The #1 Reason Founders Fail [42% Chance]

Successfully telling your business story means millions invested, but…

Unfortunately, “B” level pitches don’t raise.

Many “B” level pitches could have been “A+” but lacked that one thing that could have been addressed or communicated better…

Founders without a clear Problem Statement aren’t raising money.

I can pick apart the biggest issues in your pitch right now, and all start with how you talk about your problem-solution.

Spending just a few minutes honing your problem-solution could mean the difference between millions, and zero.

Here’s what you’re going to do:

• Talk about who has the biggest issue
• Blow it out of proportion
• Include both a carrot and a stick
• Zoom out

Example we’re going to use: Automated forklift safety SaaS

Step 1: Who has the biggest problem

The foundation of any great pitch is a clear problem definition, and the value proposition to solve that problem better than anyone else can.

But your business probably solves problems for a lot of different people.

Stop thinking about all of them.

Think ****only**** about your highest and best customers:

The ones who will be ****************exceedingly pissed off**************** if you were to go out of business.

That’s who you’re going to be talking about.

Example: [Bad] We help anyone who owns a forklift, vs. [Good] We work with SME logistics businesses with chaotic warehouses and hundreds of employees to keep safe from forklift accidents

Step 2: Blow it out of proportion

Most founders forget this step.

You can’t just say “these people have a problem.”

You need to twist the knife. Make it hurt.

What happens if this problem gets really bad? Its biggest level?

Is there a life-or-death scenario? Is someone getting sued? Does their business seize up?

Think of the worst that can happen when potential customers don’t take action, and blow it way out of proportion.

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Example: [Bad] Forklifts are unsafe and warehouse owners need to do something about it, vs. [Good] If you don’t fix this problem now, you could have a $6 million OSHA lawsuit on your hands within the next 12 months because of a single forklift accident.

Step 3: Carrots & sticks

Fear is an excellent motivator, but it can’t be all negative.

Good problem / solution pairs have both carrots and sticks.

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So in our forklift example, the carrot might be:

“You’ll keep your workforce safe, productive and generate enormous trust because you’re invested in the most effective technology that keeps them out of harm’s way - and that’ll lead to your company far outperforming your peers.”

Include both the positive & the negative.

Step 4: Zoom out & get meta

Some investors just won’t ‘get’ why it’s an issue.

That’s fine - it was probably pretty tough pitching why teenage kids would love TikTok before it became what it was.

If the investor doesn’t know what you’re talking about, it’s probably because they’re not your target market and are struggling to put themselves in your customer’s shoes.

That’s OK - but you need to help them see the light.

You might want to add:

“Remember - we’re going after SME logistics businesses… not you. You are not our target customer.”

And if you still struggle, go back to Step 1 and start again.

Summary

Everything in your pitch hinges on your ability to communicate your problem.

Hit it hard, twist the knife, show both sides and always keep your audience in mind.

If it feels like you’re selling ice cubes to Eskimos…

You either get that Eskimo to understand what a desert is like, or head back to the drawing board!

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Now get back to growth!

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P.S. - Hopefully this new sending domain doesn't end up in spam - let me know if you received this by dropping me a comment on the next LinkedIn post of mine you see!

See you in the comments... <3

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