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9 Things That Take a Pitch From Good to Great

I’ve seen hundreds of business pitches, and most of them—at best—are just okay. There have been plenty of pretty good ones that hit all the key components of a pitch, but only a handful of those took it a step further and were truly great.

1. Tell a real customer story

When possible, open your pitch by telling a real customer story that addresses the problem your product or service solves in the marketplace. Avoid using buzzwords and tech talk when you tell your story. Instead, use real names and real customer challenges. Keep it simple and realistic. In the end, what people will remember after they walk away from you are the stories you tell, so it’s important to have a few compelling customer stories ready to share.

2. Pare it down to the essentials

I’ve heard many entrepreneurs deliver their pitch as if they’re auctioning off their grandmother’s antiques. It must be because they think they need to address every aspect of their business plan in one fell swoop, but doing so makes them seem anxious, tense, and nervous. I always wish they’d relax and realize that when you’re giving a pitch, less is more. Prioritize the most important things you want to share and stick to those pieces—and take a nice big breath before you speak. Believe me, it will help you deliver a more compelling and thoughtful pitch.

3. Outline your business model

Your business model tells an investor how your idea will (or does) convert into being economically viable. The best way to show you how to communicate your business model is to show you an example of a good one. Let’s take ZipCar, for instance. Their business model can best be described as:

• A membership-based car sharing company (they brand their members as “zipsters”)
• Reservations are easily and quickly made online
• Customers pay by the hour or by the day
• Serves US, UK, and Canadian markets
• Also targeting college campuses

In just a few short bullets, you can see how they make money and from whom. Your business model should answer the questions: What do you sell? To whom? How much do they pay? and How do they pay you?

4. Make sure your presentation is crystal clear to anyone and everyone 

If you can get someone who doesn’t understand your business model to grasp what you’re communicating, then you’re prepared to give a pretty good pitch. Some of the worst pitches I’ve seen have been filled with acronyms, tech speak, and gobbledygook. Keep your pitch short, sweet, and to the point. Practice your pitch on someone outside of your company, and ask them to repeat what they think your business model is back to you. I’ve done this many times, and it’s always an eye-opening exercise to hear what people repeat back.

5. Talk about yourself

6. Tell us, what have you done lately?

By this I mean that you should share the successes and traction your team has had since the inception of your company. It always surprises me how frequently this is left out of pitches. Investors want to hear about your first customers, other investments put into the company (including your own sweat equity), key media placement, signed letters of intent (LOI) to purchase/partner, product and customer milestones, key hires, etc. As the CEO of your own company, you will be expected to be the lead sales person, so show the investors that you know how to sell them on your own company.

7. Address competition head-on

First of all, never say “I don’t have any competition.” This is a rookie mistake, but many entrepreneurs say this. Everyone has competition, even if it’s indirect competition. Think about when Henry Ford built the Model T. Were there other cars on the market at that time? No, but he had to find a way to steal people away from other modes of transportation (horses, trains, and walking, for example). One of the best ways to illustrate that you understand your competitive landscape and your differentiators is to present your competition in a matrix format like this one:

8. Give the numbers that are behind your numbers

Don’t say you’re going to be a $50 million business in three years, because most investors won’t even believe it—unless you’ve done this before in another company. What’s more compelling than big talk is to show exactly how you will reach those millions—what information about your company do you have that’s made you forecast those kinds of sales? Share what your assumptions are about your business model.
For example, here’s an appropriately detailed financial forecast for a SaaS (software as a service) business:

• We leverage the site traffic and customer base of partners A, B, and C
• 100,000 unique visits/month to our network of online sites
• 1,000 new leads captured per month
• 0.22% average conversion rate
• 5% monthly churn rate
• 16 months is the average lifetime value (LTV) of a customer
• $160 is average revenue per user (ARPU)
• $12.50 is our customer acquisition cost (CAC)

You want to see investors take out their phones and begin calculating numbers. This is a good sign—it means they want to see how you think, and see if it matches (a) what you’ve indicated as your total revenue numbers, and (b) what they know about your industry.

9. Show your darn product!

I’ve seen so many pitches where the entrepreneur doesn’t even show their actual product. For some businesses, showing their product is not easy to do, but for most people pitching for funding to investors, it is. Even if your product is not yet built, show mock-ups. It’s amazing what a visual representation of your product and your business can do for the overall effectiveness of your pitch.

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Amy Balliett and her partner grew their design company, Killer Infographics, into a thriving business in just three years. The company today has 20 employees working to create graphics for hotshot clients like Microsoft and Starbucks.
But while the company is growing now, it wasn’t an instant success. Balliett and her business partner started out with a broad business model, and only over time did they narrow it down to infographic design services. Then, they not only had to dig up customers, but they also had to find designers to work with. It was all part of a learning curve, Balliett says.
To paraphrase Rod Stewart, Balliett says she wishes she knew then what she knows now. To help fledgling business owners reach their own successful startup stride Balliett offers these four tips:

Wear as many hats as you can

As a startup, you have to maximize your profit margins. To do that, you’ll need to wear a lot of hats within your business.
Balliett refers to herself as the “Chief Swiss Army Knife” because she can handle many different tasks in one day. She says every founder should be versatile in the beginning.
“Any founder of a company should be able to cover every desk and should do as much of the work as possible for as long as possible,” she says. “This keeps money in the company, allowing it to grow, and doesn’t financially stretch the company too thin in the early stages.”
However, once the business is settled and can afford to bring in help, do so, Balliett says. If you’re juggling too much, mistakes will be made. Plus, if you can free up some of your time, you’ll be able to focus on business growth rather than on answering phones.

Hire a bookkeeper

One of the first expenses you should splurge on is a bookkeeper, Balliett says.
In the beginning, Balliett was handling all the accounting aspects. She juggled Excel spreadsheets and eventually transitioned into QuickBooks, but had a hard time keeping up with it all.
“We quickly racked up six figures in accounts receivable, but I had very little time to chase after clients for payment,” she recalls. “In fact, most accounts were over 90 days past due. This left us with very little cash flow to grow our company.”
Balliett brought a bookkeeper on board, which she says was one of the best decisions she ever made. Within a month cash flow was restored. That allowed the company to change offices, hire more staff, and buy better computers, she says.

Company culture is a primary key to success

Working at a startup can be stressful, and odds are the employees aren’t well compensated. The answer to this problem is promoting a fun and engaging company culture. Knowing this tid-bit will help you create a company culture that keeps your employees motivated, even if they aren’t making big bucks, Balliett says.
“Just two years ago we couldn’t afford to pay competitive salaries, yet our team stuck with us because they enjoy working with each other and for the company,” she says.
While the corporate culture at Killer Infographics has evolved, it wasn’t a focus at the beginning, even though it should have been. Balliett says, “Had we focused on company culture earlier on, we could have accomplished so much more.”

Set up the right kind of business

When you’re setting up your first business, you have several options. Is an LLC your best choice? What about an S-Corp or a C-Corp?
Balliett says she didn’t do enough research and ended up setting up a C-Corp, which was problematic. “With a C-Corp we couldn’t keep a lot of money in the bank to help to grow our business, since that money would be taxed at the highest levels when above a $50,000 threshold,” she says.
To avoid problems like this, it’s best to get input from others. Your accountant should be on that list, but talk with other business owners about it too to ensure you make the right decision.
Do you have other tips for startup owners? Add to Balliett’s list of tips in our comment section below