Startup Pitching: How NOT to Kill your own Pitch: Do's and Don'ts regarding Communication Skills while Pitching

Coming up with creative ideas is easy; selling them to strangers is hard. (Kimberly D. Elsbach, 2003)

A startup pitch deck or investor pitch deck, typically comprising 10 to 20 slides — is a brief presentation to showcase your value proposition, business model/plan, key metrics, team, achievements, future projections, and vision for the company, usually presented for raising capital from investors. However, startup pitching, in general terms, is an ability to quickly tell someone about your company and make them intrigued enough to want to learn more. Startup founders pitch their company every day to everyone—potential employees, investors, and prospects.

An elevator pitch is a much shorter version, usually a crisp 30-second introduction comprising a key point or two about an enterprise that can make an impact with the objective of creating a possibility of getting contact details or an appointment with someone for sharing a proposal or an opportunity of a meeting later. It is termed an elevator pitch because it takes roughly the amount of time one would get to spend while riding an elevator with someone.

Effective Communication Skills during Startup Pitching

Communication skills play a crucial role during startup pitching by enabling founders to effectively convey their ideas, vision, and value proposition to potential investors, partners, and stakeholders. A study led by Hatem Rijba at the Paris School of Business analyzed companies from 1995 to 2017 and discovered a correlation between less readable SEC Form 10-K reports and increased equity costs. This cost was further heightened when disclosures conveyed a negative or ambiguous tone. Writing complex documents was found to raise the cost of debt capital by 77 basis points. Additionally, another study revealed that the complexity of Form 10-K documents contributes to higher audit fees and longer audit durations (Birchard, 2022). Communication skills contribute to startup pitching in the following manner:

1. Know your Audience and Tailor the Pitch to the Audience: Tailor your pitch to the interests, needs, and priorities of your audience. Research potential investors or partners beforehand to understand their preferences and areas of focus.: Communication skills enable founders to tailor their pitch to the specific interests and priorities of their audience. Whether pitching to venture capitalists, angel investors, potential customers, or strategic partners, founders can adapt their messaging, tone, and content to resonate with the needs and expectations of different stakeholders.

2. Start with a Compelling Hook: Begin your pitch with a strong hook or attention-grabbing opening statement to capture the audience's interest from the start. Use a compelling anecdote, statistic, or problem statement to draw listeners in.

3. Clearly Articulate the Problem: Clearly define the problem or pain point that your startup addresses. Help your audience understand the significance and urgency of the problem you're solving to create a sense of opportunity.

4. Present the Value Proposition as a Unique Solution: Communication skills help founders articulate the unique value proposition of their startup in a clear, concise, and compelling manner. By effectively communicating the problem their product or service solves, the target market, and the benefits it offers, founders can capture the interest and attention of investors and stakeholders. Describe your startup's solution or product highlighting what sets your solution apart from existing alternatives and how it addresses the identified problem effectively.

5. Focus on Benefits and Impact: Clearly articulate the benefits and value proposition of your startup's solution. Emphasize the positive impact it will have on customers, users, or the broader community to create a compelling narrative.

6. Telling a Compelling Story: Communication skills enable founders to tell a compelling narrative that resonates with investors on an emotional level. By weaving together elements such as the founder's personal journey, the inspiration behind the startup, and the potential impact it can make, founders can create a memorable and engaging story that captivates the audience.

7. Be Clear and Concise: Keep your message straightforward and to the point. Avoid jargon and complex terms that may confuse the audience.

8. Engage with the Audience: Maintain eye contact to build trust and connection. Encourage questions and interaction to keep the audience engaged.

9. Be Passionate: Show enthusiasm and passion for your idea. Demonstrate belief in your product or service.

10. Use Positive Body Language:  Stand tall, use open gestures, and smile to convey confidence. Avoid fidgeting or closed-off body language that may signal nervousness.

11. Visualize your Story Creating Memorable Visuals: Visual storytelling can help engage the audience and reinforce key points effectively. Communication skills include the ability to create visually compelling pitch decks and presentations that support and enhance the verbal pitch. Using visual aids such as clear, concise slides, compelling graphics, or product demos to enhance your pitch can make complex concepts more accessible.  By visualizing the story, founders can reinforce key messages, highlight key data points, and leave a lasting impression on investors and stakeholders.

12. Address Potential Challenges: Acknowledge potential challenges, risks, or objections that investors or partners may raise. Demonstrate your awareness of these issues and outline strategies for mitigating risks and overcoming obstacles.

13. End with a Strong Call to Action: Conclude your pitch with a clear and compelling call to action, whether it's requesting a follow-up meeting, seeking investment, or inviting further discussion. Leave the audience with a memorable takeaway that inspires action.

14. Prepare for Questions: Think about potential questions and objections in advance. Rehearse your responses to ensure you can address concerns confidently.

15. Handling Q&A Sessions: Communication skills are critical during Q&A sessions, where founders must field questions from investors and stakeholders. By listening actively, responding thoughtfully, and addressing concerns or objections with poise and confidence, founders can navigate challenging questions and reinforce their credibility and conviction in their startup.

16. Practice and Refine: Practice your pitch extensively to refine your delivery, timing, and messaging. Seek feedback from mentors, advisors, or peers to identify areas for improvement and fine-tune your presentation for maximum impact.

Communication skills are essential for successful startup pitching because by honing these skills, founders can increase their chances of securing funding, forming strategic partnerships, and driving the success of their startup. A study focusing on CEOs delivering IPO road-show presentations revealed that even seasoned financial advisors form initial impressions of a leader's "competence and trustworthiness" within just 30 seconds. These rapid assessments held significant sway, as CEOs rated highest for their executive presence enjoyed higher IPO valuations. Carmine Gallo, an instructor at Harvard University, put forward five strategies to exude leadership through both appearance and speech. These strategies can be useful for startup founders while they pitch their businesses for raising investment.

Classification of Pitchers (Kimberly D. Elsbach, 2003)

1. Showrunners: These individuals are confident, polished, and professional. They excel at presenting their ideas in a way that is both engaging and persuasive, often drawing on their experience and expertise to command the room. 2. Artists: Artists are creative, eccentric, and unconventional. They might be less polished in their presentation but make up for it with innovative ideas and a unique approach that captures the audience's imagination. 3. Neophytes: Neophytes are typically newcomers or beginners presenting themselves as open to learning. They may lack experience and polish, but they are often enthusiastic, humble, and open to learning, which can be appealing to the audience.

 

Don'ts Regarding Communication Skills while Pitching

1. Do not Overwhelm with Information: Stick to the most important points without overloading with details. Avoid long explanations that can lose the audience’s attention.
2. Do not Read from a Script: Aim to speak naturally rather than reading verbatim from notes. Maintain eye contact and interact with the audience.
3. Do not Use Negative Language: Frame your pitch positively and avoid negative words or phrases. Even when addressing challenges, focus on positive solutions.
4. Do not Ignore Feedback: Be attentive to audience reactions and adjust accordingly. If you notice confusion or disengagement, clarify or shift your approach.
5. Do not Rush: Speak at a moderate pace, ensuring clarity and comprehension. Take pauses to allow the audience to absorb information.
6. Do not Be Overly Formal: Be approachable and conversational rather than overly stiff. Connect with the audience on a human level.
7. Do not Make Assumptions: Do not assume the audience knows all the background or technical details. Provide necessary context and explanations.
8. Do not Focus Solely on Features: Emphasize the benefits and value rather than just the features of your product. Highlight how your offering impacts the audience positively.
9. Do not Ignore Non-Verbal Cues: Pay attention to the audience’s body language and expressions. Be ready to adapt based on non-verbal feedback.
10. Do not Forget to Follow Up: Clearly outline the next steps and ensure you follow up after the pitch. Thank the audience for their time and consideration.

How to Kill your own Pitch (Kimberly D. Elsbach, 2003)

Kimberly identified the following four negative stereotypes that can kill a pitch:   1.     The Pushover: This individual unloads an idea rather than defend it. This stereotype portrays someone as too agreeable, submissive, or lacking in assertiveness as they agree to all suggestions or observations made by the VCs. Pushovers are seen as agreeable and easy to influence, which can lead others to doubt their abilities or skills. 2.  The Robot: This individual delivers a pitch too formulaically as if it had been remembered from a how-to book. They appear to be lacking passion for the idea they are pitching. 3.  The Used-car Salesman: This individual is a bit argumentative, insistent, and arrogant and is unwilling to listen and is perceived as overly slick, often focused on making a sale at any cost. 4. The Charity Case: This individual projects him/herself as needy and gets to pleading the moment he or she feels being turned down, showing desperation to keep the venture going. Individuals labelled as a "charity case" may be seen as lacking competence.

 Dr. Karminder Ghuman, Head of MBA Department, LM Thapar School of Management,          Thapar Institute of Engineering & Technology (Deemed to be University), Patiala

This blog is based on contents from the book: "The Art and Science of Effective and Impactful Business Communication for Managers" 

https://rb.gy/t1fnup

This book has a compilation of research-based proven tools and strategies to guide professionals regarding the following aspects of business, corporate, and managerial communication:

Employability Skills and Communication

• Cover Letter and Resume Writing
• Group Discussion (GD)
• Personal Interview

Writing Skills

• Business Writing Strategy
• E-mail Etiquettes
• Letter writing
• Agenda and Minutes of Meeting
• Office Memo, Notice, and Circular Writing
• Business Report Writing
• Writing a Compelling Press Release
• Business Proposal Writing 

Organizational Communication

• Bureaucratic Communication
• Satisfying Customer Care
• Intercultural Communication
• Leveraging Grapevine Communication
• Dealing with Ego, Power, and Organizational Politics
• Dealing with Aggression or Negative Emotions of a Senior at Workplace
• Communication Dilemmas at Workplace
• Communicating in Diverse and Hybrid Organizational Environment

Managerial Communication

• Delivering an Impactful Presentation
• Probing and Confrontation Skills
• Problem Solving: Creativity and Innovation – Role of Communication
• Selling Skills
• Effective Meetings
• Conveying a Difficult Message
• Negotiation Skills
• Team Building, Group Communication and Inspiring Collaboration
• Providing Feedback and Criticism
• Conflict Management
• Personality Type of Leaders/Managers and Communication Style
• Communication Strategy and Decision-making Heuristics

Networking

• Networking
• Greetings, Introducing, and Rapport Building

Technology and Communication

• Technology and Communication
• Generative AI and Communication
• Social Media Communication

Leadership Communication

• Leadership Style and Communication
• Communication Strategies for Corporate Leaders
• Public Speaking
• Persuasive, Confident and Decisive Communication
• Increasing Productivity

Entrepreneurial Communication

• Story Telling
• Persuasive Techniques: The Language of Persuasion
• Visual Content Creation: Blogs, Vlogs, Reels, Videos, Webinars, Tags, and Hashtags
• Content Writing and Career Opportunities

Monitoring and Measuring: Effectiveness of Communication

• Communication Audit: Monitoring and Measuring Effectiveness of Communication