The other night I was watching Dragon's Den. It never ceases to amaze me how so many entreprenuers never learn by watching the show before they appear. Instead they turn up week after week unprepared. The vast majority make the same mistakes. The biggest one being that they believe everyone will be interested in and as passionate about their products as they are. The reality is that when most things are considered no one is really interested in the products. They are interested in their own small worlds, fears problems, dreams and desires. Therefore the answer is to switch focus away from products and company to the mindset of those you are attempting to persuade.
Anyone watching the show can see that the Dragon's are looking for investments, a good return for their money. Therefore what should be the focus of any pitch is the investment opportunity. I've lost count the number of times I've cringed as entreprenuer after entreprenuer falls to pieces with a shakey voice and beads of sweat running down their forehead. The biggest crime for the Dragons is to not know your numbers.
Yet the majority don't have a clue. Every week more than half of the presenters don't know their numbers. They usually prattle on endlessly about their products. An opening pitch about size of market, current profits, how much they would expect to get on return for the investment would go a long way to getting a receptive response from the Dragons. (Supposing that the numbers and all the other info stack up.)
If you study the show there are a few exceptions that still get offers from the Dragons even when the numbers are completely wrong. But these are only with products where the potential is obvious and they like the entreprenuer. (remember Levi Roots?) Or they have real feel good factor by allowing the Dragons to get involved in a really good cause.(these are very rare) If you watch enough shows you will soon begin to get a feel for which Dragon will go for what type of investment.
So you can almost predict who will be interested and who won't be. I know most of you think this is obvious. However 90% or more of all the business and sales people I meet are guilty of the same thing. They use the same limp "pitch" with everyone they meet. They talk incessantly about their products or services and don't notice the eyes glazing over of their prospects or audience.
In order to present or pitch more effectively you must become an expert not so much on your products or services ( I assume you already are). You need to become an expert on your prospects. You need to learn how to chunk and sequence your information in a way that reaches your prospects in a deep and meaningful way. You need to understand their mindset, problems, fears, dreams and desires and show them how by doing business with you will get them there where they want to be.
Once you have moved away from selling your products or services to focusing in on to the mindset of your clients or customers you will find they will be much more receptive to what you have to say. You will become "hypnotic". And you will find that your prospects follow your lead.
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I think you miss the point that the show would not be entertaining if everyone was well prepared, the pitches are obviously selected so that the audience can cringe along with the Dragons. Watch Pop idol you will see the same phenomenon. The show realistically portrays the fact that not all entrepreneurial ideas are good and that's not down to the pitch its down to the idea or product.
ReplyDeleteWell not really the question was "How would YOU pitch?" Not all are numpties on Dragon's Den. Not all are bad singers on pop idol or xfactor either.
ReplyDeleteAnd some do manage to successfully gain votes by "pitching" to the voters at home with those carefully crafted insights into their personal lives.
A product is only bad because the entreprenuer didn't focus on his target market and find a hungry problem to solve.
Most people focus in on themselves, their products and services. Follow your passion and money will follow has to be the worst advice ever given in many books on the subject.
Life isn't like that success is driven by the market not passion alone.
I agree with Helen. You must not lose sight of the fact that Dragon's Den is an entertainment programme first and foremost. I've been told by people who have been on the programme that the playing field is far from level and that entrepreneurs are called "contestants"!
ReplyDeleteI agree that some have a simply terrible pitch and don't stand a chance in hell, but other are "sabotaged" by the system and the programme makers to make better television.