Why feedback is a gift

Feedback is a gift –– the longtime saying we know to be true, even when the gift can feel painful.

If you’ve been unsuccessful in pitching your venture previously then some objective feedback might just be the gift you need. It can help take your startup from struggle to success.

Receiving feedback and experiencing rejection is very common during the early stages of your business. Some of the most successful and well-known companies out there today pitched time and time again. Melanie Perkins, CEO of Canva, now worth billions, delivered over 100 pitches before receiving the initial funding she needed.

Here are five common pieces of feedback and how to tackle them ahead of your next meeting:

1. Your value proposition is unclear

This is your elevator pitch. Who are you helping and how? Use the formula below to offer a short and clear explanation. Present this very early on, don’t keep VCs guessing.

We help [audience/market] [achieve goal] by providing [unique solution].

2. Your business model doesn’t seem sustainable

To be sustainable in the long term, your chosen business model must take into account your product AND your target market. Whilst short-term trends can offer a great starting point for initial growth, avoid prioritising this approach as it can quickly lose relevance in the market.

Consider these things – does the model suit your audiences’ consumption habits and purchasing preferences? Are there new and upcoming consumer behaviours or technology that might affect its feasibility? Explain this in your pitch.

3. Your financials are not robust

This is a tricky one to balance. Whilst you don’t want to throw hundreds of financial data points out at the meeting, you do need to share key and thorough information. Use historical data to tell your story to date, together with a one-year forecast. Ensure future projections are grounded in these historical trends –– not hope and optimism.

4. The wider team doesn’t seem strong enough

As a founder and an expert in the business, it’s your role and responsibility to take your team on a journey and build a strong culture. When pitching, share the team’s range of expertise, but also show the investors your strength in leading the team to future success, regardless of their experience. If there are clear skill and knowledge gaps, talk through your plans to fill these over the coming months or years.

5. Absence of a clear exit strategy

Whilst in the early days it seems far away, considering your exit strategy is essential for a pitch meeting. A long-term goal for IPO or acquisition helps you make strategic and thoughtful decisions for your business. It also demonstrates your ambition and determination for success –– something VCs want to see before they invest.

Whilst taking criticism about a business you’re pouring your heart and soul into is hard, it’s essential for growth. Initial preparation is important, but the learnings you’ll take from the first few pitches will help refine your offering, strengthen your confidence and boost your chances of receiving that all-important investment.