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Pitching, How to pitch your business, Entrepreneurship, Startupweekend
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Create a WOW pitch
Dry Bath
A summary of Business Angel Decision Making By Andrew Maxwell, a PhD
Thesis.
11 2 3 4
8765
Market Potential
Product Adoption
Protectablity Business Experience
ProductStatus
Route to Market
Customer Engagement
Financial Projections
What are the key elements of a good business opportunity?
Research on 5 of Canada's top angel investors showed they looked for the following 8 elements
Is there a large market for this product or service?
A Large market potential (i.e. over $20 million)
B Medium market potential (i.e. over $5 million)
C Unable to predict – likely less than $5 million
1 Market potential
Proof of market potential
Will customers in target market easily adopt this
product?
A Customers will easily adopt product or service
B Benefits harder to identify, some adoption issues
C No clear benefits, or major adoption issues
2 Product adoption
How easy is it to get people to buy?
How are you going to get customers? Proof that you can get new customers
How easy will it be for other people to copy the product
or service?
A Product patented or significant other barrier
B It will not be easy to replicate
C Anyone could copy it
3 Protectablity
Youngest person in SA with a patent
How are you going to get customers? Proof that you can get new customers
Does management have direct and relevant
experience?
A Significant relevant experience
B Limited experience
C No evidence of required experience
4 Business experience
Your experience? Board? Mentors? Adult supervision?
How are you going to get customers? Proof that you can get new customers
Product ready for market, or major work
required before it ships?
A Finished product
B Design complete all technical issues addressed
C Needs more research and development
5 Product status
Ready to scale? Quantities you can produce?
Is there a realistic market plan and route to
market?
A Realistic marketing plan / distribution partner
B Options identified – no agreements in place
C Limited thought given to distribution issues
6 Route to market
Timelines on agreements? Retail how?
Is the first customer identified? Does the
product meet a need?
A Customer in place, or committed to purchasing
B Customers engaged in development project
C No first customers identified
7 Customer engagement
Any sales? Times on purchases?
How are you going to get customers? Proof that you can get new customers
Profitable, High ROI and sustainable cashflow?
A Sound business model and cash management
B Unclear profitability and cash management
C No evidence of profitability and cash management
8 Financial projections
ROI? Profits? Sales?
How are you going to get customers? Proof that you can get new customers
Additional Tips
For a WOW pitch
1. Get your idea across in the first sentence
[BUSINESS NAME] is a [DESCRIBE PRODUCT/SERVICE] that helps [DESCRIBE CUSTOMER SEGMENT][DESCRIBE HOW YOUR SOLUTIONS SOLVES PROBLEM][UNDERLYING MAGIC].
[GOOGLE] is a [WEBSITE] that helps [INTERNET USERS][TO EASILY FIND THE INTERNET SITES THEY ARE LOOKING FOR] [FASTER AND MORE ACCURATELY THAN OTHER SEARCH ENGINES].
2. Tell a story about the problem and solution
Tell an emotional story Keep it personal
Describe the pain
3. Show rather than tell
How are you going to get customers? Proof that you can get new customers
1. Title
2. Problem
3. Solution
4. Business model
5. Underlying Magic (Competitive Advantage)
6. Marketing & Sales
7. Competition
8. Management Team
9. Financial Projections and Key metrics
10. Current status, Accomplishments, Timelines, Use of funds
4. Use Guy Kawasaki’s Suggested Layout
