Pitching ideas and businesses to investors has become an essential part of everyday business. It is the one skill that would most likely make your drive to raising money a little bit easier for your business.
We have highlighted some factors you should consider when pitching your business or ideas to make your next pitch a successful one.
1. Come Prepared – some business owners come in front of investors stammering and stumbling over numbers when they are asked a question simply because they are unprepared. They assume that because they came up with the idea and know their business they don’t have to make any preparation. The first step to a successful pitch is to be prepared even if you have done it before you should always respect your audience enough to give them value for their time. Go over your pitch with a team member and repeat until you are satisfied with the outcome.
2. Choose The Right Audience – Pitching to the wrong group of investors is a dead-end. No matter how good your business is or how well you perform your pitch the result will always be terrible at best. Before you go into a room to pitch to investors, ensure that they are the right set of investors for your business. Get to know them; where they have invested before? what are they particular about? tailor your pitch just for them.
3. Make your Pitch Simple and Specific – Make sure your pitch is as simple to understand as possible. You should be time conscious too, it is recommended that your pitch takes at most 10 minutes. So, don’t over flog any particular segment of your presentation. Remember, you can always provide more details after your pitch. But even as you make your pitch simple and time-friendly, you have to offer specific information about your business, the solution it is providing, why you and your team are more capable of solving this particular problem for your target audience etc.
4. Tell a Story With Your Pitch – When giving a pitch you want to be able to get your investors as excited as you are about your business. One proven way to transfer your passion to them is through a story. With stories, you can captivate your audience’s attention enough to make them care about your business. Tell stories that are relevant to your business and that your investors can relate to, this would help serve as a foundation for a very successful presentation.
5. Talk About Your Business Model – Before your pitch, you should have built a business model canvas; it is a 9 segment snapshot of what your business is all about. With your business model, you can highlight core areas like your unique value proposition, your revenue stream; how you intend to make money and your target customers. By preparing a business model you would be better equipped to talk simply about some of the most important parts of your business. When discussing your financials, be sure to talk about metrics and numbers that your potential investors care about the most without boring them with other unnecessary details.
As you continue practising and pitching, you would no doubt get better at quickly highlighting why your business would bring the best return for your investor’s money which is the purpose of a pitch. I hope that starting with these few tips you would be able to pitch successfully to investors every chance you get.