Cocktail 101: how to pitch your business

Tomorrow evening is the launch cocktail of Capital Innovation 2011 where I will be again an honored member of the advisory committee. Last year, I made myself available to help all the companies that entered the contest and I am very happy to say that last year’s winner, Artfox, did spend a lot of time with me in improving their business plan and overall pitch (full disclosure: since then I have invested in them as well as accepted the role of Executive Chairman). So while I have lots of excitement to see the companies that have registered so far, I have no choice to cringe on the idea of listening to badly delivered elevator pitches. So in hope of making this more enjoyable for everyone, here are my 8 tips on better cocktail pitching:

Introduction

Please take the time to introduce yourself but don’t get started for a mile long presentation. Say your name, role and company name (slowly and pronounce every bit properly). The follow with a SHORT one liner about what you do (WITHOUT acronyms or industry specific words). This is not yet your elevator pitch; it’s an introduction on the matter.

Get to know the other person

Nothing worse than to hear someone rapidly pitching what he or she is doing even before they even know whom they are talking to. Take a few moments to find interest in the person you are in front of: what are they doing here? What are they looking for? What kind of businesses interests them? By knowing more about them you will be better at giving them a proper pitch.

What is the problem you are solving?

Never assume that people understand and get your field of expertise. Take a few seconds to put your business in the context of the problem you are solving. Try to find an example that can be highly visual and simple for anyone to get his or her head around.

What kind of solution do you have?

Once the problem is understood on the receiving end that you can take a few seconds to explain what is the solution that you have (plan to have in the near future). Again, make this as simple as possible (think of explaining this to your aunt that has no understanding of technology – never assume that anyone will get it).

What makes you different?

It’s one thing to have a solution; it’s a completely different one to be unique (i.e. to have a competitive advantage). You need to detail here what will differentiate yourself, what will make you win the war against the others. This also does not need to be uniquely technology related. Having a specific go-to-market, pricing strategy, distribution channel, etc. all count as differentiators.

Why do you believe you will succeed?

Almost closing time on your cocktail pitch. What makes you say that you will make it? Why would I think that you are a company to follow and feel that you have the right stuff? Here the challenge is to stay within the boundaries of being pragmatic and not look like a Looney bin.

What do you need?

Ok, you are obviously there for a reason. So what do you need to make your business a success? Do you need money? Senior leadership? New partners? All of the above?

Make it short

This entire cocktail pitch should have lasted only a couple of minutes. Now if the other party is interested, it may last longer but don’t try to hog on someone too long. There are a lot of people to talk to …

Looking forward to see all of you tomorrow evening and hopefully my little tips will help you polish your cocktail tips.