Sage Advice

Outlining the Pitch Deck ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

In the last issue of Sage Advice, we focused on developing a compelling elevator pitch. This time, we're taking a giant step forward to the investor presentation. So, what exactly should be included in your pitch deck?

Don't make the mistake that many young companies do and just add a couple of slides to your sales presentation. This is a different audience and should have a uniquely tailored presentation. The ultimate goal of the story you present is to alleviate investors' fear of risk. . .risk about the people involved with your company, the product or service you are developing, the market, and what competitors exist or might be lurking around. You must show that you have a solution to an existing problem and you have a solid plan for success. There are many different outlines you can use, but we find that this one fits the bill best and builds a convincing story.

• Title: Skip the table of contents; it doesn't add anything to your discussion and slows down your momentum.
• Problem: The first 30 seconds sets the tone for the entire presentation. Start strong by really capturing your audience's attention with a clear, compelling market and a market need. There must be a real problem to be solved.
• Solution: Quickly follow with your real, honest-to-God solution to the problem. Show that your solution is so good, people are willing to pay you for it.
• The Business: Now discuss how you actually plan to make money by providing your solution. What is your business model and how will it work?
• The Secret Sauce: So what makes you so uniquely qualified to be successful in your market. . .is it technology, key partners, distribution, international reach? Just how are you going to pull this off?
• Marketing: Tell them how big the market is, how much you plan to capture, and how you will do it. Lay out your channel strategy and how will you target your market. Avoid trying to convince them you are creating a new market niche--they won't believe in you.
• Competition: Describe how you will compete in the current market and how will you protect yourself from up-and-comers.
• Management: Your management team must be solid. Introduce your experts, including advisors, and their past successes.
• Financials: Outline your financial strategy, including revenue streams, margins, cash flow, and path for profitability. Leave more details for the Q&A session as there are always follow-up financial questions.
• Key Milestones: What are the upcoming key events that will put you on a path to success (technology, marketing, staffing, etc.)?
• Call to Action: Lay out what how much money you want, when you want it, and what you plan to do with it.

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Dos and Don't of the Investor Pitch ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

When standing in front of a room full of investors, you need all the help you can get to make sure things run smoothly. The following are some basic ground rules.

• DO know how much time you have in advance and keep your presentation to only half of that time. A good bet is 12 to 15 slides. This gives you enough time to prove your credibility in the Q&A session following the presentation.
• DO your homework and know your participants. You can check out their bios and Google them to get more background information.
• DO provide substance (these guys know fluff when they see it) but DON'T kill them with product details.
• DON'T do a product demo.
• DO bring extra materials as you never know who might join your session or if your participants might want to pass extras along to others.
• DO coordinate audio-visual equipment well in advance and test it. Show up a bit early to make sure all the AV is ready.
• DO make sure your slides are readable: clear, clean, large type; logo and page number on every page; dark background; little to no animation.
• DO speak in real language--avoid industry buzz words, techie talk, or MBA babble.
• DO anticipate the questions you will get in the Q&A session, prepare answers, and practice. Have backup slides ready to illustrate your points.
• Whether it went well or not, DO get feedback. Your next one will be better either way.

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Five Tips: PR ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

1. Nothing is ever off the record.
2. Never call to ask a journalist if your press release was received. If your news was worthy, it will run. If not, you've just annoyed the journalist further.
3. Don't forget to pre-brief business and technical analysts on important news. If convinced of its merit, they can bring much credibility to your news.
4. Do your best to get a third-party quote in your press release. A customer or analyst is best, but also a partner will do.
5. Offer to do contributed articles, columns, or opinion pieces. You don't get full bragging rights about your product or company, but you build your audience and credibility.

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About Sage Strategic Marketing ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Sage Strategic Marketing focuses on strategic marketing, communications, PR, and Internet and search engine marketing for emerging-growth companies. That's all we do, and we're the best at it. We have unique expertise and a long track record of successfully helping small, relatively unknown companies communicate their unique promise and gain the visibility they need to fuel growth.

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Sage Life Advice

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Baby bears are real cute, but mama bears don't particularly like you playing with them.

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