Earlier this week I was meeting with one of my coaches (I have a few), and before we got into our usual discussion he was lamenting the general inability for business owners to formulate a good pitch.
He sits on the board of an investment group, a sort of incubation center for local small businesses and startups, so he gets pitched, a lot. Amazingly, but perhaps not surprisingly, many of these aspiring entrepreneurs don’t come to the table with a good pitch, a compelling reason for these folks, who essentially want to give their money away, to believe in and ultimately invest in their company.
So what was missing?
Clarity, focus and knowing the right questions to ask.
First, these companies hadn’t spent the time to put together a well-developed Unique Selling Proposition. It seems like marketing 101: “You need a USP” but many, if not most, startups are not spending the time to develop one.
Second, If you are looking to sell your company or for funding how do things need to “look” in order for it to be a viable proposition? It’s a worthy exercise to work with a broker “as if” you were going to get a bank loan. You might not be there yet, but it will set you in the right direction for having your financials in order. More on that later.
For now, focus on the USP. When you look at Dragon Gym there is a lot going on. We have 5 core programs: Kids Martial Arts, Adult Martial Arts, Muay Thai Kickboxing, Brazilian Jiu Jitsu and Kettlebells. The easy route would for me to develop one USP for all of these programs.
That of course would be to vague and wholly ineffective.
That of course would be to vague and wholly ineffective.
Instead, we’ve spent time developing USPs for each of those programs. We treat each program as a separate business with it’s own pitch.
While you may already be niched to a certain fitness modality, you’re probably not as laser focus as you think and as you need to be.
Remember the formulation: “Why should any body do business with you over anyone (thing) else?”
Take a look at your customer list. Who are in the top 20%? How do you define the top 20%? Most revenue? Most Profitable? Easiest to work with (and profitable)?
Then, ask yourself how you can serve these folks in the best way possible. Can you speak to these people in a compelling way?
– Som