- 2 days ago
Expert advice on how to perfect your pitch for your business
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00:00Entrepreneurship is taking your dream and making it a reality to not serve just yourself but others
00:12with your genius. Entrepreneurship is freedom. Entrepreneurship is about creating and then
00:17meeting market demand and address demand over need. Entrepreneurship is leadership, risk tolerance,
00:25and following your passion. Entrepreneurship is a sense of freedom, allowing yourself to be able to
00:32create space and solution for whatever industry you want to put yourself into. Hi everyone and
00:38welcome. I'm speaker, trainer, and founder of the Boss Network, Kamika Smith. I'm so thrilled to be
00:42here for this enlightening conversation on Perfecting Your Pitch presented by Aveeno. Today
00:48I'll be chatting with a few successful business owners and investors in the skin health and beauty
00:52industries who will talk us through how to perfect your business pitch as a new or rising
00:58entrepreneur. My name is Apanam Bwama Achumbo, founder and CEO of Hanahana Beauty. I'm a creative
01:05entrepreneur and a curator of learning experiences. Hi, my name is Tanya Thompson and I am the co-founder
01:12of Dreamgirls Hair located in California and also one of the partners at Mixed Institute of
01:18Cosmetology in Sacramento, which is the first Black-owned cosmetology school in Sacramento.
01:25And I am Shari Wilson, co-founder and creator of Dreamgirls Healthy Hair Care System, Dreamgirls Hair,
01:33and also Mixed Institute of Cosmetology and Barbering in Sacramento. I'm Alfred Edmund Jr.,
01:40Senior VP and Executive Editor at Large at Black Enterprise and a mentor, coach, advisor to dozens of
01:46entrepreneurs. All right, ladies and gentlemen, to start, I'm going to ask each of you to take us
01:51back to that moment where you made your very, very first pitch to a potential investor. Give us two
01:58things you wish you would have known in that moment that you now know. Abena, I'll start with you.
02:04So I'm currently actually in the process of fundraising right now. And so I just started pitching to
02:11investors. And I think one of the things that I continue to learn is that it's about the founder.
02:18People are really investing into the founder at this stage. So, you know, just being confident
02:23in knowing not just like your numbers and things, but knowing why your business, you know, needs to be
02:31or needs to be invested in. I'm at this point where I know whatever money or whatever I'm trying to
02:37fundraise for is going to go to sustaining the brand and the mission. We have not pitched to an
02:44investor as of yet. We were pretty much waiting to build our brand and pitch later at some point as
02:54we continue to build. We pretty much invested in ourselves through our services and branded ourselves
03:03through social media and our regular clients. So we haven't had the opportunity or have haven't gone
03:09that far as of yet. I'm sure it's coming very soon. Yes. Alfred, I know that you are involved in a lot
03:20of pitch competitions and, you know, I'm sure you have multiple businesses yourself. So can you give us
03:25some insight into your very first pitch to investors and what you would share with entrepreneurs as far
03:34as like how they can actually pitch and be successful? Well, let me speak more. I've been pitched to more
03:41than I've been pitched. Okay. The business plan judge as well as someone who advises and coaches business
03:46owners who are going to raise money. So the ladies have already hit on some very important points. One is
03:55you have the most brilliant business idea in the world, but if not, I'm not convinced that you can
03:59bring it off, then I'm not going to invest. And so what I've been now said about really communicating
04:04your ability, your confidence, your, your competence, your vision for the business. That's what
04:09investors, especially in the early stages, invest in. They're going to assume that the business has to
04:13be built and developed and systems have to be developed. The other thing that Tanya and Shari
04:19emphasized is that they're establishing credibility and traction in the marketplace by getting the
04:25following, investing in themselves, investing in customer development. So by the time they put this
04:31in front of a potential investor, they're not talking about what could happen. They're sharing what
04:35is happening. And this is the time for you to get on board. So it's almost great that Shari and Tanya
04:42have not proposed investors yet because so many entrepreneurs missed that pre-stage of establishing
04:48traction, establishing a real story to tell that's really happening. Yeah, I agree. Now, of course,
04:54before you even get to that point of pitching as an entrepreneur, you want to make sure your business
04:57plan has all the right elements. And Alfred, you spoke to a lot of that. What would you say are the
05:02most crucial elements of a business plan that absolutely have to be airtight before you even put
05:07it in front of potential investors or partners? The proposition that you want to communicate is
05:11whatever goes into it, even more money is going to come out of it. So having a clearly defined profit
05:17model so that whether it's an investor, whether it's an executive you're trying to hire, that you
05:21got a real story that says this is going to work and it's going to produce money. Now, I know all of
05:25our entrepreneurs watching out there would love to know if there's anything they should avoid doing
05:31when preparing for a pitch. What are your two pitching don'ts, Alfred? One, it's not a commercial.
05:39And often I see people pitch and they're throwing a lot of personality. And personality is important
05:43where they're pitching if they're selling the product to a consumer. In the case of investors,
05:49you're selling an investment opportunity. And so your goal is to communicate the investability of
05:54the business. Meaning if you put this money in, you're going to make some kind of money,
05:58whether it's equity in the business, whether it's a loan paid back with interest. The goal is to make
06:05the investor feel like this is a good place to put my money because I'm going to make more money down
06:08the line. If you're pitching to a retailer, they're going to want to know your operational
06:13competence, which your consumer may not care about. The consumer may just care that the product
06:17working is good. The retailer wants to know that if they place an order with you, you can deliver that
06:22order, that you can deliver it on time and according to the specifications that they require
06:26for their supply chain and for their retail strategy. So always focus on investability if
06:32you're pitching to investors and your operational competence, if you're pitching to a retailer or
06:37somebody that really wants to buy your product in bulk. Ladies, would you like to weigh in on
06:41that question also? If someone came up to you and asked you for 500K, like what would they need to
06:47do? You know what I mean? Just if I had 500K, would I invest in my own company? I think that's the
06:55thing is like, if you're at that point, maybe then you should be able to explain that. So I don't know
07:00if it's exactly like something not to do, but I think it's like having enough information. I think
07:06sometimes people come in with just like your idea is amazing or your selling is amazing, but it's
07:11like coming with more than just that. It's why would one give you their personal money or why would
07:17the VC give you this amount to put it? You know what I mean?
07:22That's so important, Kamika. When I'm sitting judging these competitions, I'm literally thinking if this was my money,
07:29where would I put it? Right. If I was, would I draw down from my 401k to bet on this business? Would I, you know,
07:34dip into my retirement fund? Would I dip into my savings? Would I sell stock and put it into this business?
07:40And I think entrepreneurs really have to be able to ask that question where they're raising money from family members,
07:45a VC, an angel investor, whoever it is. You have to, you have to look at it from their point of view.
07:50Would you take money out of your retirement account to put in this business if it wasn't your business?
07:55I want to know, you know, you have had such a successful business. You know, what, how important is your business plan to your business?
08:05Our business plan is extremely important because we're very much focused on social impact too. So our business plan directly impacts the impact that we're doing and directly impacts our mission and our values.
08:18And I think, you know, with Alfred, what he was talking about is like our business plan also shows the numbers and growth. So like from the beginning, when, you know, I was in grad school running this and a teacher to where we're at now. And it shows not only growth in the numbers,
08:34but like it shows what we did during that time to make that program.
08:38Thank you so much. Tanya and Shari, we have something in common, both being in business for over 10 years. And I know with, with my brand, The Boss Network, it's really important for me to constantly, you know, revise my business plan.
08:50Can you tell us a little bit about how you all passed the 10 year mark, how you're constantly elevating and revising your business plan to meet the needs of your business today?
09:00When me and Tanya first started off, we started off just promoting healthy hair, right? And so we started off in California, we ended up going back and forth to New York.
09:10Well, we're only two, right? So we had to figure out how can we put the healthy hair program in everyone here because our hands so they can use it. And so we had to really sit down and figure this out.
09:24And that's how we came up with a healthy hair care system where we walk you step by step on how to grow your hair, how to take care of your hair.
09:32What do you need to do? How to be successful? Because our main goal is to kill the stereotype that black women hair cannot grow. Our hair can grow.
09:40We can wear weaves. We don't have to wear weaves. It's always an option.
09:44What I call entrepreneurs, I tell them, don't think of the business plan as a business plan because of what people think of it as a what?
09:52Like, this is what the business is. You want to really use your business plan as an operational plan.
09:57Operational plan that you don't tend to write, write it and then put it on the shelf and never look at it.
10:02Exactly.
10:03You need to have, you know, Chari said how we're going to do it.
10:08And if you've got a real living business plan, it's an operational plan that somebody else can pick up and try to be able to say, oh, this is how they do what they do.
10:16You have to figure out exactly what you want. You have to have an end goal and then work backwards, you know.
10:22But that's key. What he said is so important.
10:25What would you say are some key lessons you've learned during the early business development phase that are specific to finding success as a black owned beauty brand?
10:35So, I mean, we kind of talked a bit about this.
10:38It's just like I had obviously passion when I started, but it's like how you want to execute.
10:45We haven't talked a lot about team in this, but building a team is just so important.
10:49And I think understanding to one lesson that I keep on learning or like learning about is what it really means to be like a business owner and like team.
11:01And, you know, for me, my values is about like why I even started entrepreneurship.
11:06Right. It's about freedom and being able to solve a problem or work in a space that I want to.
11:12And it's like how can you also provide that as a owner for your team?
11:18How can you continue to build a team that is also successful and sustainable, which then goes into investment.
11:25Right. You know, you choose and bring people on to your team that can execute your job and execute the mission is just so important.
11:34And especially for me, I knew when it was time to start building a team when I felt like whoever is coming to do whatever job.
11:42Yeah, I love that. Yeah. Tanya and Char, you want to lean on that question?
11:47You have to speak the same language, you know, and I think speaking the same language is key in building your team.
11:53Tanya and I, we have our team is actually her twin daughters and my son and two other young adults that we brought in.
12:02And we my main thing is focus is we have to speak the same language.
12:06We have to be on the same page, you know, and especially with me and Tanya, you know, we're sisters.
12:14So we just have to be on the same page with our goals.
12:21Working with black female entrepreneurs, I'm always encouraging them to think about how they're going to continue to grow their business at every stage.
12:29And so some of the things I share with them is, you know, what I call the three R's research relationships and revenue.
12:36I think those are some of the key things to growing and sustaining a business.
12:41All right, Alfred, I'm going to start with you.
12:43What advice would you give to an entrepreneur that's nervous about pitching for the first time?
12:48Talk about that fear factor.
12:50The key to getting over that kind of nervousness is really based on one, engaging your passion and knowing what you're talking about.
12:58When I coach entrepreneurs and this doesn't work with everybody because they don't all have children.
13:03But the ones that have children, I say if I asked you about your child, you could talk for hours about your child because you know your child and you're passionate about your child.
13:11But think of your business as your child. Don't think of it as I'm making a presentation thinking I'm talking about this thing that I've birthed that I put my blood, sweat and tears into.
13:21And let me tell you about it.
13:23I would say just have a clear vision, just have a clear vision and speak from your heart.
13:29Definitely. Like Shari said, you should have a very clear vision.
13:33Speak from your heart. I believe in energy.
13:37So if you're passionate about what you're saying, it's going to transfer over to the person that you're talking to.
13:43So whatever you believe in and as strongly as you believe in it, that energy can be transferred over to make them also a believer in what you're doing and what you have to offer.
13:56I would say probably practice, definitely to practice, you know, with your friends or with your team, with different people, anyone that's willing to listen.
14:06I think it's important to continue to pitch and practice that, especially if it's not just a phone call, if it's an actual pitch competition.
14:15I want to ask each of you, what are some final words that you would give to entrepreneurs as they're perfecting their pitch as it relates to growing and sustaining a successful business?
14:25I'll start with you, Abana.
14:27I think it's just about intentionality with your brand.
14:31Why is your brand necessary? Why is your brand needed? What is your brand going to do?
14:36Especially in this time, in this world, I think there's so many companies that are like intentionally harmful and are not actually, you know, creating solutions.
14:45So I think it's just important for entrepreneurs as their whatever their brand is to be very intentional about what it's doing.
14:52There's two things. Purpose, which is what she's talking about.
14:55What is the purpose of this business? Why does this need to be added to the millions of other businesses that are already in the marketplace?
15:00And then the second thing is profit because you can't serve the purpose if you're not generating a profit.
15:06Always know what your how big your audience is. How much can you grow?
15:11How many legs does your business have? You know, you know, you can have a leg of selling products.
15:17Another one might be like for us training other stylists to do what we do in other places and making money that way.
15:25Thank you all so much for sharing your experiences with us today.
15:28And of course, a huge thank you to Aveeno for helping to bring this panel to life.
15:33Now, don't go anywhere. You definitely don't want to miss what's coming up next.
15:37In just a few minutes, we'll be launching the Aveeno Skin Health Startup Accelerator, where skin health and beauty entrepreneurs can enter for a chance to be awarded a hundred thousand dollars.
15:48And a private mentorship from leaders at both Aveeno and Essence.
15:52You won't want to miss out on this amazing opportunity.
15:55Joining us now is Suzanne Goldstein, the senior marketing director at Aveeno to tell you a little bit more about what's in store.
16:03Hi, Suzanne. Hi, Kamika. How are you? I'm great, Suzanne.
16:07Thank you so much. We're going to jump right into the questions.
16:10OK, so why is it important for Aveeno to support the next generation of black beauty entrepreneurs in such a major way?
16:18Kamika, for far too long, the skin care category and the industry at large has failed to reflect the diversity of our communities.
16:25Case in point, black founders only receive one percent of venture capital.
16:30This inequity has resulted in a lack of skin care products and technologies that meet the needs of black individuals, which we believe is unacceptable.
16:39We know that not one brand or one company can solve these deeply rooted inequities, but we must still take action.
16:47At Aveeno, we want to create a more diverse and inclusive industry.
16:51We know that the power of nature, a simple idea and hard work can profoundly impact the future of the skin health category.
16:59As an industry leader, we have the responsibility to seek out and support black innovators in this category.
17:06That's why we are committing to providing access, education, resources and space for black female entrepreneurs looking to grow their skin care brands.
17:15I love that. What specifically will the judges be looking for to determine which of today's contestants will be the grand prize winner?
17:23We are looking for US based black female entrepreneurs with a product brand or technology that meets the skin care needs of black consumers.
17:32Our focus will be on addressing needs within the body care category, for example, within body wash or body lotion, facial care categories like facial moisture or facial cleansers or scalp care with products, brands or technology that blend science and nature to deliver real results for black consumers.
17:51You can find the full official terms and conditions at Essence dot com backslash Aveeno.
17:57Yes. OK, so remind us again what's at stake today for both the grand prize winner and each of the runner ups.
18:04The innovator with the best idea, product or solution as determined by the judges will be awarded a hundred thousand dollars from Aveeno, along with ongoing mentorship opportunities from Aveeno business leaders, industry experts and Essence.
18:18Wow. Thank you, Suzanne.
18:20Thank you, Kamika. Thanks for having me.
18:22Well, this is such an exciting opportunity.
18:25If you have a skin health or beauty business, you want to enter and learn more about the contest rules and deadlines.
18:32Visit Essence dot com slash Aveeno.
18:35And again, good luck to everyone.
18:38And thank you again to all of our panelists, Essence and our wonderful partners at Aveeno.
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