As someone who regularly helps others prepare to pitch to investors, I see one situation far too often. This may all sound a little too familiar to you as well. You are an entrepreneur who has done everything right. You developed a product or service and turned it into a successful business, that business began generating revenue, and now you are ready and willing to scale, but need investment money to do so. Then, you seem only to hear a resounding NO from the investors you approach.
Why? More often than not, it’s because the investors have no indication of what you are actually offering them. And understanding what you offer comes down to two simple words, with not so simple connotations … “pitch deck.” Yet, if I can share one piece of advice with you, as I do in my book, Pitching to Win: Strategies for Success, it’s that one pitch deck is never enough. If you are serious about scaling your business by pitching to investors, then you must have two pitch decks – one to send to investors and one to use in your presentation (or pitch).
Let me explain. Some investors will not agree to meet with you until they have first reviewed your pitch deck. As such, they may ask you to email it to them before scheduling an actual pitch. And just as much as an email is not the same as standing in front of someone delivering a presentation, your pitch decks likewise cannot be the same.
Understanding how they are similar, and how they are different, is key to getting that next phone call, presentation, or meeting. To that end, I have put together the Top Five Tips for ensuring you have two pitch decks that will get you the right attention when you need it.
Pitch Deck Creation: Top Five Tips
1. Be Proactive
Research the investors who are already investing in similar products or services. If they have similar interests, they are the ones most likely to invest in you. Try to determine what types of questions they asked before and incorporate the answers into your pitch decks from the start.
2. Create Pitch Deck #1
This is also called the “Handout Pitch Deck.” It is the one that you will email to investors when asked for a copy. The key to this pitch deck – it must stand alone.It cannot rely on your verbal explanation of the content because, quite simply, you will not be there to explain it.
The Handout Pitch Deck must quickly communicate with words (but not too many), numbers, and graphics your “Why me?” to potential investors.
3. Create Pitch Deck #2
Use Pitch Deck #1 as a foundation to create Pitch Deck #2. Pitch Deck #2 is the “Presentation Pitch Deck.” This version is based on you delivering your pitch, aided by high-level slides with few words and many images. It does not, and should not, stand on its own. Pitch Deck #2 will have very few words and numbers, if any. Instead, it will function much like a television or movie screen, as your priority is having the audience focus on you and your messaging, rather than reading slides. Remember, at the end of the day, this pitch deck is a sales presentation.
4. Ensure that Both Decks are Concise, Professional, and have Visual Appeal
Pitching is never the time to get into the intricate details of your past experiences or even your product or service. Get to the business of what investors want to know:
(a) what your business is all about and
(b) most importantly, how it is going to make enough money to return
multiples of the amount of money you are asking them to invest.
5. Update Both Pitch Decks Regularly
Consider this scenario: a potential investor asks you to send your pitch deck via email or present it to a group of investors. You respond that you will get it to them in a couple of weeks. Chances are that when you finally prepare your pitch deck, the investor will have already moved on to other projects and entrepreneurs who are ready to take their money.
You want to be able to distribute Pitch Deck #1 or present Pitch Deck #2 at a moment’s notice. Just as every professional has an up-to-date resume to present at any time, a growing entrepreneurial company should have both pitch decks ready to email or present at any time.
The creation and management of your pitch decks are critical parts of the capital raising process. Remembering that the difference between the two decks comes down to your voice is of the utmost importance. Pitch Deck #1 must stand on its own, capturing your voice, without the benefit of you speaking, while Pitch Deck #2 exists to bolster your voice as you present. Barker Associates has extensive experience with assisting companies in preparing their pitch decks. Schedule a free 30-minute consultation with this link to my calendar to talk about how we can work toward getting you the investment money you need.
Pitch and Storytelling According to “Schitt’s Creek”
A Successful Pitch is the Result of a Good Story
Recently, I have been watching the Schitt’s Creek series on Netflix … for the second time, and enjoying it even more this time around. When I watched it the first time, I found myself getting irritated. But several Schitt’s Creek fans I knew encouraged me to stick it out, and I am so glad I did. What I learned watching the entire series twice is that each character surprises you from many different dimensions throughout the six seasons, representing numerous similarities to the world of pitching investors.
The story centers around an ultra-wealthy family that loses everything. The first episode shows the authorities taking all of their possessions, forcing the family to move out of their large estate. They soon learn that they can retain a small town they purchased as a joke years earlier. So, they get on a bus with their suitcases and head to their new life. They are immediately immersed into a stark contrast from the luxurious lifestyle to which they had been accustomed. Yet, despite the lack of luxury, their experiences in this small town teach them many lessons they never would have learned before about life and business, including how to pitch to investors. You can see why my interest was piqued! In fact, I was so interested in the story that I watched an interview with the two creators.
One of the creators insisted on developing the backstory of each character for hours prior to starting the script, while the other got increasingly frustrated with the time and energy “wasted” on backstories when they had an entire script to write. However, he soon realized that the investment of time in creating those backstories was one of the primary reasons for the success of the series.
The parallelism to pitching to investors was uncanny. An essential element of a successful pitch to investors is having a compelling backstory. It is far beyond the “script,” or in this case, pitch deck. Working on the story behind the company so that it is authentic and backed by sustainable facts is the key to reaching investors. And connecting with them authentically through your story, coupled with ensuring you are the right fit for their investment criteria, will ultimately secure the investment! Success!
I recently became an investor in the Seattle Angel Group and immensely enjoy the education the group provides for both investors and companies preparing for pitch competitions. Bob Crimmins, a repeat successful entrepreneur, was one of those educators, and he was fascinating. He called successful stories “Cogent Stories,” as they are believable and can help an investor understand how they are going to invest their dollars now and receive a significant return three to five years later. As I watched Schitt’s Creek, I thought a lot about Bob and the impact of “Cogent Stories.” Apparently, they work for more than investor pitches. They are also what is behind a hugely successful series.
Now, back to our regularly scheduled programming! (Spoiler alert here – if you have not watched the entire series you may not want to read further, but schedule a chat with me (link to my calendar) to discuss your backstory and pitch deck.).
In the show, Johnny Rose (the family patriarch), Stevie (the hotel clerk), and Roland (the mayor of Schitt’s Creek) are business partners and pitch investors, achieving success at the end of the series. There are many circumstances that bring these individuals together, and their collective growth leads to the overall success of the pitch.
Johnny Rose had been a successful businessman and made a lot of money with his business “Rose Video.” The events that led to the loss of his fortune were based only on his business partner’s actions. The business itself was successful. While Johnny’s story is fictional, similar stories happen every single day in the “real world.” What happened to Johnny could happen to anyone if they are not paying attention to governance, controls, and financials. Yet, the loss of Johnny’s fortune was itself a growth experience.
Stevie was working the front desk at the hotel in Schitt’s Creek, feeling like she was a failure. In an effort to “get her life together,” she decides to branch out and interview for a professional position with an airline. After she secures the position, she learns it is not for her after all. This experience actually creates a huge appreciation for who she is, her talents, and her previous role. Similarly, for the C-Suite to be successful, confidence and self-identification for the position must exude when the investors begin their due diligence.
Roland is the mayor of Schitt’s Creek, which is a position filled with pride, in part, because it was bestowed upon him through birth rite. Roland struggled with who he was, and there were many times that his self-discovery process irritated Johnny and Stevie. But despite all of those irritations, he showed he was trustworthy and loyal to them in many ways as their relationship grew.
Through trial and error, often hysterical ups and downs, these three professionals began to trust each other. They respected the talent and contribution they each brought to the team. Johnny knew that Roland would always have his back, and vice versa. One of my favorite episodes is when Johnny and his wife, Moira, are celebrating their wedding anniversary, and they run into some of their old “rich” friends, along with their new friend, Roland. The encounter is a life lesson in itself. Johnny and Moira attempt to fit in like they used to, but soon get irritated and offended when their old friends begin to talk negatively about Schitt’s Creek. Johnny, standing up for Roland, who is even more offended, mentioned that while their so-called friends never reached out once after they lost everything, Roland and Schitt’s Creek welcomed them with open arms.
This episode reminded me of the loyalty, communication, and respect needed among team members working toward pitching to investors. Working as a team to strategize and execute a fast-paced growth company takes perseverance, intellect, the ability to deal with ambiguity, and many other attributes that can only be achieved when there is open communication among team members who trust each other. At the end of the day, it must roll up into an authentic story about who these people are because that’s what investors are investing in … the people behind the company.
When you are preparing to pitch to investors, the best thing you can do is work on your “Cogent Story.” Take the time to create all aspects of your strategy prior to the pitch, similar to how the creators worked tirelessly on creating the backstories of their characters on Schitt’s Creek. Your story will be more authentic, your confidence will increase, your team will be stronger, and your chances of success will increase exponentially. Barker Associates has extensive experience with assisting companies in developing their backstories and preparing pitch decks. Schedule a free 30-minute consultation with this link to my calendar to talk about how we can work toward getting you the investment money you need.
Last month, we talked about the initial considerations of a non-profit merger, as well as the critical due diligence phase. After finding unity of purpose, reflecting on the relevant issues and deciding that a merger aligns with your goals and mission, you engaged in an extensive due diligence process, examining all legal, financial, logistical, and human resource documents and processes. At the conclusion of due diligence, the board of directors of each organization developed and approved a Plan of Merger consistent with applicable state laws. At long last, after months of preparation, meetings, discovery, approvals, and planning, the time arrives for merger implementation. Essentially, it is finally time to close the deal. However, this is only the beginningof the end.
As with the previous phases, planning and organization are crucial for a successful implementation. While it would be nice if we could sign on the dotted line and all issues magically resolve, we know that is not the case (it never is!). This process, like the others, will take time, patience, and an in-depth understanding of the logistical steps that must be achieved to effectuate the merging of two different organizations. The following checklist can be used as a guide through the final steps of the merger.
1. Appoint a Merger Transition Team. This group of three to six individuals will spearhead each logistical step of the merger. They will assign tasks, set timelines, and keep the merger moving forward at a reasonable pace for the new nonprofit.
2. File Appropriate Documents with the State. Each state has its own requirements for filing with regard to non-profit mergers. All documents should be filed with the state of organization/incorporation, following those particular guidelines and requirements. Note that although the merger is legally completed once the state accepts the documents as filed, many more steps must be taken for actual completion.
3. Develop Integration Plan. Due diligence should have previously identified duplicative positions, departments, and resources. This plan will identify what is being removed and what is surviving in the new organization. The plan should also identify any issues in the short-term due to the merger and provide for analysis at one month, three months, six months, and twelve months.
4. New Board of Directors Established. The new board generally consists of previous board members from each of the non-profits prior to merger, but can be entirely new. They should establish their new meeting schedule and implement new by-laws as soon as possible.
5. Schedule Employee and Volunteer Training. How will the new departments, responsibilities, and tasks differ from the previous ones? What do employees and volunteers need to know about the mission, vision, and day-to-day operations to effectively perform their duties?
6. Determine Human Resource Needs. Establish a new payroll system, health benefits, vacation and sick pay, and hiring and termination protocols.
7. Finalize any Facilities Management Issues, Vendor Contracts, and Insurance Coverage. What contracts need to be rewritten in the new organization’s name? How will insurance coverage transfer without lapsing?
8. Develop Communication Plan. This plan should involve internal and external communications and ensure consistent messaging throughout. This may include the launching of new branding, the name and logo, and a marketing campaign. The new website and social media accounts must also be established and maintained.
9. Finalize Financial Transactions. Transfer assets, close and open accounts, as needed, and integrate accounting systems.
10. Implement Technology Solutions. How will technology, phone systems, and databases be integrated? What is still required? What can be eliminated?
While the entire process can take between twelve and eighteen months, depending on the size of the organization, this Closing Checklist enables the Merger Transition Team to keep the merger on track, heading toward a successful completion.
Need more assistance? Barker Associates has extensive experience working with non-profit organizations as they implement and finalize mergers. If you are considering this strategy, use this link to my calendar to choose the best time for a free 30-minute consultation.
Last week, we talked about the strategic planning of an ERP system implementation, with factors to consider in both the planning and implementation phases. This week, we pivot to how to choose the right system for your organization.
The decision has been made. You and your key stakeholders are ready to automate and streamline the workflow and day-to-day tasks. You’re more than ready to increase efficiency and productivity with one resource for data centralization, workflow management, and tracking. You’re moving forward, but quickly become overwhelmed, not with the process of implementation itself, but with the vast variety of ERP system options available.
Taking the time to ensure there is a good fit is crucial for success. In fact, implementation failures often occur where there was never the right fit from the start. However, this should not discourage you from pursuing a transformational strategy that will provide a competitive edge.
The following are the top five tips that will help eliminate the confusion and move the process along to help you choose the best system for your organization.
1. Thorough Process Review and Analysis. Prior to looking at any system, you should determine your current needs, as well as those needs that are likely to arise in the foreseeable future. Start by documenting your current processes, strengths, and weaknesses. Ask yourself the following:
What is working?
What is not working?
Where are the gaps in the current system and processes?
What should the system look like now?
What should it look like going forward?
Do I actually need a new system?
What problem am I trying to solve?
What functions are “must needs,” and which would just be a bonus?
After you answer those questions, create a document that shows the core objectives, needs, and gaps; what essential functions, solutions, and automation capabilities a new system should provide; the budget; timeline; and a list of key stakeholders. This document should present a clear picture of the criteria you require in an ERP system.
2. Determine Budget and Research Costs. You’ve determined your needs, but now you need to know what budget you have and the related costs of the various systems. An ERP system implementation is time-consuming and a large investment, so you want to ensure you are comfortable with your budget, as well as all of the associated costs up front. As you research ERP systems, you should have a good understanding of all the costs involved – not just for implementation, but long term. You may want to consider: What are the licensing fees? Are there costs for training? Are there support, maintenance, and upgrade fees? It is up to you to discover any “hidden costs.”
3. Review of Current Infrastructure. Before proceeding, you want to have a clear understanding of your current information technology infrastructure. An ERP system is software, and you don’t want to start down a road with a possible solution only to find out later that it does not align with your current technology. This is a large enough undertaking of resources. You do not want to have to worry about investing in a new technology system as well. Involve your IT department from the beginning to confirm that the new system will be compatible.
4. Evaluate Systems. Narrow your requirements and criteria to the five or ten that are priorities. What exactly are you looking for? Use a chart or Excel spreadsheet to list out each and to keep all of the details organized. Then research systems via Google, social media, reviews, and recommendations. Verify all claims made through independent research and 3rd party reviews, and consider all options to start. It is not prudent to choose one because you’ve heard the name before or because it is what competitors are using. Instead, ensure it will meet the needs you identified in your process analysis.
As you analyze your potential new partner, you may want to make the
following inquiries:
How many implementations have you performed? Any in our industry?
Who will be responsible for different parts of the implementation? What experience do they have? Will you use a third-party for any phases? What is required from my team?
Is there a guarantee or warranty?
Are training and support offered?
Is it customizable? Mobile friendly?
Is there cloud storage? If so, what are the data limits?
As you gather information about each system, plug it into your criteria chart, so you can easily compare the systems, their functionalities, and their solutions. Additionally, check on the system’s scalability. This is a long-term investment. You don’t want to outgrow it in the foreseeable future.
5. Meet with Stakeholders to Make a Decision. Having everyone’s buy-in on the system that is ultimately chosen is critical to its long-term success. Management teams should be involved – anyone who will be impacted during or after the process. You will need their support during planning and implementation. Choose the one that offers as much of the functionality your organization requires as possible, and don’t be swayed by extra features that you don’t need. Finally, look for longevity and a proven track record with other organizations similar to yours.
Remember no one system will be a 100% perfect match for all of your needs or requirements, but it should be an overwhelmingly good fit for your organization. Barker Associates has extensive experience with ERP system implementation plans, assisting organizations achieve increased productivity and efficiency. Use this link to my calendar to choose the best time for your free 30-minute ERP consultation.
