Wednesday 19 May 2010
The importance of “pitching” your ideas effectively
The AIC recently conducted a workshop on behalf of the Information Industries Bureau (IIB), a division of the Queensland Department of Employment, Economic Development and Innovation (DEEDI) with the aim of educating researchers in how to 'pitch' their research for the purpose of attracting investors, collaborators and research partners.
A range of topic areas including how to pitch your case, what investors look for and how to structure your pitch were covered in the workshop which received positive feedback from attendees. One of them was Jason Harding, Sports Scientist; “I attended your workshop today on 'pitching your idea'... It was very informative and I believe I can put a lot of the information and tips into use immediately. From my perspective one of the things we as researchers often forget to add into our proposals is the 'value proposition'. So that is something I will focus on in future proposals and pitches”.
The importance of pitching your ideas effectively should not be underestimated, as an ineffective pitch can hinder investment opportunities and collaboration prospects.
Pitching your case
Life should be a non-stop pitch and presents us with a wide range of opportunities to ‘sell’ ourselves and our business ideas. Opportunities to pitch can be found whenever we are:
- Seeking support for an idea
- Building collaborations
- Attracting investor funding.
The key to any successful pitching process is preparation and research. Keeping it simple is also important, as is rehearsing your pitch to build confidence.
What do investors look for?
Investors look for a range of qualities in a pitch. They want to see that there is market potential in your business idea which you can show them by presenting the market need and size as well demonstrating your industry and competitor analysis.
They also want to know that your business idea has some competitive advantage. This can be presented by demonstrating the unique selling proposition of your idea, and illustrating that it has sustainability and a defendable position (such as patents, know-how and trade secrets).
Investor confidence in the management team is also vital in order to achieve a successful outcome to your pitch. This can be demonstrated by relaying the experience, strength and track record of those who will be involved in the project.
Also essential is communicating any market or industry endorsements you currently have, such as customer numbers, contracts, licensing or distribution agreements as well as any awards you have. Providing a financial snapshot is also crucial. This is likely to include a 3-5 year forecast as well as a detailed 12 month projection. Your publication record is unlikely to be of much interest to an investor!!
The final element investors will be looking for is the exit strategy such as when, how and why as well providing them with a realistic estimated on predicted returns.
How to develop your pitch
When starting to compile your pitch, ensure it follows a logical structure which will give the investor all the information he or she needs to make a decision.
A comprehensive pitch will include the following elements:
- Introduction - Who are you? What are you seeking?
- Problem - What problem are you solving? Why does it exist?
- Market Size - How big is the market?
- Team - What are the key successes of the team? Are there any experience gaps?
- Technology/solution - What is the solution? What is the IP situation?
- Business model/revenue model - Who are your customers? What is the pricing model?
- Path to market - How will you reach your customers? Which channels will you use?
- Financials - What are your forecasts? What are your costs and expenses?
- Milestones - What stage are you at? What are your next steps?
- Summary
Remember too that a successful pitch is based on persuasion and emotion, as well as information and logic - so make sure you show motivation and enthusiasm for your idea!
Please visit our websiteor contact us on (07) 3853 5225 or e-mail info@ausicom.comfor further information on the AIC’s range of workshops and programs.
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