Making Connections: Why sales people don't make the best investor pitchers

A common hurdle sales people encounter when taking out investment pitches, is that the very tactics and techniques which have brought success throughout their careers do not have the same impact when utilised in an investment pitch. The reason for this can be found across the table, in the investors themselves who, more often than not, also come from a sales background.

TAKES ONE TO KNOW ONE

Investors, particularly those from a sales background, understand sales tactics; they’ve been through the process; they’ve been in your shoes. They are very familiar with the classic flow of a sales pitch and, like Neo in The Matrix, they are able to see the code running beneath your words.

Their ability to identify these building blocks may result in them discounting what they hear, recognising it as pure sales patter, and undermining the true value of your message. You will yield far better results if you simply tell your story and allow them to make their mind up. Investors don’t want to be persuaded. They want to be convinced.

Investing is about trust and connection. If you present your potential investors with an honest representation of your products and services, shown through your personal story, they will connect with your pitch. Pique their curiosity rather than manipulate their choices.

Broadly speaking, investors are successful, intelligent, and they know what they're doing. They hold a great deal of autonomy and, the more you try to sell to them, the less they're going to trust you.

It can be a great asset to demonstrate that you're an amazing salesperson, but actually being able to speak to them on a human level, shedding those layers of years and years of sales training to connect with them directly, will give you far more credibility to earn their trust.

SHOW DON’T SELL

The need for investment is implicit in the relationship between you and the investor so your pitch shouldn’t be focussed on selling. Instead, you want to engage in a mutually impactful conversation. By sharing your personal story and outlining your message, you will create a connection, opening up the floor to explore the opportunities.

Storytelling is key to building connection and intrigue without the constraints and expectations of a traditional sales pitch. Working with a communications coach will help you to identify the ingrained habits of ‘sales pitching’ and allow you to develop fresh storytelling techniques. Building your communications toolkit and developing your narrative skills will give you the confidence to present yourself honestly and speak directly.

Deprogramming some of your sales instincts can open you up to a fresh communications approach. As a seasoned salesperson, your sales skills will never leave you, and can serve you well as you enhance your presentation toolkit. Taking the time to work with a communications coach will widen your parameters to give your pitch or presentation a direct, honest approach that will resonate with investors.

DON’T ALWAYS BE CLOSING

If you simply present a sales pitch, you are inviting the investor to deliver a yes or no response. By sharing the narrative of your company, and your honest, personal story, they will be much more likely to show interest and ask questions. Once they are engaged and intrigued enough to dig into the details with you, they are far more likely to build up a personal investment in both you and the idea. Giving them time to consider the opportunity will yield better results because they aren’t being forced to make a snap decision.

Your conversation with an investor should be a mutual exploration of the opportunities you are presenting. Creating intrigue and a shared interest sets the stage for a rich conversation. Rather than spewing all the information in a well packaged pitch, you want the investor(s) to come to you; asking questions and challenging your premise rather than passively smiling through your monologue.

BUYING INTO YOU

The most important takeaway your investor should have from your pitch is to recognise your credibility. Hard-selling can build resistance. Too many identifiable sales techniques can be off-putting. If the investor feels as though they are being lured in, they will resist the bait. By presenting your ideas through storytelling, you avoid the risk of alienating your investor who is likely to recognize classic sales language.

Sharing your personal story will always be unique and honest, free from well-worn sales language and setting you apart as a credible business partner. If they engage with you, they will be more likely to engage with your ideas.