檙e looking to gain a solid foundation in business or improve upon existing knowledge, visit UOPX for information about online business programs. These courses are designed to teach career-relevant skills in a flexible, online format.
Here are just a few degree programs to consider:
A graduate of Johns Hopkins University and its Writing Seminars program and winner of the Stephen A. Dixon Literary Prize, Michael Feder brings an eye for detail and a passion for research to every article he writes. His academic and professional background includes experience in marketing, content development, script writing and SEO. Today, he works as a multimedia specialist at 澳门天天彩开奖记录 where he covers a variety of topics ranging from healthcare to IT.
Currently Dean of the College of Business and Information Technology,聽Kathryn Uhles has served 澳门天天彩开奖记录 in a variety of roles since 2006. Prior to joining 澳门天天彩开奖记录, Kathryn taught fifth grade to underprivileged youth in Phoenix.
This article has been vetted by 澳门天天彩开奖记录's editorial advisory committee.聽
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