Friday, November 4, 2011

4 Questions to Ask Startups Before Pitching

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pIt#8217;s exciting to work with startups. Usually, their business is just on the verge of launching, often without the hangups, hierarchies, or bureaucracy that tend to exist within larger, more established companies./p
pBut pitching to startups presents challenges as well. Since these companies are new, their direction, scale, and status changes frequently. While these changes are both necessary and expected, they prove to be challenging for freelancers who work closely with them. /p
pTo deal with this challenge, you need to understand deeply where they are coming from and where they intend to go. This is especially true when pitching your services. So, before you pitch, you need to ask them a handful of smart questions.span id="more-20014"/span/p
h2Question #1: #8220;Tell me your startup#8217;s story. How did you go from the business idea to what your business is right now?#8221;/h2
pAll startups have a story, and that story is a great way to start the conversation. Hearing a startup founder tell their story is like getting a step-by-step roadmap on how to pitch to them. This is why you have to actively listen throughout the entire story. If there#8217;s a silence, do not fill it yourself. This isn#8217;t the time to talk about your expertise or to tell them how much you charge. Encourage them to keep talking. All you have to do is listen. /p
h4How to use it in your pitch: /h4
pWhile a history of the company is both interesting and useful to know, it#8217;s mostly a way to get the founders talking about their startups. To a freelancer, this helps you determine if you#8217;re a good fit for the startup. Does their creative process mirror your own? What values drive their business? Why did they create a startup in the first place? Their story helps you answer these questions and determine your compatibility #8211; which is essential for any good working relationship. /p
h2Question #2: #8220;If you were to accomplish anything related to [your services], no matter how seemingly impossible it is, what would it be? Please be specific.#8221;/h2
pFind out what they want to accomplish in your field of expertise. Here are some specific ways to frame that question depending on the services you offer: /p
ul
listrongWebdesigners/strong: #8220;If you were to magically accomplish anything with this website within the next six months, what would it be?#8221;
li
listrongFreelance writers/strong: #8220;If you were to accomplish anything related to your blog, no matter how impossible it is, what would it be?#8221; /li
listrongCommunity managers/strong: #8220;If you were to wave a magic wand and accomplish anything regarding your brand#8217;s fan base, what would it be?#8221; /li
/ul
pBy giving them the time to dream or fantasize about the things they want to achieve, you get them to open up about what they really want. Still, you have to ground this fantasy into reality by asking for specific numbers after they answer. /p
pDo they want an increase of 5,000 unique visitors per month? Do they want a 20% increase in revenue? These numbers can help you know the exact way they measure success, as well as the kind of work you have to do to help them reach it. /p
h4How to use it in your pitch:/h4
pUse the answers to tailor your pitch to address their wants. Almost every task item you mention should be about how they can achieve these wants. This is true even if you believe that your client should be wanting something else. /p
pFor example, if a client obsesses about #8220;vanity metrics#8221; like website traffic, your proposal will focus on increasing website traffic. Even if you feel that other goals #8211; such as conversions or users #8211; are more important, it#8217;s a mistake to ignore how the startup measures success. Sure, you can mention these more important metrics, but don#8217;t leave out the #1 thing they want. /p
h2Question #3: #8220;What are the main barriers that are preventing you from accomplishing it?#8221;/h2
pThese barriers are usually about money, resources, or time, but don#8217;t forget to look beyond that. These could be personal barriers as well. Are they scared of not getting the results they want? Do they lack faith in their ability to reach these goals? Find out everything that is blocking them from accomplishing their goals (the answer to question #2), and find out which one of these hinders their progress the most. /p
h4How to use it in your pitch:/h4
pAsk them to elaborate on their barriers so that you can position yourself as the person who can break them. Here are some examples: /p
ul
listrongNot enough money/strong. Tell them that your proposal only includes the tasks that will give them the maximum results for the budget they have. You can also include some additional services that will help them increase revenue./li
listrongNot enough time/strong. Tally the estimated amount of hours each task takes, and give them the total number of hours they#8217;ll save by using your services./li
listrongTheir staff doesn#8217;t have the right expertise/strong. Point out how you#8217;ll give their staff the necessary training at the end of the project, or how you can be available as a consultant on retainer./li
listrongThey#8217;re afraid your services won#8217;t work/strong. Propose to submit regular updates on the results of your work, or give them access to tools that let them track your progress themselves. Alternatively, you can change your pricing model to performance-based, so that they pay you a reasonable fee, and additional fees depend on the results you accomplish./li
/ul
pBy finding out their obstacles and limitations, you#8217;ll know how to create a proposal that works within the startup#8217;s comfort zone, and hiring you won#8217;t make them feel uneasy. /p
h2Question #4: #8220;How does the decision for [your services] happen? Is anyone else involved in this process?#8221;/h2
pDecision-making can be tricky for startups, especially when it comes to hiring. Startups may have more than one founder, and they may require consensus on all hiring decisions. Other startups may ask for the advice of their angel investors, or the founders may delegate hiring decisions depending on the position available. In other words, whoever you#8217;re talking to may not have the sole responsibility of hiring you./p
pAlso, note that the question is #8220;how#8221; the decision happens and not #8220;who#8221; makes the decisions. While you really want to know who the key decision-makers are, you don#8217;t want to insult the person you#8217;re talking to by inadvertently diminishing their role. /p
h4How to use it in your pitch:/h4
pOnce you find out how they#8217;ll make the decision about your services, customize your proposal process to accommodate that. If other people are included in the decision, ask to have a meeting that includes them. This can help you address their concerns and questions directly, increasing the chances that your proposal will be approved by the team as a whole. /p
h3The Key to Pitching to Startups/h3
pPitching to startups #8211; just like pitching to other businesses #8211; requires going deep into the minds of your potential clients. You need to know how they think, what drives them, and what gets in their way. By paying attention to these things, you#8217;re letting your potential clients know that you can deal with the constant changes that are an integral part of working with them. /p
pstrongHave you ever pitched to startups? What questions did you ask them before coming up with a proposal?/strong/p
pemPhoto credit: a title="Attribution License" href="http://photodune.net/wiki/support/legal-terms/licensing-terms/"Some rights reserved/a by a href="http://photodune.net/item/question-marks-on-grungy-blackboard/626544"Lawren/a/em./p
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