Why pitching your company is an important skill to master
Business professionals know that being able to sell themselves in a job interview is important. However, entrepreneurs are not always experts when it comes to describing their company to possible investors or even acquisition companies.
According to Steve Cody, co-founder and managing partner at a marketing firm, business leaders often struggle when trying to explain the day-to-day operations of their organization. In a contribution piece for technology and business blog Inc., Cody explained how startup executives can fine-tune everything from their elevator pitch to simply being able to talk about their overarching business plan.
"Most startups don't understand how to tell their story," he wrote. "It isn't about how three young men sat around in a dorm room late one night, and came up with a variation on an existing algorithm. That story's been told to death. Instead, the media, investors and everyone else wants to hear your story told through the end user's eyes."
Essentially, the customer is key. Whoever a startup is trying to reach – and in turn the same consumers that an acquiring company wants – need to understand the products and/or services being offered.
Also, startups exist to fulfill a need. Cody underlined the fact that investors and possible business partners want to know what that need is. It's necessary for entrepreneurs to quantify and qualify the issue at hand, then explain how their company has a unique solution to that problem.
The road to successful mergers and acquisitions business is hardly ever completely smooth. Entrepreneurs might not always understand the intricacies of M&A activity, which is where M&A advisors can come into play, for example. However, without being able to properly explain the product, it will be more difficult for startups to move forward.