I’m often asked what are the most common misconceptions about pitching. And there are a lot of myths out there.
I’ve put together my top five myths. I’ll cover these myths both this week and next week.
Facts alone rarely make people listen.
When we are faced with business situations that can change the direction of both our companies and our lives, there is naturally a tendency to become more formal when you pitch the deal.
You are in unfamiliar territory – strange boardroom, presenting to people that you know very little about and the stakes are high. If you are not prepared this dynamic can mean that your presentation is stiff and boring.
Right at the very top of the list on what you need to do to get your investors to sign that cheque is to engage them. What do I mean by this?
You want to have them sitting on the edges of their chairs listening intently to what it is that you are saying. You want to engage their emotions. You actually want to get their heartbeat up. That is, engaging their emotions. If you do that then you have just cracked the big piece of the ‘presentation code’.
If you don’t show enthusiasm and passion then your whole presentation will be flat – regardless of the ‘wow’ technology, the great PowerPoints and the high returns for the investor.
Why is the passion and enthusiasm so important?
Because it shows that you really believe in what you are doing. Passion and enthusiasm will get you through when it gets tough – and it will get tough. You want your company to be successful and you believe passionately that it will be successful.
Passion alone won’t get you there but it is an essential ingredient in the mix.
One last word…
The realm of emotion is dominated by women. If you have a female partner in your management team then you will find she will more naturally engage using passion and enthusiasm. I have seen it dozens of times. When a female presents the energy in the room lifts. And I’m not being sexist here.
A story to bust this myth…
I have been running workshops for 17 years. When PowerPoint hit the scene, naturally, our speakers started using this fabulous new tool.
Some kept it basic while others used every single feature in PowerPoint, including the chink of cash registers, flashing lights, humorous animated cartoons, words moving all over the place. You get the picture.
The results were interesting.
When I reviewed the feedback from participants it was very clear that the high tech PowerPoint presentations fell flat. Right then I decided to find out what made an effective PowerPoint presentation.
So here is a list so that you don’t create the dreaded ‘death by PowerPoint’ syndrome:
And finally…
Make sure that your equipment works. You will need to check the connections to your computer and any internal systems that are available in the room that you will be using. Do this in plenty of time to fix anything that is not working.
Don’t take anyone’s word for it that it will be OK. This is far too important to leave to chance. It is your responsibility to make sure that the equipment runs like clockwork.
Getting your chance to pitch to investors is certainly a high point and many entrepreneurs want to cram the presentation with every known fact about the company. They have the coveted hour or so and they are going to make sure that the investors get the whole story.
Think about your objective. There is only one – to get the next meeting. Keep that clearly in your head. No investor is going to make an investment based on one meeting. If you engage and excite then you will get that next meeting. If you flood investors with facts then you are missing the point.
Just cover your key points. In previous blogs I have given you a formula for the key points.
I think of facts like toys in the toy box. I have a very big toy box with hundreds of toys and my favourite toy is in there somewhere. I’ll certainly have trouble finding it. But if my toy box only has 10 toys then I’ll easily find my favourite toy.
If you clutter your presentation with a myriad of facts, chances are that your key messages will be lost. Your presentation will lack simplicity and clarity. If the investors don’t understand what it is you are offering then they won’t ask for that next meeting. If people are confused you will not get an investor interested in your company.
It is difficult to avoid this temptation but avoid it you must.
Next week I’ll cover the rest of this story.
Gail Geronimos, is the founder of Achaeus, which helps entrepreneurs develop their businesses and she has just started a new site www.pitchingtoinvestors.com with tools and tips about how to develop killer presentations to raise capital.
To read more Gail Geronimos blogs, click here.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
