What to Avoid During an Investor Pitch

May 31, 2012

Clay

Finding the necessary funds can be very challenging for an entrepreneur, to either start or expand a business. The current economic state has made it very difficult to obtain funding from banks, even from venture capitalists and angel investors; which is why “pitching” is becoming increasingly important.

A business “pitch” is a short presentation, used to sell a business idea to potential investors, where presenters showcase key elements of their business, like what the service or product is, target market, competitor analysis, marketing strategies, financial projections, and most importantly, how the investor will make money. This may sound easy, but the challenge here is to provide all necessary details in a restricted amount of time –usually five minutes or less—in an effective manner. That is exactly where most presenters fail.

Mistakes are bound to be made, and most investors will overlook some, if the business idea is viable and has potential, but what are those unforgivable mistakes that will nix any chances of getting the money? Here are five:

1. Being unprepared
Presenters should know everything there is to know about their business and convey it clearly, in a short period of time. Preparedness in every aspect, from body language to knowledge on a business, to time-management should be taken seriously. Showing effort in making the best out of a pitching opportunity will get noticed.

2. Not mentioning how the product or service solves a problem
Most presenters focus on what their product or service is, spending valuable minutes on explaining the ins and outs of how it works but do not elaborate on the need it fills, or how it will help customers. Presenters must focus on what makes the product or service stand out from its competitors.

3. Leaving important information out
Every key aspect of the business plan must be included in the presentation, even if may not seem well developed. Investors should not have to ask about missing information. They might even assume that the information was purposely left out, which could raise doubts and decrease the presenter’s chances of getting the money. Among the elements that should be included are information on the company’s team, market analysis, competitor and customer analysis, business model, financial projections, and funding requirements.

4. Asking for too much
In today’s economy, investors are more cautious than ever about their investments. While some ventures do need large sums of capital to get things going, the expenses need to be justified and realistic. Presenters cannot ask for $500,000 and expect investors to agree, just because the product has potential. Detail on why that money is necessary must be included, and how it will be allocated and repaid.

5.  Lack of passion and confidence
Believing in your business is one of the most important parts of pitching. Investors want to be engaged in a presentation and get excited about the presenter’s ideas and business. Confidence and passion are the cherry on top, when it comes to pitching. If presenters do not show how much they believe, not only in their business, but in their capabilities to make the business successful, investors will not have confidence in their capabilities either, no matter how good the idea may be.

Making the perfect pitch is difficult and it takes time, practice, and experience to get it right. Many successful pitchers, have succeeded only after failing many times. Also, pay close attention to all feedback received in order to keep improving and increase the chances of getting funded, sooner rather than later.

Image credit: Ambro

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Posted by Clay Hickson

Guest Blogger – Cisco Academies: The World’s Largest 21st Century Classroom

March 19, 2012

Guest Blogger, Nancy Null

Imagine teaching over one million students in over 160 countries how to design, build, troubleshoot and secure computer networks.  The Cisco Networking Academy program operates over ten thousand academies worldwide in secondary, post-secondary, and alternate environments ranging from workforce development programs to prisons.  Towson’s IT Affiliate and Cisco Support and Training Centers, located at the Center for Professional Studies, manage and support over sixty academies throughout Maryland and the District of Columbia, providing technical support and professional development resources.

How is Towson helping Cisco Academies to support educational reform?
Academy curricula are aligned to the STEM National Career Cluster Standards and Common Core Anchor Standards in Language Arts and Mathematical Practices.  This summer, Towson’s Cisco Instructor Training Center will offer a three-day workshop for high school IT instructors in embedding Common Core experiences in IT instruction.  The activities and lessons produced from this workshop will be shared through video and other technologies. Three summer “boot camps” for Cisco instructors to earn A+, CCENT, and CCNA certification will continue to raise the bar on quality instruction.  National and state Common Career Technical Core Standards are due for release over the coming year, and professional development to support them will be a key future project for Towson’s Support and Training Centers.

What’s happening in Maryland’s Cisco Academies?
It’s an exciting time to be a Cisco Academy in Maryland:  in response to Governor O’Malley’s goal to make Maryland the “cyber hub of the nation,” the Maryland State Department of Education has designed a high school career and technology Cyber Security pathway partnering Cisco Academy and CyberWatch curricula.  Students following this pathway can earn up to three industry certifications (A+, CCENT, and Security+) along the way.  This new pathway, along with the two existing Network Engineer and Computer and Network Support pathways, provide Maryland students with a wide range of career and college opportunities.

Six two-year colleges were the first community colleges to be named National Centers of Academic Excellence (CAE) in Information Assurance recently by the National Security Agency (NSA) and the Department of Homeland Security (DHS). Three of the six institutions–Anne Arundel Community College, Hagerstown Community College and Prince Georges Community College—are Maryland Cisco Academies.

What “core beliefs” are driving all of this?
Career and technology programs everywhere need to meet the 21st century learners’ needs and expectations, and meet national goals of graduating secondary school students who are truly prepared for success in both college and career.  Towson’s Cisco Support and Training Centers’ goal is to understand and support what Cisco instructors are doing well, identify areas of need, and give instructors the resources to practice those skills in the classroom.

US Secretary of Education Arne Duncan stated in April, 2011, that, “Once CTE programs deliver on the promise of truly preparing students for success in college and careers, their successes will make a compelling case for further investment.”  Towson is helping to ensure that the world’s largest 21st century classroom can meet that challenge.

Nancy Null is a guest blogger for www.tuoutreach.com .  Nancy closed a 38-year career as a Baltimore County Public Schools educator, and opened a new career as co-director of the Towson University Maryland State Department of Education IT Affiliate, and lead contact for the Towson University Cisco Academy Support Center and Instructor Training Center.

4 Comments | IT, Small Business Development, Training, TU Faculty & Staff | Tagged: , , , , , , , , , , , , , , , , , , , , , , , , , , | Permalink
Posted by Guest Blogger

Incubating Innovation, Band Happy Success Story

January 31, 2012
Raquel

Raquel

At DECO, we are well aware of the significance of business incubators in supporting small business start-ups.  Our own incubator is a great source of support and guidance for a variety of companies. As it stands, small businesses encompass 99% of all firms.  They are job creators and contribute to the country’s economic growth.  Supporting and stimulating the creation of new businesses is necessary to stabilize and improve the economy.   Business Incubators nurture small businesses owners and entrepreneurs by providing them with all resources they need to start a business and become successful.  While many people have viable ideas for a business, the majority never take that leap because they do not know where to start.  Additionally, those who own small businesses usually cannot afford to invest large amounts of money to expand their businesses.    That is where business incubators come in.  For an affordable membership fee, they offer office space, employees, exposure through networking events, and expert advice on every area of a business–legal, financial, marketing, etc.

Last year, we had the privilege of working with the Emerging Technology Center (a non-profit business incubator) based in Baltimore City.  Through this partnership, we were able to work with a few of their companies developing market studies.  A market study (or analysis) tends to look at specific characteristics, demographics and trends in a target market.  They can also help project current and future demand of the company’s product or service and gather information about competitors.  This type of analysis is also important because it can allow business owners to estimate how much profit they can generate.

One of the clients that we were fortunate enough to work with was a company that developed a platform for providing online music lessons.  As a former high school band member and a lover of music, I found their product very interesting and exciting.  The main idea behind their innovative service was not only to give individuals a platform to participate in music education but to also act as a link between professional musicians and their fans.  Since our time working with this company, they have successfully launched their website.  You can read more about their product here.  Not only that but they have also developed a huge following on their Facebook page. If you have ever been interested in learning how to play an instrument (and thought you didn’t have the time) or would like to improve your skills with professional musicians, you should definitely check them out!

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Posted by Raquel Frye

Video: Meet Our Team – Jeff Beeson

November 23, 2011

Allie

Jeff Beeson is the Director of the Center for Professional Studies (CPS) within the Division of Economic and Community Outreach at Towson University. As Director, he is responsible for managing a dynamic team dedicated to meeting the diverse educational and consultation needs of clients regardless of their location. Prior to coming to Towson, Jeff was the Director of the Maryland Apprenticeship and Training Program for the Department of Labor, Licensing, and Regulation (DLLR), and prior to that he was Deputy Assistant Secretary for the Division of Workforce Development and Adult Learning at DLLR. Jeff has also worked for the Secretary of the Maryland Department of Public Safety and Correctional Services and as an aid for Senator Barbara Mikulski. Jeff is a graduate of Towson University earning his Bachelor’s degree in Political Science and his Master’s degree in Social Sciences. To hear more about Jeff’s background and vision for the Center for Professional Studies watch the interview.

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Posted by Allie Pyzik

TowsonGlobal’s Business Plan Competition Returns

November 2, 2011
http://tuoutreach.com/author/clayhickson/

Clay

The time has arrived! TowsonGlobal’s Business Plan Competition is back for a second year.   The inaugural competition brought entries from a diverse group of entrepreneurs with interesting business concepts.  All had the same goal in mind—success.  And this second annual event promises to be even more inspiring, helping stimulate innovation and entrepreneurship across the region.

While the basic format of the competition remains the same, a few changes have been made to help better prepare entrants and to make the competition more interactive. For this second competition, interested participants are invited to attend free workshops which focus on the basics of a business plan, including:

  • writing an effective executive summary,
  • conducting useful market analysis,
  • and developing realistic financial projections.

The five chosen finalists will attend a required boot camp to help prepare for their final presentations.  Also, this time, presentations will be made both in private and at a public forum.  After which, the winner will be announced at a networking reception.

Business Plan Competition Workshop #1 (October 2011)

Timeline & Process:

  • October 19, 2011 — Business Plan + Executive Summary Workshop
  • October 26, 2011 — Market Analysis Workshop
  • November 10, 2011 — Financial Projections Workshop
  • February 6, 2012 — Executive Summaries Due (3-5 pages)
  • February 20, 2012 — Finalists (5) selected and notified to submit business plans
  • February 27, 2012 — Presentation boot camp for finalists
  • March 27, 2012 — Deadline for finalists’ submissions of business plans and PowerPoint presentations
  • May 2, 2012—Finalists present in front of judges, winner selected

We hope that participants will get as much of the competition as the first group did.  Lisa Drouillard of My Hopeful Journey, one of two 2011 winners, commented, “The business plan competition helped me to think of my business in a more tangible way and not just as a concept.”  The other winner, Ben Walsh of Pure Bang Games, added that participation “strengthened our ties to other early stage startups, and most importantly, Towson University.”

TowsonGlobal is looking forward to seeing the exciting, innovative concepts that will be brought to the competition.  For more details on the competition, visit TowsonGlobal’s Business Plan Competition page or email us at info@towsonglobal.com .

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Posted by Clay Hickson

5 Tips for Using Twitter, Facebook, and Blogs for Event Marketing

October 13, 2011

Jenn

1. Create a Facebook event page
A Facebook event page allows you to publish essential information about your event (time, location, etc.), and track who will be attending. This is a great place to post relevant articles and resources that will further engage the audience. It also gives the audience a place to make comments on the event and share the event with their Facebook friends. The sharing feature is essential because it allows your event to reach more potential attendees.

2. Connect with Guest Speakers or Event Sponsors
If your event features a notable guest speaker, be sure to mention him/her on social media. For example, you can mention the individual on Twitter or tag them on Facebook. You can also mention sponsors in the same way. Mentioning a notable speaker or sponsor on social media will associate them with your event, thus creating increased awareness and credibility. Blogs are also a great place to connect with guest speakers. For example, you can have a guest speaker do a guest blog post about your event.

3. Publish Event Updates on Social media
Social media can also be used to keep your audience up to date as the event approaches. For example, you may want to let your audience know about agenda changes, new sponsors, new speakers, or new attractions. You can also use social media to countdown to the event, and to let your audience know when the event is close to selling out.

4. Publicize Social Media URLs
Be sure to include Facebook, Twitter, and Blog URLs on all websites and/or print collateral that are used to market the event. This should result in increased traffic to your social media websites since the consistent appearance of social media icons and URL’s will remind the audience to connect with your event.  Be sure to create a hashtag and let your audience know about it through your marketing efforts. Hashtags allow the audience to follow conversations about your event if they search the hashtag on Twitter.

5. Use Social Media for Crowd Sourcing
You can also use Facebook, Twitter, and blogs to interact with the audience. For example, you can poll the audience by asking what they’d like to see at the event. This will allow you to hear the voice of your audience and to ultimately present content that is relevant to your audience, creating greater satisfaction with the event.

Check out how DECO is using social media!

Image Credit: fotographic1980

2 Comments | Events, Marketing, Small Business Development | Tagged: , , , , , , , | Permalink
Posted by Jenn Lake

Social Media for Entrepreneurs

August 25, 2011
http://tuoutreach.com/author/clayhickson/

Clay

Over the past few years, social media seems to have become an essential part in our lives.   Networking sites have changed the way we interact with the world.  While many sites were created mainly for personal uses, it did not take long for companies to discover the potential for business growth.

Amongst those who have benefited greatly from social media are entrepreneurs and small business owners.  Why?  Because of extensive reach and relatively low cost.   After all, sites like YouTube, Facebook, Twitter and LinkedIn offer access to 1 billion users combined at minimal costs.  And while big corporations have the means to invest in large marketing campaigns to gain recognition, small businesses and start-ups must focus limited funds on more affordable resources.

Social media has become a key marketing tool allowing for more honed targeting of specific new markets.  It can help build awareness and exposure relatively rapidly both locally and internationally.

Lisa Drouillard, owner of My Hopeful Journey, a web-based application for managing infertility treatment programs, says, “Social media has been my primary method of connecting to both my customers and other stakeholders in the infertility community.  I have connected much more easily through social media than by making a cold call.”  Regarding the impact it has had, she says, “Without social media, launching My Hopeful Journey would have been nearly impossible.”

Mark McTamney, owner of BuffTees.com, a small graphic T-shirt company, adds that social media not only has made the process of attracting customers much more organic but also has facilitated customer interaction with the company, allowing him to be more responsive to customers’ needs.


Despite these benefits, many businesses do not explore social media’s full potential because of how time consuming it can be.  It takes time to create a plan that will be effective, and that will offer results over a short period.  People often mistakenly believe that their initiatives will pay off almost immediately while spending a limited amount of time online.  Nowadays, many companies are creating positions in social media marketing because of the important role it plays in gaining exposure and communicating with customers.

While many start-ups and small business owners cannot afford to hire additional employees, having someone dedicated to managing social media efforts could pay off in the long-term.  Both McTamney and Druillard agree that while they do not spend huge amounts of time online, they try to make the most out of their time networking.  “Social media is what I enjoy the most about my business” McTamney says.  “Interacting with my customers is the best part and it is probably the one thing I’d like to continue doing myself.”

Having a business page or blog does not guarantee success.  Like everything else, it takes time, effort, and planning to see results. As Druillard says, “You can’t just put up a Facebook page and expect people to find you”.

1 Comment | Education, Entrepreneurship, Small Business Development, Web Services | Tagged: , , , , , | Permalink
Posted by Clay Hickson

Entrepreneurship and the Economy

July 11, 2011
http://tuoutreach.com/author/clayhickson/

Clay

That entrepreneurship is important for a healthy economy is a commonly acknowledged fact.   It stimulates innovation which is vital for economic growth.  Entrepreneurs have created new industries, generated new job opportunities, increased competition, brought growth to their communities, and changed the way we live entirely.

Small businesses–mostly owned by entrepreneurs–generate 75% of the net new jobs each year and represent over 99% of all US employers.  According to the Bureau of Labor Statistics, the self-employed population accounts for one-third of the workforce, and by 2018, almost half will be self employed.  Nowadays, almost anyone can become a successful business owner as long as they are willing to be innovative, proactive and take risks.

In the last few decades, the economy has shifted from goods-based to service-based, which in turn has given more people the opportunity to become entrepreneurs.   Additionally, the current economic downturn has pushed many to start their own businesses.  According to small-business insurer Hiscox, 15% of start-ups were created as a result of layoffs.

Although entrepreneurs are essential for job creation, the amount of start-ups that hire in the first year is decreasing because of limited capital and high tax rates.  Also, despite some government efforts to boost entrepreneurship and small businesses –e.g., the 2009 stimulus package, which created tax breaks for business owners and eased access to credits – they still are not receiving enough support from lenders.  According to the Federal Deposit Insurance Corporation, loans to small businesses actually have decreased 8% compared to last year.

On the positive side, some local and state initiatives are being put into place to encourage innovation and growth.  In May, Governor Martin O’Malley signed InvestMaryland, an initiative which is slated to infuse $70 million into start-up and early stage companies in Maryland specialized in life sciences, cyber security, and green technology.

With the right support, startups and small businesses have the potential to become large companies that will generate thousands of new jobs.  For society to make the most of this potential, policy makers must be proactive and create an environment that is more conducive to the success of small business owners and entrepreneurs.

Let’s hope that everyone, including government authorities and financial entities, understands the value of entrepreneurs in the economy and helps create an environment that makes it easier for this engine of economic growth to thrive.

Photo Credit: David Siqueira

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Posted by Clay Hickson

Save BIG on Think Big Baltimore

June 30, 2011

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Posted by Bobbie Laur

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