By Nathan Beckord
Extra complicated storytelling leads from emotion quite than drawback/resolution.
Raj Nathan needs you to have a voice. In reality, he needs everybody to have a voice. And he helps startups use their voices to inform their tales—and to pitch traders.
Based mostly in Chicago, Raj is a pitch and presentation coach, serving to startups get up and stand out in a crowded area. His small group at Startup Hypeman works with 5 to 10 organizations per week to hone their elevator pitches and pitch decks. “Startup Hypeman is intently targeted on being a hype man for startups, by serving to them not suck at how they pitch themselves,” he says. “And most frequently, that’s for the aim of fundraising.”
The issue with most pitch decks, in line with Raj, is that they both don’t inform a compelling story or they fail to inform a narrative in any respect. That’s true even when an organization has an unbelievable product.
On this article, Raj walks us by way of the steps he makes use of with entrepreneurs to show run-of-the-mill pitch decks into ones that do the heavy lifting for you.
A successful pitch in 5 steps
Step #1: Make your elevator pitch the inspiration
The very first thing Startup Hypeman works on with any consumer is the elevator pitch. Raj says many entrepreneurs fall into the lure of attempting to cram an excessive amount of data—or not sufficient—into their elevator pitches. “By the top, you are simply extremely confused as to what they do. There’s this push from a number of founders to be like, I gotta use all of the jargon phrases attainable to make this sound attention-grabbing,” he explains.
As a substitute, he has what he calls a “Que PASA” framework: Drawback, Method, Resolution, Motion. We’ve all seen (or maybe made) the pitch deck that begins with “X is a $50 billion trade.” Whereas numbers might be useful elsewhere, Raj needs founders to consider deeply defining the issue, as a result of as his dad used to inform him rising up, “A well-defined drawback is already half solved.”
Step #2: Arrange the emotion
Raj talks in regards to 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 annoyed. Jimmy finds an answer and lives fortunately ever after.” Extra complicated storytelling leads from emotion quite than drawback/resolution. Right here’s how he approaches an issue from emotion quite than mechanics: “We construct up this story throughout a number of slides about how the world is turning into extra genuine,” Raj says.
He offers the instance of celebrities who make genuine connections with their followers on social media. The hashtag “#nofilter” is extra widespread than utilizing filters on Instagram. Then he ties that again to the (hypothetical) product: Regardless of authenticity being on the rise, courting nonetheless stays inauthentic. Right here’s an app to extend authenticity in courting.
Step #3: Element the go-to-market technique
That is the place to be express. You may have a fantastic product, however for those who don’t present the way it will generate profits, it’s value nothing to traders.
“I’ll ask entrepreneurs a query about their traction technique. And so they’ll simply be like, ‘ Oh, social media. Okay, what about social media?’ After which it is a deer-in-the-headlights look in response,” Raj says.
Whether or not it’s adverts, social media, or partnerships, you’ll want to suppose by way of the way you’ll generate profits and make that the main target of your go-to-market technique. And with adverts, take into account how rapidly you possibly can entice promoting {dollars}. He says, “You are standing right here and also you’re telling me that on day 5, if you’ve received 9 customers, you are going to entice advertisers? Why would they purchase from you? What worth might you probably carry them? I get animated about that.”
Step #4: Specify what success seems like
Metrics might be tough. Whereas some industries have commonplace metrics, they aren’t at all times the perfect for displaying how your startup works. So, present traders tips on how to measure your success from the start by telling them which metrics imply essentially the most.
Together with that, don’t use impartial headers in your slides. As a substitute of labeling a slide “Buyer acquisition,” begin with “We’re glorious at buying prospects—right here’s how.”
Step #5: Rethink the competitors
Moderately than utilizing the traditional four-quadrant competitors grid that’s been seen again and again, Raj likes to create exclusivity. He explains that by carving out a class all your personal, you get to set the tempo and create extra hype round what you’re doing. It’s not at all times attainable, however with some inventive considering, you possibly can set your self other than the pack.
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Raj’s do’s and don’ts for pitching traders
Listed below are some remaining suggestions of the commerce for a pitch that traders gained’t overlook:
Zoom in
For a lot of traders, watching pitches on Zoom is right here to remain. Raj recommends investing in a number of items of apparatus to verify your image is skilled. Meaning spending a number of hundred bucks on a very good lighting setup and an exterior digicam with greater decision than no matter your pc’s built-in webcam provides.
Don’t overlook that your background helps inform your story, too. Let it mirror your character and your model. Lastly, take a tip from newscasters the world over: Get up! Reconfigure your desk if you need to. The vitality enhance from standing whereas speaking will repay.
Begin early
Don’t craft your pitch the night time earlier than that you must give it. Ideally, Raj recommends beginning your deck at the very least a month earlier than you intend to begin pitching traders. That leaves loads of time for observe and revisions.
Recover from the hump
In the case of really placing the slides collectively for a deck, Raj begins in Phrase quite than PowerPoint.
“We begin in a Phrase doc,” he says. “For those who define it first … it is a approach simpler train. It makes then placing it on to slides loads simpler since you’re serious about not simply the uncooked data, but additionally [asking yourself], What’s my perception? Or — What do I wish to say about this factor?”
Generally the toughest a part of making a pitch deck is getting over your self and getting began.
Article is predicated 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 elevating capital. Nathan can be the CEO of Fundingstack.com, which is a brand new platform for VCs and funding bankers to each elevate capital and help purchasers and portfolio firms. Customers of those platforms have raised over $9.7 billion since 2016.
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