Language plays a crucial role in the pitching process by serving as a conduit between the investor's comprehension and confidence and the entrepreneur's vision. This article looks at a handful of theories and concepts about persuasion within the realm of language that can help or hurt an entrepreneur's pitch.
Entrepreneurs frequently find themselves in a situation where innovation and the urgent need for capital overlap. The storey of entrepreneurship in Malaysia is shaped by success tales in which critical funding were obtained through persuasive pitching. One noteworthy example is the story of Grab, which was established by Tan Hooi Ling and Anthony Tan, two Malaysian businessmen. Initially just a basic ride-hailing app, Grab experienced significant growth following a successful fundraising pitch and acquisition of significant capital. This inspirational journey from a small company to a global corporation highlights the significant influence of a well-made pitch. Language plays a crucial role in this process by serving as a conduit between the investor's comprehension and confidence and the entrepreneur's vision. This article looks at a handful of theories and concepts about persuasion within the realm of language that can help or hurt an entrepreneur's pitch.
The Elaboration Likelihood Model (ELM): This theory states that people can be persuaded in two ways: by focusing on the quality and logic of what is being said (central route) or by simplistic cues like the charisma of the speaker or the visuals used in the presentation (peripheral route). Here's another way to look at it: a deep, well-thought-out analysis might sway some investors, while a confident delivery and a well- put-together presentation might wow others.
Information Processing Theory: This is about how people handle and remember information. Just like a computer, humans receive, process, and store information. If an entrepreneur makes their pitch too complicated, it's like giving someone too many files at once - they won't be able to process it all. Keeping things clear and simple ensures the investor can follow along and remember the key points.
Narrative Transportation Theory: Have you ever become deeply involved in an engaging literary work or film? That is narrative-based transportation. Individuals feel more likely to be persuaded by a story when they are actively involved in its narration. In the context of pitching, investors may be more emotionally connected and supportive when entrepreneurs narrate a captivating story regarding their product or journey.
Self-Persuasion Theory: It's like persuading yourself first. As you passionately argue for an idea you strongly believe in, you strengthen your own belief. Trusting yourself completely can make other people, like investors, believe in your idea too.
Source Credibility Theory: When someone speaks with confidence, others are more likely to be persuaded. Investors are more inclined to consider an entrepreneur's proposal seriously if they are perceived as competent, trustworthy, and likeable. Providing information and proof to support arguments increases their credibility.
Social Judgment Theory: This theory explains how people have different zones of opinion - some ideas they'll readily agree with, some they'll outright reject, and some they're undecided about. By engaging with investors and understanding their viewpoints, an entrepreneur can tailor their message to fit within what the investor is likely to accept.
Persuasion Knowledge Model (PKM): People get increasingly good at identifying and analysing persuasive attempts as world continues on. Those who routinely attend pitches, such as investors, are especially skilled at this. They are aware when they are being mislead. Entrepreneurs can be more compelling if they recognise this and modify their pitch to genuinely address the investor's specific interests and concerns.
When people commit to something little, they are more likely to follow through and agree to larger, related things in the future. This principle is called the commitment and consistency principle. Therefore, investors are more likely to remain interested and even invest if entrepreneurs continuously and reliably engage with them after an initial interest has been shown.
The capacity to persuade investors is a vital skill in the world of entrepreneurship. Language is the key tool in this activity, acting as a channel for ideas, passion, and credibility. Entrepreneurs may greatly improve their chances of securing funding by understanding their audience, mastering the art of storytelling, projecting confidence, and engaging in meaningful discourse. Entrepreneurs must remember that the correct words can turn scepticism into belief and ideas into reality, and that a solid understanding of persuasion theories may make their language even more impactful as they navigate the challenging world of entrepreneurship.
