Sales Pitch – Dutch Uncles

What Does It Take To Create An Investor Ready Pitch Deck?

Abhilash Bapanasha — Thu, 05 Aug 2021 12:51:27 +0000

A pitch deck is a presentation that helps potential investors learn more about your business. These slides of several presentations help you to tell a compelling story. What the company’s overview is, its vision and mission, team, problem, solution, market opportunity, product, customers, marketing and sales strategy. Our Innerview with Mr. Dilnawaz Khan highlighted his entrepreneurial journey, and during his learning and evolution how he mastered Pitch Decks. Innerview is our weekly live 45-minute motivational and inspirational talk show which features interviews of industry experts who bring forth informative and life experiences and techniques to help shape and gear you up, to succeed.

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You have to think of breaking out the problem into smaller parts and that is an art. The problem is - a lot of first-time entrepreneurs get discouraged when we tell them this - you do not go and solve what will happen on the thousandth day, you start from day zero and slowly build on top of it.

Mr. Dilnawaz Khan is the founder at Codesign Labs and Power Deck. With over 12 years of professional experience across the design, technology, and start-up incubation industry, he is also a Subject Matter Expert on Pitch Decks, Start-up Fundraising and Lean Start-ups. He acts as an Advisor at various academic institutions where he supports them with the creation of an entrepreneurial ecosystem focussing on student entrepreneurship and innovation.

In brief, the session had the following takeaways:

Dos and don’ts for an investor pitch deck
How to create and irresistible and compelling pitch deck for investors
Structuring of an investment pitch, its importance
What to cover and what to ignore
Importance of the start-up pitch deck or slide deck

Here are some excerpts from the interview:

According to you, what should weigh more – the problem or the solution when we create that pitch?

Identifying a great problem is an art, creating a greater solution on top of it is a bigger art. Eventually the goal is to create a business. So, everything is of equal importance. May be five things I can say that an entrepreneur needs to look at – looking at a great problem, creating a world class solution, creating a desirable solution for a feasible or viable business, and last but not the least there has to be some sort of a long term vision to enable all of these and on top of it a great team to execute all of these. So, if you have a great idea, a great problem, a great solution but a bad team, you are in a bad state. But you have a mediocre idea and a mediocre solution but it is a rockstar team behind it, you will be definitely going to kill it.

Are there any errors that you have seen that people can be aware of?

I can point out what are the mistakes first time entrepreneurs commit. You have to think of breaking out the problem into smaller parts and that is an art. The problem is – a lot of first-time entrepreneurs get discouraged when we tell them this – you do not go and solve what will happen on the thousandth day, you start from day zero and slowly build on top of it. Again, regarding solving too many problems at a time, I met some interesting startup founders. A lot of them say that I am thinking of making a startup which is Zomato plus Paytm plus Book my Show and I have no competition at all. Of course, when you look at that particular thing, it will have zero competition. But individually if we look at them, there are vertical leaders to compete with. So, do not try and solve everything. Another big problem is that the motivation to do a startup until and unless they jump into the ecosystem is derived from external sources like funding stories, Pitchers, Silicon Valley and so on and so forth. Do not solve a mammoth problem on day one, start from a small problem and build on top of it. Create a better start of your journey when it comes to beginning the startup game.

As we say that the first impression is the lasting impression, would you like to share any thumb rule?

I think one thing that a lot of investors like is authenticity. There are a lot of things you do not have an answer for. Be authentic, just say ‘I don’t know’ and move on. Always make sure that your communication is crisp, clear, to-the-point. Thirdly, which overall again is a very cliche advice but again very very underestimated is to make sure that you leave a great impression. Make sure people see that you are invested, you have put in time, money and energy. And you have prepared well. So, your deck should be very nice, if not designed well, at least aesthetically nice. Your communication should be well. Your pitch should start on time, end on time. You should be very clear as to what you want to talk about. So, practice enough. As per the industry, you have to make at least a hundred pitches to get your first deal. Make sure that you are invested enough. If not, people will again catch hold of you and they will realise that you are faking and nobody likes fakers.

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On an average, an analyst at a VC firm evaluates five thousand decks in a year, so it is very very important for you as an entrepreneur to figure out the right method and the right mechanism and make it customisable.

Audience Asks:

What do you suggest about connecting to investors for pitching? Which will be better – a live presentation or just mailing the slides?

When you are reaching out to investors, there are multiple methods. Incubators and accelerators are the lowest hanging fruits. If you get selected, the incubator will definitely host a demo day where you get access to investors. If you apply to an accelerator programme, similar things will happen. Another method is reaching out to investors via cold mail – which is hunting them on LinkedIn, reaching out to them, looking for their email IDs, writing to them. If you mean going in front of them and presenting, then every time you will not get that opportunity. So, if you are sending cold emails to investors then make them customised as if they are for that person. Do not spam investors, do not create one fits all, people like customisation. When you are reaching out in that sense, I think mailing slides is perfect – that is a very good method but make sure your slides are crisp, five to seven, maximum ten. Everybody has their own mechanism and it is very very important for you to identify what they like. On an average, an analyst at a VC firm evaluates five thousand decks in a year, so it is very very important for you as an entrepreneur to figure out the right method and the right mechanism and make it customisable.

I sent mails to a lot of incubation centres and investors but there is no response for the mail from them. What do you suggest for contacting better?

Out of every hundred mails, you will just get a response from two people. That is the conversion of cold emailing and we have to admit it. If you have not heard for first time, you have to send a second email, then third and fourth. Your chances of conversion will definitely increase. Most of the incubation centres have a proper enquiry form or a programme where you can apply. But let me tell you the flipside of it. In a lot of cases when a lot of people write to somebody, they write with a sense of entitlement that I am entitled to receive a reply and they do not do an introspection. We have to even introspect ourselves and review what we are sending out to them. There is a possibility that the idea might not be good enough for the incubation centre, or your business is not at the right fit for the incubation centre or you are really early in the game to accept you. So, you have to again find a fine balance between both the things – right approach, evaluating yourself and making improvements in the keeping update – this is a cyclic process, it keeps on going and eventually you will reach there.

The Key to Compelling Pitch Deck

In this way, Mr. Dilnawaz Khan, from his own experience of sitting on both sides of the table – pitcher as well as investor, has elucidated the importance of this visual document providing essential information about your business plan, product or services, fundraising needs and key metrics like valuation, target market and financial goals. However, the success of a pitch deck depends on its storytelling, so as to streamline the informative overview of your company to potential investors, such as venture capitalists or angel investors. It remains the key for acquiring funding.

The post What Does It Take To Create An Investor Ready Pitch Deck? appeared first on Dutch Uncles.

Sales Pitch Fundamentals: Sharpening Your First Impression

DU Desk — Sun, 27 Dec 2020 22:11:17 +0000

Wherever you go nowadays you are bombarded with one sales pitch after another. Whether we are at the grocery store or a train station. Someone is always trying to sell you something. It has become such a frequent thing that most of these sales pitches get blocked out or become a sort of white noise that we just push to the background. What if you were the one trying to do the selling? How would you go about doing it? Let us have a look at what you need to do to successfully execute a sales pitch and stand out from the crowd.

What Is A Sales Pitch And Why Is It Important?

At its core, it is the announcement to the world, letting everyone know who you are, what you represent and what you bring to the table. Think of it like advertising your debut. If you are looking for a more by-the-book definition, then it is essentially a short presentation to the general public or potential stakeholders. It lets any future customers or investors know who you are and sells your brand in a way that will make them want to invest time and money in your business.

It is important because, in the world of business, a product or service needs to be marketed and advertised amongst the audience before it can be sold. After you deliver the initial sales pitch, you will get a certain amount of feedback. The feedback will let you know how marketable said product or service is. Only when you know whether something will succeed can you invest in it, otherwise the business takes the hit in terms of lost revenue and brand value.

It Is A Formula, Not A Natural Skill

The thing about a sales pitch is, at the end of the day, it comes down to being able to talk to people. It is as simple as that. On the other hand, it has many layers and techniques to it that make this simple concept a challenging task to execute without the right tools. You will often hear the phrase “He is a natural salesperson.” The truth is, no one is a natural salesperson – true some people are naturally charismatic and excel at interpersonal communication skills, but for the most part, it is a learnt skill.

The best sales reps have a developed and perfected formula that is repeatable and flexible for several different situations. That is how they win over the audience every time. They market the brand or the product to solve a problem, rather than trying to sell a solution. That is to say, they suggest different applications and scenarios where it can be used and let the customer make up their minds rather than forcing the solution on them. They try and understand the customers and approach them as people rather than the bottom line of their monthly quota.

The Essentials Of A Solid Sales Pitch

Research and create a hook

Even before you can think about pitching a product you need to do your homework. Think of the sales pitch as the stage where you try to get the green light for the product or service and this as the research stage to see if that effort of pitching the idea will pay off. You need to have a product or service that addresses a direct need for the consumer or investor. You must present a clear and concise plan in a very limited amount of time. People want to see that your brand can take this idea forward and scale it up. They also want to see how creatively you solve that problem. A good place to start is to look at what your competition is doing, set that as the baseline of the minimum you need to achieve and then build on top of that. Standing out is key.

Another aspect that the research helps you identify is the ratio of left-brain to right-brain thinkers in your audience. Left-brained people are more inclined towards facts and analytics, the right is more visual and takes the ideas in better if it is more graphically engaging. Knowing the ratio lets you adjust the sales pitch accordingly so everyone in the audience is equally engaged.

Try to have a conversation

When thinking of a sales pitch you might envision a man in a suit standing in front of a crowd or a board-room of investors giving a short PowerPoint presentation. While this is often the case, it does not make for a very appealing interaction. If you want to convince people you have a good idea, talk to them. Engaging in a dialogue with the audience is much better than monologuing and gives you valuable feedback on how the idea comes across off the bat.

This process helps sharpen the point of the sales pitch – identifying a feasible way to give the buyer what they want. At any point in this interaction if someone has a concern or a question try to back it up with facts and figures. People appreciate the concrete evidence; it gives them confidence that the product or service can work and is worth investing in.

Make some waves

Many times you will see repetitive sales pitches. What the audience and investors look for is something innovative that will revolutionise the market. Keep in mind that investors will be pouring in a significant amount of their money into your idea so it is important to give them something that is guaranteed to work out. Beyond that, you need to provide them with clear advantages that it will have over the competition and back it up with facts. Investors need to be able to see the marketability of the product or service.

A Few Good Ways To Stay Ahead Of The Competition:

- - Do surveys and talk to potential customers.
  - Read online reviews of your competition.
  - Get in on the latest trends by jumping in on social media groups and other online platforms.
  - Do keyword research and look into the latest in AdWords being used.

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The sales pitch is more dependent on people skills than on technical know-how. Master communication and you will breeze through sales pitches.

Proof Of Concept

This point is linked to the previous one. Showing people that this idea is a logical move and is worth investing in. One way to achieve this proof is to create a prototype of the product or a demonstration of the service. This not only shows the proof of concept, but it also displays the amount of research and thought behind the idea. This will improve their confidence in said idea.

Another way to provide proof is to do a focus group. A focus group is generally a group of people from various demographic backgrounds that are gathered to give all-round feedback on a particular subject. Conducting research this way helps determine how people in the market might respond to your idea. It has the same outcome as a survey, just on a much smaller scale.

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A sales pitch is not a one-off thing. It is a continuous process that needs care and attention in order to make sure the project comes through.

Follow-Up

Most sales pitches often go unheard if it is just a one-time thing. Yes, the initial pitch will help move the project forward when it comes to that board-room of investors, but what happens when it is to a public body? Your customers are not just your customers, they are bombarded by millions of suggestions, advertisements, brands and other sales pitches every day. To stand out in this chaos you need to be persistent and consistent.

Be persistent because the turnover rate increases after every follow up to the first conversation. This is why you see companies spamming their clients with email after email, chances are one of those who will grab the customers’ attention and get a response. In terms of being consistent, you need to stay on brand. Stick to the message you intended throughout the different attempts to reach out and engage, showing a consistent set of values and quality. This sends the message that your brand is not only actively engaging the customers, it is also reliable.

Having said that, it all just comes down to simple ‘marketing’, whether it is a product, a service or a brand launch, you need to sell it. It is true what they say, “The first impression is the best impression.”

The post Sales Pitch Fundamentals: Sharpening Your First Impression appeared first on Dutch Uncles.