By Martin Zwilling
Young entrepreneurs often are so excited by new technology or their
latest invention that they forget to translate it into a value
proposition that their customers or potential investors can understand
and relate to. They become frustrated with investors, senior
executives, and even customers who don’t seem to “get it,” with the
result that everyone loses.
Senior business leaders, for example, are unlikely to relate when you
pitch your latest web app, highlighting the mashuptechnology, which
you derived from early online social networking applications. Mashup
probably reminds senior leaders of a train wreck, and social
networking is still seen by some business executives as a frivolous
waste of time.
It’s really your responsibility and your advantage to translate your
message into values and priorities that the intended receiver can
readily relate to and understand. Here are some key value propositions
that will resonate with every business leader I know:
Ability to adapt quickly to changing requirements. Every business
leader knows how difficult it is to keep up with a changing market. If
you can quickly explain how mashup technology facilities this agility
challenge, the technology may quickly turn from a negative to a major
positive. This priority applies to big companies, as well as startups.
Customer data integrity and security. Customer data, as well as
internal data, is a key resource for every business that must be
secured and protected. If your message starts with a focus on this
priority and related costs, the technology will likely be appreciated
and valued, rather than challenged.
Personal privacy protection. Customers are always looking for a better
user experience, and they don’t want their privacy compromised. Before
you focus a senior decision maker on your new cloud technology and
distributed data, make sure he or she understands how it will lower
user privacy exposures, rather than increase them.
Reduce litigation risks and support costs. Often new technologies are
seen by senior decision makers as new opportunities for litigation and
hackers. You need to address these concerns early, by highlighting
patents, encryption capability, or other features which mitigate these
risks and costs. Skip the acronyms and implementation details.
Payback on investment. Every business executive wants to understand
how each new investment in technology relates to their bottom line.
Quantifying the return on investment (ROI) is “top of mind” for every
investor and executive. Entrepreneurs who make this case effectively
will get the decision they want, no matter how esoteric their
technology.
Ability to integrate with existing apps. New applications which can’t
communicate with existing data and applications are often more of a
problem than a solution. Mashup technology may be your biggest plus,
if you position it in this context. Highlight the mashup use of
existing friendly interfaces, and use of existing data in a new
solution.
I challenge every entrepreneur to see how many of these priorities
they can integrate into their new technology solution elevator pitch.
You may be able to turn a potential train wreck into a win-win
decision for both you and the investor or customer. In any case, it
pays to do your homework on the background and experience of the
decision maker you face. Don’t assume their understanding of
technology is commensurate with yours.
Entrepreneurs need to remember that every investment decision, whether
by professional investors or customer executives, is primarily a
financial decision, not a technology decision, driven by limited
funds. If you can translate your technology power into a solution
satisfying key business goals, you will win the investors you need, as
well as the customers you need to make your startup a success.
Technology is the means, not the end.
The writer is a veteran startup mentor, executive, blogger, author,
tech professional, and Angel investor. Published on Forbes,
Entrepreneur, Inc.