Mary Schmidt Marketing Troubleshooter

I’ve agreed to be an advisor again this year for the annual TVC Investor Forum. Each of the 19 entrepreneurs presenting to VCs and angels get a team of advisors. I’ve done these several times in the past, and fully expect to give the following advice (again):

1. Answer the question, How are you going to sell it? A single statement such as “through third parties” isn’t good enough. What third parties? When? Who are you talking to? How are you going to launch the product? How are you going to manage the channels? Are you also selling direct? If so, how are you going to manage the potential channel conflict?

2. Re-write the executive summary. It’s a business plan but it’s also a sales pitch. Put your key selling point right up front. Drop a lot of blah-blah about “innovative solutions.” Investors read hundreds of biz plans a year - they’re not going to wade through to page 47 to find out why they should care about your “innovative solution.” (everybody pretty much says that innovative stuff. Groan.) Example: Rick Segal (Canadian VC) says he reviewed 534 business plans in 2007. (You also should regularly read Segal’s blog, The Post Money Value, Rick’s Rants or a VC Loonie with a Tooni, for some refreshing VC insider perspective.)

3. Lose the words. The PowerPoint should reinforce your points, not force people to read an eye chart. If they’re squinting to read a lot of text, they’re not listening to you. (or worse yet, they’ve given up and are catching up on their email, or are out in the hall returning phone calls.)

4. Relax! Don’t be afraid to show some personality. You can be professional and still personable. So what if you flub “the script” for a slide? You should be able to give your pitch without any slides whatsoever. Pretend it’s just you and me sitting around the table - why are you so passionate about your idea?

5. Focus. Don’t try to be all things to all people right from the get-go. Sure, your technology may well be capable of being both a floor wax and a dessert topping, but pick one for initial market entry.

Whatever you do - speech, plan or presentation - get to the point! Don’t take my word for it, here’s David Hornik, General Partner at August Capital, with Pitching The VCs, Revisited.

and here’s Guy Kawasaki with the 10/20/30 Rule of PowerPoint.
Bonus Tip: Be leery of the “one hit wonder” VCs who made a few million once (he or she was the junior product manager at a company that just happened to hit) and now think they’re imminently qualified to advise entrepreneurs on everything from finance to marketing to international distribution. Tell-tale sign: The more they talk, talk, talk, talk about who they know and how important they are - the less likely the smug wonders are to offer any real value (financial or otherwise.)

Remember, you’re presenting to people - who are always wondering, “What’s In It For Me?”

Read More:Want Funding? Think Like An Investor Ten quick tips, based on my experience with VCs and start-ups. (one-page PDF)

Tags: start-up funding, entrepreneurs, entrepreneur sanity check, Technology Ventures Corporation