Beruflich Dokumente
Kultur Dokumente
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HOW TO PITCH AND
GET FUNDED
Business pitch secrets, techniques, and tools
from a seasoned entrepreneur
CAROLINE CUMMINGS
BPLANS.COM
CAROLINE CUMMINGS
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10
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CHAPTER ONE
The Components of a
Successful Investor Pitch
CHAPTER FOUR
Additional Resources
CAROLINE CUMMINGS
CHAPTER ONE
THE
PURPOSE
OF THE
PITCH
The Purpose of
Delivering a Pitch to
Lenders of Investors is:
TO MAXIMIZE AN OPPORTUNITY AT-HAND
This is why being prepared is so important, because
you never know when an opportunity to pitch will
present itself. This also shows that you can think
quickly on your feet, a skill any successful entrepreneur needs.
TO GRAB YOUR AUDIENCES ATTENTION AND LEAVE
THEM WANTING TO KNOW MORE
Dont bore them with technical details about your
product. You want to pique their interest to the
point where they are asking to set the next appointment. Ive heard many investors say that if
they walk away from hearing your pitch and cant
remember anything, or cant easily communicate
it to others, then youve lost their interest. Practice
this next suggestion to avoid this from happening
to you.
TO TELL A STORY
The best pitches are the ones that begin with a
compelling story about someone using your product, and how it helped them (i.e. saved them time,
money, or perhaps saved their life). If you are having difficulty coming up with a story, talk to one of
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To grab your audiences attention and leave them wanting to know more
To tell a story
Investors worth their weight will want to share their resources with you
once they find interest in you and your business, so be sure to find funding
partners who bring more than money to the table. You want funding partners who are willing to share their social capital as much as their financial capital with you. Also, conduct due diligence on the investors youre
pitching. Its as much your choice to do business with them, as its theirs
to choose to invest in you.
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CHAPTER TWO
THE
DIFFERENT
TYPES OF
BUSINESS
PITCHES
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TIP
Learn to tell a Story. I highly recommend you start-off any pitch
by telling a story. Your story should speak to how your product
solved someones problem. Dont jump right into why youre
great and why your product is great. Rather, the most successful pitches Ive delivered and heard started with a compelling
story. At the end of the day, your audience will remember the
story, and not your numbers or market facts.
The best way to ensure that your onstage performance is
exciting and memorable is to consult with someone who can
help you put your best performance foot forward.
Rehearse! Rehearse! Rehearse! As the old adage goes, you
only get one chance to make a great first impression. Believe
me, Ive bombed at delivering a pitch on stage and Ive excelled.
The latter is much more exciting.
Enroll in a public speaking class or acting class to help you
learn how to deliver your content in a confident and professional manner. Toastmasters International is a great resource.
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CHAPTER THREE
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THE
COMPONENTS
OF A
SUCCESSFUL
INVESTOR
PITCH
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Your pitch should support the philosophy of communicating snippets of information in 140 characters or less sound familiar? Just like Twitter,
you should be able to describe each section of your
pitch in a succinct manner. This will also help you
communicate the most important components of
your business pitch.
SIDE NOTE
Below I present components
of a successful pitch using
the outline from a tool called
LivePlan. I provide examples
from a fictitious business called
Platinum Concierge: See a
sample one-page pitch page for
Platinum Concierge
PlatinumConcierge
WeareaboutiqueconciergefirminNew
YorkCitythatoffersservicestailoredtomeet
allofyouruniquepersonalandprofessional
needs.
Problemworthsolving
Oursolution
Businessexecutiveslose25%oftheirworkweek
performingtasksthatarenotstrategicinnature.
Weprovideourclientswithahighlyexperiencedand
dedicatedassistanttohandletheirrequestsonanas
neededbasis.
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The Market
Opportunity
Unless there is a problem worth solving in
the marketplace, dont bother starting that
business.
PlatinumConcierge
The Our Opportunity section is where you describe the problem that currently exists in the
WeareaboutiqueconciergefirminNew
market, as well as your solution
for addressing
this problem. Be as specific
as you can. You will
YorkCitythatoffersservicestailoredtomeet
be asked to backup this data, so be sure to include
allofyouruniquepersonalandprofessional
your research in your full business plan.
needs.
Problemworthsolving
Oursolution
Businessexecutiveslose25%oftheirworkweek
performingtasksthatarenotstrategicinnature.
Weprovideourclientswithahighlyexperiencedand
dedicatedassistanttohandletheirrequestsonanas
neededbasis.
Competitors
Your market opportunity section also features
TargetMarket
a chart depicting your Families>$400K
target market
segmentation
Premier
53%($9.8M)
Concierge
and a table
to highlight
your competition,
as well
Execfirms>$100M
27%
prospects
($13M)
NYCElite
as indicating what separates you from the competiConcierge
StockBrokers 20%($6M)
tion (your competitive advantage). Never say we
Intexecassistants
dont Marketsize:$28.8M
have any competition. If I had a nickel for
everytime someone said that, I would have a lot
of nickels. However, the people who thought they
2K
500K
Howoursolutionisbetter
Weprovideadedicatedprofessional
Ourpackagesaremoreflexible
OursocialcapitalintheCity
Hiresalesstaff,hireprogrammer,producerecruitment
events,onlineandofflineadvertising,andbuildconcierge
site.
Thisisnotanoffertosellorasolicitationofanyoffertobuyanysecurities.
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YorkCitythatoffe
allofyourunique
BPLANS.COM
needs.
2K
500K
1.Internalsalesteam
2.Utilizingexecutivenetworks
3.Utilizingeventmanagernetworks
4.SEOoptimizedwebsite
CAROLINE CUMMINGS
1.Advertisinginexecutivelifestylemags
2.Highenddirectmailpieces
3.Attendexecutivelevelevents
4.Hosthighendexecutiveevents
5.Writeandpositionanexecutiveblog
18
PlatinumConcierge
BPLANS.COM
WeareaboutiqueconciergefirminNew
YorkCitythatoffersservicestailoredtomeet
allofyouruniquepersonalandprofessional
needs.
Funding Needs
Weprovideourclientswithahighlyexperiencedand
dedicatedassistanttohandletheirrequestsonanas
growneededbasis.
their
2K
Howoursolutionisbetter
Weprovideadedicatedprofessional
Ourpackagesaremoreflexible
OursocialcapitalintheCity
Marketsize:$28.8M
500K
Hiresalesstaff,hireprogrammer,producerecruitment
events,onlineandofflineadvertising,andbuildconcierge
site.
Thisisnotanoffertosellorasolicitationofanyoffertobuyanysecurities.
Ive seen too many pitches where the entrepreneur says, we only need $200,000 to scale the
Saleschannels
Marketingactivities
company, yet they dont really know how they
1.Internalsalesteam
1.Advertisinginexecutivelifestylemags
will
spend that money. Or they say well2.Highenddirectmailpieces
use half
2.Utilizingexecutivenetworks
3.Utilizingeventmanagernetworks
3.Attendexecutivelevelevents
of it
to hire people and the other half to build
our
4.SEOoptimizedwebsite
4.Hosthighendexecutiveevents
product, but after you dig into their business
plan,
5.Writeandpositionanexecutiveblog
you see that they dont need to hire people until
after the product is developed. This is where mentors come in handy. Its difficult to know how you
will spend every dollar, but it should be fairly easy
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500K
BPLANS.COM
Hiresalesstaff,hireprogrammer,producerecruitment
events,onlineandofflineadvertising,andbuildconcierge
site.
Thisisnotanoffertosellorasolicitationofanyoffertobuyanysecurities.
Saleschannels
Marketingactivities
1.Internalsalesteam
2.Utilizingexecutivenetworks
3.Utilizingeventmanagernetworks
4.SEOoptimizedwebsite
1.Advertisinginexecutivelifestylemags
2.Highenddirectmailpieces
3.Attendexecutivelevelevents
4.Hosthighendexecutiveevents
5.Writeandpositionanexecutiveblog
Financial
Projections
Your full business plan will include the details
behind your topline numbers, but for the sake
of your pitch, its okay to just share your topline
revenue, expenses, and profits.
I recommend only projecting out three years. Some
investor groups may require five years, but more
and more are moving to only requiring three. Ive
met with many investors who only required two-
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$6.6M
$4.3M
$3.6M
$2.5M
$1.4M
$2.3M
$1.1M
$1.1M
$253K
FY'13
FY'14
FY'15
Revenue
FY'13
FY'14
FY'15
FY'13
Expenses
FY'14
Profit
year projections and they wanted very specific details about how I came up with those numbers.
When an investor or lender asks you for your
financial assumptions, they are asking you to tell
HostStockBrokerSocial
HireSalesPerson
Secure$500Kloanor
Secure3Fortune1000
investment
firms
the story behind
your
numbers.
Investors
may
even
Feb26,2014
Mar6,2014
Mar21,2014
May14,2014
ask you, what are the numbers behind your numbers? They are asking you how you came to project
$1.4M in sales for 2013, for example. They will want
to hear things like, the $1.4M revenue is based on
closing 50 family accounts at an average of $12,000
each; 10 executive firms at an average of $50,000
each; and 40 stock brokers at an average of $8,000
each. Your fullAlexaRamsey
business plan is where
you will pro- LillyDavenport
RobertMcGeary
CFO/cofounder
OfficeManager
vide this level CEO/cofounder
of descriptive financial
detail.
Alexa(B.S.inComms)has20
Robert(MBAinFinance).Retired
Lilly(B.A.inEventsMgmt)has
yearsexperience,connections
stockbrokerwithdeep
15yrsexphostinghighend
andgreatreputationasasenior
connectionsinthefinancial
partiesforNYC'seliteandhas
execassistantattopNYCfirms
district.Hassuccessfully
anexcellentreputationand
managedover$200Binassets
socialnetowrk
OPENPOSITION
ColinFairfield
SalesManager
Investor/Adviser
CAROLINE CUMMINGS
PartoftheFaiirfieldFamily
Foundation.Colinishelping
FY'15
22
BPLANS.COM
$6.6M
Milestones
$4.3M
$3.6M
$2.5M
$1.4M
$2.3M
$1.1M
In theFY'13
investor
world,
traction
is a frequently
FY'14
FY'15
FY'13
FY'14
FY'15
used term.Revenue
Ive been asked many times
by
Expenses
investors, tell me about your traction.
HostStockBrokerSocial
HireSalesPerson
Feb26,2014
Mar6,2014
FY'14
Profit
Secure3Fortune1000
firms
Mar21,2014
May14,2014
yearsexperience,connections
stockbrokerwithdeep
andgreatreputationasasenior
connectionsinthefinancial
Signing a lease
for a building district.Hassuccessfully
execassistantattopNYCfirms
managedover$200Binassets
Purchasing key equipment
Securing your first customer
Raising money or securing a bank loan
A key hire
OPENPOSITION
ColinFairfield
A signed letter
of intent (LOI) from
a customer
SalesManager
Investor/Adviser
A media mention
PartoftheFaiirfieldFamily
A new sales channel
Foundation.Colinishelping
Results achieved from your marketing activities
CAROLINE CUMMINGS
FY'13
Secure$500Kloanor
investment
$1.1M
$253K
LillyDavenport
OfficeManager
Lilly(B.A.inEventsMgmt)has
15yrsexphostinghighend
partiesforNYC'seliteandhas
anexcellentreputationand
socialnetowrk
FY'15
23
BPLANS.COM
SIDE NOTE
Utilize your support network
and ask for their feedback
about your pitch before going
prime time. I made not three
or four, but 30 to 40 revisions
of my pitch before actually hitting the stage at Angel Oregon.
That extra research and work
paid off.
$4.3M
$2.5M
Secure3Fortune1000
firms
May14,2014
AlexaRamsey
RobertMcGeary
LillyDavenport
CEO/cofounder
CFO/cofounder
OfficeManager
Alexa(B.S.inComms)has20
Robert(MBAinFinance).Retired
Lilly(B.A.inEventsMgmt)has
yearsexperience,connections
stockbrokerwithdeep
15yrsexphostinghighend
andgreatreputationasasenior
connectionsinthefinancial
partiesforNYC'seliteandhas
execassistantattopNYCfirms
district.Hassuccessfully
anexcellentreputationand
managedover$200Binassets
socialnetowrk
CAROLINE CUMMINGS
OPENPOSITION
ColinFairfield
SalesManager
Investor/Adviser
24
BPLANS.COM
securethecompany'stop5
accounts
ExecutiveLimousine
Service
FinancialExecutives
Network
NYCBizExecNetwork
NYCBizExecNetworkhas
NYCExecPlannersistheCity's
ExecutiveLimousineServiceisa
TheFinancialExecutives
120,000executivememberswho
premiereventplanningsupplier.
meetquarterly.
5starluxurytransportation
Networkisthepremier
companythatservestheNYC
organizationforfinancial
corporatemarket.
executivesintheNewYorkarea.
Partners &
Resources
CreatedbyCarolineCummings(caroline@paloalto.com)usingLivePlan.Allrightsreserved.
CAROLINE CUMMINGS
NYCExecPlanners
Accountants
Distributors
Lawyers
TIP
Find yourself a mentor! I cant
emphasize this enough.
Its important for the following
reasons:
You will get feedback and
advice that will help you
and your business grow.
Investors want to know
who believes in you and
who supports your ideas.
Your mentor may be
able to open doors of
opportunity for you.
To me, mentorship is like
breathing air you need it
to survive!
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CHAPTER FOUR
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ADDITIONAL
RESOURCES
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Additional Resources
BLOGS
Bplans Blog
http://articles.bplans.com/
Startup Weekend blog
http://startupweekend.org/blog/
VentureBeat
http://venturebeat.com
LivePlan blog
http://www.liveplan.com/blog/
VIDEOS
How to Deliver a Powerful Investor Pitch in 10 Minutes
http://www.liveplan.com/blog/2012/09/free-how-to-pitch-webinar-sep26-10am-pt/
How to Write a Winning Business Plan
http://www.liveplan.com/blog/2013/01/webinar-series-how-to-write-a-winning-business-plan/
Demo of the LivePlan Pitch tool
http://www.liveplan.com/blog/2012/12/webinar-series-liveplan-pitch-demonew-lean-planning-tool/
Business planning expert, Tim Berry, talking about how to deliver a 60
second elevator speech
http://www.bplans.com/business_planning_resources/videos/the_elevator_pitch
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StudentMentor
http://www.studentmentor.org
Youth Entrepreneurship Council
http://theyec.org
For non-US entrepreneurs, I recommend connecting with your local college or university to see what programs they offer for small businesses and
entrepreneurship.
CAROLINE CUMMINGS