Pitching Ideas and Presentations

• Chapter all about pitching ideas and presentations
• By the end of the chapter on pitching ideas and presentation you will be able to:
  • Understand business plans, pitch decks for startups to communicate to the public
  • Master the Elevator Pitch by crafting scripts for investors and customers
  • Learn essential pitching rules for investors and customers
  • Understand the art of persuasion to cultivate business relationships

Chapter Overview

• Business plans and pitch decks are important
• Elevator pitches need to be mastered
• Pitching, in general, needs to be improved
• The Art of Persuasion must be studied

Startup Structure

• Startups have become structured due to widespread information availablity
• Startup ecosystems include incubators, accelerators and funding networks
• Lean startup methodology focuses on experimentation and customer feedback
• Planning and execution are key
• Scrutiny from investors is high

Preparing for Startups

• Young entrepreneurs are preparing to enter the startup space
• They leverage traditional education, modern resources, academic paths, and specialized courses
• Entrepreneurs engage in networking events, conferences, and mentorship programs
• Digital platforms, social media, and online communities help them connect and share ideas
• Hands-on experience prepares them for the challenges

Business Plans

• Business plans are guides showing where the business needs to go
• Plans highlight what the business aims to achieve, their customers, expected revenue, and what needs to be done

Business Plan and Pitch Deck

• A robust business plan is vital in India's startup ecosystem
• Flipkart's business plan helped revolutionize online shopping in India
• Ola had a meticulously crafted business plan for convenient transport solutions
• Essential to showcase idea to investors, partners, and stakeholders.
• Pitch deck is a succinct, engaging presentation for pitching business ideas
• Acts as a persuasion tool for investors to buy into the concept

Pitch Deck Essentials

• A Pitch Deck consists of slides
• Essential aspects of the business include: the problem being solved, solution offered, the target market, the competitive landscape, the business model, financial projections, and the team
• Pitch decks focus on the brevity of storytelling
• Visuals like images, charts, and graphs are incorporated to enhance understanding
• The goal is to inform and inspire
• Requires strategic thinking, communication skills, and an understanding of the business and audience
• Fairchild Semiconductor created slides to showcase technology and market potential in 1957
• Pitch Decks became a standard tool in the startup ecosystem during the dot-com boom

Pitch Deck Rapid Proliferation

• Internet-based startups led to a surge in venture capital investment
• Pitch decks are used by entrepreneur's in industries ranging from tech, healthcare and finance
• Pitch decks reflect the dynamics of entrepreneurship and venture capital

Drafting a Business Plan

• A business plan is a blueprint that guides operations, strategies, and growth
• Components include the following:

Elements of a Business Plan

• Executive Summary: Snapshot of the business plan, summarizing key aspects
  • Airbnb’s version highlights its disruptive approach to the hospitality industry
• Company Description: Outlines mission, vision, values, and core competencies
  • Ather’s version emphasizes its mission to accelerate the world's transition to sustainable energy
• Market Analysis: Crucial to understanding the industry, target market, trends, and competitive analysis
  • Ola’s version analyzed the transportation industry and identified inefficiencies in traditional services
• Products/Services: Describes offerings, features, benefits, pricing strategy, and positioning
  • Amazon's business plan showcases expansive product range and customer-centric services
• Marketing and Sales Strategy: Essential for business success, outlines how to get new customers
  • Cred’s version focuses on digital marketing, content, and referral programs
• Operational Plan: Details day-to-day operations, production, supply chain, and resource allocation
  • McDonald's version emphasizes standardized processes, efficient supply chain, and employee training
• Management and Organization: Highlights the team's expertise and roles and instills confidence
  • Google's business plan showcases the leadership of Larry Page and Sergey Brin
• Financial Plan: Financial projections are essential for investors
  • Instagram’s version projected advertising revenue growth based on user engagement metrics

Business Plan Examples

• FinTransact: Aims to disrupt the financial services industry
  • FinTransact's flagship product is a user-friendly mobile app
  • Their marketing strategy targets tech-savvy demographics
  • Foresee sustainable revenue growth over the next 5yrs
• .GameGenius: A gaming startup dedicated to revolutionizing the way individuals learn and develop skills in gaming
  • GameGenius was founded by a team of passionate gamers and education experts
  • Their market has millions of gamers worldwide
  • Marketing strategy will focus on content creators
  • Foresee continuous learning and improvement through operational structure

Pitch Deck Outline

• Begins with cover elements: Problem, Solution, Market, Product, Business Model, Marketing Strategy
• Slides should have one key point, supported by visuals and minimal text
• Must have storytelling, unique value proposition, market opportunity
• Iterate and refine based on feedback
• Goal is to capture investor's attention and secure funding
• Content Development required: Ability to distill complex ideas into the message
• Visual Design required: Proficiency in design tools to create appealing slides

Pitch Deck Questions

• Investors prioritize clarity, credibility, and a compelling value proposition
• Must look for clear problem-solution fit, with evidence of a sizable market
• Team expertise, track record, and dedication are key
• Difficulties arise when pitch decks lack clarity
• Incomplete or inconsistent data raises questions about the opportunity
• Must ensure nine questions are answered
• What problem is being solved?
• How big is the problem?
• How are you solving this problem?
• What is the business model?
• What is the Marketing Strategy?
• Who is on the Team?
• What are the current financials?
• What is the Ask from Investors?
• Key funding terms include:

Funding Terms

• TAM (Total Addressable Market): Represents the total market demand for a product or service
• SAM (Serviceable Addressable Market): SAM is a subset of TAM, representing the portion the company can target
• LTV (Customer Lifetime Value): The predicted net profit attributed to the entire future relationship with customers
• CAC (Customer Acquisition Cost): The cost of acquiring a new customer
• Runway: The amount of time a startup can operate before running out of funds

General Uses of Funds

• Depends on the specific needs and priorities of the startup, and the stage of development
• Product Development: Can involve hiring engineers, designers, and investing in technology
• Market Expansion: Used to expand reach, with marketing, advertising, and sales teams
• Operations/Infrastructure: day-to-day operations, expenses for office space, utilities, etc
• Talent Acquisition: Used to attract top talent as benefits, and equity incentives
• Scaling: Scale operations to meet increasing demand
• Legal/Regulatory Compliance: May allocate funds towards trademark, patents or licenses
• Research/Market Validation: May test the product

Differentiating Hype from Substance

• Investing in startups has inherent risks
• Uncertainties loom large, unproven business models and limited revenue streams are key
• Investments usually lack liquidity
• Mitigation involves conducting due diligence
• When evaluating, seek evidence-based insights, value proposition, projections, communication, and/or past execution
• Differentiate between Evidence vs. Claims, Value Proposition and Transparent Communication

Art of Elevator Pitch

• Concise, compelling presentation conveying the business idea
• 30 seconds to 2 minutes which originates from encountering investors in elevators
• Captures the attention of potential investors, concise and persuasive manner
• Examples include:
  • UrbanClap connects customers with trusted professionals for needs.
  • Policybazaar offers one-stop place for purchasing insurance policies across categories
  • CRED rewards responsible credit behavior with exclusive rewards and benefits.

Essentials of Elevator Pitch

• An elevator pitch has no set format
• Frameworks help to build strong pitches
• 3Cs: Clarity, Confidence, Compelling
• CLARITY - Communicates the value proposition in an understandable manner
• CONFIDENCE - Grabs people's attention
• COMPELLING - Highlights market opportunity and evokes excitement
• Aspects to cover
  • Problem Statement - Explain the problems target customers are facing
  • Solution - Describe the detail of the detail, ensure its unique
  • Value Proposition - benefits of outcomes they can get using it
  • Traction or Proof - Support the claims, credibility of the business
  • Call to Action - Encourage a positive response

Art of Elevator Pitch

• Pitch is not just a task, its an art form - convey with passion
• Persuade others to believe in your vision
• Remember the importance of delivery
• Customize to the needs and desires of the audience
• Incorporate numbers that are relevant, this significantly enhances
• Elevator pitches help with building relationships, making connections

Pitching Rules and Steps

• Is critical in securing funding- Key to remember when pitching to investors
  • 1 - Know your audience to resonate with priorities
  • 2 - Focus on the Problem, offer solutions and address how product addresses issues
  • 3 - Highlight market share and opportunity
  • 4 - Showcase Traction
  • 5 - Competitive Advantage
  • 6 - Business Model
  • 7 - Address Risks
  • 8 - Have a Strong Team
  • 9 - Be Concise
  • 10 - Follow-Up and build relationship

Customer Pitching Rules and Steps

• Essential to focus on building trust
  • 1 - Know your audience
  • 2 - Communicate Value Proposition
  • 3 - Storytelling
  • 4 - Highlight Differentiation
  • 5 - Address Objections
  • 6 - Provide Social Proof
  • 7 - Offer Call to Action
  • 8 - Listen and Adapt
  • 9 - Follow-Up and Nurture
  • 10 - Deliver Outstanding Experience

How to Pitch

• Open by saying your name
• Grab emotional attention of the audience
• Pitch your vision
• Tell a story
• The right opportunity
• One Joke
• The CEO of the company should present
• Don't read slides
• Don't use industry acronyms

Art of Persuasion

• Powerful skill that is indispensable
• Essential for achieving success and driving growth
• Helps in securing funding and attracting customers

Persuasion Through Entrepreneurs Examples

• Ratan Tata was instrumental in leading strategic initiatives and fostering innovation
• Diversified the Tata Group
• Persuaded investors and stakeholders to support the expansion
• Tata used his platform and influence to advocate for social impact and corporate responsibility initiatives

Persuasion Example Indian Startups

• Licious uses persuasive storytelling through campaigns
• Dunzo employs persuasive pricing strategies
• Toppr uses persuasive marketing techniques