Crafting a Powerful Pitch
Whether in the traditional form of a spoken elevator pitch or a concise marketing video, a pitch is one of the most powerful tools when seeking investors during a crowdfunding campaign. With investment hubs moving online, the need to grasp potential investors’ interest in a quick and meaningful manner has increased rapidly. A pitch can truly make or break an investment opportunity, so getting it right upon its initial launch is essential for a company’s crowdfunding success. This piece is intended to help entrepreneurs navigate the intimidating task of presenting their business to the public while raising capital from the crowd.
A large component of delivering a powerful pitch is articulating the company’s mission. It is important that the mission statement is ambitious, yet not unrealistic. A company’s mission statement drives it forward, giving it momentum to advance its goals and explore each day as an opportunity for growth. A mission statement also functions as a succinct way to express the brand’s passion to its potential investors. For instance, Nordstrom’s mission reads, “In store or online, wherever new opportunities arise, Nordstrom works relentlessly to give customers the most compelling shopping experience possible. The one constant? John W. Nordstrom’s founding philosophy: offer the customer the best possible service, selection, quality and value.” Nordstrom’s optimistic yet realistic mission statement works to exemplify its dedication to customer service, shedding a positive light on the brand.
Another piece of creating a powerful pitch is identifying the problem that the product or service is intending to solve and instilling a sense of need for the investor. The scale of the problem is not as important, but rather that the problem exists and there is room for traction and growth. Ensuring that the problem is identified in consumers’ lives can increase the product’s relatability and possibility that fans may transform into investors for a crowdfunding campaign.
By establishing the distinct problem from the start, identifying the target market becomes a much easier task to tackle. This brings up another important area to consider when creating the perfect pitch: the customer.
Laying out the problem being solved is a large component of a product pitch, but presenting who the customers are is just as important. Without identifying people to sell the product to, half of the standard seller-buyer business model falls apart. Target market exemplification also gives investors context for the product, as it allows them to envision the product in active use throughout consumers’ lives.
After establishing the problem and the target market, the stage has been set for a focused presentation of what the product or service entails. Creatively engaging customers and potential investors through storytelling is a fantastic way to gain traction and begin to grow interest in a company. Consider telling a story of how the idea came to be or how the company envisions its use around the world in order to entice investors in the physical product’s capabilities. Additionally, a thorough breakdown of the product, including its features and limitations, could increase an investor’s confidence in pursuing the venture as it showcases the company’s own “know-how” in the market. This portion of the pitch could feature current competitors, market trends, and future projections.