If you had only 60 seconds to deliver your best business pitch, what would you say to convince someone to fund your business? Now consider three investors listening to your pitch (who have probably heard hundreds of pitches before) who have the ability to fund your business idea for $10,000. Could you handle the pressure?
These were just a couple of the questions I was thinking about Monday evening as I watched the Elevator Pitch Competition at the 2010 Black Enterprise Entrepreneurs Conference + Expo hosted by ExxonMobil. As the owner of my own business, an entrepreneurship education and training program called New Designs for Life, I was immediately intrigued when I first heard about the contest. I wondered what I would share if I were in the position to pitch. Do I focus on my previous successes? What about the core benefits of my business? How could I best present how my business makes money? Or do I focus more on how I would spend the money if I won the prize?
Answering these questions seemed infinitely easier in front of my mirror at home than it appeared to for the 10 brave entrepreneurs who shared their pitches in front of three judges and a live audience. I was impressed with the quality of the ideas and the preparation. Some of the ideas included an online weight loss management program, a videophone personal trainer, an iPhone app for parents to collect grades from school, and healthy BBQ restaurants.
What I treasured most about the event was the immediate feedback from the judges. How often have I had an idea but lacked an experienced team of advisors to share what works and what doesn’t? Magnus Greaves, founder and CEO of The Cashflow; motivational speaker and life coach Lisa Nichols; and Earl “Butch” Graves Jr., president and CEO of Black Enterprise gave good, constructive criticism about the strengths and weaknesses of each presenter. It was like peering into the decision making process of a venture capital board and I valued the insight they offered.Â
One presenter was challenged to share her potential growth or scalability. A few were told to slow down in their presentation style, and equally important, never apologize if you misspeak or fumble with your words. Just take a moment (a quick one) to regroup. (Apologizing makes you appear unfocused and unprepared, which might make an investor nervous about seeding your business. I thought this advice was critical for women entrepreneurs.)Regardless of how interesting the idea was (and I think the pitch about personal wipes for men won the prize for that!), the judges did not veer away from challenging all of the presenters to demonstrate how their business solved a problem or met a need
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in the market, through their personal stories or market analysis statistics. While the judges focused on the overall pitch, delivery, originality, and profitability of the pitch, they also paid particular attention to the business’ sales strategy, path to profitability, and investor ROI–how the people who invested in the business would profit.
This
was feedback that I could apply to my own business. While I have a plan and am considering the next steps for my company, I know that my own pitch is not as refined as it could be for a variety of audiences–in particular, investors. In the past, I have self-funded my business and shied away from considering investor capital. Learning what investors are looking for in a real, practical manner was a great lesson.Five winners from the first round had the opportunity to share their pitch again, after receiving the initial feedback from the judges, but this time only for 30 seconds. I found myself listening closely to see how the contestants incorporated the feedback they’d received only a short while ago, which many of them did well. I also gained some additional insights, including the importance of presenting the value of the business up front, sharing the personal story of the business (in a concise manner), and letting the market know why my business is the one they want. The competition was high-energy and intense all the way to the finish.
Without a doubt, all of the presenters who shared their pitches were winners because they had the opportunity to share their business dreams and receive valuable coaching. Now that I got some good advice and gained some perspective, I’m going to spend some time revising my own pitch!
Malla Haridat, the founder and CEO of New Designs for Life, is a nationally recognized expert in the specialized field of entrepreneurship education and has trained over 1,000 students. She has traveled extensively throughout the United States working in partnership with companies developing creative solutions for entrepreneurs and intrapreneurs. A dynamic thinker, strategist, and speaker, Malla now works with a wide variety of organizations applying her creative talents to the challenges of business transformation. Her company was awarded the 2005 New York City Small Business Award of the Year by New York Mayor Michael Bloomberg and has been featured in publications like The New York Times and on Martha Stewart Radio.