Raising Giants #002:
Reading time, 2 minutes
This week we’ve got two easy ways to explain your business to an investor for you to try.
But first: When WhatsApp first launched, did you describe it like this?
“It’s a uniquely coded app that enables the transfer of data and messages via satellite and cell contracts between multiple people, groups and organisations whilst storing their data within the cloud.”
Or did you say “It lets me message people for free” ?
Likewise, Steve Jobs’ most memorable line from his original iPod reveal isn’t all the tech specs.
It’s when he says it lets you carry “1,000 songs in your pocket”.
However unfair it might be, it’s not the best ideas that win. The best communicated ones do.
So here’s a question: If you meet someone in the next five minutes and they ask what your business does, could you tell them in one simple sentence?
Let’s be honest, this process can be really hard and take a long time to get right.
But, for cold outreach, warm intros or chance meetings with investors, you have no choice but to pique their interest immediately.
Meaning you really do need to sum your idea up in a way that’s easy to understand.
Plus, being able to easily explain your business shows certainty, clarity and confidence in your ability as a Founder and entrepreneur.
There are lots of ways to approach getting this right.
Here are two for starters.
If you’re speaking to someone, try this conversational approach to begin with:
Did you know that [insert customer problem]
Well, unlike [insert primary alternative]
We help them to [get a benefit]
Without [insert hassles/pains]
Because of our [differentiator]
If you need to send something written, try this framework (via 500 Startups):
We’re building a [product type]
to help [target customer]
with [#1 problem]
by [#1 benefit]
using our [secret sauce/differentiator]
Remember, this isn’t a customer facing pitch or message.
It’s not about the product, it’s about the investment opportunity.
You just need to help the investor immediately understand what you’re building, and for who.
You can get into the details once they grasp the concept.
That’s all for this week. Keep building!