By Nathan Beckord
Extra complicated storytelling relies on feelings somewhat than issues/options.
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Raj Nathan needs you to have a voice. Actually, he needs everybody to have a vote. And he helps startups use their voices to inform their tales — and woo traders.
Primarily based in Chicago, Raj is a pitch and presentation coach who helps startups compete and excel in a crowded atmosphere. His small staff at Startup Hypeman works with 5 to 10 organizations every week to refine their elevator pitches and pitch decks. “Startup Hypeman makes some extent of being a hype man for startups by serving to them get out of the way in which of how they current themselves,” he says. “And principally it is for fundraising functions.”
In response to Raj, the issue with most pitch decks is that they both do not inform a compelling story or do not inform a narrative in any respect. That is true even when an organization has an unbelievable product.
On this article, Raj walks us by means of the steps he takes entrepreneurs to show atypical pitch decks into ones that do the heavy lifting for you.
5 steps to a profitable pitch
Step #1: Make your elevator pitch the muse
The very first thing Startup Hypeman works on with every shopper is the elevator pitch. Raj says many entrepreneurs fall into the entice of attempting to cram an excessive amount of info — or not sufficient — into their elevator pitches. “You find yourself simply extremely confused about what they’re doing. A number of founders insist that I take advantage of all types of jargon to make it sound fascinating,” he explains.
As an alternative, he has what he calls a “Que PASA” framework: Downside, Method, Resolution, Motion. We have all seen (or possibly created) the pitch deck that begins with “X is a $50 billion trade.” Whereas numbers might be useful elsewhere, Raj needs founders to consider a radical definition of the issue as a result of, as his father used to inform him as a baby, “A well-defined drawback is already midway solved.”
Step #2: Arrange the emotion
Raj talks concerning the distinction between what he calls “Cinderella storytelling” and “superior storytelling”. An instance of Cinderella storytelling is likely to be, “Jimmy has an issue. Jimmy is pissed off. Jimmy finds an answer and lives fortunately ever after.” Extra complicated storytelling relies on feelings somewhat than issues/options. This is how he approaches an issue emotionally somewhat than mechanically: “We’re constructing this story round a few slides about how the world is turning into extra genuine,” says Raj.
For example, he cites celebrities who set up genuine contacts with their followers on social media. The hashtag “#nofilter” is extra well-liked than utilizing filters on Instagram. He then brings that again to the (hypothetical) product: though authenticity will increase, relationship nonetheless stays inauthentic. Right here is an app to extend relationship authenticity.
Step #3: Element the go-to-market technique
That is the place to be express. You possibly can have an amazing product, however should you do not present how it may be used to earn a living, it is nugatory to traders.
“I will ask entrepreneurs a query about their traction technique. They usually’ll simply be like, ‘Oh, social media.’ Okay, what about social media?’ After which it is a glimpse into the headlights as a response,” says Raj.
Whether or not it is advertisements, social media, or partnerships, it is vital to consider how you will earn a living and make {that a} focus of your go-to-market technique. For advertisements, contemplate how shortly you may appeal to advert {dollars}. He says: “You stand right here and inform me that on the fifth day, when you may have 9 customers, you’ll appeal to advertisers? Why ought to they purchase from you? What value might you presumably carry to them? That upsets me.”
Step #4: Specify what success appears to be like like
Metrics might be troublesome. Whereas some industries have commonplace metrics, these aren’t at all times the very best methods to indicate how your startup is performing. So, proper from the beginning, present traders easy methods to measure your success by telling them which metrics inform essentially the most.
Additionally, do not use impartial headings in your slides. As an alternative of labeling a slide “Buyer acquisition,” begin with “We’re nice at buying prospects – here is how.”
Step #5: Rethink the competitors
Slightly than utilizing the basic four-quadrant aggressive grid we see again and again, Raj likes to create exclusivity. He explains that by establishing a class all your personal, you may set the tempo and generate extra hype about what you do. It isn’t at all times potential, however with some inventive considering, you may stand out from the gang.
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Raj’s Guidelines of Conduct for Pitching Buyers
Listed below are some remaining ideas for a pitch traders will not neglect:
zoom in
For a lot of traders, monitoring pitches on Zoom is a everlasting factor. Raj recommends investing in just a few units to make sure your picture is skilled. Which means spending just a few hundred {dollars} on good lighting and an exterior digital camera with a higher decision than your pc’s built-in webcam gives.
Do not forget that your background additionally helps inform your story. Let it replicate your persona and your model. Lastly, heed a tip from information anchors around the globe: stand up! Reconfigure your desk if crucial. The vitality enhance from standing whereas talking will repay.
Begin early
Do not design your pitch within the night earlier than it’s a must to current it. Ideally, Raj recommends beginning constructing your deck at the least a month earlier than your deliberate investor pitch. This leaves sufficient time for observe and revision.
Overcome the hump
In the case of really placing collectively the slides for a deck, Raj begins with Phrase, not PowerPoint.
“We begin with a Phrase doc,” he says. “For those who sketch it first… it is a a lot simpler train. That then makes it a lot simpler to put it on slides since you’re not simply fascinated by the uncooked info, you are fascinated by the [asking yourself], What’s my perception? Or – What would I prefer to say about that?”
Generally the toughest a part of making a pitch deck is getting over your self and getting began.
The article relies on an interview between Nathan Beckord and Raj Nathan on an episode of Foundersuite’s How I Raised It podcast.
Concerning the writer
Nathan Beckord is the CEO of Foundersuite.com, which makes software program for startups to boost capital. Nathan can also be CEO of Fundingstack.com, a brand new platform for VCs and funding bankers to each elevate capital and assist purchasers and portfolio corporations. Customers of those platforms have raised over $9.7 billion since 2016.
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