Making the perfect pitch

In 2008, RogenSI surveyed more than 3,000 executives worldwide. They were all involved in bidding for multi-million dollar accounts.

The presentation training company compared the answers to those from a 1978 survey by its founder, Peter Rogen.

The results reveal both what is important and how the nature of the pitch has changed.

Back in 1978, 40 percent of respondents said it was most important that a bidder was seen to have the best possible solution.

Personal chemistry, ‘politics’ (internal politics or relationships) and understanding a client’s company came next: weighted 20 percent each.

In 2008, understanding the company you’re pitching to is rated first at 32 percent.

Having the best product is on 29 percent. Chemistry scores 23 percent and politics 16 percent.

RogenSI’s current CEO, Neil Flett, says the world may have been less sophisticated and competitive in the late 1970s.

People were likely to be more trusting and to do business on a handshake.

That explains why ‘politics’ and relationships ranked highest.

In some parts of the world they still do.

On the whole, though, the business world is now more complex.

And the perception that you understand your client’s business needs has become paramount.

Flett says it’s no longer appropriate to lead with your credentials and the product or service offer.

“Now, the client needs to know you understand their situation, with all its issues, challenges and opportunities.

“Then, and only then, will he or she be willing to listen to what you have to sell.”

As CEO of venture capital firm No.8 Ventures, Jenny Morel has a keen understanding of the art and science of the pitch.

Morel first checks out that the person who is pitching understands they are asking for investment.

“That is, they are focused on what I need from this: good return with managed risk.

“This is sometimes called ‘the hook’ and it’s what gets me listening.”

A clear business-focused pitch could use the following template, says Morel:

• This is the product/service
• For which there is a large market (quantify)
• Which we can enter by …
• And we will win in this market because … (talk about competitors)
• And our advantage is sustainable because … (IP, management team, market knowledge etc)
• This is our business plan for how to execute this market opportunity, setting out who will do what and how much this will cost (the budget)
• These are the people who will make this happen.

“If someone can get this summary across to us in their pitch, we will be engaged.”

Morel also organises the annual entrepreneurs’ pow-wow Morgo, which includes a pitching competition modelled after the TV show Dragons’ Den.

She lists the six most common ways to foul your pitch. 

The war story

A CEO made one of the worst pitches Morel has ever heard.

“He spent 80 percent of his pitch time telling us about his company’s history and how hard it had all been.”

He should have saved the sob story.

The only message Morel took from it was that his people were not good at executing.

“Investors want to talk about where you’re going to go together in the future,” she says.