CIO Era Magazines

I admit – I’m geeky. Ever since I remember myself, I invested time thinking about how things work or how they were created – be it a structure, a program or a painting. Especially during my engineering days, it was fun to geek out on algorithms and new technology, especially when the other side shared the same sentiment and both of you had ample time to spend.

 

However, what happens when on the other side stands your next line of revenue? And what if that entity doesn’t have ample time to spend?

 

As the global lead for Cisco Investments’ Market Development function, my team regularly brings our portfolio visibility to executives of Fortune-rated and multi-national customers, where they can pitch their solution to the highest echelons of decision makers in the industry.

 

A prime opportunity, to say the least!

 

 

 

 

Yet, over hundreds of these interactions, I see the same mistakes happen. These are common to startups all over the map – in early to later funding stages, and regardless of their location.

 

Of course, some do this better than others, but here – I highlighted the common mistakes I see time and time again that can be easily solved – and can make a world of difference.

 

#1 – Be bold, be brief

 

The pitch begins… intros ensue… complex situations and complications described… demos mentioned… 10, maybe 15 minutes elapse… and the customer still hasn’t understood what you do.

 

When faced with a new offering or product, most customers would try to wrap their brain around what you do and the value you can bring pretty early on, so they can determine whether you can solve their pain points in the first place.

 

The Solution: Use your time wisely! The quicker you can get to your value proposition and the problem you’re solving – the better. It would encourage the customer to engage in a constructive conversation, and you’re far more likely to get a follow-up conversation.

 

#2 – Embrace your Inner Nostradamus

 

I still remember the first time one of our portfolio’s founder pitched to a large financial institution. During his pitch, he said “I believe – that the future of meetings will change radically in the next 5 years and email will go away. And here’s how this will happen…”

 

Silence in the room. He had everyone’s full attention.

 

Why? Because he had a vision. He was the current-day Nostradamus that could tell the future – and who would not want to hear about the future of tech, so they can prepare for it?

 

The Solution: Good companies get funded because they can articulate how things will change and how their solution will fulfill future needs, en-masse.

 

The best thing you can do is share your vision with customers, and how that will transpire. Not only so more people will believe it (in a “If you build it, he will come” manner, and I don’t mean Kevin Costner a-la “Field of Dreams” (although that would be nice…)), but so people will listen and pay attention to you.

 

Start with “We believe that…”. Everything else will flow from there.

 

#3 – “What are you replacing?”

 

I often hear variations of this phrase from customers – “what are you replacing?”, “who are your competitors?” or “what category do you fit in?”

 

Customers will try to understand what you do in an indirect way, and many times that’s by way of categorization. Countless times I’ve seen a startup that’s mentioned in an analyst report but doesn’t mention it to the customer, which is not only a missed opportunity (likely the customer will or already has read it) but also helps the customer with categorizing your solution.

 

The Solution: Acknowledge the market you’re in and how you play or rank in it.

 

If you have a direct competitor - articulate your strengths or differences clearly. If your solution can replace multiple products – state that as well, as it may provide savings in multiple ways. It’s important for the customer to understand where you fit in.

 

And, use the lingo mentioned in analyst reports you’re mentioned in. It lends only credibility.

 

#4 – Show me the money!

 

What value are you bringing the customer? You may solve a major challenge, and in some cases a demo may be enough to win over a customer.

 

However, CIOs and other execs typically fall on a spectrum between super-innovative early adopters and cost-cutting missionaries. Of course these are the extremes, yet when speaking to that spectrum – both sides are interested to understand what’s in it for them.

 

The Solution: Present stats. Flaunt the $ amount saved, the # man-hours waived or any other efficiency KPI you’re tracking. If you have those based on reputable customer cases – great! In the absence of that – show your estimates, and your assumptions to get there.

 

You will be asked about this, but the more data you can put forth proactively – the better your chances of advancing the conversation.

 

#5 – A Martini can be dry. You cannot be.

 

I recently came about a quote: “Don’t adapt to the energy in the room, Influence the energy in the room”.

 

If there is a hinderance to a customer continuing a conversation with a startup – it’s the nonverbal communication of the presenting party. Regardless of the words you say, the way it which you say them matter by an order of magnitude more.

 

The Solution: Pump up your energy, and smile.

 

Smile, speak with a solid tone, and sit up straight is what your mom may tell you, but research has shown that smiling will not only make you be likeable and courteous, but also up-level the energy in the room and make you appear more competent. This in turn will raise their trust in you and raise your chances of achieving meaningful follow-on discussions.

 

Ultimately, I believe that the collective success of the startup ecosystem fuels innovation and progress. It’s a symbiotic relationship and one’s success fuels the success of others.

 

What mistakes have you made and learned from? Please share – I’d love to hear!