This is an interesting topic and I have to accredit this skill that I have learnt from to my boss Nigel, who put me up to the task of pitching the business to prospective investment advisers despite being in my early days as an adviser. Now now, you’re probably wondering how does recruitment equate to a business partner? Part of the skills learnt in masters degree is to be able to take apart a case study to extract the essence of things and infuse it with what you are doing. Furthermore, such skills can be adopted in pitching to business partner in order to have them onboard and share the same vision and mission with you afterwards.
If you could pitch a business, you can pitch anything.
I believe this is very true so let me share my experience and what I interpreted from it to infuse it with your business so that you can pitch it to a potential business partner. Here’s a disclaimer, all these are based solely on my experience and through trial and error and I found that it has improved the chances of a successful persuasion.
Pitching a Business vs Sales Pitch
A sales pitch is meant to help buyers to go through the sales process and come to a sales conclusion. A business pitch however, is to have them convinced that you are the right fit for them to be by your side as you turn your idea into a reality. I am not talking about pitching to a really good friend who is supportive and will agree to a business partnership over a phone call. Those are hard to come by, if you have them, congratulations. If you don’t, this hopefully, may help. Unlike an interview where the interviewee is asked to tell the company what they can bring to the table, it is the other way round here. I believe you, as the business owner, have to guide and pitch to them, how their expertise are being undervalued. Chances are your potential business partner either works under the umbrella of a company (it can be at a big tech firm and they hold a high position, or at an MNC). That is why I use the term undervalued. While they may be compensated handsomely, it may not be the full earning potential as what they can bring to the table is worth so much more. In your pitch to a business partner, you should focus on this; how their skillset and experience is bringing value to their company and if it were their own, it would achieve so much more.
What I did
Initially, I was taught to show credibility, our company’s achievements were being highlighted heavily; how in a short period of time, the company has done what others took more than a decade to achieving the same milestones with a lot more manpower. Meaning, we (the company and its structures) were more efficient and effective. Followed by the company’s expertise in its respective field, background information and big name clients. They did have some REALLY big clients. Then I would go into what we carry, and what’s the potential income (active and passive) and incentives that came with it. Yes it worked on some and did not work on a few.
What I Learnt
The pitch to have them onboard was confidence building toward the team and its company, what it stood for, and why you should be part of the winning team. I believe that certain aspects can be improved and improvised to suit your needs. While confidence building is given, making it relatable may help make your case more and making your business partner see their potential within them would mean the world. The original pitch I learnt was focused on earning potential but was structured towards the end of the session where concentration would have been worn down. By turning it around and making it a series of questions on the partner’s earning potential based on his skillset if it were his business early on would be in line with Monroe’s Motivation Sequence by bringing the problem forward. What I’ve have noticed in my days in corporate dealings, no matter how well you are compensated, you are always measured with a multiplier (the lowest being 1.5x of your annual salary) of productivity or sales turnover. This means, if you are paid MYR 1.2 million a year, your work is worth at least MYR 1.8million a year to the company. Being in a management position would mean a higher multiplier, meaning what you bring to the table will easily be worth more than what you are paid to do.
What I Would Do Differently
Instead of the “We are great! Join Us! You’ll make a lot of money” rhetoric, I would probably put more focus on the person I would like to have on my team. A “You-oriented” rhetoric instead. Perhaps talk about his or her work and expertise that can unlock so much more in the business he/she should be a part of, talk about near term milestones that we can achieve together and how his expertise can help make it into a reality. Remember, you’re looking for a partner, not an employee. Once the person is keen to move forward, only then I would share about details of
the business plan where the business partner role is highlighted, what support is given, what is the projected timeline. Last but not least, how he is compensated.
If you’re not familiar with Monroe’s Motivation Sequence, we will do a write up on that!