6.3 Developing Pitches for Various Audiences and Goals
6.3 Developing Pitches for Various Audiences and Goals
Learning Objectives
By the end of this section, you will be able to:
- Understand the various audiences an entrepreneur may pitch to and how the pitch goals vary for each
- Define and develop the key elements of a pitch
- Describe a pitch deck and pitfalls to avoid
- Create and create an elevator pitch
Let’s look more closely at how to develop pitches. Remember that we defined a pitch as a formal but brief presentation that is delivered (usually) to potential investors in a startup. As such, a pitch is designed to be clear, concise, and compelling around key areas, typically the key problem or unmet need, the market opportunity, the innovative solution, the management plan, the financial needs, and any risks.
You will often need to craft different types of pitches for different audiences. Key audiences include potential investors, social connectors, potential partners, key employee recruits, and the broader community, particularly if one needs to request permits or regulatory concessions. One misconception about pitching is that it is always done to investors who are ready to fork over a few hundred thousand dollars to the team that presents the best idea of the day. While this is, more or less, the premise of Shark Tank, it is not how pitching works for most entrepreneurs.[1]
Entrepreneurs may pitch to friends and family as they develop an idea, and, at another time, they may pitch to well-connected entrepreneurs and investors who have little interest in the market sector in question but who can make the right introductions or helpful connections. Entrepreneurs might make pitches in what is known as a pitch competition, hoping for a shot at funding and mentoring.
Pitches come in many forms, but underlying them is that to pitch is to ask for something. Table 6.3 provides an overview of different audiences you might pitch to, outlining how the approach and presentation may vary for each.
Table 6.3 Summary of Pitch Scenarios
|
Audience |
Pitch Length |
Pitch Approach |
Key Content |
Notes |
|
Friends and family |
Fifteen minutes |
Usually verbal with a simple companion one-page handout explaining the concept, value proposition, and funds needed to get the enterprise off the ground |
Should cover basic elements of the business model and concept, unmet need, and solution (including if it seems patentable), market and sales potential, and high-level risks |
This common pitch can be emotional as founders are appealing to people they know well and are counting on their personal reputation and credibility vs. detailed data to sell the idea |
|
Elevator pitch competitions |
Two to five minutes |
Usually a verbal pitch or single slide summarizing need, solution, market, opportunity |
Should cover high-level innovation, value proposition, and a “call to action” to close the audience |
Very common at accelerator or incubator events, university entrepreneurship events, etc. Prizes range from free services