March 18, 2011
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When it comes time to pitch your company to investors, most business owners play it safe. They have their traditional PowerPoint presentation that includes the Mission, Vision, Product description, management team experience, sales strategy, financial projections and competitive advantages. That’s fine, but it isn’t enough to convince investors to write you a check. Experienced angel investors and venture capitalists evaluate dozens or hundreds of potential investments each year. Most of them have the same information you provide. They need to see something more to be convinced; they need to see you.
Taking it personally
Every entrepreneur that I have ever known (including me) has a personal connection to their business. Maybe your father bequeathed it to you and you want to make him proud by expanding it. Perhaps you were injured in an accident and during the recovery you thought of your idea. Or maybe you discovered something accidentally one day and recognized it as a tremendous business opportunity. It’s this personal connection to your business that helps to differentiates you.
Why you should take it personally
By sharing with investors the personal connection, you accomplish several goals:
You communicate your personal commitment to the business.
Given the inherent challenges of starting and running a business, it is reassuring for investors to know that there is something other than money motivating you. At the most difficult moments, it’s the personal connection that will give you the strength to push through.
Want to read more on getting investors? Check these out:
You humanize yourself.
This may come as a shock to some, but investors are people too! They are (mostly) regular people who are investing more so in you than in your company. They want to know if they can work with you on a regular basis for years. Letting down your guard so they can see “the real you” will usually times be reciprocated. This type of honesty is important. Both parties need to know if they can work together at 3 a.m. on a Saturday to meet a deadline if needed.
How to integrate the personal
When pitching your presentation there are optimal ways to insert your personal story. Some ideas include:
- Starting off with your personal journey. Show how your personal story led you on a journey to start or acquire your business. Use it to set the stage.
- Showing differentiated product knowledge. If your personal experiences led you to develop a special knowledge or expertise, tie it in when discussing product knowledge. This is especially effective for technology-based products and services. One client that I assisted had developed an advanced building security solution based on his experiences as a scientist trying to protect his work.
- Demonstrating intimate knowledge of the customer. At a startup conference some years ago, I listened to several dozen pitches over the course of a few hours. Ten years later, I still remember the pitch given by a cancer survivor who had developed a therapeutic product to assist other cancer survivors.
What you shouldn't do when personalizing your pitch
Establishing the personal connection is important, but there are some mistakes you should avoid:
Don’t go too far. Investors don’t want to see you cry. If it is an emotional experience—such as the death of a loved one—that motivated you to build your company, make sure you can handle telling the story. Practice in front of a non-threatening group to see how you perform. Don’t risk it in front the investors. Getting emotional may give the impression that you are emotionally unstable.
Don’t exaggerate. It’s entirely possible for you to get a little carried away when telling your personal story. If that’s the case and you stretch the truth a little bit (on purpose or by accident), you could lose the investment. Potential investors will research everything you say. Any deviation from reality is enough of a reason for them to invest somewhere else.
Don’t drag it out. The personal story should be presented emphatically, but it shouldn’t dominate your pitch. If you have 10 minutes to present, your personal story should only consumer 1 to 2 minutes total.
Don’t forget to tie it to the business. The personal story needs to be relevant to your business and should be woven into the company’s storyline. If the connection isn’t very strong or would seem irrelevant, then you need to reconsider presenting it.
Check your balance, review recent transactions and pay your bill on the go.
