Unlocking Understanding Through Plain Language
Reading Toby’s (founder of Recompound) recent blog post titled “The name you give things change how you see them” reminded me of a topic that has been on my mind: using labels instead of descriptions.
In the startup ecosystem, founders are pushed to distill everything into a one-liner, a blurb, an elevator pitch. The problem is that an introduction optimized for a short attention span often doesn’t describe how a business actually works.
The cost of labeling
I almost always request a deck in advance to prepare for my conversations with founders, and there have been more than a couple of occasions when I realized the deck didn’t really help me understand the business accurately because the descriptions were more labels than explanations. While we can usually sort this out during the actual meeting, the company risks being filtered out before that conversation even happens.
To make good use of the meeting, there should be meaningful discussion diving into more details and addressing concerns, not figuring out what the business is. It shouldn’t require a long list of questions just to understand the basics.
The worst occasions have been when founders don’t proactively share details, and I only arrive at an understanding of the core business after asking question after question. Not only is this a poor use of everyone’s time, it leaves less room for the conversations that actually matter. These calls usually left me with a bad taste, and raised questions about how they communicate in other business settings.
Imagine doing this with a potential client. It would’ve cost a sale or a partnership.
Beyond the label
Instead of only labeling the business model, describe what the product or solution does and its value proposition for users. For example, instead of “AI-enabled social commerce platform,” try “We help consumer brands sell in cities where they don’t have reach, by connecting them to our network of trusted local resellers and distributors.”
When you complement a label with a description, you naturally share more details. The instinct to label might come from the fear of oversharing, or the belief that brevity signals confidence. Personally, I think oversharing is better than undersharing. It’s better than assuming what investors know or don’t know and missing an opportunity because something important wasn’t shared, even if you think it’s insignificant.
Which leads me to the next point: don’t say what you think will resonate. I’ve seen founders lead with “AI” simply because they assumed investors would respond to it. Plain language forces honesty. You describe what the business actually does, not what sounds fundable. After all, your assumption about what investors want to hear might be wrong, and it could even backfire.
. . .
Labels have their place. A label gives people a quick frame of reference, but a description is what builds understanding.