To raise money for a start-up business, you’ll need to know how to pitch your business idea so you can attract investors into funding your company. You’ve taken the plunge and started you pitching to investors. Now you can You’ve taken the plunge and started you Pitching Your company. Now you can see what it can really grow into, but you are short on funds, and you’ve already exhausted what you borrowed from your parents and friends. Where else can you turn?
What do Investors look for in a startup?
Well, you might consider pitching to investors; successful entrepreneurs sometimes look for ways to invest in growing companies with potential and great ideas. Developing your pitch deck is the start and the most significant part of your business planning. Knowing some of these and preparing your pitch for them can mean the difference between getting funding and walking away with nothing.
An Entrepreneur should know how to Pitch
If you are an entrepreneur, you need to know how to pitch your business. Even if you are not planning to pursue funding, having a solid elevator pitch ensures that you know your business inside and out. This comes in handy if or when you eventually decide to seek out investment.
12 Tips to successfully Pitch your business entrepreneurial idea to investors
1. Don’t take too much time
When you pitch to investors, assume that you are not going to have much time. A pitch deck should be a brief presentation to provide investors with an overview of your business, whether it is showcasing your product, sharing your business model, looking for your monetization strategy, and introducing your team.
2. Simple and Straightforward Presentations
All entrepreneurs spend plenty of time thinking about every detail of their business. But, for an investor pitch, less information is better than too much. You want your slides to be simple, convey high-level ideas, and leave room for questions. Simple and straightforward presentations always do better than detailed presentations full of bullets.
3. Story Telling is the best way to grab attention
Do not just talk about the facts. Instead, focus on grabbing interest and getting your audience excited. Your deck does not need to be the complete guide to your business. It just needs to generate interest so you can move on to the next step. One of the best ways to do that is to tell stories about how your customers use your product, how they currently experience problems that need to be solved, and how your company will make the lives of your customers better. The more you can tell stories that investors can relate to, the more you will build excitement for your company.
4. Ask the Questions
Make sure you have plenty of time for questions, demos, and discussions about your business idea. If you have a one-hour meeting, aim for your presentation to take 20 to 30 minutes. Instead of top-down forecasts where you “only need to get one percent of a huge market” to be successful, focus on bottom-up forecasts where you detail your expectations for how you will acquire customers. If you already have data on how an early version of your product is selling, use those numbers to help drive the rest of your forecast.
5. Financial detail
It is very important to be able to intelligently discuss how the money will be used. Your detailed financial forecasts should also take an influx of cash into the account. Fundraising takes time. You will likely pitch your company many times before you get an investment.
6. Keep updating your deck
Assuming you are working to build your company while you pitch to raise money, make sure that you keep your deck up to date with your latest progress and roadmaps. There is nothing worse than presenting an out-of-date deck to potential investors.
7. Always send a pdf file
You will almost always be asked to either send your slides ahead of time to investors or leave a copy behind. If this happens, do not send PowerPoint or Keynote files. Instead, send a PDF. This means that anyone who looks at the deck will see it as you intended with your chosen fonts and styles.
8. Your deck should have enough content
Your pitch deck will always be better when you present it, but it should ideally be able to tell some of your stories without you being there to tell them. Investors might want to flip through the deck again after you are done with your presentation, and it needs to have enough content that the deck can stand alone and communicate some of your core ideas.
9. Be very specific about your Products
Marketing strategy, and pricing, and emphasize again how your market is anxiously awaiting your arrival and your products will be a benefit to the masses and, in return, create profits. This is the part the investor is most interested in. Also, let investors know that as you become successful, there are other interesting things you think you can do by Pitching Your company with your platform.
10. Always define your exit strategy
If you’re seeking large sums of investment capital, most investors will want to know what your exit strategy is. Are you planning on getting acquired, if not, how will you retire or leave the best business pitches when it’s time? Show you’ve done some due diligence on this, and why it would make sense 5, or 10 years down the road.
11. Make sure your Investor is from the same industry
Your story should address the problem you’re solving in the marketplace and the benefit to the masses in a subtle way but still include the investors’ expertise and draw his attention. Make sure the investors are on the same wavelength as you are. It’s important that they are involved in the same industry as you are.
12. One last suggestion
Many investor groups, and companies, meet on Monday mornings to discuss potential deals and vote on investments. If you pitch on a Monday, you’ll be waiting a whole week to hear back on whether they’re interested in learning more. By then, they’ll have listened to other pitches and may not hold the same level of interest they did earlier. Try your best to schedule your pitch for the middle of the week so your Pitch Business Ideas and company will stay fresh in their minds next Monday morning.