Win The Damn Pitch by Opeyemi Adesina
Win The Damn Pitch by Opeyemi Adesina
Opeyemi Adesina
www.opeyemiadesina.com
All rights reserved. No part of this publication may be reproduced, distributed
or transmitted in any form or by any means, including photocopying,
recording, or other electronic, digital or mechanical methods without prior
notice of the author, except in the case of quotations used for reviews and other
non-commercial use permitted by the copyright law.
DISCLAIMER
However, there are no warranty about the effectiveness of the book for any
purpose, this is determined by the readers’ intentional application. The use of
this book is at your own risk. The author doesn’t assume any liability or
disruptions caused by errors or omissions as a result of negligence or other
causes.
To Every Persistent Young Nigerian Entrepreneurs
CONTENTS
Foreword i
Introduction ii
Chapter One
Chapter Two
Pitching Irresistibly
Chapter Four
Presentation Etiquettes
Chapter Five
To Pitch is Human
I bought my first laptop as a 200 Level Student in 2017 by winning the national
creativity talent hunt pitch by APCON; winning a sum of 300,000 naira within
15 minutes.
That same 2017, I lost the prestigious Cannes Lions Pitch in five minutes. If I
had won, I would have gotten an all-expense paid trip to the world creativity
festival in France or the one in Dubai.
I begin to read and study about how a five minutes pitch could be so defining
in a person’s life.
Those 5 to 15 minutes are usually a result of what you do with the few
weeks/hours before!
So, it’s more about what’s done before the pitch than the five minutes pitch
itself.
Millions of Dollars and Billions of Naira walk freely across the internet and
every street every day; looking for who would grab a share.
Within that few Minutes, you have to pitch yourself and/or your idea.
The sad thing is, there’s no maybe. You either win or lose!
One of my super powers right now is that I can prepare a pitch within two to
three hours before facing the panel and still close the deal. Why? It’s not how
long you take to prepare, rather, what you do with the preparation time.
- No one cares about how beautiful your idea sounds, but how VIABLE
(Profitable) it is.
- Words don’t move people to drop money, only FIGURES do.
- Everyone is an emotional being, even a sadist investor/client
- Aesthetics matters in presentations. It says a lot about you.
- Presentation is not a battle of words. It’s a SHOWBIZ.
- Pitching is a game of ASKING, not BEGGING.
- You don’t ask rich people for FAVOUR; you make them and OFFER
However, you got this book, congratulations! This is about to be one of the
best learning adventures of your life!
Chapter One
It is important to note that every use of the word “Pitch” in this book refers to
as “Business Pitch”. Hence, let’s go ahead to understand the term- Business
Pitch.
- Plan
- Proof
- Profit
In business, a plan could be to buy a new equipment for mass production, a
proof can be the financial statements of the past one year showing how
profitable the business has been and the profit would be what the turnover
would be in sales if the equipment is gotten.
- They are using the grant as a P.R tactic to label themselves and their
organization as a philanthropical entity.
Hence, as you walk into that grant, what you’re offering them is that if you win
that pitch, they will be proud to put it out on their media platforms that they
are supporting a potential booming business. Hence, convince them that you’re
that business they are looking for.
Hence, you’re not there to beg! You’re there to Ask! You’re there to proof that
you’re the best shot! You’re there to prove that you’re the best investment they
can ever get! Don’t go begging! Go there to ask!
This is where many job seekers also miss it. You don’t go begging for a job,
you go asking for it! Begging simply means “Give me, but I have nothing to
offer in return”. Asking means “Would you give me this, if I could do this for
you?”
Forms of Pitches
- Elevator Pitch
- Competition Pitch
- One-Line Pitch
- Social Media Pitch
- Cold-Call Pitch
- Email Pitch
- Follow Up Pitch
- Investor Pitch
- Sales Pitch
- Interview Pitch
Elevator Pitch
The idea of an elevator pitch is premised on the respect for the timing of the
investor or client. They are presumed to be busy people who have little or no
time to spare. Hence, if you meet such a person, how do you win them without
asking for a second meeting.
Competitor Pitch
This type of pitching is in stages and there’s luxury of time to prepare, rehearse
and plan appropriately. One fascinating thing about the competitor pitch is that,
it is a game of relevance and viability.
Most competitor pitch are either focusing on one sector, or guarded with some
criteria e.g., some competitor pitch will require you to have made a certain
amount in turnover to qualify, some will require you to have been registered
for over two years, some will only require your registration documents, etc.
Hence, one step to winning such grant is having a business relevant to the
requirement.
One-Line Pitch
As common as this type of pitch is, not many people see it as a “pitch”. A one-
line pitch is also fondly called tagline, byline, slogan, mantra, etc. These are
used by organizations to sell their brand in the shortest and most creative way
possible.
These are subtle pitches to tell you what the brand does, the brand experience,
or what the brand can do for you. These one-line pitches if successful can
become a life-long memory for consumers and can help retain top of mind
awareness in the audience.
Since the goal of every pitch is for your audience to believe and buy into your
idea, thus, a one-line pitch is nothing short of that.
At the beginning of this book, I mentioned that everyone pitches every day,
although subconsciously most of the times. A very good example of this
commonly practiced pitch is the social media pitch.
On every social media platform, you are expected to pitch yourself to every
new person stumbling on your page. You do these via:
On Facebook, you have the option of a short bio (Maximum of 30 Words), and
a lengthier about us feature. However, almost nobody gets to see the about us
section, and your bio remains the easiest way to pitch yourself.
Although many Facebook user misuse such privilege and fill it up with
mundane things, the wise folks know better. My Facebook bio says “Serial
Entrepreneur | Best Selling Author, Win The Damn Pitch | Coach, The
Pitchers Masterclass”
That headline also goes for my LinkedIn page. However, it is a different ball
game on my Instagram page. This is because, Instagram allows up to 150
words on the bio.
Instagram Headline and LinkedIn headline looks very similar. Although, while
Instagram allows just 30 Characters, LinkedIn allows up to 150 characters.
I Pitch for a Living and I help people Pitch their way into their
Dreams.
On the contrary, LinkedIn offers luxury of space to write a lengthy “about me”
up to 1,000 words. While I don’t advise anyone to write a thousand words,
because no one is going to read it, it gives a very fair opportunity to sell
yourself excellently.
Cold-Call Pitch
This is for those who love to take daring steps. Cold calling might not be a
familiar word to a lot of people. But for someone like me who won’t settle for
just waiting for the customers to come, we pick up the phone and go after them.
After I quit my job, I decided to do what I’ve always wanted- handle
sales/marketing for viable local businesses in Ibadan. I had just two friends in
the whole of Ibadan, even though I have lived here all my life. This means I
have no connections with people or businesses that I could work with.
Next step for me was cold calling. I will wake up in the morning, immediately
after my devotion, I’ll hit the street and start scouting for businesses that
fascinate me and looks like they’ve got the money and should be interested in
marketing.
Cold Calling pitch is one of the hardest forms of pitching. This is because, you
are not invited, there is no advert, they do not know you. In short, you are a
complete stranger trying to convince another stranger that you have something
they need.
Cold Calling Pitching involves a brief introduction, a quick proof that you
know the person you are calling and a problem they are facing, a summary of
what you want to do for them and a call to action- book an appointment.
Email Pitch
Email Pitch is very similar to cold calling pitch. So, the same principle applies
if you’re just reaching out for the first time. But the call to action of an email
pitch should be to get their contacts so you could get on a call with them.
Follow Up Pitch
Whatever way you secured the follow up pitch, it means you sound really
promising the first time and now is the time to clear every doubt and get them
in sheepishly.
I once watched a pitch on Dragon’s Den where three of four investors went to
secretly engage with a founder because they all wanted a share of the business.
The goal of every pitch is for people to chase you with their money.
This is strictly an attempt to get one of the rich guys to give you some money
for some share of your business. An investor could have been secured either
via an elevator pitch, a competitive pitch, or a random contact from the family,
church, neighborhood, etc.
However, you got to secured the investor, one key thing is to remove the
thought of being familiar with the person or a group of investors. You have to
treat every investor pitch as “strictly business”.
An Investor pitch is simply a presentation of a viable idea that can triple the
investor’s money in a couple of years. Hence, you have to mention the figures.
It’s hard to sell an untested idea to an investor, the least you can do is to create
a prototype.
An Investor pitch is a game of show and tell. They want to see the product, the
financial statements, the projections, the founder’s competence, etc. They want
to see everything that will validate the fact that it’s a good investment.
Anything short of that, it’s a no.
Sales Pitch
This should be the second most common form of pithing, after elevator pitch.
A sales pitch is simply the presentation of a product or service to a prospect or
potential customers, making sure the perceived benefit outweighs the price
attached.
A sales pitch is all about perception. However, this doesn’t mean it’s a lie. The
truth is, a product can be truly worth more than the price and the audience
would still perceive it to be less in value. This is the significance of the pitch.
A sales pitch is simply the interference of a sales person in the thought process
of a prospect or potential customer to position the product or service as
intended, and get them to take the desired action- make purchase.
When making a sales pitch, it is important to prove that what you’re offering
is more than the money the prospect is paying. To achieve that, you need to
ask the right questions to actually understand the need of that prospect, identify
their key concerns and fears and wipe them out as you highlight the benefit of
the product or services; and lastly, reassure them that your product or service
answer all their secret desire.
Interview Pitch
An interview pitch is also a timed but more of a “tell only” form of pitching.
With words only, you have to let them know what you can do for the
organization (plan), what you’ve done and the knowledge you’ve acquired
(proof) and what you can achieve in a specific time (profit).
- Investor(s)
- Grant Sponsor(s)
- Client(s)
- Customer(s)
- Interviewer(s)
While an investor is looking for where to put his money and be assured of the
security of his capital and also high returns on Investment, a grant sponsor is
looking for a business that suit his or her brand’s personality, a client or
customer is looking for the best deal, and an interviewer is looking for the
personality, knowledge and experience.
I often say this to people who come to me to guide them on their business pitch
application process- What exactly do you need?
When you truly understand what you need as a business or an individual and
how the pitch is going to help you meet those needs, you will be committed to
preparing for the pitch and also, you would be immersed in the idea and sound
more promising and convincing.
The truth is, a lot of entrepreneurs are looking for funding for the sake of
having “the money”. They still have a lot of due diligence yet to be done and
they are thinking that the grant or angel investment is going to change the game
miraculously.
Before talking about the pitch process, itself, it is important to start from the
individual in need of an investor, a grant or a client. It is a common knowledge
that opportunity meets preparation equals luck.
Hence, there first need to be a self-awareness of the need for some funding.
That should lead to the creation of the business proposal dummy, a succinct
business summary document that shows where the business is and what it
needs to go further. This document should be flexible enough to be adjusted to
fit into the right opportunity, when it comes.
After preparing the business summary document and coming to the conclusion
of what’s really needed in terms of cash and other logistics. It’s time to prepare
for what might be needed in a typical funding pitch.
The difference between these two pitch processes highlighted above and the
other forms of pitches is the timeline. While there are so many stages in these
pitches above, the other forms of pitches are a one-time thing. So, either you
get it right or not, you only have one shot.
Chapter Two
One thing that should always linger in the mind of any entrepreneur seeking
funding or clients is that pitching is a game of show and tell. Don’t just tell
your audience what you can do, show them what you have done and let them
judge the potential of your idea by themselves based on what they have seen.
Before applying for any grant, make sure you read the requirements and really
understand what they are looking for. One thing I advised is to check our
previous winners of the grant, see what they are doing and checkout what could
be so intriguing about it to attract the investor or sponsor.
In situations where there are no previous beneficiaries, check out the investor
or the grant sponsor. There are two most important things here:
- Check out what the investor or sponsor holds dearly (values, hobbies,
companies, event attended, etc.)
- On your path, you cannot just know your value, you have to show your
value.
When I mentioned “your” value, I mean what you have that would be
fascinating and irresistible for the investor or the sponsor. But you can’t
achieve this if you know nothing about the investor or the client. Even if you
are meeting the person unplanned for the first time and you had the opportunity
to pitch, go on google or ask a quick question from him or her or someone
around. You have to know what they are looking for, to sell to them irresistibly.
One key thing many entrepreneurs do not know is the fact that, investors do
not just invest in the business, they assess the founder also. Hence,
understanding the investor, would help you understand what they might be
looking for, what type of business would interest them, what kind of
personality they have, if they are a fan of music, film, comedy, etc.
Below are the important facts to know before applying for any grant:
On the other hand, if you are pitching to someone like Vusi Thembekwayo
(Investor, My Growth Fund), all he is likely to require is a proof of viability
(track record of sales) and your competence as a founder (experience and
presentation ability).
This is another key area to attend to very carefully. Every pitch is done on two
terms- The Investor/Sponsor’s Term and Your Term. You nail the pitch when
your terms reach an equilibrium.
I stated earlier that a pitch is not a “begging” experience. Hence, you do not go
to a pitch like the investor/sponsor is doing you a favour without paying
attention to the fact that you have to position yourself as the best deal on their
plate.
Understanding and fitting into these terms, proves how worthy you are of the
investment or the grant. However, they are all still subject to your acceptance.
If you think you are worth more than they are proposing, do not be afraid to
walk away, you will always get a better offer.
After knowing what the investor or grant sponsor is looking for, it is time to
lay it side by side your needs and demands. This is where you determine if it’s
a good deal for you or not.
In situations where you could not get sufficient information on what the
investor or sponsor could be looking for, you must be well grounded in
knowing what you want. So, if you don’t know what to offer, you know what
to accept or reject.
Doing this, offers you two key advantages among many other:
You can google about them, check their Instagram and Facebook pages, check
their media mentions, ask about them from people who have a connection with
them or have worked with them. This is about finding their “irresistible
factor”.
99.9% of any investor or sponsor wants to invested in a tested and proven idea.
It is important to know that every startup investment is a huge risk. This is
because till date, it is still a fact that 80% of startups fail in their first five years.
Hence, if it is a risk to invest in a tested and proven idea, how much more is
the risk of investing or sponsoring an untested idea.
Always remember- Pitching is a game of show and tell. It is boring to just talk
about how great an idea is, you need to show them samples, show them a
picture of your customers using your product, or even share samples for the
investor or sponsor to test themselves.
Also, they need to see the figures. How much have you sold? How have you
sold them? How much are you likely to be making in sales after the funding?
They need to see, feel and experience the possibility of your idea, by
themselves.
Until you have a tangible proof of your idea, you are not qualified for any
funding. Not even one kobo.
Take this puzzle: Both of us came to pitch to secure funding to fund our wig
making and retail business. You presented your product pictures, your financial
statements and your financial forecast.
On my hand, I presented all the details above and supported it with video
testimonials of my customers saying how much they loved my product, a chat
of a customer ordering for more wigs after buying one, etc.
One thing many entrepreneurs do not know is that customer experience also
contributes to the worth of a company. It shows how much customers are
willing to come back for repeated purchase and also how fast the brand can
achieve brand loyalty for a new customer and even become a voluntary brand
evangelist.
These are silent features that assures investors or sponsors of the viability of a
business idea. It shows that the product is great and will not struggle to make
sales.
It also shows how much the founder documents customer experience to grow
and make sure they always meet up with them. These are important boxes that
when ticked, makes your pitch more compelling.
Proof of viability (sales report) does not only validate the potential of your
business idea, it also says a lot about you as an entrepreneur. Every investor or
sponsor would think in their heads “If he or she can make this amount of money
with limited funding, he or she will do better with adequate funding.”
On the other hand, if you present yourself to be a waiter and not a fighter (you
wait for sales to come instead of doing anything it takes to get customers), you
would lose their interest unapologetically.
Scalability simply means “how big a business can grow”. This is the part that
interest an investor the most. An investor needs to know how much your
business can yield in returns in the next few years.
Every investor wants to know how much their money will be worth in the years
to come. Then they can tell themselves if your business is worth it. As a
founder, understanding what will interest an investor would make you define
how big your business can grow.
It is important to know that every business cannot grow or scale the same way.
For a quick service restaurant like Chicken Republic, it can be franchised to
any worthy investor and can have as many branches as possible, in as much as
it is well managed, without compromise on their standard.
But all companies cannot be like that. There are certain inhibitions to scaling
for some businesses. For example, a manufacturing company cannot scale as a
quick service restaurant. There is need for keen attention to details, it is capital
intensive, and customers do not go to shop for new one everyday like they
would for a restaurant.
Hence, you need to determine how big your business can grow. This is where
vision and logic meet. Your vision should not be myopic but it should also
make business sense. Do not stretch your vision beyond what it can truly
become all in the name of appearing as a promising business to investors or
sponsors.
It is good to know that these investors and sponsors are intelligent folks when
it comes to doing busines. Hence, they cannot be fooled.
A pitch environment simply means the platform that the pitching even takes
places. This could be traditional or digital.
With a physical pitch, you could act a short monologue drama, present a few
lines poetry or music, and can make live demonstration with the judges
participating in the experience. Knowing the environment and planning ahead
on how to take advantage of it, would be very wise.
These are pitching environment hosted on digital platforms. This could be Live
on Facebook, Instagram, LinkedIn, YouTube, Zoom, Google Meet or
Microsoft Teams.
Digital Pitch Environment allows you to share your presentation slides with
the “share screen” features. It also allows you show your product by raising it
to the camera and also you can choose to spice it up by having a little creative
demonstration with or without your co-founder.
Having understood other significant things to take note before every pitch, it’s
time to fully breakdown the key pitch arsenal.
Business Plan Preparation
A business plan is simply a succinct blueprint that tells anyone what a business
is and what it is possible of becoming in the next few years.
Executive Summary
If afterwards interested, the investor or sponsor can now decide to take a look
at the full document. An executive summary is like the landing page of a
business plan. It can either compel or repel an investor or sponsor. Hence, all
details must be duly ranked and written in the language the investor
understands.
An executive summary is expected to contain the summary in this format:
(The company) is selling (the idea) to solve (the problem) to (the target market)
through (marketing strategy) and has made or expected to make (sales record)
in the (time frame).
If the executive summary was able to hook the investor or sponsor, then it’s
time to break it down for them. State the problem you’re solving. I advise
backing this up with figures- statistics from credible sources. E.g., X% of
Nigerians are unemployed.
Then explain how you intend to solve that. Highlight how your product is
offering the solution. It is important to know that your product or service is not
the solution, but an avenue to present the solution. The solution is always an
experience.
The next line of action is to present the investor with the future of his
investment- your vision. Then, you convince them by stating what you would
be doing to achieve that vision- your mission. Your mission is not your product
or service; it is how you deliver and execute your product or service.
The next thing is to highlight your product or service with a short description
of each. This is to offer the perfect understanding of the product or service to
the investor or sponsor.
Target Market
This is where you assure the investor or sponsor that you know what you are
doing. This is where you assure them that you have done your due diligence
and you have a good understanding of those dying to get your product.
Highlight the salient features of your target audience- who they are, where they
work, where they live, where they visit, what they watch, etc. Showing this is
a proof that you know your game so well.
In this category, you highlight all your competitors to show the investor or
sponsor that you know what you are up against. Then you list out your
competitive advantage to show that you know what to do to win the game.
Your competitive advantage is either what you have that they do not have or
what both of you have, but they do not talk about.
Pricing
This is not just about highlighting the prices of your products or services; you
also highlight the markup (the percentage of profit). Hence, after highlighting
the prices of the products, you highlight how much it takes to produce or
execute a service and state the difference between the cost and the pricing to
show the markup (%).
This doesn’t just show your product or service and the prices, it shows your
level of profitability.
Marketing Strategy
In this category, you briefly explain what your marketing strategy is and how
it has worked for you. Highlight your strategies:
Business Model
This is where you state how the company is going to run in other to make profit.
Here’s where you outline every vendor and partners, the business process, the
markup, etc.
The question you are answering here is: How do all these products and services
make money? So, you state how you get the raw materials, processing and how
you get it sold.
This is also where you state how much you have made with the model since
you started.
Team
This is where to let them know that the money is in capable hands. You do not
only highlight the names of the team members, but also state their
qualifications, that made them the right fit in their respective positions.
If the funding terms states that you should submit between one- and five-page
business plan, this is where you just state the amount you are asking for and
what you intend to do with it.
But if you are requested to submit a one year- to five-year business plan, this
is where you will state how much you used or are planning to use to launch the
business and how it was or will be used.
In simple terms, tell us when you will start making profit (this is for an idea
that has only been tested or prototyped but not launched to the general market
yet).
Hence, you have to answer, how many pieces of your product do you need to
sell for you to exceed the total of your startup cost. Many entrepreneurs think
they start to make profit from the beginning of their business.
Formula:
Break Even = (Unit Price – Variable Cost per unit) / Fixed Cost
- Rent (Fixed)
- Choppers and other equipment (Fixed)
- Foodstuff (Variable)
- Logistics (Variable)
- Staffing (Variable)
- Branding and Packaging (Variable)
- Marketing (Variable)
If the fixed cost totaled a hundred thousand naira (N500,000), variable cost per
unit, i.e., how much it takes to product one unit of the product is three hundred
naira (N1,800) and a unit of the product is projected to be sold at five hundred
naira (N3,000) only.
This means that until I sell up to 12 units of the potato chips pack, I have not
begun to make any profit.
Financial Checks and Balances
In the business plan, all the finances to be discussed there should be what is
needed or was used to start the business and when it is expected to break even
(make first profit).
However, in the financial plan, here is where the full financial breakdown will
be done. Financial Plan is often estimated between one to five years of
operation. Financial Plans are meant to reveal your understanding of business
financial intelligence- how good are you with the figures?
The cashflow statement simply presents how rich a company is, in cash. It
shows the inflow and outflow of cash for a specific period of time- accounting
period.
- Operating Statement (This shows the cash inflows from sales and cash
outflows from expenses paid.)
- Investing Statement (This shows the cash inflows from yields from
assets and outflows from assets purchased.)
- Financing Statement (This shows the cash inflows from debts recovered
and new stock issued, as well as outflows from interest and dividends
paid to shareholders.)
Profit and Loss / Income Statement
The income statement simply provides more details on the operating expenses
summarized in the cash flow statement. It gives a more detailed view of the
revenue (inflows) and expenses (outflows) that is involved in the day-to-day
company operation.
- Direct Expenses
At the top row, it states the income (revenue) of the company over a specific
period of time.
At the following row, the cost of goods sold- costs of materials, logistics, etc.
Finally, the total of the cost of goods is subtracted from the total of the income,
which results in the Gross Profit or Gross Loss.
- Indirect Expenses
This row lists out all the expenses associated with the daily running of the
business. In other words, every cost that contribute to the revenue-generating
activities, such as salaries, administrative expenses, research and development,
marketing, depreciation, etc.
Then, the total of these expenses is subtracted from the gross profit above to
identify the operating income.
- Capital Expenses
This row comprises of other major expenses that are not directly related to the
daily income-generating activities, such as- interest paid on loans, tax paid to
the government, and other salient expenses.
Then, the total of all these capital expenses will be subtracted from the final
operating income generated above, result in the “net income” of the company.
Balance Sheet
A balance sheet simply shows the worth of a company’s assets, liabilities, and
shareholders’ equity at a specific period of time.
A balance sheet simply states what a company owns, what it owes and amount
invested by shareholders (Investopedia).
Hence, in other to show that a company has the adequate asset yields and other
investments to pay out its liabilities, a timely balance sheet is highly important.
In simple terms, a balance sheet is the financial statement that shows how
healthy a company is, financially. In other words, how far a company is from
bankruptcy.
- Assets
This occupies the first row on the balance sheet. Assets are listed according to
how easily they can be converted into cash. For example, it is easier to convert
inventory (goods available for sale) to cash than rent.
Current Asset (This type of asset can be liquidated or converted into cash
within a year).
Current Asset includes: Cash (Hard Currency, Cash in Bank, Cash Deposits,
Cheques, etc.), Marketable Securities (Investment that can easily be sold or
traded on public exchanges like the ordinary shares.), Account Receivables
(Money that customers owe the company), Inventory (Amount of goods
available for sale), and Prepaid Expenses (Advertising Contracts, Insurance,
etc.)
Then,
- Liabilities
Liabilities simply shows the worth of the company’s debt. In simple terms, it
reveals how much a company owes to external parties. This includes expenses
for suppliers, utilities, salaries, etc.
Long-term Liabilities include: Pension fund for employees, accrued tax that
are not scheduled to be paid within the year, long term debt, etc.
Finally,
- Shareholders’ Equity
Shareholders’ equity simply is the money put into the business by shareholders.
It is also known as “net asset (total asset - liabilities)”. Under the shareholder’s
equity, we have:
Retained Earnings
This is the net income of a company that it can decide to re-invest into the
business or use to pay debt. The left over of the retained earnings after re-
investment or debt payment is distributed to shareholders as dividends.
Treasury Stock
This is a kind of stock that a company has repurchased. That is, a company
bought a stock back from a shareholder. They are listed as an issued stock, but
such stock does not receive dividends.
Preferred Stock
This is a high priority stock. The holders of this stock are paid dividends before
the common stock holders. Also, they are entitled to a fixed dividend, but do
not have a voting right in the company. Even if a company goes bankrupt, they
are paid from the company’s asset first.
Common Stock
This is the most common type of stock people invest in. This kind of stock
gives a voting right to a shareholder. The value of a common stock goes in line
with the company’s performance.
Hence, if the company does well, the value goes up. And if otherwise, the value
goes down.
Pitching is a game. Like every game, you can master it and become a beast
among your peers. When I was in primary school, I was not good with any
major sport- football, basketball, badminton, etc. But when it comes to
athletics- 100- and 200-meters race, I was a beast.
I was not just another good runner; I was the best. I was so good that my school
would register me as a secondary school student to compete with other
secondary school students and I will still win. The last time I ran for my
primary school, I was in my penultimate year – Basic Four, and I ran with the
graduating class of a secondary school and I still came second.
I mastered the game. I did not have any coach. I just ran and watch people run.
My teachers used to say I am a born athlete though. While at home, I ran to do
every chore. I just loved running. It was the most joyful thing to do, as a kid.
I had mastered how to take off, how to hunt down every person before me, how
to ignore every pain in my feet, how to push through the wind as hard as I
could, it was almost the only thing I was good at.
Like I was with running, you can be that good with pitching. You would
understand every rudiment and do it painstakingly. Also, like every game, there
are rules. And because there are rules; there are penalties or punishments. In
football, there are yellow cards, red cards, suspension, etc.
The same thing applies to pitching, there are penalties. This might be in form
of losing a pitch, getting disqualified, and even getting sued.
This should tell you how significant the rules of pitching are. If you ever want
to win the heart of any investor or sponsor, you must play by the rules. This is
not to say that you should be rigid and ignore the role of creativity. Rather, it
is a sign for you to use your creativity to prove how good you are with the
game.
In football, the rule says a player’s hand should not touch the ball except during
throw in. This does not mean a player will play folding his hands or keeping it
in his pocket. Rather he masters the art of playing excellently within the
confines of that rule.
She went back to perform a solo launch, which sold out in two hours. She also
branded an ice-cream truck, secured some retailers, and then the venture
capitalists came back to check her out in one of here sales activations and ended
up offering her the same mount of money for just 2% of the company.
At that point, she did not need to do much talking, they could see the potential
of the business themselves. Reminder- Show and Tell.
Things you need to show during a pitch:
An investor or a sponsor wants to have a real time experience with the product
he is investing in. Bring a sample product to be tasted. Bring a prototype with
clear simulations of how it functions. Bring the video proof of how effective
the product is.
Do not just tell them how the product works, show them and let them see and
experience it themselves.
Do not just tell them how your service is delivered, deliver it to them.
- Satisfied Customers
Do not just tell them you have satisfied customers, show them.
- Financial Records
This is the most important part of every pitch- FIGURES. How much have you
made so far in your business? How much profit have you made from the total
turnover? What is your profit margin? How much have you invested in total?
How much funding have you secured yet?
Do not just tell them the figures, make it plain on a sheet and place it before
them.
This is the part where your credibility an acceptance is proven. It also shows
how much you have gone to push your idea out to your target market. It is also
a proof of your competence.
Hence, if you have any nominations or features as such, spell it out on a page
in the slide, or a portion of the document.
This is where you prove to the investor or sponsor that people are dying to get
your product or service. Some of the things you can show include pending
orders, number of average monthly orders, number of orders from regions that
cannot be met, etc.
Show proofs like website pending orders, refund proof for orders that were not
delivered, etc.
- Worth of the industry
This figure is a show of how high the investment can yield, if managed right.
- Your competence
Do not tell them where you have worked, show pictures. Do not tell them you
know the business; it will show in your communication. Do not tell them you
are a good boss, your productivity with your team will reveal that. Do not tell
them who you are, present it to them in the way that you speak and respond.
Investors and sponsors are human beings. They have emotions and that can be
taken advantage of. Do not just approach a pitch like it is a battle field, there
are ways to relate with them and make them connect with you emotionally.
Even in Dragon’s Den, Shark Tank, Africa’s Business Heroes, etc., there is
always that remarkable and unforgettable pitch that utilizes the emotional and
artistic prowess excellently.
This is not to preach any form of mediocrity and for you to start looking for
ways to manipulate the investor or sponsor emotionally. That will result into a
blatant failure.
Emotional or artistic strategies are mere additional spices to give your already
thorough pitch an excellent flow and delivery. Emotional or artistic strategies
that can be utilized include:
- Storytelling
This is the best way to deliver a pitch. Wrap it in a story. Many people actually
make attempts to do this, but end up doing it wrongly. This is not just telling a
random story; it is telling your story. Here’s the perfect example:
The question is not if they are well trained, rather, how to sell what
they produce and make a fortune out of the business. In two years,
we have partnered with 50 of these indigenous craft men and
women, branded their products and placed it in our retail store.
Believe me, you can say all that in two (2) minutes. That’s a great deal, because
a typical pitch would give a minimum of three (3) minutes to do your pitching.
Compared to that above, check this below:
Which of these two pitches compel attention the most? Storytelling is the best
way to get an investor or a sponsor hooked to your business idea. You sustain
their attention from the beginning to the end. A pitch is purely a statement of
persuasion and it is often filled with hard facts and figures.
However, you can relieve the investor or sponsor this boredom by spicing it up
with a good story- your story.
- Humour
Even though a pitch is a serious business, a little spice of humour would not
hurt anyone. Humour essentially is used to create a comic relief and a deeper
connection with the business idea spoken of.
Humour can be used to lay emphasis on how bad a situation is, to make
comparison or used as a relief after describing a problem. Humour can be
achieved by a picture, a meme, a gif, a mimic, or a life illustration.
For example, if you are a lingerie brand pitching. After stating the
health concerns surrounding wearing a lingerie multiple times, you
could add a meme of a funny reaction of a lady with a dirty
lingerie, when her boyfriend asks for sex.
- Drama / Monologue
Drama is another way to make your investor or sponsor fall in love with you.
You do not have to rent props or set stages to act drama. If you are naturally
talented you could deliver a dramatic monologue or if you have a co-founder,
you can easily deliver a two-man drama.
Drama works excellently with a good storytelling. If well delivered, the only
thing you would have to say with your mouth would be the essential financial
figures.
Disclaimer: This should only be done when you are truly gifted in music or
poetry.
As effective as a good music or poetry can sell a pitch, it can also murder it. If
the lyrics is excellent but the delivery is bad, it is still nothing short of a failure.
However, when the lyrics tells the story excellently and the body illustrations
and vocal rendering also fit in perfectly, you can win an investor totally.
Music is magical. Poetry speaks directly to the heart. However, the same way
a good musical rendition can make someone fall in love with you, the same
way a bad rendition can make them spit at your face- no judge would do such
though.
Hence, this is a special effect and not meant for everyone. When a music or
poetry effectively tells the story of the business idea, with a well-polished
performance, even when you start talking the figures; you would have enjoyed
a standing ovation and a keen interest in your business.
Using a drama or a music depict how passionate you are about your business.
It says a lot about how you cherish it and how far you can go to make sure it
succeeds.
- Recorded Clips
This is also a great emotional strategy tool to use during a pitch. Recorded clips
can be used when you need a third-party proof, but cannot get them to the
pitching event physically.
For example, if you are in the wellness industry and a renowned doctor
approves your product effectiveness, you can project that video during your
pitch.
Also, you could present a recording of the reaction of your customers after
using your product. This could be a testimonial or a review.
Also, you can mix up a picture of where you started from and where you are
currently to prove that you are not just looking for funding aimlessly.
Remember that a pitch is a game of show and tell, anything to prove that
beyond your words, there are real truthful evidence is an added advantage.
Recorded clips can come in handy to ascertain your credibility and help you
gain the trust and faith of the investor or sponsor in the viability of your idea.
Compulsory Figures to Mention
This the total amount you have made in sales since you started the business. It
is often good to state in with the total number of years. For example, we have
made a total of 5 million naira in two years.
- Profit Margin
This is simply the percentage of your profit on each of the unit sold. For
example, if you sell a unit of your product for 2,000 naira and it will cost you
1,000 naira to make that one unit. Your profit margin is 50%.
- Operational Cost
Also, when it comes to investment, you are at liberty to ask for the amount of
money you need.
After stating the total turnover, you have recorded so far, here is where you
state your expected turnover if you get the funding.
For example, if we get this funding, we can make as much as 100,000 pieces
in a month with the new equipment, which will increase our sales by x%.
In summary, state what you would use the fund to buy and how it will affect
your business (in figures).
- Equity (How many percentages of share are you exchanging for the
funding- in the case of investment)
However, the amount you are requesting for determines the amount of share
you would be offering; all still dependent on the valuation.
For example,
A company worth 100 Million Naira could be asking for 25 Million Naira
investment for 25% of the company. While a company worth 1 Billion Naira
could be asking for the same 25 Million Naira investment for just 2% of the
company.
Hence, Investor A owns 25% of 100 Million Naira (25 Million Naira), while
Investor B owns 2.5% of 1 Billion Naira (25 Million Naira).
At the end of the day, their share is worth the same thing, based on the different
valuation of the companies.
- What is the current valuation of the company (In the case of investment)?
Definition of Terms
Capital Structure refers to how the company finances its assets and operational
cost. There are two types of capital structure: Debt-Asset and Equity-Asset.
The reason for this is that, a debt would be paid back and the total value of the
asset would be own by the company. But as long as the shareholder’s equity
exist, the company does not fully own the asset.
Potential Earnings
- Current shareholders
Both an investor and a grant sponsor want to know if you have any investor or
shareholder currently and how much of the company they own. This is for them
to know if they can do business with the investor and if it fits into their demand.
Chapter Four: Presentation Etiquettes
I have stated earlier that an investor, sponsor, client or customer does not just
focus on your business offerings, they also assess you as the founder. For
investors, they need to be assured their investment is in safe hands. A grant
sponsors need to be sure you are worth sponsoring and also a customer needs
to feel safe doing business with you.
I went for a pitch to a client sometime ago and we were pitching for a deal over
two million naira. However, we lost that deal because of two things-
- I edited the slides I sent to them earlier5, so while I was presenting, they
asked if I wasn’t unsure of what I earlier sent.
- One of the top executives said to me after the pitch “You don’t get a two-
million-naira deal dressed like this”.
Those are simply etiquette error on our path and we paid for it dearly. It did
not just cost us the deal, it cost us our reputation and winning such client
anytime soon would be hard.
Hence, communicating what you are worth is important that what you are
really worth. You can be worth so much but communicating it poorly can mean
project you and your business offering otherwise.
Below are the certain etiquette criteria that must be well articulated during any
pitch:
Until you are a global and undoubted force in your niche, do not ever copy the
dressing of the top guys. Wear the suit, use the tie, wear a good shoe, cut your
hair, etc. Walk to that pitch looking stunning.
I recommend you have this in mind when you are dressing for a pitch: Ask
yourself how much you are worth and how much your business offering is
worth, then dress up according to that worth. In fact, dress beyond that.
A good scent is magical. It can draw people to like you at first smell. It is a
good welcome etiquette, when you enter a board room or an investor’s office
and a sweet smell fills the whole room. They are compelled to smile at you and
offer you a warm welcome.
A good scent brightens up a place. You can be sure that smelling good can set
the right mood and tone for the physical pitch. However, you do not want to
choke whom you are meeting. Hence, moderation is highly advised. Spend on
that pitch as bad as you want to get it!
- Gestures and Reflexes
Please deal with every bad reflex- biting of lips, eating of nails, scratching of
hair, cracking of finger muscles, etc. They are absolutely uncalled for in a
pitch. Be as responsible and descent as possible.
Also, mind your gestures. Do not end up communicating with your body the
exact opposite of what your mouth is saying. I once pitched to a client and I
was making the “in quote” gesture with my fingers repeatedly until she told
me that making the “in quote” gesture while naming the clients I have worked
with makes her feel like they were not really tangible clients.
If you know you sweat a lot, get a handkerchief. If you are allergic to cold,
wear a befitting dress; not a cardigan. You do not want to start sweating during
a pitch, that would definitely communicate something entirely different. You
do not want to start shivering either. Remember to do your background
checks to know the environment prior.
- Punctuality
How dare you keep an investor or a client waiting? Are you Zuckerberg or Jobs
yet? What is stopping you from being there minimum of fifteen minutes earlier.
Punctuality shows how serious you are with your business. If you can show up
late to a pitch, why should they not believe you definitely show up late to work.
You understand your city, the traffic, etc. Calculate every possible inhibition
to getting there early and deal with it. There is absolutely no excuse for
lateness. You are either late or early. Most importantly, there is nothing like
“You are too early” but if you arrive one minute after the agreed time, you are
late.
Every society has certain cultural imprints it doesn’t take for granted. In some
societies, it is the way they greet, or welcome visitors. In the eastern part of
Nigeria, a guest is welcomed when he or she is being offered a “kolanut”.
In the western part, there is a certain way to greet an elder. In recent times, the
elder may prevent a man from prostrating or a lady from kneeling for them,
but making an attempt to do it speaks volume.
There was a pitch I attended and the lady pitching was chewing gum through
out the pitch. One of the grant panelists said she started pressing her phone
immediately she saw her chewing gum. She called it a total disrespect of the
event.
- Voicing Pitch
Another key etiquette issue is how loud or how low tuned a pitch is delivered.
You do not want an investor to tell you to bring down your voice. You also do
not want them to tell you to speak up. Either ways, it is a bad impression.
Master the way you talk. It is possible for you to be nervous at the beginning
of a pitch, but mastering how to talk, would help you begin slowly but
excellently.
You can consider rehearsing your intro line over and over as you approach the
pitching room or as you are being called upon to pitch.
- Familiarity
There is a possibility that you might know the investor prior to the pitching
opportunity. He or she could even be a family member or church member. The
pitching event is no avenue to show off the familiarity, except when it is done
intelligently.
For example, if one of the panelists happen to be from the area of your target
market, which you are using as a case study; you can intelligently chip this in:
That did not tell that you are trying to prove that you know him or her. Rather,
you only used your familiarity to back your situation analysis in an undeniable
manner.
But on the other hand, you will fail woefully if you speak thus:
- Table Manners
Some pitches can involve a lunch or a dinner. It can be a way to assess your
salient qualities like table manners. If you can object, please do. But in cases
where you cannot, go for the mean you have mastered the table etiquette for.
You should learn to use your cutlery. You should learn to place your fork and
knife in the right hand. You should learn how to place your cup. You should
learn the good posture to eat; you do not want to be putting your mouth too
close to your plate.
For more tips on table manners in official places, find YouTube videos that
teach on that subject.
- Respect Timing
Every pitch is timed and you must respect that timing. No matter the time you
are given, ensure you finish up at most thirty seconds before the stopwatch
goes off. It is a bad impression to be cut off while still talking.
Hence, know the timing before it is your turn to pitch. Let your five minutes
be five minutes.
Unless, the investor or client extends the time with their questions and
comments, make sure you are done talking at your given time. This is why you
should rehearse very well before the pitch.
You surely do not want to be one of those pitchers who would back the
audience and be reading their slides word for word. That simply tells anyone
watching that you do not know what you are talking about or perhaps, someone
prepared the slide for you.
The slides are not for you, they are for the audience. Yours is to deliver the
idea contained in each slide, theirs is to read the slide. Rehearse and go through
your slides over and over until you know the sequence and content highlight
of every slide offhand.
It is not every pitch that you have to attend with a team member or an associate.
Sometimes, go alone. Especially when you are the only one being expected by
the person you are meeting with.
Unless it is very important and the person tagging along has something tangible
to contribute to the pitch, if not, let them be in the office. If you are a co-
founder, it is advisable you go with the other co-founder and you all must
contribute to the pitch.
Communicating Trust and Confidence
No one is going to give you their money if they cannot trust you and perceive
that everything you said is genuine. Pitching is a game of perception. Every
investor, sponsor or client needs to see THROUGH YOU.
Beyond listening to your words and your business offerings, every investor,
sponsor or client wants to read through those lines to unearth who you truly
are. One thing they must always find is that you are trustworthy.
Trustworthy simply means, you have all the criteria they need to be assured
that you are the best deal they can get.
Hence, there are certain things that communicate trust and confidence:
- Eye Contact
Do not avoid eye contact with your audience. If they notice you are avoiding
eye contact, it is a message to them that you are probably avoiding them finding
out some faults in your pitch.
Maintaining eye contact proves that you have nothing to hide and you are
confidently saying all what you are, because they are nothing short of facts.
- Ask Questions
Do not be the kind of a pitcher who would only tell long tales, then answer
questions from the person(s) being pitched to. Be the kind of pitcher who asks
questions too.
Ask if they will like to add anything, ask for their opinion on certain areas, ask
them to try the prototype or sample and tell you what they think, just ask some
question.
Please note that this is not to encourage asking silly questions. Ask only
intelligent questions related to what you are pitching for.
There is a way to bond with people when you are pitching and that is to talk to
one person at a time. As you are relaying your pitch, focus on one person at a
time.
This doesn’t just create a bond; it makes your audience pay attention and be
interested in your pitch.
- Answer every question with a smile
Even if you are unsure or scared, once you appear with a smile, your freight is
very unlikely to show on your voice.
Do not be the kind of pitcher who just says “Yes” to everything, even when
they undervalue your idea or offer. The main reason many people turn to
become an “all-yes” pitcher is because they are desperate.
Do not go into a pitch without perfecting your acts. You do not want to have
any mistakes being noticed while you are pitching in real time.
Hence, take your time to rehearse your little drama, music, poetry, intro, and
even the whole pitch deck using what I call the “Jericho Strategy!”
Simply, the Jericho Strategy implies that you rehearse all your slides from intro
to conclusion- One time daily for seven days and Seven times on the seventh
day. PS: The Seventh Day should be in the morning of the Pitch Day or the
evening before the pitch day.
You can learn from someone else. You can even copy someone’s style. But,
do not rule out your “me-factor”.
The only thing that makes your pitch unique is “YOU”. You can use the
dramatic intro style, the music or poetry style, but do not loose your voice! You
can only be at your best when you are yourself.
Do not try to change how you talk, walk, demonstrate, or try to tell another
person’s story instead of your own. You can improve on those qualities, learn
from professionals, take professional public speaking courses, etc. But, do not
bury yourself in the process.
One thing you should know is that you would not win every pitch. No matter
how great your business idea and how an excellent pitcher you are.
The same way you would not win every customer, no matter how great your
product or service is and how an excellent salesman or woman you are.
Hence, you have to realize that as human beings, you would be wrong
sometimes. In fact, many times. So, what do you do when you are wrong,
especially when you are noticeably wrong?
Three things you should do when you discover you are wrong:
Do not try to cover up for an obvious mistake. Admitting your mistake is a sign
that you take responsibility for your actions, which is a good trait. However, if
you have an objection or a clarification, then you sure can bring it forth.
After admitting that you are wrong, the next thing is to ask for the expert
opinion. Do not be scared to learn. For example, when an investor corrects
your break-even analysis and you could see that you are truly wrong; proceed
to asking him- “You think this and this could be like this?”
Take note of his answers and thank him or her after that. With that, you learning
something tangible by admitting your mistakes. You are also telling the
investor you don’t pretend to know it all and that it a good trait.
Supposing you made a mistake and you admitted it and also got an expert
opinion; now is the time to turn the situation to your advantage.
Ask for their contacts and tell them you would appreciate keeping in touch, or
learning from them subsequently. Hence, even if you didn’t get the grant or the
investment, you get a contact- one more influential person in your network.
When life throws you lemon, it’s time for some lemonades darling!
Hence, take every pitch as a learning opportunity. The truth is, there are
subjective sides to every funding opportunity. Your business idea may be great
but might not fit into what the investor or sponsor is looking for at that time.
Hence, losing a grant or investment doesn’t mean you have a dumb idea, it
could mean a great chance to get your idea to the person who would appreciate
it the most.
Either you win or not, keep applying for every funding opportunity you deem
needed and every client you deem fit a prospect. You are always one pitch
away from your dream!
Everything in this book, plus the template and video guides that you got with
it is enough to land you any life-changing opportunity that has to do with
pitching or selling yourself and your idea.
However, nothing will change if you just keep the knowledge somewhere
without using it. This book is not just another piece of literature in your library,
it is your arsenal to fight your way through to your dream life.
The funding, sales, support and all you ever need to achieve your dream life is
with someone somewhere right now waiting for you to come pitch to them,
take this armory, prepare like your life depends on it and get out of that door
or pull out that laptop and go get it!
About the author
His favorite quote states that “it takes training to turn thrash into treasure"
by Bishop David Oyedepo.