Entrepreneurs are challenged to explain a proposal in a few minutes to get investments
Clarity and objectivity summarize the practice of pitch, nomenclature used to refer to the presentation of a startup to a potential investor or consumer. In a few minutes –and in some cases, seconds– the entrepreneur needs to convince his audience that his company has an effective solution to solve a market problem.
One pitch classic lasts an average of 10 minutes. However, the time may vary according to the type of presentation, according to the executive director of Abstartups, Luiz Othero. At the pitch more conventionally, Otero explains that the presentation should contain a summary of the startup’s proposal, the team that composes it, the exposition of the problem, the affected market, the solution, the value proposition, the business model and the objective.
“The pitch gathers the key elements of what an investor or a company needs to know about a startup in a given period of time”said Othero.
The modality even inspired the creation of a reality show of TV, the shark tankin which entrepreneurs must convince large investors to give financial support to the enterprise.
Types of pitch
High Concept Pitch: It is a short phrase that defines the purpose of a company.
Elevator Pitch: The purpose of this modality is to make a person who is in a “elevator” be able to understand the business model of the startup. Despite the metaphor, this modality is used when there is a quick opportunity to present a business, such as a casual meeting on the street, at events, co-workings, among others. This way, the entrepreneur has about 1 minute to make this presentation.
Tweet Pitch: That pitch references Twitter’s text format, which is limited to 280 characters. The idea is that, in this model, the entrepreneur will be able to publicize his startup in a shorter time than that of the pitch elevator. It can be used, for example, in social networks.
Pitch for investors: is a more detailed presentation of the startup, where you can use a slideshow. It aims to attract investments. In this modality, it is important to explain the business, the market problem, the solution that the startup has developed to solve this problem, the company’s differential in relation to the competition, the goals and purpose of that presentation, that is, what the entrepreneur wants exactly from investors.
Pitch of sales: as well as the pitch for investors, the pitch sales is also a more detailed presentation, in which slides are used. The difference is that the sales pitch is aimed at potential customers. Besides being necessary to present the business, the problem, the solution that the startup has developed to solve this problem and how it works, it is also necessary to show the business model and how the consumer can acquire that product or service.
TIPS
The startup’s CEO Local HubFelipe Caezar, states that the pitch for sales and for investors must be customized according to the profile of those who will attend the presentation.
“If it’s the sales pitch, for example, I have some strategies like Account-Based Marketing, in which you’ll build your entire sale to a single customer. You will build the pitch directed towards that company, including the problems that company is going through now”it says.
Caezar also recommends avoiding large text and complex graphics on pitch slides. According to him, these mechanisms disperse the attention of the spectator. “Pitch has to be short. It cannot be something long, with hours and hours of conversation.”complete.
“Important detail: knowing when to stop talking. That’s a big challenge. Sometimes the guy has already bought your idea. Instead of continuing to say something, some point that you may have forgotten, it’s better not to say anything else. make the sale”he says.
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