The Powerful Pitch: Preparing Entrepreneurs to Pitch to Investors By Ray Smilor, PhD Schumacher Fellow in Innovation and Technology Professor of Professional Practice Neeley School of Business Texas Christian University

Agenda I.SUCCESs Model II.Elevator Pitch III.Content of the Pitch IV.Delivery of the Pitch

I. SUCCESs Model Why do some ideas stick in our minds?

I. SUCCESs Model S – simple * Core of idea ProverbsPrioritizeProfound

I. SUCCESs Model S – simple U – unexpected * Get attention Break a Pattern Violate Expectations Surprise

I. SUCCESs Model S – simple U – unexpected C – concreteness * Specific images Sensory Information Human Actions

I. SUCCESs Model S – simple U – unexpected C – concreteness C – credibility * Causes people to believe Statistics and Relationships Testable Evidence Truthful Details

I. SUCCESs Model S – simple U – unexpected C – concreteness C – credibility E – emotional * Feeling Tied to People Invoke Self- Interest Have to Care

I. SUCCESs Model S – simple U – unexpected C – concreteness C – credibility E – emotional Ss – stories * Compelling connection Wisdom Reflect Core Message Make People Act

II. Elevator Pitch

Purpose: Convey essence of business by time elevator reaches 20 th floor

II. Elevator Pitch Purpose: Convey essence of business by time elevator reaches 20 th floor Time: 120 seconds – 2 minutes

II. Elevator Pitch Purpose: Convey essence of business by time elevator reaches 20 th floor Time: 120 seconds – 2 minutes Expectation: Grab attention and get follow-up meeting

II. Elevator Pitch Purpose: Convey essence of business by time elevator reaches 20 th floor Time: 120 seconds – 2 minutes Expectation: Grab attention and get follow-up meeting Requirements: Must be concise, focused, effective

II. Elevator Pitch Purpose: Convey essence of business by time elevator reaches 20 th floor Time: 120 seconds – 2 minutes Expectation: Grab attention and get follow-up meeting Requirements: Must be concise, focused, effective Essential to success

II. Elevator Pitch 2 key questions from investors: 1.Why is this an opportunity? 2.Why should I bet on you?

III. Content of the Pitch 1.The problem – customer-focused

III. Content of the Pitch 1.The problem – customer-focused 2.The solution – solve a problem/meet a need

III. Content of the Pitch 1.The problem – customer-focused 2.The solution – solve a problem/meet a need 3.The market – describe customer concretely

III. Content of the Pitch 1.The problem – customer-focused 2.The solution – solve a problem/meet a need 3.The market – describe customer concretely 4.The competition – acknowledge

III. Content of the Pitch 1.The problem – customer-focused 2.The solution – solve a problem/meet a need 3.The market – describe customer concretely 4.The competition – acknowledge 5.Competitive advantage – tell what is hard for others to duplicate

III. Content of the Pitch 1.The problem – customer-focused 2.The solution – solve a problem/meet a need 3.The market – describe customer concretely 4.The competition – acknowledge 5.Competitive advantage – tell what is hard for others to duplicate 6.The revenue model – explain how you will make money

III. Content of the Pitch 1.The problem – customer-focused 2.The solution – solve a problem/meet a need 3.The market – describe customer concretely 4.The competition – acknowledge 5.Competitive advantage – tell what is hard for others to duplicate 6.The revenue model – explain how you will make money 7.Operations – say how you will produce your product/deliver your service

III. Content of the Pitch 1.The problem – customer-focused 2.The solution – solve a problem/meet a need 3.The market – describe customer concretely 4.The competition – acknowledge 5.Competitive advantage – tell what is hard for others to duplicate 6.The revenue model – explain how you will make money 7.Operations – say how you will produce your product/deliver your service 8.The team – demonstrate credibility

III. Content of the Pitch 1.The problem – customer-focused 2.The solution – solve a problem/meet a need 3.The market – describe customer concretely 4.The competition – acknowledge 5.Competitive advantage – tell what is hard for others to duplicate 6.The revenue model – explain how you will make money 7.Operations – say how you will produce your product/deliver your service 8.The team – demonstrate credibility 9.The finances – describe what you have raised and what you need

III. Content of the Pitch 1.The problem – customer-focused 2.The solution – solve a problem/meet a need 3.The market – describe customer concretely 4.The competition – acknowledge 5.Competitive advantage – tell what is hard for others to duplicate 6.The revenue model – explain how you will make money 7.Operations – say how you will produce your product/deliver your service 8.The team – demonstrate credibility 9.The finances – describe what you have raised and what you need 10.The close – make strong closing by reiterating key points

III. Content of the Pitch 3 Things NEVER to say:

III. Content of the Pitch 3 Things NEVER to say: – All I need is 1% of the market.

III. Content of the Pitch 3 Things NEVER to say: – All I need is 1% of the market. – There is no competition.

III. Content of the Pitch 3 Things NEVER to say: – All I need is 1% of the market. – There is no competition. – Everyone will buy.

IV. Delivery of the Pitch Keep it simple: – Essence of business – Speak in plain terms – Avoid industry/technical jargon

IV. Delivery of the Pitch Say the unexpected: – Pose unusual question – Present a stunning statistic – State an interesting analogy

IV. Delivery of the Pitch Be concrete: – Point to human actions – Provide sensory information – Avoid clichés

IV. Delivery of the Pitch Demonstrate credibility: – Investors bet on people – Explain capabilities – Present team’s credentials

IV. Delivery of the Pitch Show emotion: – Let interest/passion show – Be genuine/authentic – Reflect own values

IV. Delivery of the Pitch Tell a story: – Explain how you got into business – Indicate why product/service is important – Communicate benefit to customers

The Powerful Pitch – Pitch to everyone, everywhere at any time!