How to pitch an investor | Philip Hofmacher | Skillshare
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11 Lessons (22m)
    • 1. Intro and why i chose pitching

      1:00
    • 2. What is pitching and is there a perfect pitch?

      2:17
    • 3. First you have to know your audience

      1:38
    • 4. How to structure your pitch

      2:04
    • 5. Intro and request

      2:46
    • 6. The perfect one-liner

      1:55
    • 7. Problem and solution

      1:58
    • 8. Status and call to action

      1:48
    • 9. Q&A guideline

      2:14
    • 10. Let's talk about numbers

      2:53
    • 11. Recap and goodbye

      1:03

About This Class

Have you ever watched an Episode of Shark Tank or thought about pitching your business to an investor? Here is all what you need to know to succeed.

Transcripts

1. Intro and why i chose pitching: Hi, my name is Philip, and I'm proud to say that I finally managed to step out of my own comfort zone and start teaching on than right here at skill share. It's my first topic. I select pitching because I'm really passionate about it. And they also work at a startup that it's focused on pitching in my shop at the start up. One of my main objectives is to listen toe other startups pitching their I take notes, and then I tell them how to improve their performance. Thies, to effect combined helped me together a lot off experience and also a little bit off expertise in the field picture, which I now want to share with all of you in my cause, even though some of you don't know what pitching me, this is no problem. In the next video, I'm telling you all the basics about pitching and also, if it's possible for you to create your own perfect pitch 2. What is pitching and is there a perfect pitch?: in this course, we're going to talk about what pitching is all about. And if there is a possibility for you to create your old perfect pitch, pitching means delivering a business blunt verbally so you don't hand someone over your business. Plum. No, you tell him about your business is all about. This can happen in many different ways. For example, you meet a friend on the street and you tell him, Hey, I have a new business idea. I want to do this This, this and this This would be a pitch. But there's also the opportunity for you to stay in front of five investors like it's on the shock. Think this will also be pitching, or It's also possible for you to stay in front of an audience off about sweet 100 off, even though 1000 people and tell them. But it business is all about this old means pitching. So every time you tell someone about your business, it's pitching, and now we come to the second part of this lesson. Is there perfect pitch as a torture before? There are many different ways how pitch could look like, So I'm very sorry to tell you, but it's not possible for you to have a perfect pitch that helps you every time you want to pitch someone. It's important for you to have different kinds of pictures to. You have to have an investor pitch, which use when you want to waste money. You have to have a different pitch when you meet someone in the elevator and want to tell him all about the business in on those 30 seconds. This would be called the elevator pitch and, for example, if you speak in front of an audience and there's no one who is willing to invest in your business. But it's a possible customers, so then you will have to have a slightly different customer pitch. All of these pictures could be similar in a way, but they also have to be very specific onto your audience in the next cost. I'm going to tell you why it's so important for you to form yourself about the audience before you start creating your presentation 3. First you have to know your audience: in this episode, I'm going to tell you why it's so important for you to know who your audience is. Imagine the following You are the CEO off a new social media website and you claim to be the next big thing. You go out on the stage and say things like our companies like combination of Facebook, instagram and YouTube and we have and what's up integration to fester. Uploading self is for sure. This could work for most of the times. But what if you pitched on audience, which is in the late seventies? Most of them might never used YouTube to find a video. What taking a selfie so they won't get what you're talking about. Also, the level of education could be important. Don't use too complicated births. If your level is both the one off your audience, always use words that your message is easy to understand. Also, try to figure out if there are more men of women in your audience. Get a hold the information possible, especially if you pitch an investor. Used the Internet to find all information about his career. Understand investments. Each piece of information could be your benefit because investors want to see that you have done your homework and showed up here in my next video. I'm going to show you how you should struck to your pitch when you're going to pitch in and rest. 4. How to structure your pitch: Welcome back this episode going to tell you health, normal structure, off pitch looks like and how you might know it from the shock. Think there are seven steps. If you follow them, you have a great chance to succeed. The first step always is the in tow. This is the part where entrepreneur tells investors his name and says, Hi, second step is to request this level. The entrepreneur tells the investors how much money it's seeking and what percentage of equity is willing to give away certain. It's a short one line. This is a very, very short explanation of what the business is all about. Fourth part off the pitch is the problem or the need that the business is solving. Next up is the description how the start off plans to solve this problem. The sixth step describes at what level the startup is right now and what our next steps last but not least, there should always be a call to action telling the audience about entrepreneur wants. Maybe some of you might have recognized that you will never talk about your market size or even your competition. For sure, it is a very important part of your business. But given the fact that might have only a limited time picture idea, it's OK not toe. Answer this questions in your pitch All you have to do if your pitch is to fill the investors about what you do. If they get dressed, that they will ask you all these questions and many more. This is the so called Q and A that happens after every pitch. In the next episode, I'm going to provide you with detailed information about the 1st 2 steps off the pitch. 5. Intro and request: in tests. Course we're going, Detective 1st 2 parts of the pitch, the Inter and the request. Let's start with the intruder you can use to foreign birds Started presentation. Hi sharks. But dear investors, my name is Philip, and I'm the CEO off whatever company. At this level, you make your entrance into the room, prepare yourself well so that you will look a self confident. It's possible investors not only invest in the business, but also in the person behind the business and what investors absolutely don't want to see . A nervous and unprepared people. Well, they also often get asked, is What shall I wear when facing an investor here? I can tell again that there is no perfect way to twist, but what I can tell you is the following. But you were should fit with who you are and what your business is all about. For example, if you're in the field of corporate banking, it please you toe your most expensive suit and a tie. But if you start up, it's all about parties for kids. It's completely different, in this case, even a clown's costume without perform a suit. So you see, it's all about businesses. Aptitude. Let's jump to the second part of this lesson to request. This is the part where the entrepreneur States thinks, like on seeking 60,000 for 15% equity stake in my business here. I tell you to be very prepared because shocks instantly do the math, assume issue, tell them what you're seeking for. To calculate the total valuation of the company. How are they doing this? All you have to do is divide the number off capital the entrepreneur is looking for with the percentage they are willing to give away. In our case, this means 60,000 divided by 0.15 This results in a total valuation off 400,000 for the whole company. From now on, the shocks always have this number ready. And believe me, they are willing to challenge you on this number. Later on. I'm going to tell you how to you're going to do this and how you can defend yourself in your business. But first we have to talk about other important parts off your pitch. Next lesson. I'm going to show you how a perfect bond Dina could look like 6. The perfect one-liner: welcome to the next episode from pitching. Cause this lessons, it's all about the one line. Before you should start a presentation, you should tell the audience. What is it all about without giving away too much off the idea off the bottom line is to start some small sparks before you light up the whole fire. The bond liner also follows the purpose off taking the investor out of the dark. Don't get me wrong. Investors have no problem with surprises, but they don't like it. When you talk and talk and talk and they don't know in what direction you're going. Because of this, you use your bond liner to tell them just a little bit about what you're going to tell them . So let's take a look how one line I could look like I'm sure you all know dishes them. According to Wikipedia, she Sam is an EP for Mex PC's and smartphones best known for its music identification capabilities that has expended to integration with cinema, advertising, TV and retail environments. Please keep in mind this is not a one violent Okay, it might be one sentence, but when we talk about a one liner we mean something. Where were we? Sure. So a perfect one. Dine of fascism. Could be She sent. Recognizes music. Your one liner could also be something like uber for space shuttles. Well, Facebook for blind people. I know that it's not that easy to come up with of online. So I want you all to think about your very own one diner for your business and posted into the comments in the next gas. I'm going to talk about how to explain your problem and the solution you came up with. 7. Problem and solution: in this course, we talk about how you describe the problems that your startup solves. How to present solution properly. Let's start with the problem. For example, you can start with friends like you all know the following situation or have you ever. It's also possible to use about if sentence, for example, What if I could say for 50 minutes each day and describing your problem? There are two important things. First, keep it short. Don't use more than 50 seconds to explain the problem. Second, keep it simple, explained The problem is easiest possible. Everyone should be able to understand why this is a problem. After you made your problem clear, you have to focus on presenting your solution First, tell your story how you came up with it and then explain how it works. Also show your passion why you wanted to solve this problem. Investors always love it when an entrepreneur s passionate about what he's doing. Also demonstrate your product that's good as possible. If your product is something to eat or drink, always hand your possible investors something to taste It also, if it's something else, always find a way to let the investors try put you up to If it's something you need expertise to try brilliant experts to demonstrate the product. For example, if you produce a better version of Escape Boat, invite the professional skater to demonstrate the difference between your boat and the standard one in my next course at tell you why it's so important to talk about your current stage and why you should never miss to close a patron, Faldo actually. 8. Status and call to action: welcome in this course. Spend a few words on why you should always talk about what states you are right now, and value should never miss a call to action. Investors want to know on what level you are right now. They need to know this because they on one hand want to see how far you have come already, and they also evaluate how fast you can grow in the future. They also want to know in which direction your business is going. All this information is important to them because a good business angel not only wants to invest money into you, they also want to help you with the experience Internet work. Because of this, they need to know what challenges you are going to face in the future. In the shark tank. To call toe actual normally sounds like this. So shocks, who got hungry or who is ready to invest. It's not that important because he already made clear how much money you're seeking. But if you pitch somewhere outside the tank, it's not the case. Always closely pitch with a call to actually the court toe action can be very specific. Try to remember what I told you about your audience and focus your pitch on who is listening to you. Even though when there is no invest in your audience, you can use your call to action to get new followers on social media or simply savory. It's like this. I would be happy if you could tell their friends about my business. Maybe one off them could benefit from what I'm doing. So we come to the end of our pitch, and in the next video I'm going to focus on the Q and A. 9. Q&A guideline: Welcome to my gas on cue and eight guidelines. So human instance for question and answers. After every pitch, there's about 10 to 15 maybe 20 minutes of Q and A and this step, the shocks can ask everything. They want to know what they hope for. Answers from the entrepreneur. You better be prepared. If you can't answer their questions, you won't have a chance to get an investment. I can provide you with five steps that will help you succeed in every Q and A. It's just answer shortened. Clear. If you get something s answer to it directly, don't use too much rights. Keep it short and simple. Second thing you get a question you can't answer. Don't get a lie. Just say I'm so I don't know. Fourth step. Always prove backups. Lights back up. Slides on slides. You don't show in your presentation, but slights keep in the background. And if you get asking Q and A you present them and 50. For me, the most important thing always know your numbers. Imagine one of the shocks is asking you for your number of sales account. Answer this. They will think, you know, national polity business. I'm also going to provide you with some simple questions. The shock might ask you one off. This could be What do you bring to the table with this? They want to know if your team is the right one to succeed. And if your team has all the needed abilities and skills, the shocks might also say something to you like, Tell me about going to market when the safest they want to know how big your market is and how much percentage off this market you're going to claim. And also, most of the time I want to know. How are you planning to attract customers In the next video, I'm going to focus on the most important question. The question after your sales and how much money you've already made. They're also going to teach you how to cross the exhilaration, get 10. Let's talk about numbers: in this episode, I'm going to focus on how to answer questions like Let's talk about sales. So what? Sales are interesting for investors. They always want to know your total saves in your to your proof, meaning they want to see how much profit you made three years ago. Then how much it crawls to two years ago, one year ago today. How far it will grow in the future. Shocks. Always interested in businesses were weapons crow. They also want to know how much of your own money you put into your business. And next thing they might want to know is how big your operating margin is. They also want to know how much you pay yourself and especially your ener earning after Texas so called prophet. So let's talk about the valuation gap. First we take a look back at the numbers. We ask for an hour request. We asked for $60,000 in exchange for 15% equity stake In our business, tis resorted to a total valuation $400,000. Let's imagine our company has a profit off about $80,000 a year, and the multiple in our industry is sweet to four. Let's imagine Sweep 40.5. So we meet in the middle in our case. Dismissed the following our annual profit $80,000 multi blood by the multiple off sweet 0.5 equals into 280,000. This means that we face a market valuation off 280,000. Now we want to compare this with our own elevation off 400,000. So this means there is a cap off $120,000. And now either we can explain to skip to the investors or we're not going to get a deal. Several things that could help us close to skip one, for example, could be patents, copyrights. Another one could be in so called on for advantage. This will be an advantage that allows us to work in a way that no one else can. Also, where helpful would be if we have a weapon growth, meaning our businesses crowing about 200% each year. Last but not least, way to close the gap could be new customers imagine we have a new customer which laid down a huge purchase other, and all we need to do is get the investment to fulfill this purchase order. In my next video, I'm going to sum up all I told you. Until now I'm going to give you my last tow us. 11. Recap and goodbye: welcome to my final video of discourse as a tortured before in this CASS. I want two week at all. I told you before. So first I want you to keep in mind that there is no perfect pitch. Each pitch needs to be perfectly related to the situation. Always do your homework and find out who's in your audience. It's also okay to say, I don't know. This is much better than guessing, even lying. Always know your numbers and mind evaluation. And finally, my last tip I want to give to you is practice. Practice, practice, practice. Your first pitch won't be perfect, but always working it. Improve it, improve it and you will see one day you will have your own very awesome pitch. Good luck, guys. Oh, and one more thing, guys, please don't forget toe upload your own pitch. I want to see some awesome product of you and I'm going to deliver feet back to you. Thanks.