Pitching your startup idea to potential investors is the most important thing you’ll do for your business and therefore, is a nerve-wracking process. A lot of thoughts go through your mind once you start to prepare for the big presentation. Entrepreneurs and businesspersons list a lot of tips and tricks for a successful pitch after years of experience. But what are the most important things you need to focus on? We are going to discuss exactly that.
Make Your Pitch A Story:
Humans have a natural liking towards stories; so your idea presented as a story would be much more successful than your idea presented as an idea. When pitching your startup or business idea to an investor, tell them why you thought of this idea? How do you want to make the world better through this? What was your inspiration? Your audience will not only be interested in your pitch but also remember everything you said, making your pitch more considerable. Also, be realistic about your story. If it’s authentic, it is gonna attract people anyway.
Research Your Audience:
Know your investors and mix up the stories. Tell them how you line up with them, why your companies need to work together. What are their strengths that you need and what are your strengths that’ll better their weaknesses? Why you are better than the rest? Why they should choose you over others? Your pitch should answer these questions both visually and audibly. Investors tend to accept 10 out of 100 ideas pitched to them. Unless they relate to you, it is very difficult for you to stand out from the competitors.
Be Investor Specific:
A big mistake that you can make is to prepare one presentation and use it for all of your investors. After researching your audience, you must change your pitch according to their specific needs and business domain. One investor might not be interested in knowing what the other is. Timing is very important in this regard. If you are given a specified time by the audience, take at least 2 minutes less. Always make time for follow up discussion.
Tell Your Business And Revenue Plan:
The most important thing for your investor is a conversion! So you need to tell them how you plan to go about making money from the investment you’re gonna get. Set a realistic time frame, and tell them where you will be at the end of this period. Tell your marketing idea, your revenue model, in short, tell them how their money is going to benefit both of you. If your investor feels you don’t have a set revenue model, they are very unlikely to invest in you.
Be Flexible But Not Needy:
After you have told your story, be prepared for questions and queries. If you try to answer the unasked questions beforehand, that will be a plus. Your audience will want to negotiate on some terms and might want you to change your plan a bit. You should be ready to defend your idea and also know clearly what the limits of change are. Negotiating doesn’t mean you have to accept everything they say. Be open to suggestions but don’t change your plan just because you won’t get investment without that. Be lenient but be confident!