10 Tips for a Successful Business Pitch to Potential Investors
The Wisdom Man
It is the first time you are pursuing your own business and will be making a “pitch” or presentation to potential investors. You are understandably nervous mainly if you are not practiced in making presentations it will be among the hardest things you may ever have to do. It is the entrepreneurial pitch to raise funding for your business venture.
You have an excellent concept for an organization or business, and you are searching for someone to give you the loan to make it happen. The issue is that private investors, angel investors, venture capital, as well as rich uncles, are greatly predisposed against you. Why might you ask? Because 99% of the pitches they listen to seem like foolproof prescriptions to shed cash and waste money!
If you are pitching investors to provide cash for your new endeavor, you should subscribe to these guidelines:
1. Clarify what your business is precisely within the initial thirty seconds. Many business owners waste useful time giving tons of information, background and also various other tidbits — all the while investors are left thinking “Exactly what does this service in fact DO?”
2. Inform your audience who your customers will be. Provide a vivid, detailed image of these potential customers. Another way to say it is you should describe your customer “Avatar.”
3. Explain why your customers are going to give you their hard-earned money.
4. Explain what you know about the competitive landscape. Be warned if you state that you have no rivals, that is an absolute indication you are unsophisticated and should have no investment money! Remember there is always competition for your potential customer’s time, attention, and money.
5. Explain, and be very clear, why you are the ONE that can make this a profitable venture and not a “fool’s errand.”
6. Deliver your presentation with self-confidence and also make it enjoyable. Just because it is serious business doesn’t mean it has to be boring. Don’t forget you are selling, and smart investors desire the founder/CEO to be the primary salesman or at least one of them; they want to see that you could make the world believe in your dream — not just them.
7. Discuss just what superstar distributor you could hitch a ride on. Has Best Buy, Amazon, or Walmart agreed to carry your brand-new product? Perhaps a smaller distributor that is equally effective for your purposes? Investors really feel a lot a lot more “comfy” knowing you have a well-established channel willing to sell your product.
8. Be specific in your financial investment request. Ask for a very specific quantity of cash and how it will be used. If all you do is request money, after that you can’t complain if a capitalist provides you $5.00 for a Latte at Starbucks.
9. Tell your prospective investors precisely just how you are going to use the capital. (hint: a trip to Fiji for you as well as your best friends will not impress).
10. Dress for success, but appropriate to the environment, act confident, as well as put on the air that you don’t actually require their cash, but would be prepared to accept it if they bring enough to the table to be a critical companion for you. A depressing fact yet something real regarding human nature, people are a lot more likely to offer you money if they feel you do not really require it.
Finally, approach each “pitch” as a focus group for your upcoming future presentations. When one team of investors ask you many (or even a few) questions after you pitch, make a note of every one of those concerns as well as ensure most of them are addressed in your next pitch to be certain that at the next meeting the attendees don’t have to ask. Keep at it and keep enhancing your pitch and ultimately you may obtain the capital you need.
About The Author
Theodore Henderson works with business owners, entrepreneurs, and corporate professionals. He is an Amazon best-selling author, a Certified Career Coach, a Certified Leadership Coach, and a Certified Social Media Security Professional Powered by CompTIA. In addition he is the author of the business program “Launching Your Great Business Idea,” as well as the author of the following books; “The Wisdom Compass for Christians: Your 31-Day Journey to Wisdom-Filled Living”, “9 Simple Strategies to Becoming a Strong Leader” and the Security eBook “30 Smart Ways to Protect Yourself from Cyber Criminals” aimed at owners of Smartphones, Mobile Devices, and also those who have significant online activities including Social Media, financial services, etc. He is available for keynotes, seminars, and workshops. He may be reached through www.TheodoreHenderson.com.