Pitch: Definition and structure
Definition & objectives
Pitching is a metaphoric term which comes from baseball meaning throwing the ball. The metaphor was first used in television and cinema where writers and directors “throw” their ideas at key decision makers from major TV networks and Hollywood powerhouses.
Today, in most companies, regardless of their industry, the primary objective of a pitch meeting remains the same : secure funding for the development of the idea, rendering it both feasible and financially rewarding.
However, to accomplish this primary objective, your pitch presentation needs to serve these purposes :
- demonstrating the value proposition of the business;
- streamlining intricate concepts for easy comprehension;
- setting the business apart from competitors;
- narrating the captivating story behind the company to its target demographic, igniting intrigue and enthusiasm, in other words: story telling.
There are many ways to pitch a business idea. It can be done by phone or e-mail or if you want to stick to the Hollywood iconography on a restaurant napkin or in the proverbial elevator, but more seriously, pitching is usually done during a meeting, with a PowerPoint (or similar software) presentation.
This is why having a great pitch deck is so crucial if you want to raise the interest of potential investors: each slide will need to be carefully thought through. Now let’s review the 5 parts which make for all good pitch deck templates.
Eye-catching introduction
After the title slide, which is commonly used as a waiting screen, your first presentation slide introduces you and your business: who you are and what you do. Don’t hesitate to oversimplify and compact your business value proposition into a single sentence. For instance: “”We provide personalized financial coaching for millennials” or “We’re the Airbnb for camping enthusiasts.”
If you decide to compare your company with a high profile player, make sure it is relevant : at the very least a similar business model. Don’t just namedrop.
What you are trying to achieve here is just getting everyone’s attention and nothing else. It’s not because people agree to meet with you that they are going to actively listen, you have to give them a reason to care.
Presentation of the problem and target market
Your next slide should present what need your business caters to, what problem it solves. Of course you already hinted at this in your initial value proposition but now is the time to give specifics.
This section doesn’t need to feature each and every problem your product offers a solution to. Two or three items will do just fine. For instance:
- “Our app streamlines meal planning, saving busy professionals hours each week.”
- “Our software optimizes supply chain management, reducing costs and increasing efficiency for manufacturers.”
Following the problem, you want to introduce the target market and begin to conjure up the investment opportunity. In this new slide, elaborate on your ideal customer profile and quantify the potential market size.
Depending on your business context, it might be a good idea to segment your market to match your marketing strategy as well as your product offers. In any case, be cautious when you define your market : contrary to one might assume, investors tend to prefer to be presented with a specific and well-rounded target rather than a giant but unrealistic market. The more precise your market description, the more compelling your presentation will be.
Proposed solution or core idea
Now that you have laid the groundwork, you can introduce your product or service which will solve the afore-described problem. It’s important to follow this particular order as it reflects the target customer’s reality : a challenge arises, your solution helps them deal with it.
Even though you are proud, as you should be, of your product, try not to focus on its characteristics, because of two main reasons :
- it can easily be boring for your audience;
- how your customers will use it on a regular basis is much more relevant when it comes to evaluating if a business idea is worth investing in.
Indeed, it is a much better angle to pitch your solution through an evocative story or scenario. Try your best to make your audience able to picture themselves how it would work in a live situation. If you have actual examples, even better.
This section also needs to include slides about how your idea will make money, for you whomever invests in it. Here, you need to prove you have thought things through and are competent and serious about it. You will want to include a slide mapping your business or revenue model and at least another one with a short summary of your business plan. Also offer hard copies or URLs of the full business plan to every attendee, for further consultation.
Keep it short, a pitch is not meant to be exhaustive, you only need to get the potential investor’s approval for a second meeting.
Evidence of value and financials
Otherwise known as traction, this section of your pitch aims at giving tangible early results (if you have any) to prove that your idea is already partially substantiated by hard facts and data:
- growth potential;
- sales already made with a similar but less perfected product;
- margins, etc.
Then you absolutely need to have a few slides featuring your financial projections over the course of the next few years:
- sales forecast;
- income forecast;
- profit and loss statement (expenses vs earnings).
Conclusion
Your conclusion slides should not be a summary of your presentation. Otherwise it would be a summary of a summary. No, you want to conclude with the million dollar question: how much you need from them. With all the data you have already provided, how you intend to use the invested funds should be clear to everyone but be ready to answer any related question.
Key guidelines to a good pitch presentation
Clarity and conciseness
Successful pitching heavily relies on you being the most clear and concise as possible. Remember : this is an introduction to your company or to your business idea or concept. You have been granted a limited amount of time to convey your message so make it count because there is no do-over.
Go straight to the point in an easily digestible manner:
- remember that from the investor’s perspective “less is more”, meaning that too much information will lose their attention and ultimately their interest;
- use large fonts and color schemes to ensure physical readability;
- you never have enough time to go over each and every bullet point for your presentation so skip some of them;
- always save enough time for questions, no exception.
Core message and value proposition
The core message and value proposition form the foundation of any successful business pitch presentation. You need to assert what makes your business unique and why it’s valuable to potential investors or stakeholders. If you want to perfectly set the stage for a compelling pitch, focus on highlighting your business idea’s strengths as well as its competitive advantages. By focusing on the problem your business solves and how it addresses the needs of your target market, you can effectively convey its value proposition.
Besides, setting you apart from your competitors and showcasing the potential for growth and profitability reinforces the core message of your presentation.
Emotional connection and storytelling
The most efficient and powerful way to captivate your audience and make your business pitch memorable is to create an emotional connection between them and your vision through storytelling :
- engage with your audience on a deeper level through a compelling narrative around your product or service, how you came up with the idea and how it can help your target customers or users;
- to add authenticity and relatability to your presentation, share personal anecdotes or experiences that highlight the significance of the problem your solution fixes;
- even though you need to present hard cold data to be credible, at least the first part of you pitch should strive to humanize your business and give it a relatable aspect;
- give actual instances or scenarios where your concept has an impact on somebody’s life.
Call-to-Action
A pitch meeting is not throwing an idea at a wall and seeing what sticks. It is a means to an end, it has to produce effects. This is why you want to include at the end of your pitch presentation a strong call to action, to guide the audience towards the next step.
That next step can be :
- investment;
- partnership opportunities;
- further discussions.
A clear call to action prompts action and engagement from your audience. Outline the specific steps you want your audience to take, such as: reaching out for more information or committing to fund investment.
To make sure that your call-to-action is effective and leaves a lasting impression, make it coherent with what you expect from your audience. For instance, don’t understate your need for funding out of timidity if this is what you asked a meeting for in the first place.
Just like with all the rest of your pitch presentation, maximize your effectiveness by being clear and forthcoming.
Our tips for writing an effective pitch presentation
Understand your audience
Before diving into creating the content of your pitch, take the time to thoroughly understand your audience. Ask yourselves questions like:
- What are they looking for specifically?
- How do they prioritize their investments?
Tailor your message to resonate with them on a personal level. To that end, researching your audience’s demographics, preferences, and previous investments can provide valuable insights to customize your presentation effectively. SBI feedback and NVC can also be helpful techniques to empathize with your audience.
Use simple and direct language
Avoid jargon and technical language that may confuse or annoy your audience. Instead, opt for clear and concise language that everyone can understand. Remember, the goal is to convey your message effectively, and using complex terminology can hinder comprehension. Keep your sentences short, and use plain language as much as possible.
Although, for the financial prospections and growth potential parts, favor accuracy and precision over simplification because this is the area of expertise common to all investors.
Focus on benefits rather than technical details
While it’s essential to demonstrate your own expertise, focusing solely on technical details can overwhelm your audience. Instead, emphasize the benefits and value proposition of your proposition.
Highlight the following aspects:
- how your solution addresses your target customer’s needs or solves their problems;
- how is it better than existing solutions;
- what is your marketing strategy;
- how much can your investors expect in terms of growth and ROI.
By showcasing the tangible benefits, you can captivate your audience’s attention and make a compelling case for your pitch and appear as a trustworthy entrepreneur.
Stay authentic and passionate
Authenticity is key to building trust and credibility with your audience. Be genuine in your delivery and convey your passion for your idea or project. Authenticity resonates with people on a deeper level and can leave a lasting impression. Let your enthusiasm shine through and connect with your audience on an emotional level to make your pitch more memorable.
Don’t Omit the Call-to-Action
Granted, we already discussed the benefits and even the absolute necessity of including a Call-to-Action to at the end of your pitch presentation. However, you would be surprised how many pitchers forget to prepare a slide for that or just skip it to save time.
Anyhow, do not forget for any reason to ask for what you came to the meeting for, be it money, partnership or a business opportunity. Besides, be precise and transparent about how invested funds will be used, don’t’ wait for a question, just say it outright when calling to action.
Don’t underestimate preparation and practice
By now, you might have guessed: preparation and practice are essential components of a successful pitch presentation. And we’re not only talking about rehearsal time:
- validate your data and ensure you have substantiating evidence for your assertions;
- prior to your presentation, familiarize yourself with the investor’s past investment portfolio to tailor your pitch accordingly;
- anticipate potential inquiries and prepare thoughtful responses in advance (integrate them to the flow of your presentation);
- know your project well enough to deliver brief and confident responses to any question from the audience, whether it is a simple question, a binary question or even a real curveball.
In the end, when doing a pitch presentation you need to walk a fine line between keeping it short and ensuring your audience gets your message. Conciseness requires making compromises: you wish you could talk about your ideas for hours but you have to settle for much less. It can be harsh but it is an essential skill to have for any business leader or even team manager.
At CoachYZ, we hold a strong conviction that within every business owner and team manager lies untapped potential awaiting discovery. By embracing fresh perspectives and committing to self-improvement, individuals can unlock this latent capability. If you share our belief and aspire to maximize your leadership prowess, we invite you to experience your coaching journey!
