No One Understands What You're Saying - Keep It Simple Stupid

People often ask me:

"Paul, why don't VCs or customers understand my pitch?"

I will let you in on a little secret. VCs see lots of entrepreneurs, with lots of complex ideas. The way to stand out from the crowd, is to keep things simple - simple to communicate, and simple to understand. In other words, get...to...the...point.

I can't emphasize the "keep it simple stupid" (KISS) mantra enough. Too many entrepreneurs walk through the door with good ideas, but if you can't clearly communicate the value of your product, then VCs won't bite, and customers definitely won't bite. In the same vein, it should be crystal clear to anyone listening exactly what pain you're solving and how you're solving it. It's not good enough to just list features. VCs see hundreds or thousands of deals each year, and simply don't have the time to translate cryptic, convoluted and long-winded messages.

Most books talk about refining your elevator pitch. While I think that's a critically important tool in communicating the value of your product, I strongly believe that it has to be even simpler than that. I should be able to see how you're going to solve someone's pain in 3 sentences or less:

1. The pain is _____.
   
2. My product/service does _____, thus solving the pain.
3. You should care/buy because ______. 

I challenge my readers to drastically simplify all of the messages they create around their new business. And if you're not the type who can connect with people based on a simple message, told succinctly, then hire someone who can. They are worth their weight in gold.

Get to the point. Show VCs the pain. Show them how you solve it. Show them why they should care. Keep it simple, so they can understand. If you can get it down to 3 sentences, VC money and customer money will follow.

Walk The Factory Floor And You Might Not Get Fired

People often ask me:

"Paul, what is one thing I can do to avoid getting fired as CEO after I get funded?"

Most VCs know that the entrepreneur who walks in the door will likely not stay on as CEO forever. Most first-time entrepreneurs have deep domain knowledge, but lack the leadership qualities that are necessary at that stage. However, this doesn't mean that an entrepreneur shouldn't work to develop their leadership and CEO qualities.

One quality in particular that might keep you in the CEO job longer is the ability to "walk the factory floor". At the highest level, it means that you're a leader who is engaged with and aware of everything going on in your business. On a more practical level, here are some steps you can take to be a CEO/entrepreneur/leader who walks the factory floor:

• Be open. Keep your office door open 90% of the time.
  
• Be visible. Make sure you're the first one in and the last one out of the office.
  
• Be there. Don't be away from the office if you don't have to be. Generals direct best on the battlefield.
  
• Be mindful. Always be conscious of how people react to your words and your presence. Never shoot the messenger.
  
• Hold Monday meetings. Take a couple of hours to catch up at the beginning of the week.
  
• Take the company's pulse. Know the mood of your employees. You're only going to accomplish this by talking to them (and not just your senior executives).
  
• Speak their language. If you're going to walk the factory floor, make sure you speak the factory worker's language. Understand your employees' needs and talk to them about things that matter to them, not to you.
  
• Listen. Your employees know what your customers want better than you do. If you're going to take the time to walk the factory floor, the least you can do is listen. More about the importance of being a great listener in a future post. 

If you've got the experience to back it up, make sure you articulate to your VC how deftly you walk the factory floor. Walking the factory floor is a major component in the creation of a corporate culture. Showing that you can do it well is music to a VC's ears...