Successful Presentation Pointers

Your personal presentation skills are being assessed each time you present your company to a potential investor or shareholder. The care you devote to your presentation will play a large role in determining whether investors want to risk their hard-earned dollars with an investment in your company. Here are some of the best ways to capture the imaginations of potential investors:

#1 Lead With Greed
In the best presentations, the person making the presentation adopts the perspective of a potential shareholder and proactively answers the question: “Why would I buy this stock?” It should come as no surprise that investors want to make money. Thus, if you would like someone to invest in your company, tell them how they are going to make money by doing so. Think about this carefully.

#2 Convince Them Of Why They Should Buy
Have you ever really asked yourself why anyone should buy your stock? There are thousands of public companies hawking their stocks. If you are lucky enough to be in a one-on-one, or are presenting to a large group, or are in the process of being interviewed by a reporter, remember that the person in front of you liked your story enough to take time out of his or her busy day to sit down with you and get the "official" scoop. Make it interesting for them.

Don't forget that IPs want and need product. They want to find good companies because this is how they make a living, whether by trading, investing, selling on commission, performing research analysis or filling editorial pages.

What are the secrets to being compelling? Ask yourself:

• Would I buy my company's stock? Have I?
• If I did, why? If I didn’t, why not?
• What would make me reconsider?
• What objectives must be reached before I would put my own money behind the company?

Think of the primary factors that support your company’s growth outlook. For example: Do you have a large market potential? A proprietary product? Patents? High margins? Barriers to competitive entry? Technological advantages? Unique management? Put your best foot forward.

#3 Match Your Presentation To Your Audience
If you are not being asked super-scientific questions, please do not feel the compunction to be super-scientific! Keep in mind that even other Ph.D.s and M.D.s might not be able to carry on high-level discussions about your technology. Think of ways to explain your company's products in everyday English. One of the most important considerations in making your presentation is that it needs to be understood. You might be speaking to a manager of a retail brokerage firm. This person then has to explain the science to his brokers, who must then explain it to their retail clients. We have all played the game "Telephone." Unless you want to risk having your story completely botched, follow the K-I-S-S principle and Keep It Simple, Silly!

On the other hand, if you are being asked scientific questions, this is your chance to shine. There are some really sharp analysts out there, many of whom can hold their own with top scientific officers, even without a Ph.D. or M.D. degree.

#4 Don’t Try To Educate
In one-on-one meetings, don’t spend your time trying to educate your audience about your entire sector, the health condition you can solve, or your high-tech solutions, and, again, don’t use technical or scientific jargon. You will be making a serious error if you try to educate the person in front of you. You are assuming that they don’t know what you know. Don’t assume! This could be perceived as condescending, and can also leave you open to debate — never a winning formula in trying to gain investor interest. Keep in mind that the more technical and complex your presentation, the more you run the risk of losing your audience’s attention.

The person in front of you is most likely not interested in the intricate details. What most IPs want to hear from you is how they are going to make money if they invest in your stock. Never forget point #1: Lead With Greed. Keep your presentation simple and describe how your product, technology, research, patent, intellectual capital, location or services are better than those of the competition. Keep the technical explanations for subsequent meetings.

#5 Pay Close Attention To Questions
Don’t be worried if the person in front of you interrupts while you are speaking or has lots of questions when you finish. Worry if they don’t ask questions! Questions are a sign that the person is interested and wants to know more. If you listen closely, most people will tell you their concerns or objections, hidden in the form of a question. Answer their questions as honestly as possible. If you don’t know the answer, make a note of the question, promise to get back to them with the information, and make sure you do so in a timely fashion.

Let’s say that someone asks you a question that, if answered, could put you in a compromised position. Suddenly, you’re wondering, “To comply with Reg. FD, am I really ready to answer this now, and then make it an official press release?” A great answer that usually solves this dilemma is: “We’re really not ready to discuss that publicly. I’m sure you don’t want me to make you an insider and restrict your trading in our stock, so let’s move on.” That answer always works, especially if the statement is made sincerely and with a warm smile.

#6 Know Your Competition
Pick at least one company with a similar structure (i.e., also in the discovery or developmental stage), or one that is developing comparable technologies (i.e., also doing cancer research).

Learn as much as you possibly can about your competition. You can be sure an IP, sooner or later, will ask you these questions:

• Which companies have competing technologies?
• How does your company size up against your competition?
• What is your competitive edge?
• Where is your stock price in comparison to the competition?
• Why is your company a better investment?
• When is your company going to increase your market share?

#7 ENCOURAGE BACK-AND-FORTH COMMUNICATION
Don't rush to tell your story. To create the best possible rapport, allow the IP to speak. They do want to know about your company — that's why they've agreed to visit with you. At the same time, however, everyone likes to talk about themselves and their choices. So ask them questions: What companies have they been recommending? What stock is their favorite, and why? The answers to these questions can often be used in your presentations, or can provide you with more information about the person to whom you are presenting.

Investors often buy companies based on expectations about the great things the company will do. A large part of expectation is someone's belief that you, the CEO, are the person who will deliver on their expectations. That's why they wanted to meet with you. IPs want to know they have a direct line to the "Top Gun." None of this is to imply anything improper. While I suggest you spend time meeting with IPs, this does not mean that I want you to feel pressured to disclose anything you are not prepared to disclose.

#8 ‘Not Today’ Doesn’t Mean Not Tomorrow
No meeting is ever a waste of time. You have just met with the person or people with the authority to make noise in your company's stock. This is why it is important to:

• Inform them of the company's progress in the last year.
• Tell them how you accomplished the goals you set a year ago.
• Tell them your goals for this year.
• Tell them how and when you plan to reach those goals. Make sure the timetable is realistic. It is better to surprise people by reaching targets early than have to explain delays.

With this specific information, IPs will be able to see, in future calls and appointments, that you are keeping to your vision.

#9 Keep Your Promises
This is especially true if it involves getting back to an IP with information such as written materials or a follow-up phone call. Often, all information is not available at a meeting, and follow-ups are necessary. If you promise to get back to someone with information, it is in your best interest to do so in the shortest amount of time.

#10 Ask For The Money (Always Be Closing!)
You want the person in front of you to invest in your company. Do you typically make sure that you specifically ask for the money at the end of your presentations? Or are you, instead, shaking hands and leaving the meeting with a big question mark in your mind as to whether or not you have a new investor? Once you finish presenting and the Q&A session has wound down, ask directly: “What will it take for you to start buying our stock?”

If you get a “Yes,” great! Silently congratulate yourself and believe them. I have always found that those “Yes” responses are sincere. Most people react honestly in these situations, and it definitely pays to ask.

If the answer is “No,” thank them for their candor, and tell them it would be helpful if you knew why not. Listen closely and learn. When the investor says “No,” one way you might frame your next question is: “What factors need to be in place to make you feel comfortable investing in our company?” Again, listen closely. This is a dating process (our theme song). Even when there is no love connection, you are going to obtain valuable information to help you understand what will make the IP feel secure about a relationship with you and your company.

In addition to your best suit, the IR meeting is the time to put on your thickest skin. Be prepared for criticism and opposition, and listen closely. Assess if it is valid without becoming defensive. To get someone to say "Yes" means they have to believe in the ideal of the product, the timeline and the management. Even beyond that, people are wary of making a commitment because, as in all relationships, commitment is scary. IPs want and need product. They look to you for reassurance that they are making a sound decision by investing in your company.