Guest post by David Webb of http://www.bizzmarkblog.com
How is a business pitch supposed to work? Well, you need to appeal to people by being genuine, likable, and easy to get along with. It’s essential to spark the interest of potential investors from the very second you start presenting your ideas because they rarely have much time to spare. If you’d like to secure a better future for your company and scale it up, don’t beat around the bush – get to the point immediately. You’re asking them for funding necessary to fuel your business and unless you show up with confidence that your concepts show a potential profit, they won’t just give it away.
Ask any business owner, and they’ll tell you that a great partnership can be brought about by a great pitch. Whether they’re going to help you or not, their decision is going to be based on the people involved and the quality of your presentation. Go through and master these tips, as they can make things run smoothly and increase your chances of making a successful pitch, and ensure growth capital.
5 Tips to Overcome the Challenge of Pitching to Investors
It is crucial to prepare and do all your homework before you make your pitch. Study the investment backgrounds, social media accounts, and bios of all the investors that will be present. You need to know what drives them in order to be able to adapt your pitch accordingly, but it will also show that you’ve done your due diligence for the meeting. The first couple of minutes of your presentation, you will be the only one talking, and that’s when you should “strike your target.” Know the key points by heart, start your pitch well and keep the momentum going. Backed up with a visually well-made presentation, you’ll be ready and set to walk into the room and shine.
2. Have a solid business plan
Investors need to be convinced that your business idea is worth the financial investment (which is the whole idea of a business pitch). This is why a well-designed business plan is absolutely necessary. When preparing it, have your audience in mind as different people will be concerned about different aspects of the idea. Investors are usually most interested in the highest possible ROI, so you should prove that you have a strong, clear strategy, know the market, and know how to attract and retain customers. Banks, on the other hand, will take a close look at your company’s cash flow and revenue in order to make sure you’ll be able to make timely payments.
Every well-written business plan should contain an executive summary of your business, an overview of products and services, management and organization of your company, market opportunity, marketing strategy, SWOT analysis, a review of competition, and financial needs and projections.
3. Practice in front of real people
Your presentation will be more effective if you’re comfortable and familiar with your pitch. To reach that level of comfort and familiarity, you need to practice a lot. At the end of every practice pitch, ask the people you pitched to what they would change about it (ask yourself what you would change about it as well). Bounce ideas and opinions, reflect on what was good and what you can do differently. This way, you can use your practice pitches as a learning exercise. Try to make the conversation as personal as possible by starting with an event or a story from your life that led you to the idea you’re trying to pitch.
4. Make a captivating presentation
You’ll probably receive an invitation from your investor to present your business idea if they like your business plan. As previously mentioned, good preparation is the key because you may only have one opportunity to pitch your idea. Come prepared with an engaging professional PowerPoint presentation that is fact-based and brief. Try to look at your business from the investor’s perspective by putting yourself in their shoes. What kind of presentation would you find compelling? Avoid using jargon, be as clear as possible, and give a solid promise that their money will be spent effectively.
5. Promote yourself as a savvy business person
Having a great business plan and facts to back it up is enough to make a good pitch. However, if you want to stand out (and you do), you need to present yourself as a savvy business person, and sell yourself as a perfect potential business partner and phenomenal entrepreneur. Tell stories about your dedication and work ethic to convince them that you have what it takes to take on business initiatives intelligently and come up with new ideas. When an investor sees that you are a reliable and capable business partner, they’ll know that they won’t have to do the lion’s share of work.
Feeling nervous while pitching is natural. However, it’s crucial not to be visibly uncomfortable and keep your cool. Otherwise, your potential investors may see that as a lack of confidence on your side. The advantage of knowing more about the industry and being prepared is that you’ll be able to answer both the expected and unexpected questions. Stay positive and it will lead to a more natural cadence of your pitch.
Have any questions or want to share your experiences about pitching? Let us know in the comments! Don’t forget to Pin and share the article.
About the Author:
David Webb is a Sydney based business consultant and online marketing analyst. With six years of experience and a degree in online business strategy, he is driven to help the people better understand this new digital age. In free time, David enjoys writing, traveling and occasional night out with his friends