7 Things I've Learned About Sales from Venture Capital

As some of you may know, I’m currently interning for what’s called a “venture accelerator”. The company helps prepare startup companies to give their pitch to venture capitalists and angel investors (investors who give money to new companies in order to generate a return). The experience has been good for a few reasons. One, as someone who is interested in starting their own business, I’ve gained insight into the process of raising money for your ideas. Secondly, it’s taught me a lot about selling. These CEOs are “selling” investors on their business idea in hopes they will write them a check to fund their idea. It might sound easy if you’ve got a good idea but a good idea isn’t enough; you need to know how to sell it.  

I never thought I would be interested in sales until I realized that everything revolves around sales. You may not be selling a physical product, but you sell yourself in job interviews, you sell people on ideas by trying to convince people of your opinion, and you sell your time for a paycheck. Everything is sales! This internship has changed my perspective on how to view sales and it’s been beneficial to me in interviews and just talking generally about my ideas.

This last weekend I was chatting with an acquaintance on Twitter who was interested to hear about what I have learned about these pitches during my internship. I created a long post that got lots of positive feedback. Because of the response, I thought I would share my thoughts here. I’ve put together a list of the 7 most important things I’ve learned about sales and my takeaways.

1/ Forget the elevator pitch

Startup companies are given 10 minutes to explain who they are, what they do, and why their business has such promising prospects that investors should write them a check. 10 minutes may sound long but I promise you, it isn’t. These CEOs need to be precise and direct about what they’re trying to accomplish - word selection, tone, pace, everything is important and carefully crafted.

The same can be said for any kind of sales or your life in general - Don’t waste people’s time. You might think you have a lot of good things to say but more than likely it can be said quicker and more direct. Being able to explain why you or your product is valuable quickly means that you truly understand it and why it’s important. 

2/ Tell a story

Everyone loves a good story. We like to see the start of something, a change, and the end result. Startups are looking to do the same thing. They find a problem, figure out a solution, and show where it will take them. 

Selling yourself and a product is no different - 

Interview: I was this way, I went to school/training and learned to do X, I’m here to do X for your company

Product: You as the customer have this problem, I have the solution for that problem, I will sell it to you for this

Create a story for yourself and your product. There is a natural attraction towards stories. 

3/ Explicitly define the problem

Many people start businesses just for the sake of it. The true purpose of a business, and what will be the single largest indicator of its success, is if it solves a problem. Many people pitch their business and talk about how great their sales are - that’s fine. There are businesses that exist that don’t solve problems, but they aren’t going for long. 

 If you as an individual or your product solve a specific problem, you are valuable. If you don’t solve a problem, you’re worth just as much as everyone else who doesn’t solve problems. If you can’t articulate what problem your customer has, there isn’t a problem.

4/ Understand why you’re different

Many startups are looking to be the first one of something. Others are looking to replace older businesses by doing something better. Either way, both will have competition at some point or another.

The only way to not compete is to know what value you bring that others don’t. In an interview, you need to know why you’re better than other candidates and address that. If your product does something others don’t, figure that out and explain it. 

A business / your customers need to choose you once and continue to choose you because you are the best. 

5/ Don’t be afraid to talk finances

Money is a taboo subject. Many CEOs are timid when it comes time to talk about money but the funny thing is everyone knows they are there for money. What’s important in financials is showing aligned incentives. Explaining how much of your own personal money you have into your business shows your commitment and that your money is where your mouth is.

This also relates to knowing what you’re worth. Don’t be afraid to negotiate salary in an interview. If the company can’t pay you more, they may be able to offer extra stock options or another incentive to make up for it. If you’re offered a job, they want you. Put that to work.

6/ Everyone needs a good team

Good startups always have a deep bench of qualified people building and supporting the business. Variety is key. It displays you have expertise in many areas. Having your own personal “team” is important. Do you have a list of 3 people and their contact information somebody could call right this second to learn more about you? You should. 

Your team is a greater reflection of you - whomever you surround yourself with is who you will become. 

7/ ENERGY

This is probably the most important one of all when hearing a pitch from a startup. You could have the best idea in the world but if you aren’t excited about it, nobody else will be either. Your words, tone, and body language should all reflect your enthusiasm about whatever it is you are selling. Your interviewer, potential customer, or someone writing you a check can see and hear all of these things. If there’s risk involved, people would rather take a chance on someone souled out on their product than someone who isn’t. 

Go all in on, whatever you’re offering.

The application of these concepts stretches far and wide. If there’s something you liked specifically or want to hear more about, leave a comment and tell me about it. Now go out and SELL. 

Talk with you next week.

~Brock