What do the bosses of Shark Tank look for when people are pitching their ideas? This week we're analyzing the 3 most important characteristics that winning pitches have. 👉👉 Join the MultiFamilyMBA and get exclusive free training: https://theinvestormindset.com/mfmba There IS a secret formula to creating a winning sales pitch and it consists of 3 main qualities. Do you know what they are? The most important aspect here though, is that YOU can implement these techniques into your pitches and use them to boost your sales figures. I've done the analysis on the most successful Shark Tank pitches so you don't have to! Jump in and join me on this week’s info packed episode and get your sales pitches right up there alongside the winners. Hit subscribe and let us know the comments: What's the most important aspect of a pitch for you?
What do the bosses of Shark Tank look for when people are pitching their ideas? This week we're analyzing the 3 most important characteristics that winning pitches have. 👉👉 Join the MultiFamilyMBA and get exclusive free training: https://theinvestormindset.com/mfmba
There IS a secret formula to creating a winning sales pitch and it consists of 3 main qualities. Do you know what they are? The most important aspect here though, is that YOU can implement these techniques into your pitches and use them to boost your sales figures. I've done the analysis on the most successful Shark Tank pitches so you don't have to! Jump in and join me on this week’s info packed episode and get your sales pitches right up there alongside the winners.
Hit subscribe and let us know the comments: What's the most important aspect of a pitch for you?
KEY TAKEAWAYS
1. Explain the business concept and story in under 90 seconds.
2. People buy emotionally and justify logically.
3. One main mistake people make is that they think it all comes down to the numbers and ROI. This is important but people are going to invest because they are emotionally hooked in and believe this idea will work.
4. Be able to outline and describe why this team is going to deliver and how it's going to execute the plan.
5. Know your numbers or at least have someone next to you who does.
6. Spend time: practicing your pitch, answering questions, knowing what the numbers are and how the execution will be carried out and by whom.
BOOKS
The Passive Investing Playbook - https://theinvestormindset.com/passive
LINKS
Join the MultiFamilyMBA and get exclusive free training: https://theinvestormindset.com/mfmba
Learn more about investing with Steven at https://theinvestormindset.com/invest
Steven: [00:00] After seeing countless pitches from entrepreneurs from around the world, what Kevin O'Leary of Shark Tank and the rest of the sharks have come to agree on are some of the most important characteristics when it comes to making a pitch for an investment. We're going to talk about the three most important characteristics in this episode, so you're not going to want to miss it. Let's get to it.
INTRO: This is The Investor Mindset Podcast, and I'm Steven Pesavento. For as long as I can remember, I've been obsessed with understanding how we can think better, how we can be better, and how we can do better. And each episode we explore lessons on motivation and mindset from the most successful real estate investors and entrepreneurs in the nation.
Steven: [00:49] Welcome back to this week's Mindset Minutes Episode, I'm your host, Steven Pesavento. And each week, we share mindset tips and real estate investing strategies to help you take your business and investing career to the next level. And if you're just joining us, please make sure you hit that subscribe button down below. If you've been listening to even just a few episodes, I highly encourage you to go drop a rating or review so we can reach more people with the kind of content we put out every week. So getting into this week's episode, after doing 10s of episodes, the sharks on Shark Tank have come to realize that there are three key components that go into a great pitch. And Kevin O'Leary dives into this a little bit in a recent interview and I wanted to kind of outline some of these key characteristics because when it comes to real estate investing, when you're raising capital, when you're talking about vision, when you're looking at bringing people on board to participate and have that opportunity to be able to invest and partner with you on your business, you want to make sure you're doing it in the right way, you want to make sure that you're giving those folks the opportunity to see that True Vision. Kevin O'Leary talked about some strategies that I think you guys are really going to love and it's going to make a big difference in your business. So the first strategy, the first piece of an effective pitch that you must do every single time is you must be able to explain the business concept, you must be able to explain the story in under 90 seconds. So what does that look like? Well, when you're speaking with investors, when you're speaking with potential partners, it's critical that you're able to explain the vision and the business plan within 90 seconds, and you're able to hook people in because remember, people buy for emotional reasons and they justify logically. So if we know that, then we want to figure out well, what is different about this real estate investment, then maybe others. And what's unique about the area, the property itself, what's the vision and who are we helping, and what is that going to end up doing for the investor, for the tenant, or for the property itself and the neighborhood. So there are a lot of different factors that can go into this 60 to 90 seconds explanation of what it is that you're doing. But it's critical that you spend some time really refining the story. So that you can say very quickly and in a very simple way that really draws people in, what it is that you're doing here. And one of the biggest mistakes that people make is that they think it all comes down to the logical side of the equation, they think it all comes down to numbers and that if I have a deal that has a strong return, you're going to hear people saying, hey, this deals got a 8% return, hey, this deals got a 20% IRR. All those things are critically important for people to justify the reason that they're going to invest, but they're going to invest first, because they are emotionally hooked in because they believe and trust that this project is going to end up being able to deliver some of those characteristics that are important to them as investors. So number one, make sure you can effectively communicate your story in under 90 seconds. So simplicity is key, go back to the drawing board, rewrite and practice that until you can speak it extremely clearly without any hesitation.
Steven: [00:04:09] The second piece that is absolutely critical is being able to outline and describe why the team that is executing the business plan is in the best position to execute the business plan for this business. Because at the end of the day, the team is going to be the one who needs to execute when it comes to running a business execution is key. So as these sharks have seen pitch after pitch and they've invested in tons of businesses, they've come to realize that at the end of the day, there are a lot of ideas out there, but the key to success in business is effective execution. So it's critical that as you're talking about the opportunity that you're discussing first who is on the team and what are their track record and experience? What are those characteristics of those individuals and how does that team end up coming together to be able to deliver that most successfully. So when we talk about team or when we talk about operator, we definitely are going to look at track record because past performance doesn't predict future performance, but what it does do, is it's a strong indicator that if somebody has been through the trenches before, if somebody has had success over and over again, they understand and have seen what some of those pitfalls, some of those potholes that are in the road of investing, and they can go round those, or they can understand how they can make sure that that isn't going to retract from their ability to deliver on this business plan. So it's really important to be able to outline exactly why the team is the absolute most important, best position folks to be able to execute here. And one little caveat, for all the investors out there, they're new, or maybe are transitioning from one sector to another, you personally may not have all the experience necessary to justify that you are the best person to execute the business plan. And that's okay because in this space of commercial real estate, when it comes to a pitch, it's quite common to have a team of people because the team goes far beyond simply the founders, it goes into the key members that are on the team, it goes on to the vendors that you're going to be working with, those property managers, the attorneys, the accountants, it goes to the advisors, the people who are there to help make sure and ensure that you're able to overcome any of the challenges along the way. So don't get caught up if you're thinking to yourself, "well, I don't quite have that tracker, it's okay. But that's why it's more important for you to give up a part of the deal and partner with somebody who is absolutely an expert, or to bring in outside staff and take on the risk of hiring those folks and then going out and building that track record yourself.
Steven: [00:06:58] And the third thing that the sharks realized, that Kevin O'Leary talks about at [00:07:02 Unintelligible] is the importance of knowing your numbers, you need to know the numbers of the deal inside and out. And if you're not a numbers person, then you better have somebody right by your side who's there to answer those questions. But even if you're not a numbers person, it's critical that you're able to speak very intelligently what the different key numbers are, when it comes to operating this business because a real estate investment, especially in multifamily, and in storage, in industrial in any of these spaces. These are just small businesses that are being purchased and operated and it's critical that you understand well, "what is the purchase price? What is the planned exit price? What's the purchase cap rate? What's the exit cap rate? What is your projected return? What's your predicted projected cash on cash, what's your return on capital? What's the LTV?" All the numbers that go into making up the deal are critical that you're able to speak to very clearly as well as being able to talk specifically to the business plan and the overall business model about how you as the operator, as the business owner, as the team is going to be able to deliver for investors on this plan that you've set out to do. So it's really important that you're able to speak to this very clearly, and that you have a really strong understanding. So what does that mean? That means that before you get up in front of folks, before you're speaking to people, before you're making that pitch, you need to spend time practicing. You spend time practicing, understanding the numbers, doing the due diligence, diving deep into the numbers, asking questions, practice answering those questions from different team members so that you can pull all of it together into a very streamlined process of you being able to confidently speak to what the project is, who's on the team, and what the numbers end up looking like because what that all comes together is it builds a level of confidence and trust with the investors because at the end of the day, the investor is going to invest in you, in the business, in the team. And what they want to know is that you are fully committed that you have a full understanding of what's expected and that you're going to be the best person to end up delivering. So if you want to be able to pitch like some of the best sharks on Shark Tank, then I highly encourage you to take Kevin O'Leary's advice and apply making sure that every pitch that you have has these three key characteristics in it; that you know the story, that you're able to speak to the team and why they're the best position, and third, and most important that you can speak to the numbers and you know them in and out and you can explain the business plan anytime you need it. So thank you guys so much for listening and participating here. If you have ever gone out and done a pitch yourself, drop in the comments below. Let me know what were some of the biggest challenges you had when pitching investors for the very first time or shoot me a DM on Instagram letting me know exactly the same at Steven.Pesavento. So we'll see you guys next time.
Steven: [10:13] Now is one of the greatest times in history to be investing in multifamily real estate with hundreds of millions of dollars literally moving from the stock market into alternative assets, like real estate every single day. We're in the midst of a golden era. And one of the keys of success is learning how to avoid those upcoming pitfalls and mastering the process of how to scale as an operator in the multifamily business. Regardless if you're just getting started, if you've been in the game for decades, you've got to join us for this very special training put on by the multifamily MBA on how to scale from zero to 2400 units. The three biggest secrets for building a $320 million multifamily portfolio. Register to join us at theinvestormindset.com/mfmba. Look forward to seeing you there.
OUTRO: Thank you for listening to The Investor Mindset Podcast. If you like what you heard, make sure to rate, review, subscribe and share with a friend. Head over to theinvestormindset.com to join the insider club where we share tools and strategies from the top investors and entrepreneurs and how to take it to the next level.