We’ve all heard lots of start-up pitches. Most of them put us to sleep. Many of them make no sense at all. Some even anger us because of their bad form and content. So here’s a primer expressed in 11 questions. If you’re an entrepreneur, see how well you do.
- What problem are you trying to solve?
- Is it a big problem or a small one? How big is the market for your solution?
- Has anyone else tried to solve the problem? How are they solving it? Have they been successful or unsuccessful? Why?
- What’s your unique solution to the problem? What are the barriers to entry?
- Is your “solution” a product or a service?
- What are your founder strengths – and weaknesses?
Do you know exactly what problem companies or individuals – and you – are trying to solve? Do you know what the absence of solutions costs today? How much would companies and individuals pay for your solution?
It’s important to tackle large markets. While niche markets can be fun – and sometimes very profitable – it’s smarter to develop products and services for larger – and growing – markets with a unique product or solution.
Due diligence here is paramount if for no other reason than investors who conduct their own due diligence will find every one of your competitors. So you – the entrepreneur – must beat them to the punch – every time. Details about competitors is essential. What went right and what went wrong with the companies that have attacked the same market you’re after? It’s not only necessary to identify the competitors, it’s important to be able to recite their stories.
Is it technology-based? If so, what’s so different about your technology solution? Do you have any current or pending intellectual property (IP)? What else is unique about you, your team, your technology and your plan? There needs to be a list, and ideally a long one. Can your solution be easily copied especially by deep-pocket large competitors? Or is it difficult to copy (beyond any IP)? How crowded is the space? The last thing you want to do is develop a product pr service than can be quickly and easily copied. First-mover advantage is almost always temporary. There’s a reason why Tesla’s market share is shrinking.
Describe the unique features of your product or service: is it incremental or disruptive? You must erase all ambiguity here – at least as you launch. Over time, of course, everything will change, but clarity here is important not just for market testing but for investor confidence.
Why is your team solid? What’s the experience of your team members? What’s your track record? What’s your business experience? What are your weaknesses? How will you mitigate them?
