Congratulations! Pitching to a possible investor means you have reached the stage of your business development where you are willing to begin searching for funds.
This can be a great experience or your worst nightmare. However, everything depends on how you prepare for it.
Irrespective of how ‘cutting edge’ your business idea is, if you can’t pitch it, you can’t win it!
Here are 5 Top Tips to get you grounded.
DO YOUR HOMEWORK BEFORE DELIVERING THE PITCH
It is essential that you understand the background of prospective investors, much like a job interview.
Typically, an investor looks for pitches to convey answer to basic questions like;
What problem do you solve?
Who are you?
What have you done until now?
How do you plan to make money?
How can the investor help?
Showing this individual(s) that you understand their investment history and have planned out how you can provide value to them can increase your credibility.
HAVE A STORY
Storytelling is a scientifically-proven way to capture a listener’s attention and hold it.
It’s not about rattling key statistics before an investor. Get over the boring statistics-driven business pitches! The idea is to impress your investor.
A pitch is only a good one if you can relate to it. You should develop your business pitch in the style of an engaging story. The best way to come up with a story is to craft a visually compelling PowerPoint presentations.
Next is to practice this presentation in advance. If possible, record it and play it back to your own self. This will help you evaluate your presentation and modify it to make it attractive.
Your objective is to tell them your business story in a simple, easy-to-grasp format. It is therefore important to put your ideas in a language that is easily understandable and is capable of communicating even the slightest details without any hassle. Keep It Simple and Short – KISS!
BE WILDLY ENTHUSIASTIC
Have you ever watched Shark Tank or caught a snippet of the show? One of the Ace investors of that show Barbara Corcoran said, “My whole focus is on trying to size up the entrepreneur. I am looking at how much wild enthusiasm do they genuinely have for their product. You can’t fake passion.”
If you aren’t enthusiastic and passionate about your business how can you convince an investor? Ask the basic question why am I an entrepreneur? What do I hope to provide solutions for? Find your passion and it’s from within.
BE OPEN TO FEEDBACK
A “know-it-all attitude conveys” the wrong message to an investor. When you are a new entrepreneur on the lookout for startup funds, you cannot afford to send such a message.
If an investor asks something you don’t understand, politely ask them to explain the question or the concept, perhaps it might be something you do and are aware of but never gotten around to pick up the terminology.
Also, if they have something to say about your pitch, listen to them carefully. You may learn a lot from experienced investors but only with the right attitude.
The key to success is to be prepared, plan your process, stay determined, consistent on your push efforts and most especially be yourself in a positive way.
The goal of a successful pitch is to have investors beggingto invest in your company. Sure, that sounds too good to be true, but it is possible.
Have you pitched to investors already? If you have or possess any knowledge, kindly share your experience with us in the comment section below so another reader can learn a thing or two about your story and how you landed that partnership or boost to your business.