Storytelling: A unique art of pitching to investors
At a Glance
Even the best business idea in the world — a sure moneymaker with the potential to affect society’s future — might fail to launch if it is not properly conveyed to investors i.e, storytelling.
So it is not enough if entrepreneurs just pitch the business’ potential with data and figure. To pressure the investors for a close and get the funding, it is paramount that we give them a story to be part of.
People will enter a different universe when they listen to stories. They aren’t critics any longer, and they’re listeners who are attempting to connect with your story’s protagonist.
What does storytelling entail?
One of the oldest forms of human representation is storytelling. Even before writing, there was storytelling. It is not only a way to share experiences, but it is also a way to communicate ideas that can stir individuals, unify communities, and bring about positive change.
What is the point of storytelling?
As humans, we enjoy a good story. Stories and promptly connect with us in ways that facts and data cannot, a feature that shows itself in a very tangible and economically valuable way. Facts and data on the harms of smoking did far less to discourage smoking than photos of diseased lungs, just as nearly every society teaches morals to its young through storytelling and fables.
A brilliant story helps the audience to get emotionally invested in the result. Additionally, even if both are essentially conveying the same concept, a well-told story is generally more compelling than a litany of facts and data.
Even if you’re pitching a new system deployment or selling ideas or even proposing your annual budget, adopting storytelling approaches to illustrate the facts of the request will make your message more approachable.
Benefits of storytelling
- A story will portray actual-world situations.
‘How does this fit into my life or business?’ is one of the first questions that people listening to a pitch ask. We want to make sure that everything we purchase will assist us in moving forward, and it has to make a difference in our lives.
When we listen to a ‘dry’ pitch, we must do the translation to real-life ourselves. We hear the information and observe the features of a product. But how is that going to work in our situation? It is not easy to imagine.
- People understand your business better.
It can be challenging for non-company people to grasp your company’s culture, goal, and vision. Storytelling can allow them to communicate with your company and understand its mission and values, and it’s an excellent approach to share your company’s story.
- The story evokes emotions.
We all believe we are sensible buyers, and we shop based on the subject of functionality and our well-research. Correct? False!
The majority of our purchasing decisions, both personally and professionally, are made emotionally. Over 80% of our buying habits are based on emotion. We like an item not because we like it but because the salesperson is one of our favorites. Or it could be due to peer pressure. It’s in our friends’ hands, or, even worse, it’s in the hands of our competitors. That is why we, too, require it!
Similarly, storytelling is an excellent approach to evoke feelings. The listener will feel emotionally connected to the hero once they relate to the dilemma. It means that emotion plays a significant role in purchasing because they sense a connection.
- They converse more when they are told stories.
A common misunderstanding regarding pitches is that they are all about the salesperson talking and demonstrating the goods or service. If a pitch is successful, the receiving end,’ or people who make the decisions, will speak a lot. The more you get them to talk, the more likely you will close the deal.
Telling a story is a terrific technique to get people talking. It will cause people to reflect on and discuss their own experiences, allowing them to open up.
Now that we know what value storytelling holds. So, let’s look at how you can build a compelling story.
How to build a good story?
There are many storytelling approaches available, each of which can be pretty complex in its own right, but you can boil them down. Here are some tips you can follow
1. Be the person in the room who is the most cheerful.
An investor notices two things when an entrepreneur is enthusiastic. One is that the entrepreneur has a cheerful, optimistic attitude. Second, the entrepreneur believes in their product. Enthusiasm is addictive, and it may overrun a pitch, a deck, or a room. Make sure your story includes some positivity.
2. Take your listener on an emotional rollercoaster
The simplest basic journey conveys the story of the character’s existing situation and then offers the character a challenge, resulting in conflict and drama. The character then overcomes the problem, generally with the assistance of others, and achieves a better future condition. It is a tried-and-true mechanic found in practically every fairy tale, only in your case, the Big Bad Wolf may be complex economic conditions or hostile competition.
3. Focus on ‘one’ person only
When you try to tell a story about everything and everyone, you tell a story about no one. The importance of detail in defining your hero, place, and background cannot be overstated. While it may appear contradictory, the more specific and detailed a protagonist is, the more a listener will relate to it.
4. Find out who your target market is.
We usually make the same mistake of outlining all of our knowledge within these few minutes of pitching to make a favorable impression. Regardless of the topic, our fundamental goal is to build a relationship with our interactants, not brag. As a result, it is vital to conduct upstream research to understand their issues, desires, expectations, etc.
5. Let your numbers speak
It is highly effective, and I can’t say enough about it. Use a number in every sentence you make when pitching. Data-driven people are the ones who establish big businesses, and data is how you should think and communicate.
“We’re getting so big,” “it’s becoming so much better,” “this is a huge market,” and “we’re so excited and passionate,” said many individuals. These squandered possibilities divert the investor’s attention away from the vital data.
6. Steak AND sizzle
You’ve probably heard the expression “sell the sizzle, not the steak,” so, for many IT executives, storytelling may appear to be a manipulative way to communicate technical and seemingly fact-based arguments. You have a formidable mix when you blend the sizzle of storytelling with a well-researched and supported argument.
Ending note – In a pitch, telling a story is key.
Do you see what I mean? When it comes to pitching, telling a story is essential. It’s necessary! You will have a greater chance of succeeding in the pitch if you use stories. Take the leap! Tell us about it!