The Pitch

Linkspank will be pitching to investors this month and it seems like a perfect thing to blog about here (protecting the identities of the investors, of course).

This won't be the first time I've pitched Linkspank to investor types but it's pretty close. On the other hand, Linkspank's business planning goes back almost two years.

Here micro-observations so far:

1. Even though your pitch will be a PowerPoint, it's better to introduce your business to people (before you have a meeting) with a 1-2 page Word document. PowerPoint isn't meant to stand on its own, but prose is.

2. Getting a meeting with investors is much easier than winning them over. So I think it's worth it to focus on your message, not the meeting. I think connections are useful only when no one is giving you the time of day, and if your connections will vouch for you so strongly that it will help investors believe in your management ability.

3. I view investment as a partnership and courtship, and I think most investors do too. You don't just want a match, you want a good match with all kinds of signs of mutual fit. If you're feeling too hungry, you're probably missing something. And it takes time, and it's impossible and undesirable to seal this kind of deal instantly.... so there's no need to try. At first, focus on the basics of your business and the caliber of person that you are.

Do you agree? Maybe it's obvious stuff. Anyway, more to come.

How to Create the Greatest Site Demo Ever.

We've created a Video Introduction for linkspank (a "site demo").

A little part of our Video Introduction to Linkspank

Ok, so may it's not the greatest site demo EVER. But I'd put it in the top 95th percentile.

How to make one the way we made this one:

1. Explain what your site is to dozens, hundreds of people, verbally. In doing so, your pitch and explanation will evolve naturally to becoming increasingly effective - and you'll learn what people need to be explicitly told about your idea. Everyone helps you in this step, because you want your idea to be clear to anyone.

2. Create a positioning for your site. This is marketing mumbo-jumbo. People who actually know marketing and don't pooh-pooh the 3C-4P framework are useful for this step.

The reason you need to do this step is that it helps you figure out how to convey your message. Should your demo be slick or goofy? Is having a caveman in it a really dumb idea? Once your positioning is set, it provides the answers magically to all of these questions.

3. Storyboard the demo/video introduction. Pretend you are a cartoonist (even if your demo won't involve animation, as ours does). Long before anyone draws cartoons, they create "storyboards" describing, in excruciating detail, what happens in each "scene" of your demo. If this process sounds too creative to you, remember that you can always do it in Powerpoint.

4. Get a Flash artist/animator to executive your demo. Once you have the storyboard, you can show it to candidates and discuss whether they are the right person for it. In our case, we needed someone who knew flash and who could draw, but e.g. javascript skills were not required.

Notes:

+ This process has creative components - how do you make sure it goes well? The answer is to put as much of the creative work into step #3 by storyboarding everything in exquisite detail. You should let your Flash artist help you improve the idea in step #4, but any gaps in your description are areas of risk going forward.

+ Despite doing our homework, we have no way of being sure at this point how our audience will react to our site demo. But I will say confidently that if your site demo appeals to everyone, and everyone thinks it's unqualifiedly great, then you may have failed to stick to step #3 and maybe you created something too generic.

Just sharing my experiences! Don't forget to share your wisdom back with me ;-).

Linkspank has no competition.

Linkspank has no competition. I'm totally serious. Really, I mean come on, what's the competition?

Ok, I'm kidding. In talking with me, one of the things people are most obsessed about is "competition." So I've had the opportunity to think about it and talk about it and so it's an Inside Linkspank kind of topic.

bring it, biatch

How I Don't Think about Competition: Laundry List Comparison

Don't create a list of companies that seem reminiscent of Linkspank and worry about whether they are "already doing" what Linkspank is doing, and whether we "need" something like Linkspank.

thinking inside the box

In my opinion, that is the DEFINITION of thinking inside the box. :-)


How I Do Think about Competition: Consumer Opportunity

Start with the customer. Competition is forever a secondary business question - second to the user and what the user wants.

Thinking about people is how good stuff gets started. I started working on Linkspank because I remarked to myself,

You know, Andrew, procrastination is too much work, it's not as fun as it could be, and it's still really primitive. When I get an email forward, I have no idea where it came from and I don't know whether my other friends saw it. Wouldn't it be nice to know that?

(one man's dream come true... or on the way at least)

(and again)

Also, despite search engines and websites, it's still way too hard to find all the good stuff out there. There are videos that hit the web and are viewed by 3 million people in a week. How do you know what they are, which of your friends are watching them? and it's just too hard to find the stuff you are really going to like - especially new stuff.


When I go to YouTube, I know there's a lot of great stuff. But it would be way better if I could see what my friends were watching, what they liked, and if I could share things with them more easily and save it all to watch it and share it later.

There are all kinds of ways to share links - you can email them, "share" on sites like YouTube, Break, eBaumsworld, you can post on MySpace or share on Facebook, and there are all kinds of techie sites like stumpleupon, digg, delicious, etc, -- but I've tried all these things and I just am not that impressed. Sharing is too technical, too much work, and you still can't do half the stuff I want to do.

Basically, all the stuff out there sucks. And I can imagine a site that doesn't suck. Maybe I should try to make that. Wouldn't that be fun?

And that's how I got started. We created a "customer manifesto" of sorts. And we had a team of people and we researched the idea. We found that Linkspank (as it would later be called) would not be for everyone, but that there was a real opportunity.

there must be a better way

You can only talk about competition in my opinion once you have an opportunity to do something new in mind.

Now, if the opportunity is real, then by definition your competition is failing in some way. They aren't addressing the opportunity, or not that well. Take Digg, which is a great site but suffers from both issues. First, it doesn't really address sharing with friends in any real way (it's a "wisdom of crowds" application, not a friends site or social network). Second, it doesn't really address it right - it's too techie and hasn't grown beyond a slice of the web population.

Even though lots of people have been working at this problem, they have not solved it yet. People still share using email above all - and while email is ok, it's easy to imagine a better world for people who share more than like a couple links per month.


No Competition is Usually a Bad Sign

If there is a real opportunity, then you should expect competition. If there is no competition, you either don't understand the market, there is no market, or you're WAY ahead of everyone. (Of the three, the last is the best, but it's still a rough place to be.)


So How Do You Know if You Can Compete?

If you're competing just on speed, don't bother. The trick is to solve the problem better! And in a rich, interconnected way, as explained by Porter's concept of strategic fit.

To my mind that means, the more complicated your problem is, the better chance you have at being able to compete - if you can solve it. :-).

Just one competitor's thoughts.... ante up.