4 Mistakes You Should Avoid in Relationship Communication: Psychology of a Healthy Relationship
Read More
English
Imagine initiating a business pitch to startup investors and your ideas do not successfully persuade them. You find yourself struggling and feeling embarrassed. This scenario is not uncommon in the high-stakes world of business presentations. However, there is a silver lining: psychological strategies can enhance our delivery. The psychologists Chip and Dan Heath suggested several pivotal elements for a persuasive business pitch, let us delve deeper into this topic in this article.
The first key to a memorable business pitch is "Surprise". Generally, when we're presented with information that challenges our preconceived notions or fills a gap in our knowledge, our innate curiosity is piqued (Heath & Heath, 2008). For instance, in a business pitch, I like to open with the "Innovator's Dilemma". What exactly is this dilemma? It's the counterintuitive insight that successful startups can often fail because they tend to only focus on current customers' needs and ignore the potential of disruptive technology. This happens even when the startup is well-managed and closely listens to its customers. This revelation goes against the grain of traditional business wisdom, which holds that customer-centric approaches are universally beneficial. By presenting this dilemma, I introduce a surprising twist that captures the startup investor’s attention, setting the stage for our innovative solution.
"Being practical" is crucial in a business pitch, especially when engaging startup investors. It's about tailoring your presentation to the investors' specific interests and showing them the concrete benefits they'll receive. Start with a powerful opening that clearly outlines the value proposition and end with a persuasive closing that reinforces the practical benefits. This method hinges on clear communication (Heath & Heath, 2008) of the advantages that align with the investors' goals. If your pitch resonates with their ambitions, it will captivate their attention and encourage their investment consideration. The business pitch should make them see the real-world impact of your idea on their portfolios. However, authenticity is key. You must genuinely understand and reflect the investors' desires. If the practical outcomes you present are misaligned with their expectations, interest will diminish as quickly as it was sparked.
Emotion is a powerful tool(Heath & Heath, 2008) in engaging startup investors, especially when discussing pain points. Whether you're addressing business professionals about their challenges or highlighting the struggles of target users in a particular sector, tapping into the emotional aspect can lead to a deeper understanding and a more compelling message. For example, in a business pitch, you can guide your startup investors to imagine the pain points experienced by themselves or the target users in a certain situation, evoke empathy within them and explain how your product or services can help solve the problems.
"Acquisition Audit” is a concept from an FBI negotiation expert named Chris Voss, that starts with negatives and talking about our shortcomings (Voss, & Raz, 2017). Imagine a nervous speaker who doesn't admit their nervousness, yet you can see their discomfort and attempt to feign calm. How would you perceive them? Probably not very well. But what if they began by confessing their nervousness, thanking the audience, and expressing their passion for the topic instead? Wouldn't your empathy towards them increase? By admitting their nervousness, they no longer have to control it. So, if you're nervous about a business pitch, consider sharing that with your audience early on. It might help.
In a business pitch, it's common to challenge potential startup investors' usual way of thinking to demonstrate the value of a new product or service. Just as stretching beyond our comfort zones can be key to growth, in business, embracing innovative ideas can lead to significant advancements. So, I might say to startup investors that the proposal I'm about to present may challenge the status quo and require a shift in perspective. However, those who are open to embracing these new concepts often reap the greatest rewards. This approach not only sets the stage for the pitch but also sparks curiosity and interest.
Try this 'Acquisition Audit' approach: at the beginning of your business pitch, anticipate any criticisms the startup investors might have and address them upfront.
Beginning a business pitch with a content overview is crucial for keeping the startup investors’ attention. This initial summary acts as a guide, allowing listeners to know what's coming and to follow the presentation more easily. It creates a clear structure that helps prevent confusion, particularly in longer pitches, and sets the audience's expectations from the outset. This method is very effective in maintaining investor interest and helping them remember the key points. It also allows investors to concentrate on the parts they find most relevant, enhancing their engagement and satisfaction with the presentation.
In concluding a business pitch, a strategic move is to prompt startup investors with insightful "how" questions (Voss, & Raz, 2017). This approach goes beyond mere presentation, actively involving investors by igniting their creativity and encouraging them to consider the product's or service's broader implications.
An example of such a question might be, "How could our cutting-edge platform transform your customer interaction strategies?" or "How might our technology's integration enhance your operational efficiency and boost productivity?" When direct engagement isn't feasible, these questions are designed to stimulate internal reflection among involved investors. In interactive environments, like networking events, they can be used to foster group dialogue, allowing investors to explore the product's relevance to their unique situations.
By framing these inquiries when concluding your business pitch, you're not just explaining what your product does; you're inviting startup investors to visualize its transformative potential for their enterprises. This technique transfers the onus of discovery to the startup investors, providing them with a sense of involvement and influence over the investment's prospects. The empowerment and customization opportunity this approach offers can be the decisive factor that motivates investors to engage more deeply with your startup.
Embarking on the entrepreneurial path requires more than just a great idea—it demands good skills in business pitching. With MindForest, you'll harness the power of AI to prepare for successful pitches. Here's how our app supports your journey:
Download MindForest today and empower yourself with a growth mindset that will make your business pitches to startup investors not just heard, but remembered.
In this concise guide to a successful business pitch, we've highlighted the crucial role of three elements: surprise, practicality, and emotion. These are not mere suggestions, but actionable tools that can elevate your pitch and deeply engage your audience. We've also introduced the 'Acquisition Audit' and 'Content Overview' to provide a clear, structured roadmap for your business pitch, ensuring startup investors know exactly what to expect. Remember to prompt your listeners to think about applying these insights to their own contexts. Now, I challenge you: with these techniques in hand, how will you revolutionize your next business pitch? How will you incorporate these elements to truly connect with potential investors and leave a lasting impact?
Heath, C., & Heath, D. (2008). Made to Stick. Arrow Books.
Voss, C., & Raz, T. (2017).Never split the difference. Random House Business Books.
