“When billionaire entrepreneur and Virgin Group founder Richard Branson had the idea of launching Virgin Atlantic, he pitched it to his fellow directors who had no previous experience in the airline business. He delivered the idea simply, concisely, and effectively. Branson offers leaders and entrepreneurs this advice: “It is vitally important to present a clear, concise plan that investors can easily understand and repeat to their own people. In the first meeting avoid overly complicated, numbers-laden presentations.”
Branson is a master marketer and communicator. His new book, Like a Virgin, reveals “secrets they won’t teach you at business school.” Many of those secrets involve effective communications and presentations.
In his book, Branson recommends that entrepreneurs who are looking to raise money in these tough economic conditions keep their presentations simple and memorable. He says that the best investment pitches hit five areas. I would take his advice one step further. I believe that any effective pitch or presentation should include these five components.
What’s in it for them?
“Occasionally, an entrepreneur hoping to launch their first business puts so much thought into the concept that he or she neglects the financial and legal plan—and unfortunately, this often becomes apparent early in a meeting, when an investor can lack clarity in what exactly the proposed deal is going to look like.”
According to Branson, investors want to know when they can expect to see a return—what’s in it for them. In my first class at Northwestern’s Medill School of Journalism, my instructor said, “Always ask yourself, ‘why should my readers care?’” I use this journalism principle to teach the art of corporate storytelling. Branson asks the same question of entrepreneurs who pitch him.
Be concrete.
“Winning the trust of an investor means demonstrating a thorough knowledge of your concept or industry and laying out a step-by-step plan for offering something that’s new, innovative and will deliver healthy returns on their investment.”
Branson recommends that communicators avoid ‘wishy-washy’ language, doubt words and phrases such as “It is hoped…”or “With some luck…” He says look your investors in the eye and be specific, concrete, and confident. One way to craft a concrete and confident story is to use a message map.
Be unapologetically disruptive.
“Emphatically explain how your new company will give your customers a better deal than your competitors.”
The key word here is ‘emphatically.’ Branson is unquestionably the most passionate business leader I’ve had the pleasure to interview. I believe his passion for disrupting the status quo is a key component of his charisma. The majority of business leaders who I’ve met underestimate the role of passion in delivering presentations. Branson looks for passionate entrepreneurs who understand the competition and “irreverently explain” why their business will do better than the competition.
Prove that growth is sustainable.
“Nothing stays the same for long, so explain how you plan to tackle the inevitable technological changes and market shifts that are heading your way.”
Investors and partners want proof that you understand the environment in which you will be selling your product. One way to get your idea across is to start with a problem before the solution. Every great story has a protagonist. Introducing the villain (problem) before the hero (solution) makes for a compelling business narrative. So take some time to explain how your product or service solves the problem.
Demonstrate bench strength.
“Show prospective investors that you have found the right people to work at your new company.”
I’ve seen investor pitches where CEO’s or founders feel as though they have to carry the show. The best and easiest way to show investors that your company has bench strength is to share the stage. Apple executives—Tim Cook and Steve Jobs—have always done this brilliantly.
The subtitle of Branson’s book is, “Secrets They Won’t Teach You At Business School.” When it comes to communications, he’s right. I’ve spoken to several MBA programs at America’s most prestigious universities. After every presentation students approach me and say, “We never learn stuff like this in class.” It’s time they do.
Read the full article from Forbes here
