Answer the Question
When someone asks you the time, in general, answer the question directly rather than explaining how the watch is made. This principle can be applied broadly to sales and fundraising activities in a startup.
The point of this idea that I apply all the time is that when we know a great deal about a subject, it is very tempting to overexplain in response to a question from someone we are trying to persuade. We provide too much detail rather than synthesizing the most important information for our listener. As an analogy, when asked, “What time is it?” we are inclined to wax eloquent on the nature of time, the importance of time, the inner workings of clocks, and any number of other extraneous details that do not address the question asked. It is much more effective to use your experience to figure out the essence of the question and then address that simply and directly by saying something like, “It is noon.” And then follow your conversation partner’s train of thought by awaiting the next question.
Here are a few applications of this idea in the context of building a startup:
- A VC asks, “What does the technology do?” Tell them the “time” in the simplest way possible, one sentence at most, and tie in a benefit they care about. For example, “Our analytic uses the electrical signals from a patient’s heart to predict patient deterioration significantly in advance of other methods like vital signs.” Do not tell them how the “watch” was made by explaining the supervised machine-learning origins of the analytic, detailing how the technology is deployed in a hospital, diving into a demo of the user experience, or other extended description. Any of those things or something else entirely may be the VC’s next question. Be clear and concise – and wait for the following question to direct you on where to go deeper. Avoid falling into the trap of providing more detail about the technology the VC assumes works and is proprietary at an early stage of discussions unless they drill and ask.
- A prospective customer asks, “How much does it cost?” Tell them the “time” with a simple summarized answer that gives them a sense of scale. For example, “Our 2-laser, 6-color flow cytometer sells for $35,000, a fraction of the market leaders’ similarly equipped instruments.” Do not tell them about the “watch” details like reciting all the price list line items for various software options, extended warranties, and possible accessories. Promise to send them a proposal or price list if they start seeking more details, but realize that the first question is likely a “can I afford this question” rather than the details.
- A client asks, “What do you recommend?” Tell them the “time” with a simple executive summary. For example, “We think you should implement the following three changes in the next year to accomplish your goals. 1, 2, 3 …”. Start with a crisp summary of what to do and do not dive into all the details of how until after they have had a chance to digest the what summary. Too much detail too soon is often overwhelming to your audience, who have not spent as much time as you have digging in. This approach lets them focus on the big picture first and then get more into the details at their own pace.
Of course, there is a time and place to get into the details of the “watch”. When a VC commits to due diligence, they are looking for more information. When a prospect asks for a proposal, they want the specificity of the terms and conditions details. When clients ask for an implementation plan, they want the details of the tasks, dependencies, and resource requirements.
However, you will improve your sales and fundraising skills if you can crisply provide a direct, summary answer to the question you have understood the core essence of. Ideally, your crisp answer will even be leading in the right direction. Then you can let the recipient decide how much more they want to know. You may be pleasantly surprised to discover the summary answer addresses their question/objection and allows the conversation to advance toward closure.
