What’s Your Process?
One of the most common themes I’ve noticed when talking to entrepreneurs is how quick they jump into product features and capabilities when asked what their idea is or does. I have certainly fallen into this trap myself many times when (knowingly or unknowingly) pitching to investors.
The problem is that unless the investor understands on a very basic level what you’re trying to accomplish, all other explanation comes off as gibberish. The conversation inevitably ends up sounding to the investor like, “blah blah blah raising at a $10mm pre-money blah blah blah blah.” Suffice to say the conversation usually doesn’t end well.
Once the core objective is understood, everything else becomes clear, and most functionality becomes obvious. So the question I usually ask when someone pitches me an idea is, “what’s the process your customer goes through when using your product?” This question forces an explanation of the core utility of the product, and not what it might be used it for.
Often, in pitching one of my own startups, A Dozen Trees, I would catch myself rambling on about the positive externalities on a company’s top-line associated with the tracking and reporting of social impact - before I realized that the person I was talking to wasn’t paying attention. Through trial and error I saw that the most effective way to pitch was to start with just one line: “We’re helping small businesses give more efficiently and effectively.” Then I would pause, and let them acknowledge the issue before moving onto a follow up line that simply laid out how it would work: “We do this by 1) helping the small businesses find the most relevant and impactful nonprofit, 2) managing the giving on an ongoing basis, and then 3) tracking and reporting on their donations in a form that they can easily and clearly show to their customers.” Then if the person continued to show interest and/or ask questions, I would go into all the gritty details.
If you happen to have a computer in front of you when pitching, and can demo the product before going into details, even better. (The MightyMeeting blog has a great post that highlights the importance of this, among other things.) The hesitation with focusing on the core is that you narrow the potential audience. But that’s ok. You can’t please everyone, and you shouldn’t waste your time on those that don’t care. So get down to the core as quickly as you can, and focus on the process.
Juventas Fugit is designed and written by Justin Wohlstadter, who, when not writing in the third person, can be found in a coffee shop talking about startups, thinking about the future of education, and generally procrastinating something important.
- Passions: startups that positively affect the world, education innovation, good design, learning, and meeting those with an equally insatiable curiosity.
- Play: director of product design at Enterproid and partner at BOLDstart Ventures.
- Previously: built the early-stage venture arm of Penny Black. And many other crazy, less successful ventures involving fire extinguishers, measuring philanthropic impact, and creative spaces.
- Pedantry: most of the important stuff I taught myself or learned from friends, but I’m fortunate to have (barely received) degrees from Harvard and Oxford. At Oxford I wrote my dissertation on how internet innovation will disrupt access to higher education.
- Procrastination: can be found on Twitter, Linkedin, AngelList and other web spaces, and be reached via email at my first name at this domain.
