Common Mistake Entrepreneurs Make During a Pitch

We all have issues and there are always nerves involved. Here are a few mistakes I have consistently seen.

Oversell – (Market, Idea, Progress). An entrepreneur should love & believe in their concept but everyone’s idea has issues. Know them, be honest about them, and know how you are going to mitigate these challenges. If you ignore or deny potential challenges it just looks bad. We usually know what challenges you are facing and if you aren’t open and honest we will easily sniff out the bullshit.
Too Much time spent on the idea & market. Typically an entrepreneur has 15-30 minutes to make an impression. Often times in my meetings 85% of that time is spentexplaining the idea, market size, and facts from random third party industry surveys. I always look at a company prior to talking to them and so I usually have a good idea ofwhat they do. I typically have a general understanding of the market and the size of the market. In both cases, if I don’t I will ask. Spend 5-10% of your time on the actual idea, make sure what you do & why you are special is clear, pinpoint the problem you are solving & then move on to things that are more difficult for me to figure out on my own like your team composition, your go-to-market plan, and what you have done so far that is impressive. Instead of just serving random survey facts and statistics about your market, use those facts as a comparison tool to what you have found from your own efforts. For Example: “A test run of 1,000 direct mail pieces resulted in a 2.5% conversion rate vs the industry average of 1.5%, helping us prove xyz….” No matter what stage you are at you should be talking to clients and collecting some sort of data that proves you are solving an actual problem. Proving your product solves a pain point and your team can execute the plan are a far more important use of your time.
Don’t answer/understand the specific questions asked – Really listen to the questions people ask you. If you don’t understand the question, ask for clarification. Two things happen far too often with questions. First, the question never really gets answered. This usually happens when the answer does not shine a favorable light on the company, or the entrepreneur doesn’t know the answer. Regardless of the reason just be open and honest. See #1 above. The second thing that often happens is ramblings and tangents. Remember you have a very limited amount of time! Anwser the question thoroughly, be confident in your answer, and move on. Rambling usually comes from nervousness. Practice, prepare, and be confident. I have been in your shoes and am not trying to poke holes, I am just trying to understand your entire business in 15-30 minutes!