Ideas Into Dollars: The Sound Business Pitch

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No matter how amazing your venture may be, if you can’t show others how great it is, you might miss your opportunity to get it started. Getting funding isn’t easy and these days venture capitalists are less likely than ever to invest in startups. So it’s important to have the pitch perfected--whether its the impromptu elevator pitch or a formal written business proposal.
 
This semester, Northeastern University’s venture incubator IDEA (Inter-Disciplinary Entrepreneurship Accelerator) had 14 student businesses apply for funding. In the end, only one was awarded 10K in capital. Key to their success was a comprehensive business proposal. 
 
So let's start with the business plan itself. Having a sound proposal means mapping out every aspect of your venture. This includes doing market research, beta testing, researching competitors, working out finances, identifying the legalities of your company, assigning roles to team members and determining an exit strategy. The people reading your plan will want to see every little detail thought out and explained.   

 
In short, show that you have your bases covered, leave no room for questions and make potential investors feel confident in your business. It will help you feel more confident, too.

 
Now for the elevator pitch. It should be a short, but detailed, overview of what your company does--without boring the audience. You never know when an opportunity may arise so have a variety of elevator pitches stored in your memory ready to be delivered at any given moment. Each pitch should be tailored to your specific audience, from the potential investors to potential clients. (See more about perfecting the elevator pitch here.)
 
But what about the formal presentation? Yes, public speaking can be nothing short of terrifying. It's vital to walk in the room knowing not just the ins and outs of your potential company, but also of your competitors and customers. The last thing you want is for audience members to lead others to believe that they have a better grasp of the market than you do. You’re a young entrepreneur, but coming across as knowledgeable will show the seasoned professionals that you’re committed to and prepared for the tasks you’re laying out.
 

It’s great to be optimistic about your business and hope for the best, but it’s unlikely that everything will go as planned and foolish to think it will. A huge factor in deciding whether or not a company is investment-ready is the potential for risks, as well as the strategies presented that could be employed to avoid or mitigate said risks. In the presentation and written proposal, it’s vital to identify both. Point out what you will do should anything go wrong, and how your company will evolve and benefit from these mishaps. Neglecting to acknowledge that launching a business is a gamble may tell the audience that you are not prepared to start one.
 
The Q&A period: Your portion of the presentation is complete. Now come the questions. This should be looked at as an opportunity to expand upon points made and address any lingering questions the listeners may have. These moments can be nerve-racking, but it’s important to be receptive to whatever the audience throws at you.
 
The people asking questions and making comments likely have years of experience in the business world and can offer valuable advice. Listen to what they have to say, and remember you are not being attacked by their, maybe intimidating, comments. After the question and answer session, follow up with those who you feel will be able to provide further insight. This is a great opportunity to learn more about the market and create new relationships with people you may be working closely with in the future.
 
By employing all of these tactics, you’re sure to have a great business plan and delivery.  The more you immerse yourself in the world of your own startup, the better chances you have of spreading your passion, getting others on board and finding success.
 
(Photo of Northeastern student Jim Parker as he talks about his business idea/taken by Gina Bollenback)
 

Megan Linebarger is a communications officer for Northeastern University's IDEA program. She is writing a bi-weekly column on young entrepreneurship.

 
Read more from YPNation on how one young professional went from unemployed to starting his own non-profit.