10 Rules for Nailing your Business Pitch

I get pitched business ideas a lot. I hear from aspiring startup founders at speaking events, at conferences, on planes, at parties, the list goes on. All of these entrepreneurs are looking for an answer to some version of the following question,

“How do I get capital for my business?”

During the first week in October, I headed to Buffalo, New York to serve as a finals judge in the 43North pitch competition. With $5 million in capital on the table for winning startup ideas, 43North has grown into one of the largest global pitch competitions. It also served as the perfect opportunity to get some answers for business entrepreneurs looking for advice. During the competition, I pulled aside some of my fellow judges, all investors and thought leaders in their respective fields, to get their advice on what makes a great business pitch.

When it comes to a great business pitch, there is no one size fits all, but if you follow these 10 Rules, you’re well on your way to finding a ‘funding fit.’

1) Keep It Simple

When it comes to your pitch, Dave Jakubowski, Director of Publisher Solutions at Facebook, said there is one fundamental rule, “keep it simple.” The key to simplifying your pitch is envisioning delivering it to someone who has no knowledge of the industry you’re working within and then breaking things down from there. Make sure you answer the most basic question, ‘What does your business do?’

2) Differentiate Yourself

Create clear market segmentation. In today’s competitive business landscape, many companies are entering into crowded fields. When you are making an argument for your business, you must demonstrate why you are uniquely qualified to solve the problem at hand. Simply put, differentiate yourself. Somewhere in your pitch should be a version of the following,

“My business _____ is the only solution to the ______ problem because _____.”

3) Clarify Your Idea

Startup CEOs forget that not everyone is living and breathing the business that they’re in every minute of every day,” says Jakubowski. Make sure you clearly state the opportunities your business provides for consumers, and the opportunities it provides for the city, the community, or the institution in which your business is embedded.

4) Seek out Disruption

‘What’s the big breakthrough?’ Many unicorns started out as businesses that sought to disrupt established markets (Uber, Netflix, Airbnb.) Does your business improve upon a tested-way of fulfilling a societal need? Great. Does your business develop an entirely new way of fulfilling that need? Even better. When you’re forming your idea and your pitch, look for the cracks in market infrastructure, and use those cracks to blow that market right open.

5) Don’t Go it Alone

“Partnering with people is one of the most effective ways to move your ideas forward,” Says Virginia Giddings of Stryker Neurovascular. But remember, a partnership isn’t always financial. Partner with community leaders for support, mentors for advice, or existing businesses to fuel symbiotic growth. Leaning into the people and the networks around you will only grow your sphere of influence more quickly.

6) Solve a Problem

The first question you should be asking yourself is, ‘What does the community need?’ A lot of people are consumed with working on something that they’re passionate about, and that’s great, but what you’re passionate about doesn’t always coincide with community-need or market demand. Look for the happy medium.

When you stumble upon an idea that excites you, take a step back and ask yourself, ‘does this solve a problem that is bigger than me?’

7) Screw ‘Winning’

In my conversation with Rodney Sampson, a Partner at Tech Square Labs, he pointed out a current problem prevalent in business competitions. Rodney stated, “a lot of folks can get consumed with pitching on stages and winning and not actually building their business.” It doesn’t matter how many competitions, awards, or funding your business ‘wins,’ at the end of the day, the only thing you should be concerned with is the growth of your business.

8) Show Growth

Many investors will roll the dice for a big pay off, but ultimately, they are looking for businesses that can demonstrate growth. Outlining the opportunity that sits in front of potential investors will be crucial in selling your vision. Your core idea will get you in the door, but your ability to show past, and more importantly, future growth for both your business and the market you’re entering into, will be vital to the success of your pitch.

9) Know your Audience

Most pitches I hear fail to adequately address their audience. If you want to increase the effectiveness of your message, you need to know whom you are speaking to. Spend time researching the investors or firm you will be pitching to. Being able to specifically address a potential investor, or in the case of pitch competitions, a judge provides an instant personal connection. You wouldn’t go into a test expecting to receive an ‘A’ without studying first- the same goes for your pitch. Don’t expect to receive capital from an investor without doing quite a bit of background research.

10) Be Passionate

Public speaking does not come naturally to everyone, but beyond practice, the core principle you should keep in mind when pitching is passion. Excitement and enthusiasm for your idea can be contagious. Work on developing your tone, cadence and body language in a way that directly conveys your enthusiasm. If you’re not passionate about your idea, how can you expect others to be?

For more actionable tips on improving your pitch, check out the full video of my time at 43North.