Among the most common goofs is the rambling and confused summary. In my experience, fewer than one out of five succeed in capturing the essence of their business in one or two sentences. For most companies, even the Sears Tower does not have enough floors for an elevator ride long enough for most start-up introductions. Describe the business in the simplest, most unromantic and straightforward fashion. Entrepreneurs often confuse the sales pitch to the customer with the presentation to the investor.
Investors purchase profits.
Because the venture capitalist has so little time and attention, he or she likely will reject a plan introduced with a description that forces him or her to take time, use imagination and independently connect the generalization with specific products. Don't fear ruining the romance of a new idea or revolutionary product. While customers purchase answers to their daily problems, investors purchase returns for their permanent nest egg. For most investor audiences, the higher the jargon quotient, the lower the substance. Too many business buzz words flatter a presentation as much as rhinestones flatter a tweed suit.