altReboot
  • Startup
  • Growth Hacking
  • Marketing
  • Automation
  • Blockchain Tech
  • Artificial Intelligence
  • Contact
    • Write For Us
No Result
View All Result
  • Startup
  • Growth Hacking
  • Marketing
  • Automation
  • Blockchain Tech
  • Artificial Intelligence
  • Contact
    • Write For Us
No Result
View All Result
altReboot
No Result
View All Result
Home Startup

5 Terms That are Killing Your Startup Pitch

Ash Rust by Ash Rust
July 5, 2020
in Startup
0
SHARES
1
VIEWS
Share on FacebookShare on Twitter

This post originally appeared on startupnation.com/start-your-business

Whether you’re (virtually) presenting before a group of investors or meeting an angel investor one-on-one via Zoom, the words you use to explain your company and your strategy are critical to securing funding. While the content of your presentation itself is essential, even the best business ideas can be derailed by poor word choice or etiquette.

Related articles

The Buddha and the Business

When is the Right Time to Launch Your Business?

March 5, 2021
How to Make an App When You Can't Code (a Step-by-Step Guide)

Are You Coming Across as Authentic?

March 4, 2021

Investors aren’t usually looking for a quick win or an opportunity to take advantage of a short-term loophole. They’re looking for companies that will define an entire category (i.e., Google and search engines, Facebook and social media, Salesforce and customer relationship management). And your word choice reveals a lot about both your approach to entrepreneurship and your potential as a partner.


StartupNation exclusive discounts and savings on Dell products and accessories: Learn more here

Adopt the right mindset

Investors are looking for founders who are unreasonably ambitious. A lot of founders make the mistake of attacking the progress or intelligence of their competitors. This doesn’t look good. Instead of attacking another company’s strategy, focus on why your company is resilient.

No matter how comfortable you feel with an investor, always remember that meetings are a professional setting, and basic etiquette is required. When you get in front of a potential investor, demonstrate that you value his or her time. Be confident in your plan but remain humble. You are asking for money, after all.


Related: How to Prepare Before Pitching Your Business to Investors

Use the right language

If you have a positive attitude and demonstrate a credible vision, you’ve already got a leg up on most of the competition. But there are some words you need to remove from your vocabulary if you want your pitch to generate investment.

Here are a few of the terms you should avoid:

Acquisition

Investors want an initial public offering, not a quick acquisition. If you highlight an acquisition as a positive in your pitch, you may hurt your chances. To appeal to investors, pitch your business as an investment opportunity with IPO potential, not a quick a win.

Disruptive (and other similar buzzwords)

Using buzzwords to explain your plan or product is off-putting to most investors. If you toss around words like “disruptive,” “visionary” and “innovative,” they’ll suspect you’re using them disingenuously. Many founders before you have used the same buzzwords in their pitches and failed to back them up with details. Most investors rely on pattern matching, so your buzzword use is a bad indicator.

Solo founder

Building a company is tough, but it’s 10 times harder if you try to do it alone. Not that it’s impossible, of course. Stitch Fix had a messy beginning, but CEO Katrina Lake has largely led the company to IPO by herself. Nevertheless, investors usually like to see a strong set of co-founders and team members who can support each other through all the ups and downs of business.

Channel sales

If somebody else controls the relationship with your customer, and thus the revenue, you should expect to pay a heavy tax. The Apple app store, for example, takes a whopping 30 percent cut of all in-app purchases. Even though channel partners can help with distribution, investors don’t like the chunk of revenue they take.

Plus, as you scale, your channel partner will probably try to compete with you (i.e., Spotify and Apple Music). That’s not to say channel sales can’t be done. For example, Supercell built a nine-figure mobile game business through app stores, but this approach can scare off many investors. They would rather you build direct connections with your customers and own the relationships yourself.

Regulated markets

Investors want customers to be able to purchase your offerings rapidly and without legal constraints so that you can scale across your market. If your target customer has burdensome compliance requirements when choosing vendors (e.g., requests for proposals for local governments), or if your product itself must comply with challenging regulations (e.g., HIPAA in U.S. healthcare), then you should expect your sales to take months, not weeks, to close. This makes you less attractive to investors.

Yes, some companies make money in regulated markets, but it’s extremely challenging to win over investors with a business plan that involves navigating extensive regulation.


Sign Up: Receive the StartupNation newsletter!

Conclusion

Pitching tips and tricks are a dime a dozen, but don’t forget to focus on word choice when pitching your business. Use the right language to your advantage, and you can craft a sincere pitch that excites potential investors.

The post 5 Terms That are Killing Your Startup Pitch appeared first on StartupNation.

ShareTweet

Related Posts

The Buddha and the Business

When is the Right Time to Launch Your Business?

by Bruce Hakutizwi
March 5, 2021
0

If you’ve ever aspired to start your own business, you know how exciting the idea can be. It’s easy to...

How to Make an App When You Can't Code (a Step-by-Step Guide)

Are You Coming Across as Authentic?

by Divya Parekh
March 4, 2021
0

If not, it could really be hurting your business. Here's how to figure out if other people find you authentic,...

How to Make an App When You Can't Code (a Step-by-Step Guide)

4 Tips to Finally Shift Your Business to Make Money Online

by Destinee Berman
March 4, 2021
0

The inventory-to-internet switch may seem like a completely new way of running a business –but it doesn't have to be. 

How to Make an App When You Can't Code (a Step-by-Step Guide)

How to Build a Fully Remote Workforce

by James McKinney
March 3, 2021
0

James McKinney speaks with Automatic CEO and Wordpress Co-Founder Matt Mullenweg on how to start a business with remote workers.

How to Make an App When You Can't Code (a Step-by-Step Guide)

How to Get Into the Business of Teaching Business Online

by Kim Houlne
March 3, 2021
0

Educators are making the shift from brick and mortar to virtual classrooms.

Load More
  • Trending
  • Comments
  • Latest
7 Advanced SEO Strategies I’m Trying to Implement Before 2020

7 Advanced SEO Strategies I’m Trying to Implement Before 2020

September 10, 2019
What Do Successful Sales Look Like for the Rest of 2020?

13 Expert Tips to Increase Online Conversions in 2020

September 26, 2020
Creating SEO-friendly how-to content

Creating SEO-friendly how-to content

October 24, 2019

How to Start and Fund a Coffee Shop

September 30, 2019
A Beginner’s Guide to Facebook Insights

A Beginner’s Guide to Facebook Insights

0

Which Social Media Sites Really Matter and Why

0
The 12 Ironclad Rules for Issuing Press Releases

The 12 Ironclad Rules for Issuing Press Releases

0
How to Get Started Building Links for SEO

How to Get Started Building Links for SEO

0
The Buddha and the Business

When is the Right Time to Launch Your Business?

March 5, 2021
Meet the AI algorithms that judge how beautiful you are

Meet the AI algorithms that judge how beautiful you are

March 5, 2021
How to Resolve Duplicate Content

How to Resolve Duplicate Content

March 5, 2021

How to Find and Grow Your Amazon Sales Rank

March 4, 2021
altReboot




altREBOOT is committed to sharing the game changing advancements that are revolutionizing how you do business. From startup to goliath, innovations in technology are changing the face of the business landscape. We are committed to exploring these and how to apply them to your business at any stage of development.





Categories

  • Artificial Intelligence
  • Blockchain Tech
  • Growth Hacking
  • Marketing
  • Startup
  • Uncategorized

Tags

blockchain branding guest post marketing mobile apps
  • Home
  • Topics
  • Write For Us
  • Privacy Policy
  • Contact

Powered By Treehouse 51

No Result
View All Result
  • Startup
  • Growth Hacking
  • Marketing
  • Automation
  • Blockchain Tech
  • Artificial Intelligence
  • Contact
    • Write For Us