Start with your Story
It is said that there are only seven basic plots to original stories: The Quest, Voyage and Return, Overcoming the Monster, Rags-to-Riches, Comedy, Tragedy, and the Rebirth. As far as I can tell, all seven of them might have been about wide-eyed entrepreneurs looking to fund their businesses: raising capital is as simple as telling a good story.
After you have your business plan, team, and product/service organized, telling your story becomes the central spoke around which your business revolves. Simon Sinek refers to this as the why: people buy from you based on why you do something, not what you are doing. It’s important to appeal to investors on an emotional level and engage them in conversation.
When I first began my own entrepreneurial journey, I focused on making sure that no question was left unanswered in my presentations. I wanted to look like the smartest guy in the room and inspire investment through preparation. Unfortunately, I realized over time with the help of those older, wiser and more experienced that this was not the right approach. I needed to shift to a factual format that presented balanced look at the business, team, market and financials—not deliver a monologue without room for interaction. I was boring my potential investors to tears! Not securing interest and excitement means you’re also not securing funding.
Finally, I heard a phrase that sticks with me to this day: “This is the only joke in the world where you tell the punchline first”. This thought entirely changed the way I began to think about sales pitches, bringing me around to my current approach. A pitch is a conversation and a sales job—not a lecture. Selling shares is no different than selling products or services: it’s all about the story.
There are many different styles to approaching a pitch, but from a foundational perspective, start with the story. Build a story board that showcases what you’re sharing, and develop the pitch around your why. You started this business because you had experience and saw a problem that got you thinking. That thinking turned into passion, and that passion had the power to infect others with your vision and excitement. They believed in you and saw your vision, and you need to help your investors to feel the same. Cut to the chase and explain your unique and sustainable competitive advantage. Present your WOW factor and convey where you’ll fit within the broader market. When you understand this, building your pitch becomes much more straightforward.
Here are my ten bullet point steps to tell your story and make your case in an honest, appealing way when building your pitch. Answer each question and then simplify your answers until they’re easy to explain and share.
Why did you start this business?
What are you doing?
Who are you doing it for (describe the market)?
Who is your competition, and why are you better?
Why would someone buy it from you at the price you’ve set?
How do you make money (business model)?
What do your next five years look like financially?
What does the investor get from you?
Who is leading the company?
Why should we trust you?
After you have your story pulled together, start to put your pitch deck together. Your presentation should be started and finished within 15 minutes, leaving plenty of time for questions and engagement with your potential investors. Craft your narrative around your story board. Investors will understand the message, feel the flow of the information is intuitive and cohesive, and enjoy the conversation.